CHAPTER 283. OPTIONAL HOSPITAL DISTRICT LAW OF 1957
HEALTH AND SAFETY CODE
TITLE 4. HEALTH FACILITIES
SUBTITLE D. HOSPITAL DISTRICTS
CHAPTER 283. OPTIONAL HOSPITAL DISTRICT LAW OF 1957
SUBCHAPTER A. CREATION OF DISTRICT
Sec. 283.001. SHORT TITLE. This Act may be cited as the
Optional Hospital District Law of 1957.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.002. DEFINITIONS. In this chapter:
(1) "Board" means the board of hospital managers of a district.
(2) "District" means a hospital district created under this
chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.003. DISTRICT AUTHORIZATION. (a) A county authorized
to establish a hospital district under Article IX, Section 4, of
the Texas Constitution may create a hospital district and provide
for the establishment of a countywide hospital or hospital system
to furnish medical aid and hospital care to indigent and needy
persons residing in the district.
(b) If the county authorized to establish a hospital district
under Article IX, Section 4, of the Texas Constitution owns and
operates a hospital or hospital system for indigent or needy
persons, separately or jointly with a municipality, the
countywide hospital district may take over the hospital or
hospital system to furnish medical aid and hospital care to
indigent and needy persons residing in the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.004. CREATION ELECTION REQUIRED. (a) The district may
be created only if the creation is approved by a majority of the
qualified voters of the county in which the proposed district
will be located who vote at an election called and held for that
purpose.
(b) The commissioners court may order a creation election to be
held on its own motion or on the presentation of a petition for a
creation election signed by at least 100 qualified property
taxpaying voters of the county.
(c) When the commissioners court orders the election, the court
shall determine, subject to Section 283.121(c)(2), a rate of
property tax that produces the amount of tax revenue necessary:
(1) to operate and maintain the proposed district's hospital
system; and
(2) to pay when due the principal of and interest on bonds
assumed by the district.
(d) The election shall be held on the first authorized uniform
election date prescribed by the Election Code that allows
sufficient time to comply with other requirements of law.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.005. BALLOT PROPOSITIONS. (a) Except as provided by
Subsection (b), the ballot for an election under this subchapter
shall be printed to provide for voting for or against the
proposition: "The creation of a hospital district under the
Optional Hospital District Law of 1957 and the levy of a tax not
to exceed ______ cents (the amount determined by the
commissioners court in the election order) on each $100 of the
taxable value of property taxable by the district."
(b) If the county or a municipality in the county has any
outstanding bonds issued for hospital purposes, the ballot for an
election under this subchapter shall be printed to provide for
voting for or against the proposition: "The creation of a
hospital district, the levy of a tax not to exceed (the amount
determined by the commissioners court in the election order) on
each $100 of the taxable value of property taxable by the
district, and the assumption by the district of all outstanding
bonds previously issued for hospital purposes by ____________
County and by any municipality in the county."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 283.021. DISTRICT BOARD; OFFICERS. (a) The commissioners
court of a county in which a district is created under this
chapter serves as the district board of hospital managers.
(b) The county judge of the county in which the district is
located serves as the district board chairman.
(c) The county clerk serves as the district board secretary.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.022. COMPENSATION. A board member serves without
compensation other than the compensation provided by law for a
county judge or a commissioner.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.023. RECORD OF BOARD MEETING. The secretary shall keep
a suitable record of each board meeting.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.024. ADMINISTRATOR; DUTIES. (a) The board shall
appoint an administrator for the district. The person must be
qualified by training and experience.
(b) The administrator holds an office for a term of not more
than two years but is subject to removal by the board at any
time.
(c) The administrator is entitled to compensation as determined
by the board.
(d) Before assuming duties, the administrator shall execute a
bond payable to the district in the amount of not less than
$10,000, conditioned on the faithful performance of the
administrator's duties and any other requirements determined by
the board.
(e) Subject to the limitations prescribed by the board, the
administrator shall:
(1) perform duties required by the board;
(2) supervise the work and activities of the district; and
(3) generally direct the affairs of the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.025. ASSISTANT ADMINISTRATOR. (a) If the
administrator is absent or unable to perform any of the
administrator's duties, the board may designate an assistant
administrator to perform any of the administrator's functions or
duties, subject to limitations prescribed by board order.
(b) The assistant administrator and other employees shall
execute a bond as required by board order.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.026. STAFF. (a) The board may hire doctors,
technicians, nurses, and other employees the board considers
advisable for the district's efficient operation.
(b) An employment contract may not exceed two years.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.027. RETIREMENT PROGRAMS. The commissioners court may
include district employees in:
(1) an existing county employees' pension or retirement program;
or
(2) an employees' pension or retirement program established for
the benefit of district employees.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.028. SEAL. The commissioners court's seal is the
district seal. The seal shall be used to authenticate the board's
acts.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER C. GENERAL POWERS AND DUTIES
Sec. 283.041. TRANSFER OF COUNTY AND MUNICIPAL HOSPITAL PROPERTY
AND FUNDS. (a) On the creation of a district under this chapter
and the appointment and qualification of the district board, the
county owning a hospital or hospital system located in the
district, or the county and municipality jointly operating a
hospital or hospital system located in the district, shall
execute and deliver to the district board a written instrument
conveying to the district the title to land, buildings, and
equipment jointly or separately owned by the county or
municipality and used to provide medical services or hospital
care, including geriatric care, to indigent or needy persons of
the county or municipality.
(b) On the creation of a district under this chapter and the
appointment and qualification of the district board, the county
owning the hospital or hospital system, or the county and
municipality jointly operating a hospital or hospital system,
shall, on the receipt of a certificate executed by the board's
chairman stating that a depository for the district has been
chosen and qualified, transfer to the district:
(1) the unspent proceeds of any bonds assumed by the district
under Section 283.043; and
(2) all unspent joint or separate county or municipal funds that
have been established or appropriated by the county or
municipality to support and maintain the hospital facilities for
the year in which the district is created.
(c) Funds transferred to the district under this section may be
used only for a purpose for which the county or the municipality
that transferred the funds could lawfully have used the funds if
the funds had remained the property and funds of the county or
municipality.
(d) As soon as practical after the declaration of the election
results, the county or municipal board of managers shall transfer
to the district board all county and municipal hospital system
records, property, and affairs and shall cease to exist.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.042. ASSUMPTION OF CONTRACT OBLIGATIONS. On the
creation of the district, the district assumes without prejudice
to the rights of third parties any outstanding contract
obligations legally incurred by the county or municipality, or
both, for the construction, support, or maintenance of hospital
facilities before the creation of the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.043. ASSUMPTION OF BONDED INDEBTEDNESS; CANCELLATION OF
UNSOLD MUNICIPAL OR COUNTY BONDS. (a) On the creation of the
district, the district assumes:
(1) any outstanding bonded indebtedness incurred by the county
or municipality, or both, in the acquisition of land, buildings,
and equipment transferred to the district or in the construction
and equipping of hospital facilities; and
(2) any other outstanding bonds issued by the county or
municipality for hospital purposes, the proceeds of which are in
whole or in part unexpended.
(b) A county or municipality in the district that issued bonds
for hospital purposes is no longer liable for the payment of
bonds assumed by the district or for providing interest and
sinking fund requirements on those bonds.
(c) This section does not limit or affect the rights of a
bondholder against the county or municipality if there is a
default in payment of the principal or interest on the bonds in
accordance with their terms.
(d) If the issuance of bonds to provide hospital facilities was
approved at a bond election but the bonds have not been sold on
the date on which the hospital district is created under this
chapter, the bond authority is canceled and the bonds may not be
sold.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.044. LIMITATION ON TAXING POWER BY GOVERNMENTAL ENTITY;
DISPOSITION OF DELINQUENT TAXES. (a) On or after the creation
of the district, the county or a municipality located in the
district may not levy taxes for hospital purposes.
(b) The county or a municipality located in the district that
collects delinquent taxes owed to the county or municipality on
levies for county and municipal hospital systems or for the
payment of bonds issued for the systems shall pay the amount of
the collected delinquent taxes to the district, and the district
shall apply that money to the purposes for which the taxes were
originally levied.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.045. DISTRICT RESPONSIBILITY FOR MEDICAL AID AND
HOSPITAL CARE. The district assumes full responsibility for
furnishing medical and hospital care for indigent and needy
persons residing in the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.046. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
board shall manage, control, and administer the hospital or
hospital system of the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.047. DISTRICT RULES. The board may adopt rules
governing the operation of the hospital or hospital system.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.048. PURCHASING AND ACCOUNTING METHODS AND PROCEDURES.
(a) The commissioners court may prescribe:
(1) the method of making purchases and expenditures by and for
the district; and
(2) accounting and control procedures for the district.
(b) A county officer, employee, or agent shall perform any
function or service required by the commissioners court under
this section.
(c) The district shall pay salaries and expenses necessarily
incurred by the county or by a county officer or agent in
performing a duty prescribed or required under this section.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.049. DISTRICT INSPECTIONS. (a) The district
facilities may be inspected by a representative of the Texas
Board of Health or any other state board authorized to supervise
a hospital.
(b) A resident district officer shall:
(1) admit an inspector into the district facilities; and
(2) on demand give the inspector access to records, reports,
books, papers, and accounts related to the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.050. EMINENT DOMAIN. (a) The district may exercise
the power of eminent domain to acquire by condemnation a fee
simple or other interest in real, personal, or mixed property
located in the district if the property interest is necessary or
convenient for the exercise of the rights or authority conferred
on the district by this chapter.
(b) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code, but the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
(c) In a condemnation proceeding brought by the district, the
district is not required to:
(1) pay in advance or give bond or other security for costs in
the trial court;
(2) give bond for the issuance of a temporary restraining order
or a temporary injunction; or
(3) give bond for costs or supersedeas on an appeal or writ of
error.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.051. GIFTS AND ENDOWMENTS. (a) On behalf of the
district, the board may accept gifts and endowments to be held in
trust and administered by the board for the purposes and under
the directions, limitations, or provisions prescribed in writing
by the donor that are consistent with the proper management of
the district.
(b) The board may contract with the state to receive a payment
or grant provided by the state for the care or treatment of
hospital patients or patients in district facilities.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.052. AUTHORITY TO SUE AND BE SUED; LEGAL
REPRESENTATION. (a) The board may sue and be sued.
(b) The county attorney, district attorney, or criminal district
attorney, as appropriate, with the duty to represent the county
in civil matters shall represent the district in all legal
matters.
(c) The board may employ additional legal counsel when the board
determines that additional counsel is advisable.
(d) The district shall contribute sufficient funds to the
general fund of the county for the account of the budget of the
county attorney, district attorney, or criminal district
attorney, as appropriate, to pay all additional salaries and
expenses incurred by that officer in performing the duties
required by the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER D. MEDICAL TREATMENT AND CARE
Sec. 283.071. ADMISSION CRITERIA AND PAYMENT; CRIMINAL PENALTY.
(a) The board shall enter an order in district records defining
"indigent or needy person" for the purpose of determining
qualifications for admission to district hospital facilities.
(b) An order under Subsection (a) must detail the criteria for
an emergency admission to district facilities without regard to
indigency and for the length and basis of the stay at the
facility.
(c) The board may require evidence of indigency that it
considers appropriate, including an affidavit of inability to
pay.
(d) The board may hire personnel necessary to determine the
eligibility of an applicant for admission to district facilities
and to process admissions.
(e) A person commits an offense if the person is able to pay for
the person's hospital care at a district facility and makes a
false statement for the purpose of obtaining admission to a
district hospital facility. An offense under this subsection is a
misdemeanor and punishable by a fine not to exceed $200.
(f) A person who violates Subsection (e) is also liable for the
cost of the person's hospital care.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER E. DISTRICT FINANCES
Sec. 283.081. BUDGET. (a) The administrator shall prepare an
annual budget.
(b) The budget and all budget revisions shall be approved by the
commissioners court.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.082. ADMINISTRATOR'S REPORT. (a) As soon as
practicable after the close of the fiscal year, the administrator
shall make a report to the commissioners court, Texas Board of
Health, and comptroller.
(b) The report must:
(1) contain a sworn statement of all money and choses in action
received by the administrator and the disposition of the money
and actions; and
(2) detail the operations of the district for the fiscal year.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.083. DEPOSITORY. (a) Not later than the 30th day
after the appointment of the board, the board shall:
(1) select a depository for district funds in the manner
provided by law for the selection of a county depository; or
(2) elect to use the county depository.
(b) If the board selects a depository in accordance with
Subsection (a)(1), the depository shall serve as the district
depository for two years and until its successor is selected and
qualified.
(c) All income of the district shall be deposited in the
district depository.
(d) The county clerk's signature is not required on warrants
against district funds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER F. DISTRICT BONDS
Sec. 283.101. GENERAL OBLIGATION BONDS. The commissioners court
may issue and sell bonds in the district's name and on the
district's faith and credit to acquire, purchase, construct,
equip, or enlarge the hospital or hospital system if:
(1) a tax may be imposed at a rate that:
(A) is sufficient to create an interest and sinking fund to pay
the principal of and interest on the bonds; and
(B) when added to the rates of other taxes imposed by the
district, does not exceed the maximum tax rate of the district;
and
(2) the bonds are authorized by majority vote of the qualified
voters of the district voting at an election held for the
purpose.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.102. BOND ELECTION. (a) A bond election may be held
at any time the commissioners court considers advisable, except
that it may not be held within two years after the date of a
previous election.
(b) The election must be:
(1) ordered and held in accordance with Chapter 1251, Government
Code; and
(2) conducted in the same manner as other countywide elections.
(c) The district shall pay for the cost of the election and
shall provide for payment before the commissioners court orders
the election.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.262, eff. Sept.
1, 2001.
Sec. 283.103. REFUNDING BONDS. (a) Refunding bonds of the
district may be issued to refund outstanding bonded indebtedness
the district has issued or assumed.
(b) The bonds must be issued in the manner provided for other
bonds of the district except that an election to authorize their
issuance is not required.
(c) The refunding bonds may be:
(1) sold and the proceeds applied to the payment of outstanding
bonds; or
(2) exchanged in whole or in part for not less than a similar
principal amount of the outstanding bonds plus the unpaid,
matured interest on those bonds.
(d) The average annual interest cost on the refunding bonds,
computed in accordance with recognized standard bond interest
cost tables, may not exceed the average annual interest cost so
computed on the bonds to be discharged from the proceeds of the
refunding bonds, unless the total interest cost on the refunding
bonds, computed to their respective maturity dates, is less than
the total interest cost so computed on the bonds to be discharged
from those proceeds. In those computations, any premium required
to be paid on the bonds to be refunded as a condition to payment
in advance of their stated maturity dates shall be taken into
account as an addition to the net interest cost to the district
of the refunding bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.104. EXECUTION OF BONDS. The county judge of the
county in which the district is created shall execute the bonds
in the name of the district, and the county clerk shall
countersign the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.105. APPROVAL AND REGISTRATION OF BONDS. (a) District
bonds must be approved by the attorney general and registered by
the comptroller subject to the same requirements for approval and
registration of bonds issued by the county.
(b) The attorney general's approval of district bonds has the
same effect as that approval for other bonds issued by the
county.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER G. TAXES
Sec. 283.121. TAX ASSESSMENT AND COLLECTION. (a) If the
district has issued or assumed bonds payable from taxes, the
commissioners court shall impose a tax for the benefit of the
district on all property subject to district taxation.
(b) The commissioners court may impose a tax for:
(1) the entire year in which the district is created;
(2) maintenance and operation of the district; and
(3) improvements and additions to the hospital system.
(c) The total tax rate of the district may not exceed:
(1) the rate authorized by the voters of the district; or
(2) the constitutional tax rate limit.
(d) The tax revenue may be used:
(1) to create an interest and sinking fund for bonds that may be
assumed or issued by the district for hospital purposes in
accordance with this chapter;
(2) to provide for the operation and maintenance of the hospital
or hospital system; and
(3) to make improvements and additions to the hospital system,
including the acquisition of necessary sites.
(e) The county tax assessor-collector shall collect the tax.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.122. ELECTION TO INCREASE TAX AMOUNT. (a) The tax
rate approved in the creation of the district may be increased
only if the increase is approved by a majority of the qualified
voters of the district who vote in an election called and held
for that purpose.
(b) The commissioners court may order an election to increase
the allowable tax rate to be held on its own motion or on the
presentation of a petition for an election signed by at least 100
qualified property taxpaying voters of the district.
(c) When the commissioners court orders the election, the court
shall determine the amount of tax necessary for the proper
maintenance of the hospital district.
(d) The election shall be held on the first authorized uniform
election date prescribed by the Election Code that allows
sufficient time to comply with the other requirements of law and
that occurs at least 30 days after the date on which the court
orders the election.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.123. BALLOT PROPOSITION FOR TAX INCREASE. The ballot
for a tax increase under this subchapter shall be printed to
provide for voting for or against the proposition: "The increase
of the hospital district tax from (the existing tax levy) to (the
amount of existing tax plus the increase determined by the
commissioners court in its order calling the election) on each
$100 of the taxable value of property taxable by the district."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER H. DISTRICT CONVERSION
Sec. 283.131. DISTRICT CONVERSION AUTHORITY. A hospital
district created in accordance with Chapter 281 may be converted
into a district subject to this chapter, or a district created in
accordance with this chapter may be converted into a district
subject to Chapter 281.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.132. CONVERSION ELECTION REQUIRED. (a) A district may
be converted under this subchapter only if the conversion is
approved by a majority of the qualified voters of the county in
which the district is located who vote at an election called and
held for that purpose.
(b) The commissioners court shall order a conversion election
not later than the 20th day after the date of presentation of a
petition for conversion signed by at least five percent of the
qualified property taxpaying voters of the county.
(c) If the election is on the question of conversion of a
district created in accordance with Chapter 281, when the
commissioners court orders the election, the court shall
determine the amount of tax necessary:
(1) to operate and maintain the district's hospital system;
(2) to make improvements and additions to the hospital system,
including the acquisition of necessary sites; and
(3) to pay when due the principal of and interest on district
bonds assumed by the original district but excluding bonds issued
by the original district.
(d) The election shall be held on the first authorized uniform
election date prescribed by the Election Code that allows
sufficient time to comply with other requirements of law and that
occurs at least 30 days after the date on which the court orders
the election.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.133. BALLOT PROPOSITIONS. (a) The ballot for the
election held to determine the question of conversion of a
district created under this chapter shall be printed to provide
for voting for or against the proposition: "The conversion of the
hospital district from a district operated under the Optional
Hospital District Law of 1957 to a district operated under
Chapter 281, Health and Safety Code, and the levy of a tax not to
exceed 75 cents on each $100 of the taxable value of property
taxable by the district."
(b) The ballot for an election held to determine the question of
conversion of a district created in accordance with Chapter 281,
if no bonds issued by the district are outstanding, shall be
printed to provide for voting for or against the proposition:
"The conversion of the hospital district from a district operated
under Chapter 281, Health and Safety Code, to a district operated
under the Optional Hospital District Law of 1957, and the levy of
a tax not to exceed (the amount determined by the commissioners
court in the election order) on each $100 of the taxable value of
property taxable by the district."
(c) The ballot for an election held to determine the question of
conversion of a district created in accordance with Chapter 281,
if bonds issued by the district are outstanding, shall be printed
to provide for voting for or against the proposition: "The
conversion of the hospital district from a district operated
under Chapter 281, Health and Safety Code, to a district operated
under the Optional Hospital District Law of 1957, and the levy of
a tax not to exceed 75 cents on each $100 of the taxable value of
property taxable by the district until presently outstanding
bonds issued by the district have been retired, and thereafter
the levy of a tax not to exceed (the amount determined by the
commissioners court in the election order) on each $100 of the
taxable value of property taxable by the district."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.134. EFFECTIVE DATE OF CONVERSION. If a majority of
the qualified voters participating in the election vote in favor
of the proposition, the conversion becomes effective on the 30th
day after the date that the election results are declared.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.135. EFFECT OF CONVERSION. (a) The district's
identity is not affected by the conversion, and the district is
liable for all outstanding debts and obligations assumed or
incurred by the district.
(b) Any bonds voted by a district originally created under
Chapter 281 which have not been issued on the date of the
conversion election may not be issued.
(c) On conversion of a district from one operated under Chapter
281 to one operated under this chapter, the district may not
impose a tax in excess of the amount determined by the
commissioners court in the election order for any purposes other
than to pay the principal of and interest on the unpaid bonds
issued by the district before the date of conversion.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 283.136. LIMITATION ON FURTHER ELECTIONS. (a) If the
proposition fails to carry at the conversion election, the
district may not hold another election on the proposition for two
years after the date of the election.
(b) A district that has converted under this subchapter may hold
an election for reconversion after five years after the date of
the conversion. The election for reconversion must be held in the
same manner as provided in this subchapter for the conversion.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.