TLC: Special District Local Laws Code Proposed Chapters

81C36(2) CBH

CHAPTER 1067. MUENSTER HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1067.001. DEFINITIONS ............................... 3

Sec. 1067.002. AUTHORITY FOR CREATION .................... 4

Sec. 1067.003. ESSENTIAL PUBLIC FUNCTION ................. 4

Sec. 1067.004. DISTRICT TERRITORY ........................ 4

Sec. 1067.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION ........................ 5

Sec. 1067.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE .............................. 5

[Sections 1067.007-1067.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1067.051. BOARD ELECTION; TERM ...................... 6

Sec. 1067.052. NOTICE OF ELECTION ........................ 9

Sec. 1067.053. QUALIFICATIONS FOR OFFICE ................. 9

Sec. 1067.054. BOARD VACANCY ............................. 10

Sec. 1067.055. OFFICERS .................................. 10

Sec. 1067.056. COMPENSATION; EXPENSES .................... 10

Sec. 1067.057. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR ........................... 11

Sec. 1067.058. GENERAL DUTIES OF DISTRICT

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

Sec. 1067.059. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES ........................... 12

Sec. 1067.060. PERSONNEL CONTRACTS ....................... 13

Sec. 1067.061. RETIREMENT BENEFITS ....................... 14

[Sections 1067.062-1067.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1067.101. DISTRICT RESPONSIBILITY ................... 15

Sec. 1067.102. RESTRICTION ON POLITICAL SUBDIVISION

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

Sec. 1067.103. MANAGEMENT, CONTROL, AND ADMINISTRATION ... 17

Sec. 1067.104. HOSPITAL OR HOSPITAL SYSTEM ............... 17

Sec. 1067.105. RULES ..................................... 18

Sec. 1067.106. PURCHASING AND ACCOUNTING PROCEDURES ...... 19

Sec. 1067.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT ............................... 19

Sec. 1067.108. EMINENT DOMAIN ............................ 20

Sec. 1067.109. GIFTS AND ENDOWMENTS ...................... 21

Sec. 1067.110. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT .................. 21

Sec. 1067.111. PAYMENT FOR TREATMENT; PROCEDURES ......... 22

Sec. 1067.112. AUTHORITY TO SUE AND BE SUED .............. 24

[Sections 1067.113-1067.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1067.151. BUDGET .................................... 24

Sec. 1067.152. NOTICE; ADOPTION OF BUDGET ................ 25

Sec. 1067.153. AMENDMENTS TO BUDGET ...................... 27

Sec. 1067.154. FISCAL YEAR ............................... 27

Sec. 1067.155. ANNUAL AUDIT .............................. 27

Sec. 1067.156. DEPOSITORY ................................ 27

Sec. 1067.157. AUTHORITY TO BORROW MONEY; SECURITY ....... 28

[Sections 1067.158-1067.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1067.201. GENERAL OBLIGATION BONDS .................. 30

Sec. 1067.202. TAX TO PAY GENERAL OBLIGATION BONDS ....... 30

Sec. 1067.203. GENERAL OBLIGATION BOND ELECTION .......... 31

Sec. 1067.204. MATURITY OF GENERAL OBLIGATION BONDS ...... 33

Sec. 1067.205. EXECUTION OF GENERAL OBLIGATION BONDS ..... 34

Sec. 1067.206. REVENUE BONDS ............................. 35

Sec. 1067.207. REFUNDING BONDS ........................... 36

Sec. 1067.208. BONDS EXEMPT FROM TAXATION ................ 37

[Sections 1067.209-1067.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1067.251. IMPOSITION OF AD VALOREM TAX .............. 41

Sec. 1067.252. TAX RATE .................................. 42

Sec. 1067.253. TAX ASSESSOR-COLLECTOR .................... 42

[Sections 1067.254-1067.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1067.301. DISSOLUTION; ELECTION ..................... 43

Sec. 1067.302. NOTICE OF ELECTION ........................ 45

Sec. 1067.303. BALLOT .................................... 46

Sec. 1067.304. ELECTION RESULTS .......................... 46

Sec. 1067.305. TRANSFER OR ADMINISTRATION OF ASSETS ...... 46

Sec. 1067.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES ............................. 47

Sec. 1067.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES ................................... 49

Sec. 1067.308. REPORT; DISSOLUTION ORDER ................. 50

CHAPTER 1067. MUENSTER HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1067.001. 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 Muenster 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. 1067.002. AUTHORITY FOR CREATION. The Muenster Hospital District is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 477, Sec. 1(a).)

Source Law

Sec. 1. (a) By authority of Section 9, Article IX, Constitution of the State of Texas, this Act authorizes the creation of the Muenster Hospital District in Cooke County.

Revised Law

Sec. 1067.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 59th Leg., R.S., Ch. 477, Sec. 11 (part).)

Source Law

Sec. 11. In carrying out the purposes of this Act the District will be performing an essential public function and … .

Revised Law

Sec. 1067.004. DISTRICT TERRITORY. The district is composed of the territory described by Section 2a, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965. (New.)

Revisor's Note

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

(2) Section 1(b), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the boundaries of the district are coterminous with the boundaries of the Muenster Independent School District and a part of the Saint Jo Independent School District. Section 2a, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, as added by Chapter 212, Acts of the 64th Legislature, Regular Session, 1975, provided for the expansion of the district beyond the original district boundaries established in 1965. Because the boundaries of the district were expanded in accordance with Section 2a, the revised law omits Section 1(b) as superseded by Section 2a. The omitted law reads:

(b) The boundaries of the Muenster Hospital District are coterminous with the boundaries of the Muenster Independent School District and that part of the Saint Jo Independent School District located in Cooke County as those districts are fixed on the effective date of this Act.

Revised Law

Sec. 1067.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 59th Leg., R.S., Ch. 477, Sec. 21 (part).)

Source Law

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

Revised Law

Sec. 1067.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 59th Leg., R.S., Ch. 477, Sec. 21 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

Section 3, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides procedures for holding an election on the creation of the district and the imposition of an ad valorem tax. Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed. The omitted law reads:

Sec. 3. The District shall not be created, nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the District voting at an election called for such purpose. Such election shall be called by a majority of the temporary or provisional directors of the District and shall be held not less than thirty (30) nor more than sixty (60) days from the time such election is ordered. The order calling the election shall specify the time and places of holding same, the form of ballot and the presiding judge for each voting place. Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the area of the proposed District once a week for two consecutive weeks, the first publication to appear at least fourteen (14) days prior to the date set for the election. The failure of any such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose. At said election there shall be submitted to the qualified property taxpaying electors of said proposed District the proposition of whether or not Muenster Hospital District shall be created with authority to levy annual taxes at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollars valuation of all taxable property within such District for the purpose of meeting the requirements of the District's bonds and for the care of indigents, and a majority of the qualified taxpaying electors of the District voting at said election in favor of the proposition shall be sufficient for its adoption. The ballots shall have printed thereon the following:

"FOR the creation of Muenster Hospital District, the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollars ($100) valuation.

"AGAINST the creation of Muenster Hospital District, the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollars ($100) valuation."

[Sections 1067.007-1067.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1067.051. BOARD ELECTION; TERM. (a) The district consists of nine elected directors.

(b) Directors serve staggered three-year terms.

(c) An election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.

(d) The election order must state the time, place, and purpose of the election. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(a) (part).)

Source Law

Sec. 4. (a) The Board of Directors consists of nine Directors. Directors elected at elections held after May, 1997, serve staggered three-year terms. A regular election for Directors shall be held on the first Saturday in May of each year. [The regular election for Directors shall be ordered] … such order shall state the time, place and purpose of the election, and … .

Revisor's Note

(1) Section 4(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to elections of directors "held after May, 1997." The revised law omits the quoted language as executed.

(2) Section 4(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, was amended in 1995 to require board elections on the "first Saturday in May." From 1986 to 2003, Section 41.001, Election Code, provided for a uniform election date for all political subdivisions on the first Saturday in May. In Chapter 1315, Acts of the 78th Legislature, Regular Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May to the third Saturday. In Chapter 1, Acts of the 78th Legislature, 3rd Called Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May back to the first Saturday. In Chapter 471, Acts of the 79th Legislature, Regular Session, 2005, the legislature amended Section 41.001 by moving the uniform election date in May to the second Saturday. The revised law substitutes "uniform election date in May" for "first Saturday in May" to reflect these changes while preserving as closely as possible the legislative intent expressed in the 1995 amendment to Chapter 477 that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

(3) Section 4(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the board shall order the election of directors. The revised law omits the provision requiring the board to order the election because it duplicates Section 3.004, Election Code, applicable to the district under Section 1.002, Election Code. Section 3.004 requires the governing body of a political subdivision that has elective officers to order the general election for those officers. The revised law omits the reference to Section 3.005, Election Code, because Section 3.005 applies to the district by its own terms under Section 1.002, Election Code. The omitted law reads:

(a) … The regular election for Directors shall be ordered by the Board and … such election shall be ordered in accordance with Section 3.005, Election Code. …

(4) Section 4(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the board shall appoint the presiding judge, who appoints an assistant judge and clerks as required. The revised law omits the provision because it duplicates Sections 32.005 and 32.031, Election Code, applicable to the district under Section 1.002, Election Code. The omitted law reads:

(a) … the Board shall appoint the presiding judge who shall appoint an assistant judge and such clerks as may be required, and … .

(5) Section 14, Chapter 125, Acts of the 74th Legislature, Regular Session, 1995, provides for the staggering of terms for directors to accomplish the change of the members' terms from two to three years. The revised law omits the provision as executed. The omitted law reads:

Sec. 14. (a) The election of directors scheduled before the effective date of this Act to be held in May, 1995, shall be held, and the three directors who receive the highest total number of votes shall be elected to serve three-year terms, and the director who receives the fourth highest total number of votes shall be elected to serve a two-year term.

(b) In the election of directors scheduled to be held in May, 1996, the three directors who receive the highest total number of votes shall be elected to serve three-year terms, and the two directors who receive the fourth and fifth highest total number of votes shall be elected to serve one-year terms.

Revised Law

Sec. 1067.052. NOTICE OF ELECTION. Notice of an election of directors shall be published one time in a newspaper of general circulation in the area of the district in accordance with Section 4.003(a)(1), Election Code. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(a) (part).)

Source Law

(a) … Notice of such election shall be published one time in a newspaper of general circulation in the area of the District in accordance with Section 4.003(a)(1), Election Code… .

Revised Law

Sec. 1067.053. QUALIFICATIONS FOR OFFICE. (a) To be eligible to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(b) (part).)

Source Law

(b) … Any person who is a resident of the District and a qualified voter shall be eligible to hold office as director of the District. However, an employee of the District may not serve as a director… .

Revised Law

Sec. 1067.054. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors by majority vote shall appoint a director for the unexpired term. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(a) (part).)

Source Law

(a) … All vacancies in office shall be filled by a majority vote of the remaining Directors and such appointees shall hold office for the unexpired term for which they were appointed.

Revised Law

Sec. 1067.055. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a director.

(d) The president is the chief executive officer of the district and has the same right to vote as any other director.

(e) If the president is absent or fails and declines to act, the vice president shall perform the president's duties and exercise the president's powers under this chapter. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(b) (part).)

Source Law

(b) … The Board of Directors shall elect from its number a president and vice president and shall appoint a secretary who need not be a director. Each officer shall serve for a term of one year. The president shall be the chief executive officer of the District, and shall have the same right to vote as any other Director. The vice president shall perform all duties and exercise all powers conferred by this Act upon the president when the president is absent or fails and declines to act.

Revised Law

Sec. 1067.056. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for actual expenses incurred in attending to district business. The expenses must be:

(1) reported in the district's records; and

(2) approved by the remainder of the board. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(b) (part).)

Source Law

(b) No director shall be entitled to compensation, but shall be entitled to receive actual expenses incurred in attending to the District's business, provided such expenses are reported in the District's minute book or other District records and approved by the remainder of the Board… .

Revisor's Note

Section 4(b), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, requires that expenses be reported in the "District's minute book or other District records." The revised law omits the reference to the "District's minute book" because the minute book is a district record.

Revised Law

Sec. 1067.057. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

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

(d) The board may require the district administrator, before assuming the administrator's duties, to execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the faithful performance of the administrator's duties; and

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(a) (part).)

Source Law

(a) … The Board of Directors shall appoint a qualified person to be known as the administrator of the Hospital District and may in its discretion appoint an assistant to the administrator. Such administrator and assistant administrator, if any, shall serve at the will of the Board and shall receive such compensation as may be fixed by the Board. The Board may require the administrator before assuming the administrator's duties to execute a bond payable to the Hospital District in an amount to be set by the Board of Directors, in no event less than $5,000 conditioned on the faithful performance of the administrator's duties and containing such other conditions as the Board may require. The Board may pay for the bond with District funds.

Revised Law

Sec. 1067.058. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

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

(2) direct the affairs of the district. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(b) (part).)

Source Law

(b) The administrator shall supervise all the work and activities of the Hospital and shall have general direction of the affairs of the District, subject to such limitations as may be prescribed by the Board… .

Revised Law

Sec. 1067.059. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board, with the district administrator, may appoint to the staff any doctors the board considers necessary for the efficient operation of the district.

(b) The board may employ technicians, nurses, and other employees as considered necessary for the efficient operation of the hospital or may provide that the district administrator has the authority to admit or employ those persons.

(c) The board may spend district money to recruit physicians, nurses, and other trained medical personnel. The board may pay the tuition or other expenses of a full-time medical student or other student in a health occupation who:

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

(2) contractually agrees to become a district employee or independent contractor in return for that assistance. (Acts 59th Leg., R.S., Ch. 477, Secs. 5(b) (part), (g).)

Source Law

(b) … The Board of Directors, with the administrator, shall have the authority to appoint to the staff doctors the Board considers necessary for the efficient operation of the District. The Board may employ technicians, nurses and other employees of every kind and character as may be deemed necessary for the efficient operation of the Hospital, or may provide that the administrator shall have the authority to admit or employ such persons.

(g) The Board of Directors may spend District funds to recruit physicians, nurses, and other trained medical personnel. The Board may contract with one or more full-time medical students or other students in a health occupation, each of whom is enrolled in good standing in an accredited medical school, college, or university, to pay the student's tuition or other expenses in consideration of the student's contractual agreement to serve as an employee or independent contractor for the District under terms provided for in the contract.

Revisor's Note

Section 5(g), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that a student who receives assistance from the district must become a district employee "under terms provided for in the contract." The revised law omits the quoted language because the provisions of a contract between the board and a student apply by their own terms.

Revised Law

Sec. 1067.060. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative and other personnel for the operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years from the date the contract is entered. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(e) (part).)

Source Law

(e) The Board may also enter into a contract or contracts to provide administrative and other personnel for the operation of the hospital facilities, but in no event may such contract be for a period in excess of 25 years from the date the same is entered… .

Revised Law

Sec. 1067.061. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(f).)

Source Law

(f) The Board may provide retirement benefits for the employees of the District by establishing or administering a retirement program or electing to participate in the Texas County and District Retirement System or any other statewide retirement system in which the District is eligible to participate.

Revisor's Note

(End of Subchapter)

(1) Section 4(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, states that a person must file a ballot application with the board secretary to be a candidate for director in accordance with Section 144.005, Election Code. The revised law omits the requirement to file the application with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code, applicable to the district under Section 1.002, Election Code. The revised law omits the reference to Section 144.005, Election Code, because that section applies to the district by its own terms under Section 1.002, Election Code. The omitted law reads:

(a) … Any person desiring his name to be printed on the ballot as a candidate for director shall file an application with the secretary of the Board of Directors of the District in accordance with Section 144.005, Election Code… .

(2) Section 4(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, requires each director to take the constitutional oath of office. The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office. The omitted law reads:

(3) Section 4(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that a majority of the board constitutes a quorum. The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

[Sections 1067.062-1067.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1067.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

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

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 477, Secs. 2 (part), 20 (part).)

Source Law

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

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

Revisor's Note

Sections 2 and 20, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants and for the operation of hospital facilities for the indigent. The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1067.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons in the district. (Acts 59th Leg., R.S., Ch. 477, Sec. 20 (part).)

Source Law

Sec. 20. After creation of Muenster Hospital District as herein provided, no other municipality or political subdivision therein shall thereafter issue bonds or other evidences of indebtedness or levy taxes for hospital purposes for medical treatment of indigent persons within the boundaries of said District, and … .

Revisor's Note

(1) Section 20, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, prohibits certain actions "[a]fter creation of Muenster Hospital District as herein provided." The revised law omits the quoted language as executed.

(2) Section 20, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to a "municipality or political subdivision." The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

(3) Section 20, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that certain political subdivisions may not issue bonds or other "evidences of indebtedness." The revised law substitutes "obligations" for "evidences of indebtedness" because, in context, the terms are synonymous, and "obligations" is more commonly used. Section 20 also states that the political subdivisions may not "levy" taxes for hospital purposes. 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.

Revised Law

Sec. 1067.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital, the hospital system, and the district's business, money, and resources. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(a) (part).)

Source Law

Sec. 5. (a) The Board of Directors shall manage, control and administer the hospital and the hospital system and the business, funds, and resources of the District… .

Revised Law

Sec. 1067.104. HOSPITAL OR HOSPITAL SYSTEM. (a) The district shall provide for the establishment, administration, maintenance, operation, and financing of a hospital or hospital system in the district.

(b) The district may provide any services or facilities necessary for hospital or medical care, including:

(1) rural health clinics;

(2) outpatient clinics;

(3) nursing homes;

(4) home health care agencies;

(5) extended care facilities;

(6) assisted living or personal care facilities; and

(7) retirement, housing, and medical office buildings. (Acts 59th Leg., R.S., Ch. 477, Sec. 2 (part).)

Source Law

Sec. 2. The District herein authorized to be created shall provide for the establishment, administration, maintenance, operation, and financing of a hospital or hospital system within its boundaries and may provide any services or facilities necessary for hospital or medical care, including rural health clinics, outpatient clinics, nursing homes, home health care agencies, extended care facilities, assisted living or personal care facilities, and retirement, housing, and medical office buildings… .

Revised Law

Sec. 1067.105. RULES. The board may adopt rules for the operation of the district and as required to administer this chapter. (Acts 59th Leg., R.S., Ch. 477, Secs. 5(a) (part), 12 (part).)

Source Law

Sec. 5. (a) … The District through its Board of Directors shall have the power and authority … to promulgate rules and regulations for the operation of the District. …

Sec. 12. The Board of Directors of such District shall have the power … to make such rules and regulations as may be required to carry out the provisions of this Act… .

Revisor's Note

Sections 5(a) and 12, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provide that the board may "promulgate rules and regulations" to govern the district and "make such rules and regulations" as required to carry out the act. The revised law substitutes "adopt" for "promulgate" and "make" because the terms are synonymous and the former is more commonly used. The revised law also omits the reference to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1067.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

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

(2) all accounting and control procedures. (Acts 59th Leg., R.S., Ch. 477, Sec. 12 (part).)

Source Law

Sec. 12. The Board of Directors of such District shall have the power to prescribe the method and manner of making purchases and expenditures by and for such Hospital District, and also shall be authorized to prescribe all accounting and control procedures and … .

Revised Law

Sec. 1067.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board has exclusive authority to determine the type, character, and use of facilities in the hospital system.

(b) The board may:

(1) purchase or lease property, including facilities or equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(d) The board may sell or otherwise dispose of the district's property, including facilities and equipment. (Acts 59th Leg., R.S., Ch. 477, Secs. 5(d), (e) (part), 12 (part).)

Source Law

[Sec. 5]

(d) The Board may purchase or lease property, facilities, and equipment for the District to use in the hospital system and may mortgage or pledge the property, facilities, or equipment as security for the payment of the purchase price.

(e) … The Board may transfer District hospital facilities by lease to individuals, corporations, or other legal entities and may sell or otherwise dispose of the District's property, facilities, and equipment.

Sec. 12. … The Board is given exclusive authority to determine the type, character, and use of the facilities forming a part of the hospital system.

Revised Law

Sec. 1067.108. 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 or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code. (Acts 59th Leg., R.S., Ch. 477, Sec. 15.)

Source Law

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

Revisor's Note

(1) Section 15, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation." The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2) Section 15, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the district must exercise the power of eminent domain in the manner provided by "the General Law with respect to condemnation." The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities.

Revised Law

Sec. 1067.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 59th Leg., R.S., Ch. 477, Sec. 18.)

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

Section 18, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to "donations" and "gifts." The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1067.110. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the agency is responsible. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(c).)

Source Law

(c) Such Board shall be authorized to contract with any county or incorporated municipality located outside the District for the care and treatment of the sick, diseased or injured persons of any such county or municipality and shall have the authority to contract with the State of Texas and agencies of the Federal government, for treatment of sick, diseased or injured persons for whom the State of Texas or the Federal government are responsible.

Revisor's Note

(1) Section 5(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to an "incorporated municipality." The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2) Section 5(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to the treatment of a "sick, diseased or injured" person. The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1067.111. PAYMENT FOR TREATMENT; PROCEDURES. (a) When an indigent patient who resides in the district is admitted to a district facility or a person who does not reside in the district is admitted as an emergency patient to a district facility, the district administrator shall have an inquiry made into the circumstances of:

(1) the patient; and

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

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

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

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

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

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(f) A final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 59th Leg., R.S., Ch. 477, Sec. 17.)

Source Law

Sec. 17. Whenever an indigent patient residing within the District has been admitted to the facilities thereof, the administrator or manager shall cause inquiry to be made as to his circumstances and those of the relatives of such patient legally liable for his support. If he finds that such patient or said relatives are able to pay for his care and treatment, in whole or in part, an order shall be made directing such patient or said relatives to pay to the Hospital District for the support of such patient a specified sum per week in proportion to their financial ability, but such sum shall not exceed the actual per capita cost of maintenance. The administrator or manager shall have power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for the collection of expenses in the last illness of a deceased person. If the administrator or manager finds that such patient or said relatives are not able to pay, either in whole or in part, for his care and treatment in such hospital, same shall become a charge upon the Hospital District to the amount of the inability to pay, as care for indigents. Should there be any dispute as to the ability to pay, or doubt in the mind of the administrator or manager, the Board of Directors shall hear and determine same, after calling witnesses, and shall make such order or orders as may be proper. Appeals from a final order of the Board shall lie to the District Court. The substantial evidence rule shall apply. The provisions of this Section shall also apply to non-residents of the District who are admitted as emergency patients.

Revisor's Note

Section 17, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to the district "administrator or manager." Chapter 125, Acts of the 74th Legislature, Regular Session, 1995, amended Section 5, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, to omit the references to a district manager. For that reason, and because in context "administrator" and "manager" are synonymous, the revised law omits references to a district manager.

Revised Law

Sec. 1067.112. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(a) (part).)

Source Law

(a) … The District through its Board of Directors shall have the power and authority to sue and be sued and … .

[Sections 1067.113-1067.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1067.151. BUDGET. Not later than the 30th day before the first day of each fiscal year, the board shall have an annual budget prepared for that fiscal year. (Acts 59th Leg., R.S., Ch. 477, Secs. 6(b) (part), 19(a) (part).)

Source Law

Sec. 6(b). In the event a new fiscal year is adopted under the provisions of Section 6 of this Act, [notice of the public hearing (required by Section 19 of this law) on the adoption of a proposed budget shall be given] at least 30 days prior to the beginning of the fiscal or budget year the budget is to cover.

Sec. 19. (a) Before September 1 of each year or as provided by Section 6(b) of this Act, the Board of Directors of said Hospital District shall cause to be prepared an annual budget based upon the fiscal year of the Hospital District, and … .

Revisor's Note

(1) Section 19, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, requires that the budget be prepared and that notice of the public hearing on the adoption of the proposed budget be given "[b]efore September 1 of each year or as provided by Section 6(b) of this Act." Section 6(b), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, which was added by Chapter 541, Acts of the 60th Legislature, Regular Session, 1967, and later amended by Chapter 125, Acts of the 74th Legislature, Regular Session, 1995, requires that the notice be given at least 30 days before the beginning of the fiscal or budget year in which the proposed budget is to apply "[i]n the event a new fiscal year is adopted under the provisions of Section 6 of this Act" by the board. Those 1967 and 1995 laws also authorized the board to change the district's fiscal year. Before the act was amended by those 1967 and 1995 laws, the district's fiscal year was required to begin on October 1. Therefore, the revised law omits the quoted language in Sections 6(b) and 19 because the period from September 1 to October 1 is synonymous with the 30-day period provided by Section 6(b) regardless of whether the board changes the fiscal year.

(2) Section 6(b), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to the "fiscal or budget year." Throughout this chapter, the revised law omits the reference to a "budget year" because, in context, the terms are synonymous, and "fiscal year" is more commonly used in this chapter.

Revised Law

Sec. 1067.152. NOTICE; ADOPTION OF BUDGET. (a) Not later than the 30th day before the first day of each fiscal year, the board shall give notice of a public hearing on the proposed budget. The notice must be published in a newspaper of general circulation in the district one time at least 10 days before the date set for the hearing.

(b) The board shall adopt a budget by acting on the budget proposed by the district administrator.

Source Law

Sec. 6(b). In the event a new fiscal year is adopted under the provisions of Section 6 of this Act, notice of the public hearing (required by Section 19 of this law) on the adoption of a proposed budget shall be given at least 30 days prior to the beginning of the fiscal or budget year the budget is to cover.

Sec. 19. (a) Before September 1 of each year or as provided by Section 6(b) of this Act, [the Board of Directors of said Hospital District shall cause to be prepared an annual budget based upon the fiscal year of the Hospital District,] and prior to September 1 of each year shall give notice of the public hearing on the proposed budget. Such notice shall be published in a newspaper of general circulation in the District one time at least 10 days prior to the date set for the hearing. The Board shall adopt a budget by taking action on the budget proposed by the administrator. The budget is effective only after adoption by the Board… .

Revisor's Note

Section 6(b), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, requires that the notice be given at least 30 days before the beginning of the fiscal or budget year in which the proposed budget is to apply "[i]n the event a new fiscal year is adopted under the provisions of Section 6 of this Act" by the board. Section 19, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, requires that the budget be prepared and that notice of the public hearing on the adoption of the proposed budget be given "[b]efore September 1 of each year or as provided by Section 6(b) of this Act." The revised law omits the quoted language for the reason stated in Revisor's Note (1) to Section 1067.151.

Revised Law

Sec. 1067.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 59th Leg., R.S., Ch. 477, Sec. 19(a) (part).)

Source Law

(a) … After adoption, the annual budget may be amended on the Board's approval.

Revised Law

Sec. 1067.154. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 59th Leg., R.S., Ch. 477, Sec. 6 (part).)

Source Law

Sec. 6. The District shall be operated on a fiscal year established by the Board of Directors. The fiscal year may not be changed when revenue bonds are outstanding or more than one time in a 24-month period… .

Revised Law

Sec. 1067.155. ANNUAL AUDIT. (a) The board annually shall have an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the district's principal office. (Acts 59th Leg., R.S., Ch. 477, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1067.156. DEPOSITORY. (a) The board shall select one or more banks to serve as a depository for district money.

(b) District money shall be immediately deposited on receipt with a depository bank to pay the principal of and interest on the district's outstanding bonds on or before the maturity date of the principal and interest.

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

(d) Membership on the district's board of an officer or director of a bank does not disqualify the bank from being selected as a depository bank. (Acts 59th Leg., R.S., Ch. 477, Sec. 13.)

Source Law

Sec. 13. The Board of Directors of the District shall name one or more banks to serve as depository for the funds of the District. All such funds shall, as derived and collected, be immediately deposited with such depository bank or banks for the payment of principal of and interest on the outstanding bonds of the District in time that such money may be received by said bank or banks for payment on or prior to the date of maturity of such principal and interest so to be paid. To the extent that funds in the depository bank or banks are not insured by the Federal Deposit Insurance Corporation, they shall be secured in the manner provided by law for security of county funds. Membership on the Board of Directors of an officer or director of a bank shall not disqualify such bank from being designated as depository.

Revisor's Note

Section 13, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to money "derived and collected." The revised law substitutes "on receipt" for the quoted language because the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1067.157. AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board declares that:

(1) money is not available to meet authorized obligations of the district; and

(2) an emergency exists.

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

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

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

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

(c) A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.

(d) The board may not spend money obtained from a loan under this section for any purpose other than:

(1) the purpose for which the board declared an emergency; and

(2) if district taxes or bonds are pledged to pay the loan, the purpose for which the pledged taxes were imposed or the pledged bonds were authorized. (Acts 59th Leg., R.S., Ch. 477, Sec. 20a.)

Source Law

Sec. 20a. (a) If the Board of Directors declares that funds are not available to meet the lawfully authorized obligations of the District and that an emergency exists, the Board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for District obligations at the time of the loan.

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

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

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

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

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

(d) The Board may not spend money obtained from a loan under this section for any purpose other than the purpose for which the Board declared an emergency. If taxes or bonds are pledged to pay the loan, the Board may not spend the loan proceeds other than for the purpose for which the taxes were levied or the bonds were authorized.

Revisor's Note

Section 20a(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to "lawfully authorized obligations." The revised law omits "lawfully" because a "lawful" obligation is included in the meaning of an "authorized" obligation.

[Sections 1067.158-1067.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1067.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; or

(3) acquire and operate a mobile emergency medical or air ambulance service. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(b).)

Source Law

(b) The Board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the District to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; or

(3) acquire and operate a mobile emergency medical or air ambulance service.

Revised Law

Sec. 1067.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) For general obligation bonds issued under Section 1067.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund and to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the limit approved by the voters at the election authorizing the imposition of the tax. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(a) (part).)

Source Law

Sec. 9. (a) As to bonds payable from taxation, a tax shall be levied by the Board sufficient to create an interest and sinking fund and to pay the interest on and principal of said bonds as same mature, providing such tax together with any other taxes levied for said District shall not exceed the limit approved by the voters at the election authorizing the levy of taxes… .

Revisor's Note

(1) Section 9(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to "bonds payable from taxation." Because the type of bonds described by Section 9(a) are known as "general obligation bonds," the revised law is drafted accordingly.

(2) Section 9(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, requires the district to levy a tax to pay the principal of and interest on bonds. The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1067.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

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

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by Section 1251.003, Government Code.

(e) The board shall declare the results of the bond election.

(f) Except as otherwise provided by this chapter, the election is governed by the general laws relating to county elections. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(a) (part).)

Source Law

(a) … The District may issue general obligation bonds only if the bonds are authorized by a majority of the qualified voters of the District voting at an election called and held for that purpose. The Board may order a bond election. The order calling the election shall state the nature and date of the election, the hours during which the polls will be open, the location of the polling places, the amounts of the bonds to be authorized, and the maximum maturity of the bonds. Notice of a bond election shall be given as provided for by Article 704, Revised Statutes. The Board shall canvass the returns and declare the results of the election. Such election, except as herein provided, shall be governed by the general laws relating to County elections.

Revisor's Note

(1) Section 9(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, 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 9(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to an election "called and held." The revised law omits the reference to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election. Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(3) Section 9(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, 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.

(4) Section 9(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that "[t]he Board shall canvass the returns" of a bond election. The revised law omits that requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.

Revised Law

Sec. 1067.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(d) (part).)

Source Law

(d) District bonds must mature not later than the 40th anniversary of the date of issuance and … .

Revisor's Note

(1) Section 9(d), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to "[d]istrict bonds." Sections 9(a) and (b) (revised as Sections 1067.201, 1067.202, and 1067.203) specifically refer to "bonds payable from taxation" or "general obligation bonds." Although Section 9(d) does not specifically refer to the type of bonds to which the provision is intended to apply, it is clear from the legislative history of Section 7 (relating to revenue bonds) and Section 8 (relating to refunding bonds) that Section 9, including Subsection (d), applies only to general obligation bonds. The revised law is drafted accordingly.

(2) Section 9(d), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds must bear interest at a rate that does not exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes). The revised law omits the provision because the maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code, and Section 1204.006 applies to hospital districts by application of Section 1204.001, Government Code. The omitted law reads:

(d) [District bonds] … must bear a rate of interest that does not exceed the amount provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1067.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall attest the bonds as provided by Chapter 618, Government Code. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(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 attested by the secretary, as provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas Civil Statutes), and … .

Revisor's Note

(1) Section 9(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to "[b]onds of the District." The revised law substitutes "general obligations bonds" for the quoted language for the reason stated in Revisor's Note (1) to Section 1067.204.

(2) Section 9(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas Civil Statutes). That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

Revised Law

Sec. 1067.206. REVENUE BONDS. (a) The district may issue revenue bonds to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospitals and the hospital system;

(3) acquire sites to be used for hospital purposes; or

(4) operate a mobile emergency medical service to assist the district in carrying out its 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 hospital system.

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 59th Leg., R.S., Ch. 477, Sec. 7.)

Source Law

Sec. 7. The District may issue revenue bonds for the purpose of purchasing, constructing, repairing, renovating, or acquiring buildings or improvements, equipping the same for hospitals and the hospital system, acquiring sites to be used for hospital purposes, or for operating a mobile emergency medical service to assist the District in carrying out its hospital purposes. The bonds shall be payable from and secured by a pledge of all or part of the revenues derived from the operation of the District's hospital system. The bonds may be additionally secured by a mortgage or deed of trust on all or part of District property. The revenue bonds shall be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for the issuance of revenue bonds by county hospital authorities.

Revised Law

Sec. 1067.207. REFUNDING BONDS. (a) The board may issue refunding bonds to refund any bond issued by the district.

(b) A refunding bond may be:

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

(2) exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds or other refundable indebtedness. (Acts 59th Leg., R.S., Ch. 477, Sec. 8 (part).)

Source Law

Sec. 8. The bonds of the District may be issued for the purpose of refunding and paying off any bond issued by the District… . Such refunding bonds may be sold and the proceeds thereof applied to the payment of any outstanding bonds or other refundable indebtedness, or may be exchanged in whole or in part for not less than a like principal amount of such outstanding bonds or refundable indebtedness; … .

Revisor's Note

(1) Section 8, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, limits the interest rate for refunding bonds issued by the district. The revised law omits that provision as impliedly repealed by Section 2(a), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), which was revised in 1999 as Section 1204.006(a), Government Code. Section 1204.006(a) permits a public agency, including a hospital district, to issue bonds at a net effective interest rate not to exceed 15 percent and applies to district bonds by application of Section 1204.001, Government Code. The omitted law reads:

Sec. 8. … provided that if such refunding bonds are to be exchanged for a like amount of said outstanding bonds or other refundable indebtedness, the interest thereon computed in accordance with recognized standard bond interest cost tables, shall not exceed the average interest cost per annum so computed upon the bonds or other indebtedness to be refunded; and … .

(2) Section 8, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that refunding bonds shall be issued "as provided by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes)." In addition, the section provides that refunding bonds sold to pay outstanding indebtedness "shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes), as amended." Articles 717k and 717k-3 were codified in 1999 as Chapter 1207, Government Code. The revised law omits the provisions because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code. The omitted law reads:

Sec. 8. … Refunding bonds shall be issued as provided by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes). … provided further that, if such refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding bonds or other refundable indebtedness, same shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes), as amended.

Revised Law

Sec. 1067.208. 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 of the bonds; or

(3) bond revenue, including any profits made in the sale of the bonds. (Acts 59th Leg., R.S., Ch. 477, Sec. 11 (part).)

Source Law

Sec. 11. … any bonds issued by it and their transfer and the revenues 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 11, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to "any municipality or political subdivision." The revised law omits the reference to "municipality" because that term is included in the meaning of "political subdivision."

Revisor's Note

(End of Subchapter)

(1) Section 9(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller. Section 9(c) also provides that after approval and registration the bonds are "incontestable." The revised law omits these 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) [Bonds of the District] … 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. After approval of any such bonds by the Attorney General and registration by the Comptroller, said bonds shall be incontestable.

(2) Section 14, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are authorized investments for certain entities. The revised law omits that provision as unnecessary. As to several of the entities listed, Section 14 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 14 is superseded by Section 1201.041, Government Code (enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes)). Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to public funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

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

(3) Section 14, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state. The revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

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

[Sections 1067.209-1067.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1067.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used to pay:

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

(2) the maintenance and operating expenses of the district.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds. (Acts 59th Leg., R.S., Ch. 477, Secs. 16 (part), 19(b) (part).)

Source Law

Sec. 16. The Board of Directors may annually impose property taxes … . The taxes may be used to pay for indebtedness issued or assumed by the District and for the maintenance and operating expenses of the District. The District may not impose taxes to pay the principal of or interest on revenue bonds. …

[Sec. 19]

(b) … taxes on all property in the District that is subject to hospital district taxation.

Revisor's Note

Section 19(b), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, as amended by Chapter 125, Acts of the 74th Legislature, Regular Session, 1995, requires the board, before September 1 of each year, to publish notice of tax rates, give notice and conduct a public hearing as required by Chapter 26, Tax Code, and enter an order imposing taxes. The revised law omits the reference to the September 1 deadline as superseded by Section 26.05, Tax Code, as amended by Chapter 423, Acts of the 76th Legislature, Regular Session, 1999, which requires the governing body of a taxing unit to adopt a tax rate before the later of September 30 or the 30th day after the date the taxing unit receives the certified appraisal roll. The revised law omits the remainder of Section 19(b), which requires the board to comply with Chapter 26, Tax Code, because that chapter applies to the board by its own terms under Section 1.02, Tax Code. The omitted law reads:

(b) Before September 1 of each year, the Board shall publish notice of tax rates, give notice and conduct a public hearing as required by Chapter 26, Tax Code, and enter an order levying [taxes on all property in the District that is subject to hospital district taxation.]

Revised Law

Sec. 1067.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 59th Leg., R.S., Ch. 477, Sec. 16 (part).)

Source Law

Sec. 16. [The Board of Directors may annually impose property taxes] in an amount not to exceed the limit approved by the voters at the election authorizing the levy of taxes. The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the District. …

Revised Law

Sec. 1067.253. TAX ASSESSOR-COLLECTOR. The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 59th Leg., R.S., Ch. 477, Sec. 16 (part).)

Source Law

Sec. 16. … The Board may provide for the appointment of a tax assessor-collector for the District or may contract for the assessment and collection of taxes as provided by the Tax Code.

Revisor's Note

(End of Subchapter)

(1) Section 5(h), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, authorizes the board to institute a suit to enforce the payment of taxes and to foreclose liens to secure that payment. The revised law omits that provision because it duplicates Chapter 33, Tax Code, which authorizes a taxing unit of government to file suit to enforce the payment of taxes and to foreclose a lien to secure that payment. The omitted law reads:

(h) The Board may institute a suit to enforce the payment of taxes and to foreclose liens to secure the payment of taxes due to the District.

(2) Section 16, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes. The revised law omits that provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code. The omitted law reads:

Sec. 16. … The Tax Code governs the appraisal, assessment, and collection of District taxes… .

[Sections 1067.254-1067.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Revised Law

Sec. 1067.301. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the district voters voting in an election held for that purpose.

(b) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c) The board shall order an election if the board receives a petition requesting an election that is signed by a number of residents of the district equal to at least 15 percent of the registered voters in the district.

(d) The order calling the election must state:

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

(2) the date of the election;

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

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 59th Leg., R.S., Ch. 477, Secs. 20b(a), (b), (c) (part).)

Source Law

Sec. 20b. (a) The District may be dissolved only if the dissolution is approved by a majority of the qualified voters of the District voting in an election called and held for that purpose.

(b) The Board may order an election on the question of dissolving the District and disposing of the District's assets and obligations. The Board shall order an election if the Board receives a petition requesting an election that is signed by a number of residents of the District equal to at least 15 percent of the registered voters in the District.

(c) … Section 41.001(a), Election Code, does not apply to an election ordered under this section. The order calling the election shall state:

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

(2) the date of the election;

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

(4) the location of the polling places.

Revisor's Note

(1) Section 20b(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides for dissolution of the district if approved by a majority of the "qualified" voters. 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 20b(a), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may be dissolved if authorized at an election "called and held" for that purpose. The revised law omits the reference to "calling" an election for the reason stated in Revisor's Note (2) to Section 1067.203.

(3) Section 20b(c), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, states that the election must be held not later than the 60th day 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:

Revised Law

Sec. 1067.302. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not later than the 35th day before the date set for the election. (Acts 59th Leg., R.S., Ch. 477, Sec. 20b(d) (part).)

Source Law

(d) The Board shall give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the District once a week for two consecutive weeks. The first publication must appear not less than 35 days before the date set for the election… .

Revised Law

Sec. 1067.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Muenster Hospital District." (Acts 59th Leg., R.S., Ch. 477, Sec. 20b(d) (part).)

Source Law

(d) … The ballot for the election shall be printed to permit voting for or against the proposition: "The dissolution of the Muenster Hospital District."

Revised Law

Sec. 1067.304. ELECTION RESULTS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor dissolution, the board shall continue to administer the district and another election on the question of dissolution may not be held before the first anniversary of the date of the most recent election to dissolve the district. (Acts 59th Leg., R.S., Ch. 477, Sec. 20b(e).)

Source Law

(e) If a majority of the votes in the election favor dissolution, the Board shall find that the District is dissolved. If a majority of the votes in the election do not favor dissolution, the Board shall continue to administer the District, and another election on the question of dissolution under this section may not be held before the first anniversary of the most recent election held under this section to dissolve the District.

Revised Law

Sec. 1067.305. TRANSFER OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Cooke County or another governmental entity in Cooke County; or

(2) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved. (Acts 59th Leg., R.S., Ch. 477, Secs. 20b(f), (g).)

Source Law

(f) If a majority of the votes in the election favor dissolution, the Board shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the District to a county or another governmental entity in the county in which the District is located; or

(2) administer the property, assets, and debts until all funds have been disposed of and all District debts have been paid or settled.

(g) If the District transfers the land, buildings, improvements, equipment, and other assets to a county or other governmental entity, the county or entity assumes all debts and obligations of the District at the time of the transfer, and the District is dissolved.

Revisor's Note

Section 20b(f), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to a "county in which the District is located." Because the district is wholly located in Cooke County, the revised law substitutes "Cooke County" for the quoted language.

Revised Law

Sec. 1067.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) Notwithstanding any other provision of this chapter, the district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person.

(b) The dissolution of the district and the sale or transfer of the district's assets or liabilities may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(d) The district may not transfer or dispose of the district's assets except for due compensation unless:

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

(e) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 59th Leg., R.S., Ch. 477, Secs. 20b(m), (n).)

Source Law

(m) Notwithstanding any other provision of this Act, the District may not be dissolved unless the Board provides for the sale or transfer of the District's assets and liabilities to another person or entity. The dissolution of the District and the sale or transfer of the District's assets or liabilities may not contravene a trust indenture or bond resolution relating to the outstanding bonds of the District. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the District.

(n) The sale or transfer of the District's assets and liabilities must satisfy the debt and bond obligations of the District in a manner that protects the interests of the residents of the District, including the residents' collective property rights in the District's assets. A grant from federal funds is an obligation to be repaid in satisfaction. The District may not transfer or dispose of the District's assets except for due compensation unless the transfer is made to another governmental entity that serves the District and the transferred assets are to be used for the benefit of the residents of the District.

Revisor's Note

Section 20b(m), Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, refers to "another person or entity." The revised law omits "entity" because "entity" is included in the meaning of "person" under Section 311.005(2), Government Code (Code Construction Act).

Revised Law

Sec. 1067.307. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES. (a) After the board finds that the district is dissolved, the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value.

(b) On the payment of all outstanding debts and obligations of the district, the board shall order the secretary to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.

(c) A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. If a taxpayer requests the credit, the board shall direct the secretary to transmit the money to the county tax assessor-collector. (Acts 59th Leg., R.S., Ch. 477, Secs. 20b(h), (i), (j).)

Source Law

(h) After the Board finds that the District is dissolved, the Board shall:

(1) determine the debt owed by the District; and

(2) impose on the property included in the District's tax rolls a tax that is in proportion of the debt to the property value.

(i) When all outstanding debts and obligations of the District are paid, the Board shall order the secretary to return the pro rata share of all unused tax money to each District taxpayer.

(j) A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. If a taxpayer requests the credit, the Board shall direct the secretary to transmit the funds to the county tax assessor-collector.

Revised Law

Sec. 1067.308. REPORT; DISSOLUTION ORDER. (a) After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Cooke County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Cooke County receives the report and determines that the requirements of this subchapter have been fulfilled, the commissioners court shall enter an order dissolving the district and releasing the board from any further duty or obligation. (Acts 59th Leg., R.S., Ch. 477, Secs. 20b(k), (l).)

Source Law

(k) After the District has paid all its debts and has disposed of all its assets and funds as prescribed by this section, the Board shall file a written report with the Commissioners Court of Cooke County setting forth a summary of the Board's actions in dissolving the District.

(l) Not later than the 10th day after the date it receives the report and determines that the requirements of this section have been fulfilled, the Commissioners Court of Cooke County shall enter an order dissolving the District and releasing the Board of Directors of the District from any further duty or obligation.

Revisor's Note

(End of Chapter)

(1) Article 2, Chapter 428, Acts of the 77th Legislature, Regular Session, 2001, amends Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, by adding Sections 1A and 20c, which provide authority to call an election on the dissolution of the Muenster Hospital District contingent on the creation of the Cooke County Hospital District. Section 3.02(b), Chapter 428, Acts of the 77th Legislature, Regular Session, 2001, provides that the "election in … the Muenster Hospital District … must be held before the fifth anniversary of the effective date of this Act." The effective date of Chapter 428 was May 28, 2001. Because the election on the question of creating the Cooke County Hospital District was not held before May 28, 2006 (the fifth anniversary of the effective date of Chapter 428), the authority to call an election on the dissolution of the Muenster Hospital District under Section 20c has expired. Therefore, the revised law omits Sections 1A and 20c. The omitted law reads:

Sec. 1A. On the dissolution of the Muenster Hospital District and the approval of the creation of the Cooke County Hospital District, a reference in this Act or in any other law to the Muenster Hospital District means the Cooke County Hospital District.

Sec. 20c. (a) Notwithstanding any other provision of this Act, the Muenster Hospital District may be dissolved as provided by this section.

(b) The Board of Directors may order an election on the question of the dissolution of the Muenster Hospital District, creation of the Cooke County Hospital District, transfer of the Muenster Hospital District's assets and obligations to the Cooke County Hospital District, and assumption by the Cooke County Hospital District of the Muenster Hospital District's outstanding debts.

(1) the Board has reasonable grounds to conclude that the Board of Directors of the Gainesville Hospital District will order an election under Section 18A, Chapter 211, Acts of the 64th Legislature, Regular Session, 1975; or

(2) the Board receives a petition requesting an election on the question of the dissolution of the Muenster Hospital District, creation of the Cooke County Hospital District, and transfer of assets that is signed by at least 15 percent of the registered voters in the Muenster Hospital District.

(d) If the Board of Directors orders an election under this section, it shall promptly notify the Board of Directors of the Gainesville Hospital District of the election order.

(e) The election shall be held not less than 45 or more than 60 days after the date on which an election is ordered and shall be held on the same date that the separate election in the Gainesville Hospital District is held. The Board of Directors shall cooperate with the Board of Directors of the Gainesville Hospital District in setting the date of the elections. Section 41.001(a), Election Code, does not apply to an election ordered under this section.

(f) The ballot for the election shall be printed to permit voting for or against the proposition: "The dissolution of the Muenster Hospital District and creation of the Cooke County Hospital District, providing for the levy of a tax not to exceed 75 cents on each $100 valuation on all taxable property in the Cooke County Hospital District, and providing for the transfer to and assumption by the Cooke County Hospital District of all outstanding bonds and indebtedness issued or refunded for hospital purposes by the Muenster Hospital District and the transfer of the existing Muenster Hospital District's assets to the Cooke County Hospital District."

(g) Except as provided by Subsections (e) and (f) of this section, the election shall be held in accordance with the applicable provisions of the Election Code.

(h) The Muenster Hospital District is dissolved if:

(1) a majority of the voters in the Muenster Hospital District voting in the election held under this section favor the proposition; and

(2) a majority of the voters in the Gainesville Hospital District voting in an election held on the same date under Section 18A, Chapter 211, Acts of the 64th Legislature, Regular Session, 1975, favor the dissolution of the Gainesville Hospital District, the creation of the Cooke County Hospital District, the transfer of the assets of the Gainesville Hospital District to Cooke County Hospital District, and the assumption of the assets and obligations of the Gainesville Hospital District by the Cooke County Hospital District.

(i) The Muenster Hospital District is not dissolved and the Board of Directors shall continue to administer the Muenster Hospital District if a majority of the voters in either district do not favor the proposition on which they voted.

(j) If the Muenster Hospital District is dissolved under this section, the Board of Directors shall orderly transfer the assets and obligations of the Muenster Hospital District to the Cooke County Hospital District not later than the 180th day after the date of the election.

(k) The Board of Directors may not hold an election on the question of dissolution under this section and the creation of the Cooke County Hospital District before the first anniversary of the most recent election held under this section concerning the dissolution and the creation of the Cooke County Hospital District.

(2) Section 22, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that the act is severable. The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect. The omitted law reads:

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

(3) Section 23, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution. The revised law omits that section as executed. The omitted law reads:

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


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