TLC: Special District Local Laws Code Proposed Chapters

81C34(3) MCK

CHAPTER 1064. MOORE COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1064.001. DEFINITIONS ............................... 3

Sec. 1064.002. AUTHORITY FOR OPERATION ................... 4

Sec. 1064.003. ESSENTIAL PUBLIC FUNCTION ................. 4

Sec. 1064.004. DISTRICT TERRITORY ........................ 5

Sec. 1064.005. CORRECTION OF INVALID PROCEDURES .......... 5

Sec. 1064.006. DISTRICT SUPPORT AND MAINTENANCE NOT

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

Sec. 1064.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE .............................. 6

[Sections 1064.008-1064.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1064.051. DEFINITION ................................ 7

Sec. 1064.052. BOARD; TERM ............................... 7

Sec. 1064.053. QUALIFICATIONS FOR OFFICE ................. 8

Sec. 1064.054. BOARD VACANCY ............................. 9

Sec. 1064.055. OFFICERS .................................. 9

Sec. 1064.056. COMPENSATION; EXPENSES .................... 9

Sec. 1064.057. VOTING REQUIREMENT ........................ 10

Sec. 1064.058. ADMINISTRATOR; ASSISTANT ADMINISTRATOR .... 11

Sec. 1064.059. GENERAL DUTIES OF DISTRICT

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

Sec. 1064.060. APPOINTMENT OF STAFF; EMPLOYEES ........... 12

Sec. 1064.061. SENIORITY; RETIREMENT BENEFITS ............ 13

[Sections 1064.062-1064.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1064.101. DISTRICT RESPONSIBILITY ................... 14

Sec. 1064.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT ....................... 14

Sec. 1064.103. MANAGEMENT, CONTROL, AND ADMINISTRATION ... 15

Sec. 1064.104. HOSPITAL SYSTEM; ANCILLARY HEALTH CARE

SERVICES SYSTEM ......................... 15

Sec. 1064.105. RULES ..................................... 17

Sec. 1064.106. PURCHASING AND ACCOUNTING PROCEDURES ...... 17

Sec. 1064.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT ............................... 17

Sec. 1064.108. EMINENT DOMAIN ............................ 19

Sec. 1064.109. GIFTS AND ENDOWMENTS ...................... 21

Sec. 1064.110. CONSTRUCTION AND PURCHASE CONTRACTS ....... 21

Sec. 1064.111. OPERATING AND MANAGEMENT CONTRACTS ........ 22

Sec. 1064.112. CONTRACTS FOR CERTAIN SERVICES ............ 22

Sec. 1064.113. CONTRACTS FOR HEALTH CARE ................. 23

Sec. 1064.114. PAYMENT FOR TREATMENT; PROCEDURES ......... 23

Sec. 1064.115. REIMBURSEMENT FOR SERVICES ................ 25

Sec. 1064.116. SALE OR LEASE OF HOSPITAL ................. 26

Sec. 1064.117. AUTHORITY TO SUE AND BE SUED .............. 28

[Sections 1064.118-1064.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1064.151. TERRITORY THAT MAY BE ANNEXED ............. 29

Sec. 1064.152. PETITION TO ANNEX TERRITORY ............... 29

Sec. 1064.153. ELECTION ORDER ............................ 31

Sec. 1064.154. BALLOT .................................... 34

Sec. 1064.155. NOTICE OF ELECTION ........................ 34

Sec. 1064.156. ELECTION RESULTS .......................... 35

Sec. 1064.157. EFFECT OF ANNEXATION ...................... 35

[Sections 1064.158-1064.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1064.201. BUDGET .................................... 37

Sec. 1064.202. NOTICE; HEARING; ADOPTION OF BUDGET ....... 37

Sec. 1064.203. AMENDMENTS TO BUDGET ...................... 38

Sec. 1064.204. RESTRICTION ON EXPENDITURES ............... 39

Sec. 1064.205. FISCAL YEAR ............................... 39

Sec. 1064.206. AUDIT ..................................... 39

Sec. 1064.207. INSPECTION OF AUDIT AND DISTRICT

RECORDS ................................. 40

Sec. 1064.208. FINANCIAL REPORT .......................... 40

Sec. 1064.209. DEPOSITORY ................................ 40

Sec. 1064.210. SPENDING AND INVESTMENT RESTRICTIONS ...... 41

[Sections 1064.211-1064.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1064.251. GENERAL OBLIGATION BONDS, CERTIFICATES

OF OBLIGATION, AND OTHER FINANCING ...... 42

Sec. 1064.252. TAX TO PAY GENERAL OBLIGATION BONDS ....... 43

Sec. 1064.253. GENERAL OBLIGATION BOND ELECTION .......... 44

Sec. 1064.254. REVENUE BONDS ............................. 46

Sec. 1064.255. REFUNDING BONDS ........................... 47

Sec. 1064.256. MATURITY OF BONDS ......................... 49

Sec. 1064.257. EXECUTION OF BONDS ........................ 49

Sec. 1064.258. BONDS EXEMPT FROM TAXATION ................ 50

[Sections 1064.259-1064.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1064.301. IMPOSITION OF AD VALOREM TAX .............. 53

Sec. 1064.302. TAX RATE .................................. 54

Sec. 1064.303. ASSESSMENT AND COLLECTION OF TAXES IN

SAME MANNER AS COUNTY ................... 54

Sec. 1064.304. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR .................. 57

CHAPTER 1064. MOORE COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1064.001. 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 Moore County Hospital District. (New.)

Revisor's Note

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

Revised Law

Sec. 1064.002. AUTHORITY FOR OPERATION. The Moore County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 61st Leg., R.S., Ch. 287, Sec. 1 (part).)

Source Law

Sec. 1. In accordance with the provisions of Article IX, Section 9, of the Texas Constitution, this Act shall be operative so as to authorize the creation, establishment, maintenance, and operation of a hospital district within this state … to be known as "Moore County Hospital District," with such rights, powers, and duties as provided in this Act.

Revisor's Note

Section 1, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, authorizes the "creation, establishment, maintenance, and operation" of the district. The revised law omits "creation" and "establishment" as executed. The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1064.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 61st Leg., R.S., Ch. 287, Sec. 21 (part).)

Source Law

Sec. 21. In carrying out the purposes of this Act, the district will be performing an essential public function and … .

Revised Law

Sec. 1064.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Moore County, Texas, unless the boundaries are expanded under Subchapter D. (Acts 61st Leg., R.S., Ch. 287, Secs. 1 (part), 1A (part).)

Source Law

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

Sec. 1A. … territory … may be annexed or added to the area included in the boundaries of the proposed district set forth in Section 1.

Revised Law

Sec. 1064.005. 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 61st Leg., R.S., Ch. 287, Sec. 22 (part).)

Source Law

Sec. 22. … [federal or state constitutions] … . Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternative procedure conformable with such constitutions… .

Revisor's Note

Section 22, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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. 22. Nothing in this Act shall be construed to violate any provision of the federal or state constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revised Law

Sec. 1064.006. 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 61st Leg., R.S., Ch. 287, Sec. 20 (part).)

Source Law

Sec. 20. The support and maintenance of the hospital district shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1064.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 61st Leg., R.S., Ch. 287, Sec. 20 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

Sections 3(a), (b), and (c), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax. Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed. The omitted law reads:

Sec. 3. (a) The district shall not be created, nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the area of the proposed district voting at an election called for that purpose. Such election may be called by the County Judge of Moore County or shall be called by the county judge upon presentation of a petition therefor signed by at least 100 qualified property taxpaying electors of the area of the proposed district. … further provided, if this district is not confirmed within 5 years of the effective date of this Act, this Act is hereby repealed.

(b) At the election there shall be submitted to the qualified property taxpaying electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to levy annual taxes … for the purpose of meeting the requirements of the district's bonds, indebtedness assumed by it, and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors voting at said election in favor of the proposition shall be sufficient for its adoption.

(c) The form of ballot used at the election on the creation of the district shall be in conformity with Sections 61, 62, and 63, Texas Election Code, as amended (Articles 6.05, 6.06, 6.07, Vernon's Texas Election Code), so that ballots must be printed to allow for voting for or against the proposition: "The creation of Moore County Hospital District, providing for the levy of a tax not to exceed 75¢ on each $100 valuation upon all taxable property situated within said district subject to hospital district taxation, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued for hospital purposes by Moore County and by any city or town within said county."

[Sections 1064.008-1064.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1064.051. DEFINITION. In this subchapter, "medical staff" means physicians who:

(1) are licensed to practice medicine in this state; and

(2) hold medical staff privileges granted by the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(a).)

Source Law

Sec. 4. (a) In this section, "medical staff" means physicians licensed to practice medicine in this state and holding medical staff privileges granted by the district.

Revised Law

Sec. 1064.052. BOARD; TERM. (a) The board consists of seven directors, appointed as follows:

(1) six directors appointed by the Commissioners Court of Moore County; and

(2) one director appointed by the medical staff of the district's hospital in accordance with procedures prescribed by the directors appointed under Subdivision (1).

(b) The director appointed under Subsection (a)(2) must be a member of the medical staff of the district's hospital. If the director is no longer a member of the medical staff, the person vacates the position.

(c) Directors appointed under Subsection (a)(1) serve staggered three-year terms. The director appointed under Subsection (a)(2) serves a two-year term. (Acts 61st Leg., R.S., Ch. 287, Secs. 4(b), (c), (d); Acts 76th Leg., R.S., Ch. 1091, Sec. 11(c).)

Source Law

[Sec. 4]

(b) The board of directors of the hospital district consists of seven members, appointed as follows:

(1) six members appointed by the commissioners court of the county to serve staggered three-year terms; and

(2) one member appointed by the medical staff of the district's hospital under Subsection (d) of this section to serve a two-year term.

(c) The member of the board of directors appointed under Subsection (b)(2) of this section must be a member of the medical staff of the district's hospital. If the member is no longer a member of the medical staff, the person vacates the position.

(d) The members of the board of directors appointed under Subsection (b)(1) of this section shall prescribe the procedures by which the medical staff of the district's hospital shall select a board member under this section.

[Sec. 11]

Revised Law

Sec. 1064.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) Except as provided by Section 1064.052(a)(2), a person is not eligible to serve as a director if the person is:

(1) a district administrator;

(2) a district employee; or

(3) a member of the medical staff. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(f).)

Source Law

(f) No person shall be appointed as a member of the board of directors unless the person is a resident of the district and a qualified voter. Except as provided by Subsections (b)(2) and (c) of this section, a district administrator, employee, or a member of the medical staff is not eligible to serve as a director.

Revised Law

Sec. 1064.054. BOARD VACANCY. If a vacancy occurs in the office of a director, the entity that appointed the vacating director shall appoint a director for the unexpired term. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(e).)

Source Law

(e) Vacancies in office shall be filled for the unexpired term by the same appointing entity that appointed the vacating member.

Revised Law

Sec. 1064.055. 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 shall fill a vacancy in a board office for the unexpired term. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(g) (part).)

Source Law

(g) The board of directors shall organize by electing one of their number as president and one of their number as vice president. A secretary, who need not be a director, shall also be elected. Officers shall be elected for a term of one year and vacancies shall be filled for the unexpired term by the board of directors… .

Revised Law

Sec. 1064.056. 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 61st Leg., R.S., Ch. 287, Sec. 4(g) (part).)

Source Law

(g) … All 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 upon the approval of such expenses by the board of directors and so reported in the minute book of the district or other records of the district.

Revisor's Note

Section 4(g), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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. 1064.057. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(g) (part).)

Source Law

(g) … [members of the board of directors] … a concurrence of four shall be sufficient in all matters pertaining to the business of the district. …

Revisor's Note

Section 4(g), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that four directors constitute a quorum. The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

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

Revised Law

Sec. 1064.058. ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The 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 $500,000 that:

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

(2) contains any other conditions the board requires. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Source Law

Sec. 5. … The board of directors shall appoint a qualified person to be known as the administrator or manager of the hospital district and may in its discretion appoint an assistant to the administrator or manager. Such administrator or manager and assistant administrator or manager, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board. The administrator or manager shall, upon assuming his duties, execute a bond payable to the hospital district in an amount to be set by the board of directors, in no event less than $500,000 conditioned that he shall perform the duties required of him, and containing such other conditions as the board may require… .

Revisor's Note

Section 5, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that the board shall appoint a person as the "administrator or manager" of the district and may appoint an "assistant administrator or manager." Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1064.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to any limitations prescribed by the board, the district administrator shall:

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

(2) direct the affairs of the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1064.060. APPOINTMENT OF STAFF; EMPLOYEES. (a) The board may appoint doctors to the staff as the board considers necessary for the efficient operation of the district and may make temporary appointments to the staff if warranted.

(b) The board may employ physicians or other health care providers as the board considers necessary for the efficient operation of the district.

(d) The board may delegate to the district administrator the authority to employ technicians, nurses, and other district employees, except physicians.

(e) This section does not authorize the board to supervise or control the practice of medicine, as prohibited by Subtitle B, Title 3, Occupations Code. (Acts 61st Leg., R.S., Ch. 287, Secs. 5 (part), 16.)

Source Law

Sec. 5. … The board of directors shall have the authority to appoint to the staff such doctors as it may be deemed necessary for the efficient operation of the district, and may provide for temporary appointments to the staff if warranted by circumstances. The board may employ physicians or other health care providers as the board considers necessary for the efficient operation of the district. This section does not authorize the board to supervise or control the practice of medicine, as prohibited by Subtitle B, Title 3, Occupations Code. The board may delegate to the administrator or manager the authority to employ technicians, nurses, and employees of the district other than physicians… .

Sec. 16. The district may employ fiscal agents, accountants, architects, and attorneys as the board may consider proper.

Revised Law

Sec. 1064.061. SENIORITY; RETIREMENT BENEFITS. The board may:

(1) adopt rules related to the seniority of district employees, including rules for a retirement plan based on seniority; and

(2) give effect to previous years of service for a district employee continuously employed in the operation or management of hospital facilities:

(A) constructed by the district; or

(B) acquired by the district, including facilities acquired when the district was created. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Source Law

Sec. 5. … The board is given full authority to establish rules and regulations relating to seniority of employees of the district, including a retirement plan based thereon, and 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, including those acquired upon the creation thereof by reason of Section 2 of this Act, or constructed by the district… .

Revisor's Note

(1) Section 5, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to "rules and regulations" established by the board. Throughout this chapter, the revised law omits references to "regulations" because under Section 311.005, Government Code (Code Construction Act), a rule is defined to include a regulation.

(2) Section 5, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to facilities acquired on creation "by reason of Section 2 of this Act." The revised law omits the quoted language because the relevant portions of Section 2 were omitted for the reason stated in End of Chapter Revisor's Note (1).

[Sections 1064.062-1064.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1064.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing hospital care for the district's indigent residents. (Acts 61st Leg., R.S., Ch. 287, Sec. 19 (part).)

Source Law

Sec. 19. … The said hospital district shall assume full responsibility for providing hospital care for the indigents residing within the district… .

Revisor's Note

Section 19, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that the district "shall assume" full responsibility for providing hospital care for the district's indigent residents. The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1064.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care. (Acts 61st Leg., R.S., Ch. 287, Sec. 19 (part).)

Source Law

Sec. 19. After creation of the hospital district, no municipality or political subdivision within the boundaries of the district shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care. …

Revisor's Note

(1) Section 19, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that "[a]fter creation of the hospital district," certain political subdivisions may not levy taxes or issue bonds. 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 19, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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. 1064.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Source Law

Sec. 5. The board of directors shall manage, control, and administer the hospital system and all funds and resources of the district, but … .

Revised Law

Sec. 1064.104. HOSPITAL SYSTEM; ANCILLARY HEALTH CARE SERVICES SYSTEM. (a) The district shall provide for the establishment of a hospital system by:

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

(2) equipping the buildings; and

(3) administering the buildings and equipment for hospital purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care and treatment of the sick or injured;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) facilities for geriatric domiciliary care;

(5) convalescent home facilities;

(6) necessary nurses' domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers necessary for hospital care. (Acts 61st Leg., R.S., Ch. 287, Secs. 2 (part), 9 (part).)

Source Law

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

Sec. 9. … The hospital system may include facilities for domiciliary care of the sick, wounded, and injured, facilities for out-patient clinic or clinics, dispensaries, facilities for geriatric domiciliary care, convalescent home facilities, necessary nurses' domiciliaries and training centers, blood banks, community mental health centers, and research centers or laboratories, and any other facilities deemed necessary for hospital care by the directors. …

Revisor's Note

Section 9, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to the care of the "sick, wounded, and injured." The revised law omits the reference to "wounded" because the meaning of "wounded" is included in the meaning of "injured."

Revised Law

Sec. 1064.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Source Law

Sec. 5. … The district, through its board of directors, shall have the power and authority … to promulgate rules and regulations governing the operation of the hospital, hospital system, its staff, and its employees.

Revisor's Note

Section 5, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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. 1064.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

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

(2) all accounting and control procedures. (Acts 61st Leg., R.S., Ch. 287, Sec. 10 (part).)

Source Law

Sec. 10. The board of directors of such district shall have the power to prescribe the method and manner of making purchases and expenditures by and for such hospital district, and shall also be authorized to prescribe all accounting and control procedures. …

Revised Law

Sec. 1064.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants. The term of the lease may not exceed 25 years.

(c) The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 61st Leg., R.S., Ch. 287, Secs. 9 (part), 10 (part).)

Source Law

Sec. 9. The board of directors is hereby given complete discretion as to the type of buildings, both as to number and location, required to establish and maintain an adequate hospital system. … The district, through its board of directors, … may lease all or part of its buildings and facilities upon terms and conditions considered to be to the best interest of its inhabitants, provided that in no event shall any lease be for a period in excess of 25 years from the date entered. The district shall be empowered to sell or otherwise dispose of any property or equipment of any nature upon terms and conditions found by the board to be in the best interest of its inhabitants.

Sec. 10. … The district may acquire equipment for use in its hospital system and mortgage or pledge the property so acquired as security for the payment of the purchase price, … .

Revisor's Note

(1) Section 9, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.

(2) Section 9, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to "terms and conditions." The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 1064.108. 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 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.

(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 61st Leg., R.S., Ch. 287, Sec. 14.)

Source Law

Sec. 14. The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the district necessary 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 deposits in the registry of the trial court of the sum required by paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make bond as therein provided. 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 14, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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 14, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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 14, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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 14, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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. 1064.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 18 (part).)

Source Law

Sec. 18. The board of directors of the hospital district is authorized on behalf of such district to accept donations, gifts, and endowments, … to be held in trust and administered by the board of directors for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by the donor not inconsistent with proper management and object of the hospital district.

Revisor's Note

(1) Section 18, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to "donations" and "gifts." The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

(2) Section 18, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to previous gifts or endowments made to Moore County. The revised law omits the provision as executed. The omitted law reads:

Sec. 18. … in addition to those heretofore made to Moore County for hospital purposes, … .

Revised Law

Sec. 1064.110. CONSTRUCTION AND PURCHASE CONTRACTS. (a) A construction or purchase contract that involves the expenditure of more than $15,000 may be made only after advertising in the manner provided by Subchapter B, Chapter 271, Local Government Code.

(b) Section 271.059, Local Government Code, relating to performance and payment bonds, applies to construction contracts let by the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 10 (part).)

Source Law

Sec. 10. … All contracts for construction or purchases involving the expenditure of more than $15,000 may be made only after advertising in the manner provided by Subchapter B, Chapter 271, Local Government Code. Section 271.059, Local Government Code, relating to performance and payment bonds, applies to construction contracts let by the district. …

Revised Law

Sec. 1064.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 61st Leg., R.S., Ch. 287, Sec. 9 (part).)

Source Law

Sec. 9. … [The district, through its board of directors,] is further authorized to enter into an operating or management contract with regard to its facilities or a part thereof, or … .

Revised Law

Sec. 1064.112. CONTRACTS FOR CERTAIN SERVICES. The board may contract with any state, the United States, an agency or political subdivision of those entities, or a charitable or other private entity inside or outside the district for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of district inhabitants or of persons for whom the public or private entity has an obligation to provide care. (Acts 61st Leg., R.S., Ch. 287, Sec. 5A(c).)

Source Law

(c) The board may contract with any municipality, county, special district, state, the United States, or an agency or political subdivision of those entities, or a charitable or other private entity inside or outside the district for the district to furnish a mobile emergency medical service or to provide for the investigatory or welfare needs of inhabitants of the district or of persons for whom the public or private entity has an obligation to provide care.

Revisor's Note

Section 5A(c), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to "any municipality, county, special district, state, the United States, or an agency or political subdivision of those entities." The revised law omits references to "municipality," "county," and "special district" in this context because each of those entities is included in the meaning of "political subdivision."

Revised Law

Sec. 1064.113. CONTRACTS FOR HEALTH CARE. The board may contract with any public or private entity, including a charitable organization or a political subdivision, to provide health care or related services inside or outside the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Source Law

Sec. 5. … Such board shall be authorized to contract with any other public or private entity, including a county, municipality, hospital district, or any other political subdivision, or a charitable organization, to provide health care or related services inside or outside of the district.

Revisor's Note

Section 5, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to "a county, municipality, hospital district, or any other political subdivision." The revised law omits "county," "municipality," and "hospital district" in this context because each of those entities is included in the meaning of "political subdivision."

Revised Law

Sec. 1064.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1) the patient; and

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

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

(c) If the district administrator determines that the patient or those relatives can pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district a specified amount each week for the patient's 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 hold a hearing and, after calling witnesses, shall:

(1) determine the patient's ability to pay; and

(2) issue any appropriate orders.

(f) The final order may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 61st Leg., R.S., Ch. 287, Sec. 17(a).)

Source Law

Sec. 17. (a) Whenever a patient residing within the district has been admitted to the facilities thereof, the administrator or manager may cause inquiry to be made as to the patient's circumstances and those of the relatives of such patient legally liable for the patient's support. If the administrator finds that such patient or the patient's relatives are able to pay for the patient's care and treatment in whole or in part, an order shall be made directing such patient or said relatives to pay to the hospital district for the care and support of such patient a specified sum per week in proportion to their financial ability. The administrator or manager shall have power and authority to collect such sums from the estate of the patient or the patient's relatives legally liable for the patient's support in the manner provided by law for collection of expenses in the last illness of a deceased person. If the administrator or manager finds that such patient or the patient's relatives are not able to pay either in whole or in part for the patient's care and treatment in such hospital, same shall become a charge upon the hospital district as to the amount of the inability to pay. Should there be any dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper. Appeals from the final order of the board shall lie to the district court. The substantial evidence rule shall apply.

Revisor's Note

Section 17(b), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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 61.053, Health and Safety Code.

Revised Law

Sec. 1064.115. 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 Moore County to reimburse the district for the district's care and treatment of a person confined in a Moore County jail facility who is not indigent and does not reside in the district.

(c) The board shall require the police department of a municipality located in Moore County to reimburse the district for the district's care and treatment of a person confined in a jail facility of that municipality who is not indigent and does not reside in the district.

(d) The board may contract with this or any other state, the United States, or an agency or political subdivision of those entities to reimburse the district for the care and treatment of a sick or injured person. (Acts 61st Leg., R.S., Ch. 287, Secs. 5A(a), (b).)

Source Law

Sec. 5A. (a) The board shall require reimbursement from:

(1) a county, municipality, or public hospital located outside the district's boundaries, for the district's care and treatment of a sick, diseased, or injured person of that county, municipality, or public hospital as provided by Chapter 61, Health and Safety Code;

(2) the office of the sheriff of Moore County for the district's care and treatment of a person confined in a Moore County jail facility who is not indigent and does not reside in the district; or

(3) the police department of a municipality located in Moore County for the district's care and treatment of a person confined in a jail facility in that municipality who is not indigent and does not reside in the district.

(b) The board may contract with this or any other state, the United States, or an agency or political subdivision of those entities, to reimburse the district for the care and treatment of a sick, diseased, or injured person.

Revisor's Note

Sections 5A(a) and (b), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refer to the treatment of a "sick, diseased, or injured" person. The revised law omits the references to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1064.116. SALE OR LEASE OF HOSPITAL. (a) In this section, "long-term lease" means a lease for a term that exceeds 10 years.

(b) The board may not sell a hospital owned and operated by the district, including real property, or lease the hospital under a long-term lease that relinquishes control of the hospital to the lessee unless:

(1) the agreement for the sale or lease of the hospital provides for indigent care in the district;

(2) in the event of a sale of the hospital, the board has published notice of the proposed sale twice in a newspaper with general circulation in Moore County, with the first publication occurring not later than the 61st day before the date of the proposed sale, and the second publication occurring not earlier than the 30th day or later than the eighth day before the date of the proposed sale; and

(3) the majority of the votes cast by district voters at an election held for that purpose approve the sale or lease, as appropriate.

(1) date of the proposed sale;

(2) name and address of the proposed buyer; and

(3) proposed purchase price. (Acts 61st Leg., R.S., Ch. 287, Sec. 25.)

Source Law

Sec. 25. (a) In this section, "long-term lease" means a lease for a term that exceeds 10 years.

(b) The board of directors may not sell a hospital owned and operated by the hospital district, including real property, or lease the hospital under a long-term lease that relinquishes control of the hospital to the lessee unless:

(1) the agreement for the sale or lease of the hospital provides for indigent care in the district;

(3) the majority of the votes cast by qualified voters of the district at an election called and held for that purpose under the Election Code approve the sale or lease, as appropriate.

(1) date of the proposed sale;

(2) name and address of the proposed buyer; and

(3) proposed purchase price.

Revisor's Note

(1) Section 25(b)(3), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to a majority vote of the "qualified" voters of the district. The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(2) Section 25(b)(3), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to an election "called and held … under the Election Code." Throughout this chapter, the revised law omits the references 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. The revised law also omits "under the Election Code" because it duplicates Section 1.002, Election Code, which provides that the Election Code applies to all elections held in this state.

Revised Law

Sec. 1064.117. AUTHORITY TO SUE AND BE SUED. (a) The district, through the board, may sue and be sued.

(b) The district is entitled to all causes of action and defenses to which similar authorities are entitled. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Source Law

Sec. 5. … The district, through its board of directors, shall have the power and authority to sue and be sued, and shall be entitled to all causes of action and defenses enjoyed by similar authorities, … .

[Sections 1064.118-1064.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Revised Law

Sec. 1064.151. TERRITORY THAT MAY BE ANNEXED. (a) The district may annex territory that is not located in:

(1) Moore County;

(2) the boundaries of another hospital district; or

(3) the proposed boundaries of another hospital district authorized by the legislature under Section 9, Article IX, Texas Constitution.

(b) Territory may be annexed in one or more tracts. Each tract must be contiguous to:

(1) the district; or

(2) territory proposed to be annexed to the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

Source Law

Sec. 1A. Under the provisions of this Section, territory which is not then within (i) Moore County, or (ii) within the boundaries of any other hospital district, or (iii) within the proposed boundaries of any hospital district which the Legislature has authorized to be included within the area of a hospital district under Article IX, Section 9 of the Constitution, may be annexed or added to the area included in the boundaries of the proposed district set forth in Section 1. Territory which is proposed to be annexed or added may be in one or more tracts, each of which shall be either contiguous (adjacent) to the area of the district as described in Section 1, or contiguous (adjacent) to territory which has been or is proposed to be annexed to the district.

…

Revised Law

Sec. 1064.152. PETITION TO ANNEX TERRITORY. (a) A petition requesting that territory be annexed to the district may be presented to the board. The petition must:

(1) describe the tract or tracts of land to be annexed; and

(2) be signed by 100 or a majority of the registered voters who:

(A) reside in the territory to be annexed; and

(B) own property that will be subject to district taxation.

(b) This chapter does not prohibit simultaneous action on several petitions for annexation. Each ballot proposition must be submitted for each different territory proposed to be annexed, and an election held in each territory represented by a petition.

(c) If the board receives two or more petitions for annexation that include all or part of the same territory to be annexed to the district, the petition filed first with the board shall be considered and another petition that includes any of the same territory has no effect.

(d) The board may consider all petitions for annexation presented to it and may approve or reject each petition. The board may not partly approve or partly reject any petition. (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

Source Law

Sec. 1A. …

A petition asking that territory be annexed to the district may be presented to the board of directors of the district, and such petition must describe the tract or tracts proposed to be annexed, and be executed by 100 or a majority of the resident qualified electors of the area proposed to be annexed and who own property duly rendered for taxation on the county tax rolls of the particular county which will be subject to hospital district taxation… .

Nothing herein shall be construed as prohibiting simultaneous action on several petitions, but in such event, propositions shall be submitted separately in the different areas proposed to be annexed, it being the intent hereof to allow an election to be held within each area or territory represented by a petition for annexation. In the event two or more petitions are presented for annexation which include all or part of the same territory to be annexed to the Hospital District, the petition first filed with the board of directors shall be considered and no other petition which includes any of the same territory shall be of any effect for any purpose. The board of directors of the district may consider all petitions presented to it, and approve or reject the same, it being specifically provided that such a petition, if presented may not be approved in part or rejected in part.

…

Revisor's Note

(1) Section 1A, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to a petition signed by "qualified electors" of the territory to be annexed. The revised law substitutes "voters" for "electors" because "voter" is the term used in the Election Code. In addition, the revised law substitutes "registered" for "qualified" because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means a "registered voter."

(2) Section 1A, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to property "duly rendered for taxation on the county tax rolls of the particular county." The revised law omits the quoted language because the Tax Code does not require that real property be rendered for taxation.

(3) Section 1A, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, states that the section applies to any petition presented to the board after the district has been established. The revised law omits that provision as executed. The omitted law reads:

Sec. 1A. … The provisions of this paragraph shall be applicable to any petition or petitions presented to the board of directors of the district after the district has been established as the result of an election held under the provisions of Section 3 hereof.

…

Revised Law

Sec. 1064.153. ELECTION ORDER. (a) If, on receipt of a petition under Section 1064.152, the board finds that annexing the territory is in the district's best interest, the board shall within 90 days of the board's finding:

(1) approve the petition; and

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

(b) The election order shall provide for a separate election:

(1) in the territory proposed to be annexed; and

(2) in the district.

(1) the date of the election;

(2) the location of the polling places;

(3) the form of ballot; and

(4) the presiding judge and alternate judge for each polling place.

(d) The election order may provide that:

(1) the entire district is one election precinct; or

(2) the county election precincts be combined for the election. (Acts 61st Leg., R.S., Ch. 287, Secs. 1A (part), 3(a) (part).)

Source Law

Sec. 1A. … The board of directors, upon the receipt of the petition, if it finds that it would be in the best interest of the district, shall (within 90 days after such finding) approve the same and order an election to determine if such property shall be annexed or added to the district. The election order shall provide for a separate election within the territory proposed to be annexed and in the area of the existing district, and … .

[The provisions of Section 3,] … as well as the provisions thereof with respect to the time, manner and holding of elections and … shall apply to all elections held under the provisions of this Section.

…

Sec. 3. (a) … 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 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 may be combined for elections… .

Revisor's Note

(1) Section 1A, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, states that Section 3 of that act, regarding the qualifications of voters in the election provided for in that section, apply to all elections held under Section 1A. Section 3, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to "qualified property taxpaying electors." The revised law omits the reference to "qualified" electors as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election. The revised law also omits the reference to "property taxpaying" electors because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection. The omitted law reads:

Sec. 1A. …

[The provisions of Section 3,] with respect to the qualifications of voters in the election therein provided, … shall apply to all elections held under the provisions of this Section.

…

(2) Section 3(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, states that the election must be held not less than 35 nor more than 60 days after the date the election is ordered. The revised law omits the provision as superseded by Section 3.005, Election Code, applicable to the district under Section 1.002, Election Code. Section 3.005, as amended by Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, requires an election order issued by the authority of a political subdivision to be issued not later than the 62nd day before election day and provides that Section 3.005 supersedes a law outside the Election Code to the extent of any conflict. The omitted law reads:

(a) … Such election shall be held not less than 35 nor more than 60 days from the date the election is ordered… .

Revised Law

Sec. 1064.154. BALLOT. The ballot for the election shall be printed to permit voting for or against the proposition: "The establishment of the Moore County Hospital District with extended boundaries and establishment of a hospital district tax at a rate not to exceed 75 cents on the $100 valuation on all taxable property in the extended boundaries of the hospital district that is subject to hospital district taxation for hospital purposes." (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

Source Law

Sec. 1A. … the proposition submitted in both areas shall be "For" and "Against" the following ballot proposition: "The establishment of the Moore County Hospital District with extended boundaries and establishing a hospital district tax of not to exceed 75¢ on the $100 valuation upon all taxable property situated within the extended boundaries of said hospital district, subject to hospital district taxation, for hospital purposes." …

Revised Law

Sec. 1064.155. NOTICE OF ELECTION. (a) Notice of the election shall be given by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper or newspapers that individually or collectively have general circulation in the county or district.

(b) The first publication must appear at least 30 days before the date of the election. (Acts 61st Leg., R.S., Ch. 287, Secs. 1A (part), 3(a) (part).)

Source Law

Sec. 1A. …

The provisions of Section 3, … with respect to [the time, manner and holding of elections and] giving notice thereof, shall apply to all elections held under the provisions of this Section.

…

Sec. 3. (a) … 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 county or district once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the date established for the election. …

Revised Law

Sec. 1064.156. ELECTION RESULTS. (a) Territory may not be annexed to the district unless:

(1) an election is held in accordance with this subchapter; and

(2) the annexation is approved by a majority of the voters voting in the election in:

(A) the district; and

(B) the territory proposed to be annexed.

(b) If the territory is annexed to the district, a certified copy of the order canvassing the returns of the election shall be filed and recorded in the deed records.

(c) An election may not be held under this subchapter within 12 months of an election previously held under this subchapter. (Acts 61st Leg., R.S., Ch. 287, Secs. 1A (part), 3(a) (part).)

Source Law

Sec. 1A. … No territory shall be annexed or added to the district unless (i) an election is held under the provisions of this Section, and (ii) a majority of the electorate participating in the election within the area of the district as then established, or the area of the proposed district as set forth in Section 1, as well as a majority of the electorate participating in the election within the territory proposed to be annexed, shall sustain the propositions submitted.

The provisions of Section 3, with respect to … the time … of elections … shall apply to all elections held under the provisions of this Section.

In the event territory is annexed to the district under the provisions hereof, a certified copy of the order canvassing the returns of the election shall be filed and recorded in the said Deed Records.

…

Sec. 3. (a) … The failure of such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose; provided, however, that no district election for confirmation can be held within 12 months of any preceding district election for confirmation, and, … .

Revised Law

Sec. 1064.157. EFFECT OF ANNEXATION. (a) Territory annexed to the district is part of the district for all purposes.

(b) The annexation of territory to the district does not change the manner in which the board or district officers are selected. (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

Source Law

Sec. 1A. … In the event territory is annexed to the district, it shall thereafter be a part thereof for all purposes, but the annexation thereof shall not change or vary the manner in which the board of directors or officers of the district is or are selected.

Revisor's Note

(End of Subchapter)

Section 1A, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides an alternative procedure for an election on annexations to the district if the district has not been established. Because the district has been established, the revised law omits the provision. The omitted law reads:

Sec. 1A. …

In the event the Moore County Hospital District has not been established as the result of an election pursuant to the provisions of Section 3, a petition conforming to the foregoing requirements may be submitted to the County Judge of Moore County, and the County Judge, if he orders an election on the proposition on whether the Moore County Hospital District shall be created within twelve months after the receipt of the petition, shall also order a separate election held within the area proposed to be annexed to the district, and in the area described in Section 1, and the proposition to be submitted in both areas shall be "For" and "Against" the following ballot proposition: "The annexation to the Moore County Hospital District (in the event the same is established) with a hospital district tax of not to exceed 75¢ on the $100 valuation upon all taxable property situated within said area proposed to be annexed subject to hospital district taxation." The proposition so submitted in the area described in Section 1 shall be in addition to the proposition as set forth in Section 3 of this Act. If the proposition on the creation of the District (as prescribed in Section 3) is sustained by a majority vote, the district shall be established irrespective of the result of the annexation election held under the provisions of this Section… .

[Sections 1064.158-1064.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1064.201. BUDGET. (a) 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. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

Sec. 6. … The administrator or manager 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 and every 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, and estimated revenues and balances available to cover the proposed budget and the estimated tax rate which will be required, and the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year… .

Revised Law

Sec. 1064.202. 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.

(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, in the board's sole judgment and discretion:

(1) applicable federal and state law warrants and allows; and

(2) the interest of district residents requires in furtherance of hospital purposes. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

Sec. 6. … A public hearing on the annual budget shall be held by the board of directors after notice of such hearing has been published one time at least 10 days before the date set therefor. Notice of the budget hearing shall be published in a newspaper or newspapers which individually or collectively provide general circulation in the hospital district. Any resident of the district shall have the right to be present and participate in said hearing. At the conclusion of the hearing, the budget, as proposed by the administrator, shall be acted upon by the board of directors. The board of directors shall have authority to make such changes in the budget as in their sole judgment and discretion, applicable federal and state law warrants and allows, and the interest of the residents of the district requires in furtherance of hospital purposes… . the annual budget, and … shall be approved by the board of directors… .

Revised Law

Sec. 1064.203. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

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

Revisor's Note

Section 6, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, states that the board may amend the budget "from time to time." The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1064.204. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1064.205. FISCAL YEAR. The district operates according to a fiscal year that begins on July 1 and ends on June 30. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

Sec. 6. The district shall be operated on the basis of a fiscal year commencing on July 1 of each year and ending on June 30 of the following year, and … .

Revised Law

Sec. 1064.206. AUDIT. (a) The district shall have an independent audit made of the district's financial condition for the fiscal year.

(b) As soon as the audit is completed, the audit shall be filed at the district's office. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

Sec. 6. [The district] … it shall cause an independent audit to be made of the financial condition of said district, … such audit to be made covering such fiscal year, and the same shall be filed at the office of the district as soon as it is completed… .

Revised Law

Sec. 1064.207. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

Sec. 6. … [it shall cause 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. 1064.208. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2) a complete account of the disbursements of that money. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1064.209. DEPOSITORY. (a) The board shall select one or more depositories for district money.

(b) District money, other than money invested as provided by Section 1064.210(b), and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository and shall remain on deposit.

(1) place a part of district money on time deposit or other forms of deposit; or

(2) purchase certificates of deposit. (Acts 61st Leg., R.S., Ch. 287, Sec. 11.)

Source Law

Sec. 11. The board of directors of the district shall name one or more depositories for the funds of the district. All funds of the district, except those invested as provided in Section 5 of this Act, and those transmitted to a bank or banks of payment for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository and shall remain on deposit, provided that nothing herein shall limit the power of the board to place a portion of such funds on time deposit or other forms of deposit or purchase certificates of deposit.

Revised Law

Sec. 1064.210. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1064.107(c) and by Subchapter F, 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 fund reserves only in any funds or securities authorized by law, including Chapter 2256, Government Code. (Acts 61st Leg., R.S., Ch. 287, Secs. 5 (part), 10 (part).)

Source Law

Sec. 5. … in no event shall any operating, depreciation, or building fund reserves be invested in any funds or securities authorized by law, including Chapter 2256, Government Code… .

Sec. 10. … Except as permitted in the preceding sentence and as permitted by Sections 7 and 8 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 then current and following fiscal year of the district.

Revisor's Note

(1) Section 5, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, states that "in no event shall any … reserves be invested in any funds or securities authorized by law." The inclusion of "in no event" without any qualification appears to be a typographical error that occurred when the legislature amended the section in Chapter 1091, Acts of the 76th Legislature, Regular Session, 1999. The legislature did not intend to prohibit investments authorized by law. Instead, it is clear that the legislature intended to authorize investments only in funds or securities authorized by law. The revised law is therefore drafted to conform to this legislative intent. In addition, this result is consistent with, and conforms to, similar "boilerplate" language in most hospital districts.

(2) Section 10, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 7 and 8 of this Act," the district may not incur certain obligations. The "preceding sentence" in Section 10 is codified in Section 1064.107(c). Sections 7 and 8 are codified in Subchapter F. The revised law is drafted accordingly.

[Sections 1064.211-1064.250 reserved for expansion]

SUBCHAPTER F. BONDS

Revised Law

Sec. 1064.251. GENERAL OBLIGATION BONDS, CERTIFICATES OF OBLIGATION, AND OTHER FINANCING. The board may issue and sell general obligation bonds, certificates of obligation, or any other type of financing authorized by the laws of this state, including that type of financing authorized by Chapter 271, Local Government Code, 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 61st Leg., R.S., Ch. 287, Sec. 7(a) (part).)

Source Law

Sec. 7. (a) The board of directors shall have the power and authority to issue and sell bonds, certificates of obligation, or any other type of financing authorized by the laws of this state, including that type of financing authorized by Chapter 271, Local Government Code, in the name and upon the faith and credit of such hospital district for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping the same for hospital purposes, and for any or all of such purposes… .

Revisor's Note

Section 7(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district. Because the type of bonds described by Section 7 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1064.252. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1064.251, 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 61st Leg., R.S., Ch. 287, Sec. 7(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 said bonds as same mature, providing such tax together with any other taxes levied for said district shall not exceed the rate of tax voted under the provisions of Section 3 of this Act… .

Revisor's Note

(1) Section 7(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, requires the district to levy a tax to pay the principal of and interest on bonds. The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

(2) Section 7(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that the tax rate may not exceed "the rate of tax voted under the provisions of Section 3 of this Act." Section 3 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 3 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. 1064.253. 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 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 election judges for each polling place;

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

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

(6) the maximum maturity of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(a) (part).)

Source Law

(a) … No bonds shall be issued by such hospital district … until authorized by a majority of the qualified electors of the district who own taxable property therein and who have duly rendered the same for taxation voting at an election called for such purpose. The order for bond election shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity thereof, the maximum rate of interest they are to bear, the place or places where the election shall be held, the presiding judge and alternate 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 general laws of Texas pertaining to general elections, except as modified by the provisions of this Act.

Revisor's Note

(1) Section 7(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to a majority vote of the "qualified electors of the district who own taxable property therein and who have duly rendered the same for taxation." The revised law omits "qualified" for the reason stated in Revisor's Note (1) to Section 1064.116. The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code. In addition, the revised law omits the reference to voters "who own taxable property [in the district] and who have duly rendered the same for taxation" because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

(2) Section 7(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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 7(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, states that the election "shall be conducted in accordance with the general laws of Texas pertaining to general elections, 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. 1064.254. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital 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 hospitals.

(d) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 61st Leg., R.S., Ch. 287, Sec. 8 (part).)

Source Law

Sec. 8. In addition to the power to issue bonds payable from taxes levied by the district, as contemplated by the preceding section, the board of directors is further authorized to issue and … revenue bonds for purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for hospital purposes, and for acquiring sites therefor, such bonds to be payable from and secured by a pledge of all or any part of the revenues of the district to be derived from the operation of its hospital or hospitals, and such bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its properties. Such bonds shall be issued in the manner and in accordance with the procedures and requirements specified for the issuance of revenue bonds by county hospital authorities in Sections 8, 10, 11, 12, and 13, Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes).

Revisor's Note

Section 8, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to Sections 8, 10, 11, 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes). Those provisions were codified in 1989 as Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code. The revised law is drafted accordingly.

Revised Law

Sec. 1064.255. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

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

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 61st Leg., R.S., Ch. 287, Secs. 7(a) (part), (b) (part), 8 (part).)

Source Law

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

(b) Refunding bonds of the district may be issued for the purpose of refunding and paying off any outstanding indebtedness it has issued or assumed. Such refunding bonds may be sold and the proceeds thereof 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 such outstanding indebtedness … .

Sec. 8. … the board of directors is further authorized … to refund any previously issued revenue bonds … .

Revisor's Note

(1) Section 7(b), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that refunding bonds must bear interest at the same or a lower rate than the debt refunded unless a savings is shown. The revised law omits this 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 applies to district bonds by application of Section 1204.001, Government Code. The omitted law reads:

(b) … provided that, if refunding bonds are to be exchanged for a like amount of said outstanding indebtedness, such 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 said refunding bonds, and … .

(2) Section 7(b), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that refunding bonds sold to pay outstanding indebtedness must be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, Regular Session, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes). Article 717k was codified in 1999 as part of Chapter 1207, Government Code. The revised law omits the provision because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code. The omitted law reads:

(b) … provided further that if such refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding indebtedness, same shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1064.256. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(c) (part).)

Source Law

Revised Law

Sec. 1064.257. EXECUTION OF BONDS. (a) The board president shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(c) (part).)

Source Law

(c) [Bonds of the district] … shall be executed in the name of the hospital district and in its behalf by the president of the board and countersigned by the secretary in the manner provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes), and … .

Revisor's Note

(1) Section 7(c), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes). That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

(2) Section 7(c), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds must bear interest at a rate not to exceed seven percent a year. The revised law omits that provision for the reason stated in Revisor's Note (1) to Section 1064.255. The omitted law reads:

(3) Section 7(c), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller. Section 7(c) also provides that after approval and registration the bonds are "incontestable for any cause." The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987). Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general. Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration. Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations. Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code. The omitted law reads:

(c) … shall be subject to the same requirements in the matter of approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties. Upon the approval of such bonds by the attorney general and registration by the comptroller, the same shall be incontestable for any cause.

Revised Law

Sec. 1064.258. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

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

(3) profits made in the sale of the bonds. (Acts 61st Leg., R.S., Ch. 287, Sec. 21 (part).)

Source Law

Sec. 21. … any bonds issued by it and their transfer and the issuance therefrom, including any profits made in the sale thereof, shall at all times be free from taxation by the state or any municipality or political subdivision thereof.

Revisor's Note

Section 21, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to "any municipality or political subdivision" of this state. The revised law omits "municipality" for the reason stated in Revisor's Note (2) to Section 1064.102.

Revisor's Note

(End of Subchapter)

(1) Section 13, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds are authorized investments for certain entities. The revised law omits the provision as unnecessary. As to several of the entities listed, Section 13 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 13 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes). Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to 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. 13. All bonds issued hereunder and indebtedness assumed by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the state permanent school fund… .

(2) Section 13, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state. The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

Sec. 13. … Such bonds and indebtedness shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1064.259-1064.300 reserved for expansion]

SUBCHAPTER G. TAXES

Revised Law

Sec. 1064.301. 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) pay the interest on and create a sinking fund for bonds and other obligations issued or assumed by the district for hospital purposes;

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

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

(4) acquire necessary sites for the hospital system by purchase, lease, or condemnation. (Acts 61st Leg., R.S., Ch. 287, Secs. 12 (part), 15 (part).)

Source Law

Sec. 12. The board of directors shall annually levy a tax … for the purpose of (1) paying the interest on and creating a sinking fund for bonds and other obligations which may be issued or assumed by the hospital district for hospital purposes as herein provided; (2) providing for the operation and maintenance of the hospital district and hospital system; and (3) for the purpose of making further improvements and additions to the hospital system, and for the acquisition of necessary sites therefor by purchase, lease or condemnation… .

Sec. 15. … Hospital tax shall be levied upon all taxable property within said district subject to hospital district taxation.

Revised Law

Sec. 1064.302. 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 61st Leg., R.S., Ch. 287, Secs. 3(b) (part), 12 (part).)

Source Law

[Sec. 3]

(b) … [hospital district shall be created with authority to levy annual taxes] at a rate not to exceed 75¢ on the $100 valuation of taxable property situated within the district subject to hospital district taxation … .

Sec. 12. [The board of directors shall annually levy a tax] of not to exceed the amount hereinabove permitted … . In setting such tax rate the board shall take into consideration the income of the district from sources other than taxation. …

Revisor's Note

Section 12, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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:

Sec. 12. … Upon determination of the amount of tax required to be levied, the board shall make such levy and certify the same to the tax assessor-collector of said district.

Revised Law

Sec. 1064.303. ASSESSMENT AND COLLECTION OF TAXES IN SAME MANNER AS COUNTY. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1064.304.

(b) District taxes shall be assessed and collected in the same manner as provided by law for the assessment and collection of county taxes.

(d) The tax assessor-collector shall charge and deduct from payments to the district an amount as fees for assessing and collecting the taxes at a rate determined by the board. (Acts 61st Leg., R.S., Ch. 287, Sec. 15 (part).)

Source Law

Sec. 15. … unless the directors, by majority vote, elect to have taxes assessed and collected by its own tax assessor-collector under Subsection (b) of this section hereof… .

(a) Under this subsection, district taxes shall be assessed and collected … in the same manner as provided by law with relation to county taxes. The tax assessor-collector shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the district. 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 at a rate as may be determined by the board of directors… .

Revisor's Note

(1) Section 15, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, refers to the assessment and collection of district taxes on appraisal district tax values. The revised law omits that provision because it duplicates the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law. Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a county or hospital district. The omitted law reads:

Sec. 15. … All taxes of the district shall be assessed and collected on appraisal district tax values as provided in Subsection (a) of this section hereof … .

(a) … district taxes shall be assessed and collected on appraisal district tax values … .

(2) Section 15(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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 duplicates Chapter 33, Tax Code, which provides for the assessment of penalties and interest on delinquent taxes for taxing units, including counties and hospital districts, and duplicates Section 31.05, Tax Code, which provides for discounts on the early payment of taxes to taxing units, including counties and hospital districts. The omitted law reads:

(a) … 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… .

(3) Section 15(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that tax revenue shall be deposited in the district's depository. The revised law omits the provision because it duplicates Section 31.10, Tax Code, which requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository. The omitted law reads:

(a) … The residue of tax collections shall be deposited in the district's depository… .

(4) Section 15(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that the bond of the 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 whose taxes are collected by the collector for another taxing unit to require that collector to post an additional bond. The omitted law reads:

(a) … The bond of the tax assessor-collector shall stand as security for the proper performance of the assessor-collector's duties as assessor-collector of the district; or, if in the judgment of the district board of directors it is necessary, additional bond payable to the district may be required… .

(5) Section 15(a), Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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:

(a) … In all matters pertaining to the assessment, collection and enforcement of taxes for the district, the tax assessor-collector shall be authorized to act in all respects according to the laws of the State of Texas relating to state and county taxes.

Revised Law

Sec. 1064.304. 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 before December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The board shall set for the district tax assessor-collector:

(1) the terms of employment;

(2) compensation; and

(3) the requirement for bond to assure the faithful performance of the tax assessor-collector's duties.

(c) A bond required under Subsection (b)(3) must be set in an amount of not less than $100,000. (Acts 61st Leg., R.S., Ch. 287, Sec. 15 (part).)

Source Law

Sec. 15. … [unless the directors, by majority vote, elect to have taxes assessed and collected by its own tax assessor-collector under Subsection (b) of this section hereof.] Any such election may be made prior to December 1 annually and shall govern the manner in which taxes are thereafter assessed and collected, until changed by a similar resolution.

…

(b) 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 the assessor-collector's employment, compensation, and requirement for bond to assure the faithful performance of the assessor-collector's duties, but in no event shall such bond be for less than $100,000… .

Revisor's Note

(End of Subchapter)

Section 15, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that the directors may impose taxes for the entire year in which the district is established. The revised law omits this provision as executed. The omitted law reads:

Sec. 15. The directors shall have the authority to levy taxes for the entire year in which the district is established as the result of the election herein provided… .

Revisor's Note

(End of Chapter)

(1) Sections 2 and 19, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provide for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provide for the assumption of debt by the district on creation. The revised law omits the provisions as executed. The omitted law reads:

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

Sec. 19. … When the district is created and established, the county and all towns and cities located therein shall convey and transfer to the district title to all lands, buildings, improvements, and equipment in anywise pertaining to a hospital or hospital system which may be jointly or separately owned by the county or any city or town within said 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 therein for the remainder of the fiscal year in which the district is established shall likewise be transferred to said district, as shall taxes theretofore levied for hospital purposes for the current year, and all sinking funds established for payment of indebtedness assumed by the district.

(2) Section 22, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, provides that the act is severable. The revised law omits this provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect. The omitted law reads:

Sec. 22. … If any 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 23, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, 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. 23. Proof of publication of the notice required in the enactment hereof 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 such notice is hereby found and declared proper and sufficient to satisfy such requirement.

(4) Sections 11(a) and (b) and 12, Chapter 1091, Acts of the 76th Legislature, Regular Session, 1999, provide transition language regarding board appointments. The revised law omits the provisions as executed. The omitted law reads:

Sec. 11. (a) To succeed the directors of the Moore County Hospital District who were appointed by the commissioners court and whose terms expire in 2000, the Moore County Commissioners Court shall appoint two directors to serve terms expiring April 1, 2002, and one director to serve a term expiring April 1, 2003.

(b) To succeed the directors of the Moore County Hospital District who were appointed by the commissioners court and whose terms expire in 2001, the Moore County Commissioners Court shall appoint one director to serve a term expiring April 1, 2003, and two directors to serve terms expiring April 1, 2004.

Sec. 12. As soon as possible after the effective date of this Act, the medical staff of the Moore County Hospital District's hospital shall appoint one director of the district in the manner provided by Section 4, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, as amended by this Act.

(5) Section 13, Chapter 1091, Acts of the 76th Legislature, Regular Session, 1999, provides transition language regarding changes to the district's competitive bid process. The revised law omits the provision as executed. The omitted law reads:

Sec. 13. The changes in law made by this Act to Section 10, Chapter 287, Acts of the 61st Legislature, Regular Session, 1969, apply only to a request for competitive bids made by the board of directors of the Moore County Hospital District on or after the effective date of this Act. A request for competitive bids by a board made before the effective date of this Act is covered by the law in effect when the board submitted the request for competitive bids, and the former law is continued in effect for that purpose.


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