TLC: Special District Local Laws Code Proposed Chapters

81C8(3) LJW

CHAPTER 1081. NOCONA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1081.001. DEFINITIONS ............................... 3

Sec. 1081.002. AUTHORITY FOR OPERATION ................... 4

Sec. 1081.003. ESSENTIAL PUBLIC FUNCTION ................. 4

Sec. 1081.004. DISTRICT TERRITORY ........................ 4

Sec. 1081.005. CORRECTION OF INVALID PROCEDURES .......... 5

Sec. 1081.006. DISTRICT SUPPORT AND MAINTENANCE NOT

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

Sec. 1081.007. RESTRICTION ON STATE FINANCIAL

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

[Sections 1081.008-1081.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1081.051. BOARD ELECTION; TERM ...................... 6

Sec. 1081.052. QUALIFICATIONS FOR OFFICE ................. 7

Sec. 1081.053. BOARD VACANCY ............................. 8

Sec. 1081.054. OFFICERS .................................. 8

Sec. 1081.055. COMPENSATION; EXPENSES .................... 8

Sec. 1081.056. QUORUM .................................... 9

Sec. 1081.057. VOTING REQUIREMENT ........................ 9

Sec. 1081.058. CHIEF EXECUTIVE OFFICER; ASSISTANT TO

CHIEF EXECUTIVE OFFICER ................. 9

Sec. 1081.059. GENERAL DUTIES OF CHIEF EXECUTIVE

OFFICER ................................. 10

Sec. 1081.060. APPOINTMENT OF STAFF AND EMPLOYEES ........ 10

[Sections 1081.061-1081.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1081.101. DISTRICT RESPONSIBILITY ................... 11

Sec. 1081.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT ....................... 12

Sec. 1081.103. MANAGEMENT, CONTROL, AND ADMINISTRATION ... 13

Sec. 1081.104. HOSPITAL SYSTEM ........................... 13

Sec. 1081.105. RULES ..................................... 14

Sec. 1081.106. PURCHASING AND ACCOUNTING PROCEDURES ...... 15

Sec. 1081.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT ............................... 15

Sec. 1081.108. EMINENT DOMAIN ............................ 17

Sec. 1081.109. GIFTS AND ENDOWMENTS ...................... 18

Sec. 1081.110. CONSTRUCTION CONTRACTS .................... 19

Sec. 1081.111. OPERATING AND MANAGEMENT CONTRACTS ........ 19

Sec. 1081.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITALIZATION ..................... 20

Sec. 1081.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY AND OTHER SERVICES .... 20

Sec. 1081.114. CARE AND TREATMENT FOR INDIGENT ........... 21

Sec. 1081.115. AUTHORITY TO SUE AND BE SUED .............. 21

[Sections 1081.116-1081.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1081.151. BUDGET .................................... 21

Sec. 1081.152. NOTICE; HEARING; ADOPTION OF BUDGET ....... 22

Sec. 1081.153. AMENDMENTS TO BUDGET ...................... 23

Sec. 1081.154. RESTRICTION ON EXPENDITURES ............... 23

Sec. 1081.155. FISCAL YEAR ............................... 23

Sec. 1081.156. AUDIT ..................................... 24

Sec. 1081.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS ................................. 24

Sec. 1081.158. FINANCIAL REPORT .......................... 24

Sec. 1081.159. DEPOSITORY ................................ 24

Sec. 1081.160. SPENDING AND INVESTMENT RESTRICTIONS ...... 25

[Sections 1081.161-1081.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1081.201. GENERAL OBLIGATION BONDS .................. 26

Sec. 1081.202. TAX TO PAY GENERAL OBLIGATION BONDS ....... 26

Sec. 1081.203. GENERAL OBLIGATION BOND ELECTION .......... 27

Sec. 1081.204. REVENUE BONDS ............................. 28

Sec. 1081.205. MATURITY OF BONDS ......................... 29

Sec. 1081.206. EXECUTION OF BONDS ........................ 29

Sec. 1081.207. BONDS EXEMPT FROM TAXATION ................ 30

[Sections 1081.208-1081.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1081.251. IMPOSITION OF AD VALOREM TAX .............. 33

Sec. 1081.252. TAX RATE .................................. 34

Sec. 1081.253. TAX ASSESSOR-COLLECTOR .................... 35

[Sections 1081.254-1081.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1081.301. DISSOLUTION; ELECTION ..................... 36

Sec. 1081.302. NOTICE OF ELECTION ........................ 37

Sec. 1081.303. BALLOT .................................... 37

Sec. 1081.304. ELECTION RESULTS .......................... 37

Sec. 1081.305. TRANSFER OR ADMINISTRATION OF ASSETS ...... 38

Sec. 1081.306. IMPOSITION OF TAX AND RETURN OF SURPLUS ... 39

Sec. 1081.307. REPORT; DISSOLUTION ORDER ................. 39

CHAPTER 1081. NOCONA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1081.001. 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 Nocona 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. 1081.002. AUTHORITY FOR OPERATION. The Nocona Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 62nd Leg., R.S., Ch. 868, Sec. 1 (part).)

Source Law

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

Revisor's Note

Section 1, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, authorizes the "creation, establishment, maintenance and operation" of the district. The revised law omits "creation" and "establishment" as executed. The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1081.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 62nd Leg., R.S., Ch. 868, Sec. 21 (part).)

Source Law

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

Revised Law

Sec. 1081.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of the Nocona and Prairie Valley Independent School Districts of Montague County, Texas, as those boundaries existed on January 1, 1971. (Acts 62nd Leg., R.S., Ch. 868, Sec. 1 (part).)

Source Law

Sec. 1. … [hospital district] … with boundaries coextensive with the boundaries of the Nocona and Prairie Valley Independent School Districts of Montague County, Texas, as the boundaries of said school districts existed on January 1, 1971, … .

Revised Law

Sec. 1081.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 62nd Leg., R.S., Ch. 868, Sec. 23 (part).)

Source Law

Sec. 23. … [federal or state constitutions] … Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternative procedure conformable with such constitutions… .

Revisor's Note

Section 23, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that the act may not be construed to violate the federal or state constitution and requires that action under the act comply with the constitutions. The revised law omits the reference to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute. The revised law also omits the reference to the Texas Constitution because the legislature cannot modify constitutional requirements by statute. The omitted law reads:

Sec. 23. Nothing in this Act shall be construed to violate any provision of the federal or state constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revised Law

Sec. 1081.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 62nd Leg., R.S., Ch. 868, Sec. 20 (part).)

Source Law

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

Revised Law

Sec. 1081.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for construction, maintenance, or improvement of a district facility. (Acts 62nd Leg., R.S., Ch. 868, Sec. 20 (part).)

Source Law

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

[Sections 1081.008-1081.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1081.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district at large.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms;

(2) an election shall be held annually on the May uniform election date under Section 41.001, Election Code; and

(3) the terms of four directors expire in odd-numbered years and the terms of three directors expire in even-numbered years. (Acts 62nd Leg., R.S., Ch. 868, Secs. 4(a), (b).)

Source Law

Sec. 4. (a) The board of directors consists of seven persons elected as provided by this section.

(b) A regular election for directors shall be held annually on the May uniform election date under Section 41.001, Election Code. Four directors shall be elected in odd-numbered years and three directors shall be elected in even-numbered years. Directors are elected at large and shall serve staggered two-year terms. A director continues to serve until a successor has been elected or appointed and qualified.

Revisor's Note

(1) Section 4(b), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that directors serve two-year terms. Section 285.081, Health and Safety Code, applicable to this district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms. The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(2) Section 4(b), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that a director serves "until a successor has been elected or appointed and qualified." The revised law omits this provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state is to continue to perform the officer's official duties until a successor has qualified.

Revised Law

Sec. 1081.052. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the person is:

(1) the district chief executive officer;

(2) a district employee; or

(3) a medical staff member of the hospital. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(e).)

Source Law

(e) No person shall be appointed or elected as a member of the board of directors unless the person is a resident of the district and a qualified voter. Neither the chief executive officer, an employee of the district, nor a member of the medical staff of the hospital is eligible to serve as a director.

Revised Law

Sec. 1081.053. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(d).)

Source Law

(d) Vacancies in office shall be filled for the unexpired term by the remainder of the board of directors.

Revised Law

Sec. 1081.054. OFFICERS. (a) The board shall elect:

(1) a president and vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board shall fill a vacancy in a board office for the unexpired term. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Source Law

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

Revised Law

Sec. 1081.055. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

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

(2) approved by the board. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Source Law

(f) … All members of the board of directors and officers shall serve without compensation, but may be reimbursed for actual expenses incurred in the performance of their official duties upon the approval of such expenses by the board of directors and so reported in the minute book of the district or other records of the district.

Revisor's Note

Section 4(f), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, requires that approved expenses be reported in the "minute book of the district or other records of the district." The revised law omits the reference to the "minute book of the district" because the minute book is a district record.

Revised Law

Sec. 1081.056. QUORUM. Any five directors constitute a quorum. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Source Law

(f) … Any five members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1081.057. VOTING REQUIREMENT. A concurrence of five directors is sufficient in any matter relating to district business. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Source Law

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

Revised Law

Sec. 1081.058. CHIEF EXECUTIVE OFFICER; ASSISTANT TO CHIEF EXECUTIVE OFFICER. (a) The board shall appoint a qualified person as the chief executive officer of the district.

(b) The board may appoint an assistant to the chief executive officer.

(c) The chief executive officer and any assistant to the chief executive officer serve at the will of the board and are entitled to the compensation determined by the board. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(c) (part).)

Source Law

(c) The board of directors shall appoint a qualified person to be known as the chief executive officer of the hospital district and may in its discretion appoint an assistant to the chief executive officer. The chief executive officer and assistant to the chief executive officer, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board. …

Revised Law

Sec. 1081.059. GENERAL DUTIES OF CHIEF EXECUTIVE OFFICER. Subject to the limitations prescribed by the board, the chief executive officer shall:

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

(2) direct the affairs of the district. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(c) (part).)

Source Law

(c) … The chief executive officer shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, subject to the limitations as may be prescribed by the board.

Revised Law

Sec. 1081.060. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.

(c) The board may delegate to the chief executive officer the authority to hire district employees, including technicians and nurses. (Acts 62nd Leg., R.S., Ch. 868, Secs. 5(d), (e), 16.)

Source Law

[Sec. 5]

(d) The board of directors has the authority to appoint to the medical staff doctors as deemed necessary for the efficient operation of the district, and may provide for temporary appointments to the staff if warranted by circumstances.

(e) The board may delegate to the chief executive officer the authority to employ technicians, nurses, and employees of the district.

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

Revisor's Note

(End of Subchapter)

(1) Section 4(c), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, requires that notice of an election of directors be published in accordance with Section 4.003, Election Code. The revised law omits that provision because Section 4.003, Election Code, is a mandatory election notice provision that applies to district elections by its own terms. The omitted law reads:

(2) Section 4(c), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that candidates for director must file an application in accordance with Chapter 144, Election Code. The revised law omits the provision as unnecessary because Section 144.001, Election Code, provides that Chapter 144 of that code applies to a candidate for an office of a political subdivision other than a city or county, which includes a candidate for director of a hospital district. The omitted law reads:

(c) … Any person desiring to have the person's name printed on the ballot as a candidate for director shall file an application in accordance with Chapter 144, Election Code.

[Sections 1081.061-1081.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1081.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for providing hospital care for the district's needy inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Sec. 19 (part).)

Source Law

Sec. 19. … The said hospital district shall assume full responsibility for the operation of all hospital facilities for the furnishing of hospital care for its needy inhabitants.

Revisor's Note

Section 19, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district "shall assume" full responsibility for operating hospital facilities for providing hospital care for the district's needy inhabitants. The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1081.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for the district's inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Sec. 19 (part).)

Source Law

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

Revisor's Note

(1) Section 19, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that "[a]fter creation of the hospital district," certain political subdivisions may not levy taxes or issue bonds. The revised law omits the quoted language as executed. In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2) Section 19, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, refers to a "municipality or political subdivision." The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revised Law

Sec. 1081.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(a) (part).)

Source Law

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

Revised Law

Sec. 1081.104. HOSPITAL SYSTEM. (a) The district shall provide for the establishment of a hospital system by:

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

(2) equipping the buildings; and

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

(b) The hospital system may include:

(1) residential care of the sick and injured;

(2) outpatient clinics;

(3) dispensaries;

(4) nursing home facilities;

(5) necessary nurses;

(6) training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facility the board considers necessary for hospital care. (Acts 62nd Leg., R.S., Ch. 868, Secs. 2 (part), 10(a) (part).)

Source Law

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

Sec. 10. (a) … The hospital system may include residential care and treatment of the sick, wounded and injured, outpatient clinic or clinics, dispensaries, nursing home facilities, necessary nurses, training centers, blood banks, community mental health centers and research centers or laboratories, and any other facilities deemed necessary for hospital care by the directors.

Revisor's Note

(1) Section 2, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, recites the legislative findings that at the time of enactment there was no hospital or hospital system owned by Montague County or any municipality in the district and the district was not in any other hospital district. The revised law omits the provision as executed. The omitted law reads:

Sec. 2. It is hereby found and determined that there is no hospital or hospital system owned by Montague County and any city or town within the boundaries of the proposed district and … . The area of the proposed district is not included within the boundaries of any other hospital district heretofore established.

(2) Section 10(a), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, refers to the care and treatment of the "sick, wounded and injured." The revised law omits the reference to "wounded" because "wounded" is included in the meaning of "injured."

Revised Law

Sec. 1081.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(b) (part).)

Source Law

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

Revisor's Note

Section 5(b), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that the board may "promulgate" rules to govern the district. The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1081.106. 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 62nd Leg., R.S., Ch. 868, Sec. 10(d) (part).)

Source Law

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

Revised Law

Sec. 1081.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

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

(c) The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Secs. 10(a) (part), (b) (part), (c), (d) (part).)

Source Law

Sec. 10. (a) The board of directors is hereby given complete discretion as to the type of buildings (both as to number and location) required to establish and maintain an adequate hospital system… .

(b) … [board of directors] … may lease all or part of its buildings and facilities upon terms and conditions considered to be to the best interest of its inhabitants, provided that in no event shall any lease be for a period in excess of twenty-five (25) years from the date entered.

(c) The district shall be empowered to sell or otherwise dispose of any property (real or personal) or equipment of any nature upon terms and conditions found by the board to be in the best interest of its inhabitants.

(d) … The district may acquire equipment for use in its hospital system and mortgage or pledge the property so acquired as security for the payment of the purchase price, but any such contract shall provide for the entire obligation of the district to be retired within five (5) years from the date of the contract… .

Revisor's Note

(1) Section 10(a), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, requires the board to determine the type of buildings required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.

(2) Sections 10(b) and (c), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, refer to "terms and conditions." The revised law omits the references to "conditions" because "conditions" is included in the meaning of "terms."

(3) Section 10(c), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, refers to "any property (real or personal)." The revised law omits the reference to "real or personal" because under Section 311.005, Government Code (Code Construction Act), "property" means "real and personal property."

Revised Law

Sec. 1081.108. 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, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

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

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

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 62nd Leg., R.S., Ch. 868, Sec. 14.)

Source Law

Sec. 14. The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the district necessary or convenient to the powers, rights, and privileges conferred by this Act. The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, but the district is not required to deposit in the trial court money or a bond as required by Section 21.021(a), Property Code. In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1) Section 14, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, 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 law relating to eminent domain.

(2) Section 14, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, refers to a "writ of error." The revised law substitutes "petition for review" for "writ of error" because, effective September 1, 1997, the Texas Supreme Court replaced the writ of error procedure with the petition for review procedure. See Rule 53.1, Rules of Appellate Procedure.

Revised Law

Sec. 1081.109. 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 62nd Leg., R.S., Ch. 868, 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 868, Acts of the 62nd Legislature, Regular Session, 1971, 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. 1081.110. CONSTRUCTION CONTRACTS. A construction contract that requires the expenditure of more than the amount provided by Section 271.024, Local Government Code, may be entered into only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 62nd Leg., R.S., Ch. 868, Sec. 10(d) (part).)

Source Law

(d) … A contract for construction that requires expenditures in excess of the amount provided by Section 271.024, Local Government Code, may be entered into only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code… .

Revisor's Note

Section 10(d), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that Chapter 2253, Government Code, applies to the district's construction contracts in relation to performance and payment bonds. The revised law omits the provision because Chapter 2253 applies to hospital districts on its own terms. The omitted law reads:

(d) … The provisions of Chapter 2253, Government Code, relating to performance and payment bonds shall apply to construction contracts let by the district… .

Revised Law

Sec. 1081.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 62nd Leg., R.S., Ch. 868, Sec. 10(b) (part).)

Source Law

(b) The district, through its board of directors, is further authorized to enter into an operating or management contract with regard to its facilities or a part thereof, or … .

Revised Law

Sec. 1081.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR HOSPITALIZATION. (a) The board may contract with a county or municipality located outside the district's boundaries for the hospitalization 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 hospital treatment of a sick or injured person. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(f) (part).)

Source Law

(f) The board … shall be authorized to contract with any county or incorporated municipality located outside its boundaries for the hospitalization 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, or agencies of the federal government for the hospital treatment of sick, diseased, or injured persons.

Revisor's Note

(1) Section 5(f), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, 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(f), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, refers to the hospitalization of "sick, diseased, or injured persons." The revised law omits the references to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1081.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY AND OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the hospitalization needs of district inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(f) (part).)

Source Law

(f) The board shall be authorized to contract with any other political subdivision or governmental agency whereby the district will provide investigatory or other services as to the hospitalization needs of the inhabitants of the district and … .

Revised Law

Sec. 1081.114. CARE AND TREATMENT FOR INDIGENT. The district shall provide health care and treatment to indigent persons in accordance with policies and procedures adopted by the board. (Acts 62nd Leg., R.S., Ch. 868, Sec. 17.)

Source Law

Sec. 17. The district shall provide health care and treatment to indigent persons in accordance with policies and procedures adopted by the board of directors.

Revised Law

Sec. 1081.115. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(b) (part).)

Source Law

(b) [The district, through its board of directors, shall have the power and authority] to sue and be sued, … .

[Sections 1081.116-1081.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1081.151. BUDGET. (a) The chief executive officer shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(b).)

Source Law

(b) The chief executive officer shall prepare an annual budget for approval by the board of directors. The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each and every fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, with balances expected at year end of the year in which the budget is being prepared, and estimated revenues and balances available to cover the proposed budget and the estimated tax rate which will be required.

Revised Law

Sec. 1081.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in accordance with Chapter 551, Government Code.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the chief executive officer. The board may make any changes in the proposed budget that the board judges to be in the interest of the taxpayers and that the law warrants. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(c) (part).)

Source Law

(c) A public hearing on the annual budget shall be held by the board of directors after notice of the hearing has been published in accordance with Chapter 551, Government Code. Any resident of the district shall have the right to be present and to be heard at the hearing. At the conclusion of the hearing, the budget, as proposed by the chief executive officer, shall be acted upon by the board of directors. The board of directors shall have authority to make such changes in the budget as in their judgment the law warrants and the interest of the taxpayers demand… . the annual budget, and … shall be approved by the board of directors… .

Revised Law

Sec. 1081.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(c) (part).)

Source Law

(c) … The annual budget may be amended from time to time as the circumstances may require, but … all amendments thereto, shall be approved by the board of directors… .

Revisor's Note

Section 6(c), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, states that the board may amend the budget "from time to time." The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1081.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(c) (part).)

Source Law

Revised Law

Sec. 1081.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) if revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(a) (part).)

Source Law

Sec. 6. (a) The district shall be operated on the basis of a fiscal year established by the board of directors. The board of directors may not change the fiscal year if revenue bonds of the district are outstanding or more than once in a 24-month period… .

Revised Law

Sec. 1081.156. AUDIT. The board shall have an audit made of the district's financial condition. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(a) (part).)

Source Law

(a) … The board shall cause an audit to be made of the financial condition of the district, … .

Revised Law

Sec. 1081.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(a) (part).)

Source Law

(a) [The board shall cause an audit] … which together with other records of the district shall be open to inspection at the principal office of the district.

Revised Law

Sec. 1081.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the chief executive officer shall prepare for the board:

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

(2) a complete account of the disbursements of that money. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(c) (part).)

Source Law

(c) … As soon as practicable after the close of each fiscal year, the chief executive officer shall prepare for the board a full sworn statement of all moneys belonging to the district and a full account of the disbursements of same.

Revised Law

Sec. 1081.159. DEPOSITORY. (a) The board shall select one or more banks inside or outside the district to serve as a depository for district money.

(b) District money, other than money invested as provided by Section 1081.160(b), and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit. (Acts 62nd Leg., R.S., Ch. 868, Sec. 11.)

Source Law

Sec. 11. The board of directors of the district shall name one or more banks within or without its boundaries to serve as depository for the funds of the district. All funds of the district (except those invested as provided in Section 5, and those transmitted to a bank or banks of payment for bonds or obligations issued or assumed by the district) shall be deposited as received with the depository bank and shall remain on deposit, provided that nothing herein shall limit the power of the board to place a portion of such funds on time deposit or purchase certificate of deposit.

Revised Law

Sec. 1081.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1081.107(c) and Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal year.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 62nd Leg., R.S., Ch. 868, Secs. 5(a) (part), 10(d) (part).)

Source Law

Sec. 5. (a) … in no event shall any operating, depreciation, or building fund reserves be invested in any funds or securities other than those specified in Subchapter A, Chapter 2256, Government Code.

[Sec. 10]

(d) … Except as permitted in the preceding sentence and as permitted by Sections 7 and 9, the district may incur no obligation payable from any revenues of the district (tax or otherwise) except those on hand or to be on hand within the then current and following fiscal year of the district.

Revisor's Note

Section 10(d), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 7 and 9," the district may not incur certain obligations. The preceding sentence in Section 10(d) is revised in Section 1081.107(c). Sections 7 and 9 are revised in Subchapter E. The revised law is drafted accordingly.

[Sections 1081.161-1081.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1081.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2) equipping buildings or improvements for hospital purposes. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(a).)

Source Law

Sec. 7. (a) The board of directors shall have the power and authority to issue and sell general obligation bonds in the name and upon the faith and credit of the district for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping the same for hospital purposes, and for any or all of such purposes.

Revised Law

Sec. 1081.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1081.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(b) (part).)

Source Law

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

Revisor's Note

Section 7(b), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, 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. 1081.203. 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 order and publication of notice for the bond election must be provided in accordance with Chapter 1251, Government Code. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(c) (part).)

Source Law

(c) General obligation bonds may not be issued by the district until authorized by a majority of the voters of the district voting at an election called for such purpose. The order for the bond election and the publication of notice for the election must be provided in accordance with Chapter 1251, Government Code… .

Revisor's Note

Section 7(c), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that a bond election be conducted in accordance with the general laws of this state pertaining to general elections, except as modified by that chapter. The general law on elections is the Election Code. The revised law omits the provision because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. An exception to the application of the Election Code would apply by its own terms. The omitted law reads:

(c) … The election shall be conducted in accordance with the general laws of this state pertaining to general elections, except as modified by the provisions of this Act.

Revised Law

Sec. 1081.204. REVENUE BONDS. (a) The board may issue revenue bonds to:

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

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

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

(d) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 62nd Leg., R.S., Ch. 868, Sec. 9 (part).)

Source Law

Sec. 9. In addition to the power to issue bonds payable from taxes levied by the district, as contemplated by the preceding section, the board of directors is further authorized to issue, and … revenue bonds for purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for hospital purposes, and for acquiring sites therefor, such bonds to be payable from and secured by a pledge of all or any part of the revenues of the district to be derived from the operation of its hospital or hospitals, and such bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its properties. Such bonds shall be issued in the manner and in accordance with the procedures and requirements specified for the issuance of revenue bonds by County Hospital Authorities in Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code.

Revised Law

Sec. 1081.205. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(e) (part).)

Source Law

(e) … All bonds shall mature within forty (40) years of their date, … .

Revised Law

Sec. 1081.206. EXECUTION OF BONDS. (a) The board president shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(e) (part).)

Source Law

(e) [bonds] . . . shall be executed in the name of the hospital district and in its behalf by the president of the board and countersigned by the secretary in the manner provided by Chapter 618, Government Code, and … .

Revisor's Note

(1) Section 7(e), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds must bear interest at a rate not to exceed the rate permitted by Chapter 1204, Government Code. The revised law omits that provision because Chapter 1204 applies to district bonds by its own terms by application of Section 1204.001, Government Code. The omitted law reads:

(e) Bonds of the district shall bear interest at a rate not to exceed the rate permitted by Chapter 1204, Government Code… .

(2) Section 7(e), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller. Section 7(e) also provides that after approval and registration the bonds are "incontestable for any cause." The revised law omits those provisions because they duplicate, in substance, provisions in 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:

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

Revised Law

Sec. 1081.207. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

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

(3) profits made in the sale of bonds. (Acts 62nd Leg., R.S., Ch. 868, Sec. 21 (part).)

Source Law

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

Revisor's Note

Section 21, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, refers to "any municipality or political subdivision" of this state. The revised law omits "municipality" because that term is included in the meaning of "political subdivision" of this state.

Revisor's Note

(End of Subchapter)

(1) Sections 7(d) and 9, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, authorize the district to issue refunding bonds. The revised law omits those provisions because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities and prescribes procedures applicable to the securities. The omitted law reads:

[Sec. 7]

(d) The district may issue refunding bonds in accordance with Chapter 1207, Government Code.

Sec. 9. … [the board of directors is further authorized] … to refund any previously issued [revenue bonds] … .

(2) Section 13, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds are legal and authorized investments for certain entities. The revised law omits that provision as unnecessary. As to several of the entities listed, Section 13 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 13 duplicates 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. While Section 13 lists "guardians" and Section 1201.041 does not, the latter statute includes fiduciaries and a guardian is a fiduciary. The revised law omits the reference to public funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 13. All bonds issued by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, trustees, guardians, and sinking funds of cities, towns, villages, counties, school districts or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the State Permanent School Fund… .

(3) Section 13, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state. The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

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

[Sections 1081.208-1081.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1081.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to 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 the tax to pay the principal of or interest on revenue bonds issued under Section 1081.204. (Acts 62nd Leg., R.S., Ch. 868, Secs. 7(b) (part), 12 (part), 15(b).)

Source Law

[Sec. 7]

(b) … [a tax shall be levied by the board] … upon all taxable property situated within the hospital district, subject to hospital district taxation.

Sec. 12. The board of directors shall annually levy a tax … for the purpose of paying (1) the indebtedness issued by the district, but no tax shall be levied to pay principal or interest on revenue bonds issued under the provisions of Section 9 hereof, and (2) the maintenance and operating expenses of the district… .

[Sec. 15]

(b) The district may impose the tax to pay:

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

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

Revised Law

Sec. 1081.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.

(b) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 62nd Leg., R.S., Ch. 868, Secs. 7(b) (part), 12 (part), 15(a).)

Source Law

[Sec. 7]

(b) … [providing such tax together with any other taxes levied for the district] shall not exceed Seventy-five cents (75¢) on each One Hundred Dollars ($100) valuation of taxable property in any one year, upon all taxable property situated within the hospital district, … .

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

Sec. 15. (a) The board of directors annually may impose property taxes in an amount not to exceed 75 cents on each $100 valuation of all taxable property in the district.

Revisor's Note

Section 12, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector. The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate. The omitted law reads:

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

Revised Law

Sec. 1081.253. 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 62nd Leg., R.S., Ch. 868, Sec. 15(d).)

Source Law

(d) The board of directors 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)

Section 15(c), Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, 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 the government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code. The omitted law reads:

[Sections 1081.254-1081.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Revised Law

Sec. 1081.301. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the registered 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 at least 15 percent of the registered voters in the district.

(d) The election shall be held not later than the 60th day after the date the election is ordered.

(e) 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.

(f) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 62nd Leg., R.S., Ch. 868, Secs. 19A(a), (b), (c), (d).)

Source Law

Sec. 19A. (a) The district may be dissolved only if the dissolution is approved by a majority of the registered voters of the district voting in an election held for that purpose.

(b) The board of directors 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 registered voters of the district equal to at least 15 percent of the registered voters in the district.

(c) An election ordered under this section shall be held not later than the 60th day after the date the election is ordered. Section 41.001, Election Code, does not apply to an election ordered under this section.

(d) The order calling an election under this section must state:

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

(2) the date of the election;

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

(4) the location of the polling places.

Revised Law

Sec. 1081.302. 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 notice must appear not later than the 35th day before the date set for the election. (Acts 62nd Leg., R.S., Ch. 868, Sec. 19A(e).)

Source Law

(e) The board of directors 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 later than the 35th day before the date set for the election.

Revised Law

Sec. 1081.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Nocona Hospital District." (Acts 62nd Leg., R.S., Ch. 868, Sec. 19A(f).)

Source Law

(f) The ballot for the election must be printed to permit voting for or against the proposition: "The dissolution of the Nocona Hospital District."

Revised Law

Sec. 1081.304. 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 62nd Leg., R.S., Ch. 868, Sec. 19A(g).)

Source Law

(g) If a majority of the votes in the election favor dissolution, the board of directors 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 may not be held before the first anniversary of the most recent election to dissolve the district.

Revised Law

Sec. 1081.305. TRANSFER OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in the election held under this subchapter favor dissolution, the board shall:

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

(c) If Subsection (a)(1) does not apply and the board administers the property, assets, and debts of the district under Subsection (a)(2), the district is dissolved when all the money has been disposed of and all district debts have been paid or settled. (Acts 62nd Leg., R.S., Ch. 868, Secs. 19A(h), (i), (j).)

Source Law

(h) If a majority of the votes in the election favor dissolution, the board of directors shall:

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

(i) If the district transfers the land, buildings, improvements, equipment, and other assets to Montague County or another 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.

(j) If the district does not transfer the land, buildings, improvements, equipment, and other assets to Montague County or another governmental entity, the board of directors shall administer the property, assets, and debts of the district until all funds have been disposed of and all district debts have been paid or settled, at which time the district is dissolved.

Revised Law

Sec. 1081.306. IMPOSITION OF TAX AND RETURN OF SURPLUS. (a) After the board finds that the district is dissolved, the board shall:

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

(2) impose on the property included on the district's tax roll a tax that is in proportion of any 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 62nd Leg., R.S., Ch. 868, Secs. 19A(k), (l), (m).)

Source Law

(k) After the board of directors finds that the district is dissolved, the board shall:

(1) determine any 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.

(l) When all outstanding debts and obligations of the district are paid, the board of directors shall order the secretary to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.

(m) 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 of directors shall direct the secretary to transmit the money to the county tax assessor-collector.

Revised Law

Sec. 1081.307. 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 Montague County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Montague 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 62nd Leg., R.S., Ch. 868, Secs. 19A(n), (o).)

Source Law

(n) After the district has paid all its debts and has disposed of all its assets and money as prescribed by this section, the board of directors shall file a written report with the Commissioners Court of Montague County setting forth a summary of the board's actions in dissolving the district.

(o) 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 Montague 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) Section 23, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, 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. 23. … If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the district or the validity of any other provisions of this Act, and the Legislature hereby declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(2) Section 24, Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971, 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. 24. Proof of publication of the notice required in the enactment hereof under the provisions of Article IX, Section 9 of the Texas Constitution, has been made in the manner and form provided by law pertaining to the enactment of local and special laws, and such notice is hereby found and declared proper and sufficient to satisfy such requirement.


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