Citations
- 449 S.W.2d 508
Full opinion text
OPINION
SHARPE, Justice.
This case involves a suit for declaratory judgment, for injunctive relief and an alleged election contest. The occurrence made the basis of the. case was the creation of the Edna Hospital District by confirmation election on November 11, 1967, in accordance with House Bill 610 as passed by the 60th Legislature of Texas, Regular Session, 1967, effective May 12, 1967, sometimes hereinafter referred to as the Enabling Act. Appellants who are land owners and taxpayers within the Hospital District filed suit in the District Court of Jackson County against the Hospital District and its board of directors, Jackson County and its county judge and other members of the Commissioners’ Court, seeking a declaration that the Hospital District was invalid either because its Enabling Act was unconstitutional or because it was not lawfully created. Appellants’ petition included alternative pleadings requesting declarations that Jackson County could not tax for hospital purposes and that it be enjoined from doing so if the Hospital District was valid.
The trial court sustained District’s plea to the jurisdiction in connection with an alleged election contest and ruled that it would take no further cognizance of the grounds contained in appellants’ pleadings which could be asserted and raised in a statutory election contest; and as to such matters appellants’ pleadings were dismissed.
The trial court also granted District’s motion for summary judgment, which in effect upheld the validity of the District. Interlocutory orders were entered (and later carried forward into the final judgment) which disposed of the controversies between appellants and District. Thereafter, the controversy between appellants and County was tried before the judge and an empaneled jury. When the evidence was closed the trial court withdrew the case from the jury and held in favor of County on the question of its right to levy and collect ad valorem taxes on all property in Jackson County for the purpose of maintaining and supporting the County Hospital located at Ganado, Texas, outside the boundaries of the Edna Hospital District.
The final judgment entered by the trial court, which denied the relief sought by appellants, contained the following recitations :
“It is further ORDERED, ADJUDGED and DECREED by the Court that a declaratory judgment should be rendered as follows:
(1) Jackson County has the right to assess and collect ad valorem taxes on all property in Jackson County for the purpose of maintaining and supporting the County Hospital located at Ganado, Texas.
(2) The Edna Hospital District has been lawfully created and has a lawful existence.
(3) The Enabling Act for the Edna Hospital District is valid and constitutional.
(4) The Edna Hospital District has authority to levy taxes and to issue bonds for hospital purposes and medical care within the boundaries of the District.”
We agree with the trial court’s holdings hereinabove set out for the reasons hereinafter to be stated and affirm the judgment.
Appellants assert ten points of error. We will consider the contentions made thereunder in three groups as follows: Group One, involving appellants’ contentions that the District Enabling Act is an unconstitutional local and special law prohibited by Art. Ill, Section 56 of the Texas Constitution, Vernon’s Ann.St.; that the notice to apply for the enabling law required by Art. Ill, Sec. 57 of the Texas Constitution was insufficient; that the title of the Enabling Act is insufficient; and that the Enabling Act conflicts with the Texas Constitution’s “outstanding indebtedness” assumption requirement. Group Two, involving appellants’ contentions concerning an alleged election contest; and particularly that appellants duly complied with the notice requirements of the Texas Election Code, Art. 9.03, V.A.T.S. Group Three, involving appellants’ contentions that the judgment unlawfully subjects appellants’ land to double taxation for hospitals by the County and District; and that the Enabling Act conflicts with the constitutional prohibition of double taxation.
Appellants’ Group One Contentions
The background facts may be summarized as follows: On November 11, 1967 the qualified voters of the District voted 655 to 332 for the creation of the Edna Hospital District and for approval of bonds for the building and operation of the hospital. Theretofore, special notice had been given to the residents of the proposed district (on December 29, 1966 and January 5, 12 and 19, 1967) that the Legislature was considering a Bill for the creation of the Edna Hospital District. On May 12, 1967, pursuant to Art. IX, Sec. 9 of the Texas Constitution, the Legislature enacted the Enabling Act here in question, the same being a prerequisite to the creation of District. Texas Laws 1967, Chap. 172, p. 355; Art. 4494q, V.A.C.S: On November 13, 1967 the Commissioners Court of Jackson County, Texas convened in regular session and “approved as canvassed” the elections of November 11, 1967. The Commissioners Court ordered that the returns of the election be entered in the election return records of the County Clerk’s Office. Thereafter, Mr. John W. Fainter, Jr., Head of the Municipal Bond and Charitable Trust Division for the Attorney General of Texas, requested preparation of a nunc pro tunc order canvassing the returns of the election for entry by the Commissioners Court of Jackson County, Texas. This order was duly entered on March 11, 1968, “Nunc Pro Tunc for the 13th day of November, 1967.” Prior to the filing of appellants’ suit the Attorney General of Texas had given preliminary approval to the bonds of District. Final approval was subject to receipt by the Attorney General of a non-litigation certificate and examination of bonds. After institution of the instant suit the Attorney General advised District that its bonds would not be approved until such time as a final judgment favorable to their issuance had been rendered. This action appears to be in accord with long standing policy of the Attorney General and does not reflect a view as to the merits of this suit. The preliminary approval of the bonds by the Attorney General did, however, reflect his views concerning the validity of the District in the absence of litigation.
We agree with District that appellants’ Group One contentions are without merit. Appellants argue primarily that the Enabling Act creating the Edna Hospital District is the type of “local or special law” condemned by Art. Ill, Sec. 56, Texas Constitution. That provision prohibits certain types of local or special laws “except as otherwise provided in this Constitution.” Appellee District takes the position that in any event the Enabling Act is expressly permitted by Art. IX, Sec. 9, Texas Constitution, which in part provides as follows :
“The Legislature may by law provide for the creation, establishment, maintenance and operation of hospital districts composed of one or more counties or all or any part of one or more counties * *
The question of whether an Enabling Act passed pursuant to Art. IX, Sec. 9, Texas Constitution is an unconstitutional “local or special law” has apparently not been heretofore considered by any Texas appellate court. However, in Sweeny Hospital District v. Carr, 378 S.W.2d 40 (Tex.Sup.1964) our Supreme Court examined certain phases of that provision. Although the question here presented was not before the Court in Sweeny, it is apparent that the court understood that the Enabling Acts passed pursuant to Art. IX, Sec. 9, Tex.Const., were local or special laws. The court there reviewed the history of a series of amendments to Art. IX of the Texas Constitution authorizing creation of hospital districts with power to levy taxes and issue bonds and in part held as follows:
“Whereas all of the other hospital district amendments are local in scope, Sec. 9, Article 9 is general in scope. It empowers the Legislature to provide by law ‘for the creation, establishment, maintenance and operation of hospital districts composed of one or more counties or all or any part of one or more counties with power to issue bonds’ for the purchase, construction, etc. of hospitals and with authority to levy annual taxes at a rate not to exceed 75‡ on the $100.00 valuation of property to meet the district’s bond requirements, the indebtedness assumed by it, and maintenance and operating expenses. No authorizing election is required by the amendment for the issuance of bonds or the assumption of indebtedness, but it provides that ‘such district shall not be created or such tax authorized unless approved by a majority of the qualified property taxpaying electors thereof voting at an election called for the purpose.’ ”
Art. IX, Sec. 9, Texas Constitution does not limit the Legislature to either general or special laws in the creation of hospital districts. In our opinion such districts may be created by either type of enactment. The nature of hospital districts to be created in limited areas, particularly where only a county or a portion of one county is involved, may be and usually is basically local in character. The operation of such hospital district may be confined to a fixed part of the State territory over which legislative jurisdiction is exercised.
Appellants rely in part on Smith v. Davis, 426 S.W.2d 827 (Tex.Sup.Ct., 1968). That case concerned a hospital district created under general law, and did not involve one created under Art. IX, Sec. 9, Tex. Const., which was later adopted. Smith v. Davis is not authority for the position here asserted by appellants.
The Legislature has enacted numerous enabling acts since the adoption of Art. IX, Sec. 9 in 1962, amending our Texas Constitution, and the Attorney General of Texas has, in accordance with regular procedure, approved the issuance of bonds for many of such districts which were created pursuant to local and special laws. We believe that the construction placed by the Legislature and the Attorney General on Art. IX, Sec. 9 is correct and in accord with the intent reflected by such provision. We therefore hold that the Enabling Act creating the Edna Hospital District is not an unconstitutional local or special law condemned by Art. Ill, Sec. 56, Texas Constitution, particularly since it is expressly authorized by Art. IX, Sec. 9, Texas Constitution.
Appellants also argue that the notice to apply for the Enabling Act was insufficient to comply with Art. Ill, Sec. 57, Texas Constitution, which provides as follows:
“No local or special law shall be passed, unless notice of the intention to apply therefor shall have been published in the locality where the matter or thing to be affected may be situated, which notice shall state the substance of the contemplated law, and shall be published at least thirty days prior to the introduction into the Legislature of such bill and in the manner to be provided by law. The evidence of such notice having been published, shall be exhibited to the Legislature, before such act shall be passed.”
Art. IX, Sec. 9, Texas Constitution, also contains a notice provision reading as follows:
“Provided, however, that no district shall be created except by act of the Legislature and then only after thirty (30) days’ public notice to the district affected, and in no event may the Legislature provide for a district to be created without the affirmative vote of a majority of the taxpaying voters in the district concerned.”
Section 57 of Art. Ill is designed to cover notice concerning local and special laws not prohibited by Section 56, Art. III. The above-quoted provision of Section 9, Art. IX, applies specifically to notice concerning hospital districts. As a practical matter the notice given in this case prior to passage of the Enabling Act would satisfy the requirements of either Art. IX, Sec. 9 or Art. Ill, Sec. 57.
The holding of the court below with regard to notice is correct for several reasons. The notice was legally sufficient; passage of the Enabling Act, in itself, conclusively establishes that sufficient notice was given; and the Legislature has conclusively and finally determined that proper notice was given.
The parties stipulated that the pre-enabling act notice was given. Appellants argue, however, that the notice was insufficient and particularly point out that the published notice provided that:
“* * * said District to be composed of the area comprising County Voting Precincts Nos. 1, 2, 6 and 7 of Jackson County, Texas.”
Appellants then argue that the Enabling Act, setting forth the metes and bounds description of the Edna Hospital District, did not include 1500 acres of Precinct No. 7 and that consequently the notice was fatally defective and insufficient. We disagree. Assuming that 1500 acres were included in the published notice not ultimately contained within the boundaries of the Edna Hospital District as established by the Enabling Act, that fact is immaterial and would not make the notice insufficient. The Enabling Act describes the Edna Hospital District as containing approximately 245,000 acres or 383 square miles. Thus, the 1500 acre variance claimed by appellants constituted only .0061 percent of the total area involved and is de minimis. Art. IX, Section 9 only requires “Notice to the district affected.” The notice given satisfied that requirement. The requirement of Article III, Section 57 that the notice shall be published “in the locality where the matter or thing to be affected may he situated,” was also satisfied. The inclusion in the notice of an insignificant percentage of land which was ultimately not contained within the boundaries of the district is not controlling. There is no showing that the voters were in any way misled and, on the other hand, it appears that they were fully notified and aware of the actual boundaries of the Edna Hospital District when they approved the creation of the district, particularly since the metes and bounds description in the Enabling Act was identical to the description in the notice calling the election. It further appears that the summary judgment evidence does not reflect that there was the claimed variance of 1500 acres. The only evidence of the number of acres involved in the alleged variance, if any, relied on by appellants is testimony given in the trial of August 13, 1968, (four days after the court had rendered summary judgment for the Edna Hospital District and its directors), when the trial court was hearing testimony with respect to issues as between appellants and County.
Appellants also attack the pre-ena-bling act notice because it stated that after the creation of the Edna Hospital District no other municipality or political subdivision shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries of said district. This statement follows the language of Art. IX, Sec. 9 of the Constitution under which the Enabling Act was passed. The inclusion of this statement in the pre-ena-bling act notice cannot be considered misrepresentation or a defect in the notice. The fact that the judgment of the district court authorizes taxation by Jackson County within the boundaries of the Edna Hospital District does not relate to the adequacy of the pre-enabling act notice nor to the controversies between appellants and the Edna Hospital District.
The passage of the Enabling Act constituted a conclusive determination that due notice was given. Under the “enrolled-bill rule” legislative passage of a-n act provides a conclusive determination that the prerequisites to passage, constitutional or otherwise, have been accomplished. The rule is stated in 53 Tex.Jur. 2d, Statutes, § 85 at 128, as follows:
“In the review of enactments, the courts of Texas have long since adopted the so-called ‘enrolled bill rule’, to the effect that a duly authenticated, approved, and enrolled statute imports absolute verity and is conclusive that the act was passed in every respect according to the constitutional requirement * * *.”
Also, as stated by our Supreme Court:
“The rule has been long established * * * that a duly authenticated, approved, and enrolled statute imports absolute verity and is conclusive; that the act was passed in every respect as designated by the Constitution, * * * (Citing numerous decisions.)” Jackson v. Walker, 121 Tex. 303, 49 S.W.2d 693 (1932).
The applicability of the enrolled bill rule to the notice provisions of Article IX, Sec. 9 is demonstrated by the case of Moller v. City of Galveston, 23 Tex.Civ.App. 693, 57 S.W. 1116 (Galveston, 1900, writ denied), wherein the Court was concerned with the contention that a local or special law had been passed without the notice required by Art. Ill, Sec. 57, Texas Constitution. The Court of Civil Appeals held, alternatively, that “the passage of the act by the legislature is conclusive of the fact that due notice was given.” The Court further said:
“* * * The constitution requires evidence of such publication to be exhibited to the legislature before such act shall be passed. This we think is for the purpose of authorizing that body to pass conclusively upon this question of fact. To hold otherwise would be relegate to the courts the ascertainment of a jurisdictional fact for the legislature, * * *.” 57 S.W. at 1120.
Appellants rely upon Bexar County v. Tynan, 128 Tex. 223, 97 S.W.2d 467 (1936). There, the Commission of Appeals held alternatively that a statute was invalid because Article III, Sec. 57 notice had not been given. In reaching this conclusion the Court did not allude to the substantial body of law involving the enrolled bill rule as exemplified by Moller. Additionally, Tynan is distinguishable from the instant case. There the parties stipulated that notice had not been given. Thus, the determination of the appellate courts that the bill was unconstitutional did not involve the question of what the Legislature had done. Tynan was concerned with a complete failure to give notice, while in the present case the only question is the sufficiency of the notice. Also, in Tynan the Legislature did not expressly declare that notice had been given. In the instant case the Legislature has expressly done so and that the notice was sufficient. The Enabling Act here involved provides in part:
“Proof of publication of the constitutional notice required in the enactment hereof under the provisions of Section 9, Article IX, Constitution of the State of Texas, has been made in the manner and form provided by law pertaining to the enactment of local and special laws and is hereby found and declared to be proper and sufficient to satisfy such requirement.” Tex.Laws 1967, Ch. 172, § 18, at 361.
The question of fact as to constitutional notice and its sufficiency are jurisdictional fact questions which have been expressly determined by the Legislature. This was not the situation in Moller, where the court held that mere passage of the Act constituted a determination that notice had been given, or in Tynan where the parties had stipulated that notice had not been given. The finding of the Legislature here is entitled to the same weight as the determination of the city council in State of Texas ex rel. Rose v. City of LaPorte, 386 S.W.2d 782 (Tex.Sup.1965), wherein the Court was concerned with the validity of an annexation ordinance enacted by the City of LaPorte. The City proceeded under statutes permitting annexation by cities having a population in excess of 5,000 inhabitants. The Supreme Court of Texas held that the question of the number of inhabitants of the City was one to be determined by the governing body of the City of LaPorte and that its determination was conclusive in the absence of pleading and proof by the plaintiffs of fraud.
We overrule appellants’ contention that the notice to apply for the Enabling Act was insufficient.
By their second point appellants contend that the Enabling Act is unconstitutional because Art. Ill, Sec. 35 of the Texas Constitution was not satisfied in that the title does not fairly express its subject. Art. Ill, Sec. 35, provides in part :
“No bill * * * shall contain more than one subject, which shall be expressed in its title.”
The title of the Enabling Act concerning creation of the Edna Hospital District provides :
“An Act relating to the creation, administration, powers and duties, and financing of the Edna Hospital District of Jackson County; providing the Act shall expire on January 1, 1970, if said district has not been created pursuant to the provisions of the Act; and declaring an emergency.”
Appellants argue that Art. Ill, Sec. 35 of the Texas Constitution was violated because the title to the Enabling Act does not mention that (1) the bill affected Jackson County’s power to tax for its hospital; ■ (2) affected the hospital authority of the City of Edna; (3) granted tax exemptions from city and county taxation for hospital purposes; and (4) conflicted with other statutes, e. g., Art. 4478 and Art. 1015(4).
Art. IX, Sec. 9 of the Texas Constitution provides in part:
“* * * that any district so created shall assume full responsibility for providing medical and hospital care for its needy inhabitants * * * (and) that after its creation no other municipality or political subdivision shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries of the district; * *
Reference in the Enabling Act to the consequences mentioned by appellants is unnecessary. They occur, pursuant to Art. IX, Sec. 9, because of the creation of the hospital district (i. e., after the election) and regardless of whether they were mentioned in the' Enabling Act. There is, therefore, no necessity for referring to them in an Enabling Act relating to the creation of a hospital district.
The applicability of Art. Ill, Sec. 35, to titles of legislative acts was considered by the Supreme Court of Texas in Lee v. State, 163 Tex. 89, 352 S.W.2d 724 (1962) wherein the Court said:
“It is well established that the caption of an act should be liberally construed so as to uphold its validity if at all possible. Gulf Insurance Co. v. James, 143 Tex. 424, 185 S.W.2d 966. It has also been said that, ’None of the provisions of a statute should be regarded as unconstitutional when they relate, directly or indirectly, to the same subject, have a mutual connection, and are not foreign to the subject expressed in the title.’ Austin v. Gulf, Colorado & Santa Fe R. Co., 45 Tex. 234. So long as the caption states the main subject of an act, it will also be construed to cover any subsidiary matters if they are reasonably connected, germane, incidental, or relevant to the main subject.”
See also Central Education Agency v. Independent Sch. Dist. of El Paso, 152 Tex. 56, 254 S.W.2d 357, 362 (1953).
The failure of the title to mention the fact that the Enabling Act prescribed duties for the Jackson County Tax Assessor and Collector and the Jackson County Commissioner’s Court is immaterial. These provisions are designed to carry out the declared object of the Act. The fact that they are not specifically indicated in the title does not make it or the Enabling Act invalid. See King v. Carlton Independent School District, 156 Tex. 365, 295 S.W.2d 408, 411 (1956), wherein the title of the statute did not mention the fact that an election to adopt the provisions of the Act was required. The Court there held that the election was related and incidental to the object of the Act and was merely a procedural matter relating to its accomplishment. The duties imposed on the County Tax Assessor-Collector and the Commissioners Court are “subsidiary matters reasonably connected, germane, incident and relevant to the main expressed subject of the act.” They are procedural matters calculated to carry the declared object into effect. 53 Tex.Jur.2d, Statutes, § 55, p. 100 (1954); City of San Antonio v. Lane, 32 Tex. 405 (1869) ; Breen v. Texas & Pac. R. R. Co., 44 Tex. 302 (1875); Johnson v. Martin, 75 Tex. 33, 12 S.W. 321 (1889); Doeppenschmidt v. International & G. N. R. Co., 100 Tex. 532, 101 S.W. 1080 (1907); Board of Insurance Com’rs. v. Sproles M. Freight Lines, 94 S.W.2d 769 (Tex.Civ.App. Fort Worth, 1936, writ ref’d). In the last-cited case the Court held that failure of the title to mention provisions concerning the holdings of hearings and other matters were not violative of Art. Ill, Sec. 35 since these were only means properly authorizing the accomplishment of the purposes of the Act.
It is of assistance to examine the general approach that has been followed by the Legislature and the Attorney General of Texas with regard to the titles of Enabling Acts relating to the creation of hospital districts. An examination of dozens of statutes relating to the creation of hospital districts passed in 1967 (the year that the Edna Hospital District Enabling Act was passed) reflects that the title attacked by appellants is typical of the title of practically all of these statutes. For example, the title of the Enabling Act for the Col-lingsworth County Hospital District, Tex. Laws 1967, Ch. 262 at 578 provides “An Act relating to the creation, financing, administration, and operation of the Collings-worth County Hospital District; and declaring an emergency.” The Legislature has adopted the same approach with respect to titles of many other hospital district enabling acts. Merkel Hospital District, Tex.Laws 1967, Ch. 90 at 170 “An Act authorizing creation of the Merkel Hospital District; providing for an election within the area of the proposed hospital district and making certain findings in connection therewith; providing for the operation and financing of said district, including the procedures it is to follow; providing a severability clause; and declaring an emergency.”; Martin County Hospital District, Tex.Laws 1967, Ch. 674 at 1774 “An Act relating to the creation, administration, powers, duties, and financing of the Martin County Hospital District comprising all of Martin County, Texas; and declaring an emergency.”; North Cherokee County Hospital District, Tex.Laws 1967, Ch. 215 at 471 “An Act relating to the creation, administration, powers, duties and financing of the North Cherokee County Hospital District; providing a sev-erability clause; and declaring an emergency.” ; Rising Star Hospital District, Tex.Laws 1967, Ch. 432 at 996 “An Act relating to the creation, establishment, maintenance, and operation of the Rising Star Hospital District located in that part of Eastland County, Texas, within the boundaries of the Rising Star Independent School District, by authority of the State of Texas; and declaring an emergency.” See also, Cochran Memorial Hospital District, Tex.Laws 1967, Ch. 494 at 1113; Earth-Springlake Hospital District, Tex. Laws 1967, Ch. 134 at 283; Garza Hospital District, Tex.Laws 1967, Ch. 502 at 1132; Lubbock County Hospital District, Tex.Laws 1967, Ch. 484 at 1095; Marion County Hospital District, Tex.Laws 1967, Ch. 184 at 394; Wood County Central Hospital District, Tex.Laws 1967, Ch. 293 at 705. These hospital district Enabling Acts are typical of those passed in 1967 and in which the title was comparable to that of the Edna Hospital District Act. Of the several dozen hospital districts created in 1967 few, if any, of the Enabling Acts mention the effect on other municipalities or political subdivisions or the effect of the hospital district on other Texas statutes.
The Attorney General of Texas has approved the bonds of numerous hospital districts in Texas created under Art. IX, Sec. 9, Tex.Const. In so doing he passed upon the legality of the title to the Enabling Act creating the particular hospital district and we accord weight to such opinions. In the present case, the Attorney General gave preliminary approval of the bonds of the Edna Hospital District subject only to receipt by the Attorney General of a non-litigation certificate and final examination of the printed bonds, and we also accord weight to that opinion.
We hold that the Enabling Act does not violate the provisions of Art. Ill, Sec. 35, Texas Constitution, and that the title of it adequately expresses the subject of the statute.
By their fifth point of error appellants contend (1) that the failure of the Edna Hospital District to assume outstanding indebtedness precludes a valid creation of the district; and (2) that the provisions of the Enabling Act concerning outstanding indebtedness are unconstitutional. These contentions are without merit.
Section 9 of Article IX provides in pertinent part that:
“ * * * providing that any district so created shall assume full responsibility for providing medical and hospital care for its needy inhabitants and assume the outstanding indebtedness incurred by cities, towns and counties for hospital purposes prior to the creation of the district, if same are located wholly within its boundaries, and a pro rata portion of such indebtedness based upon the then last approved tax assessment rolls of the included cities, towns and counties if less than all the territory thereof is included within the district boundaries; * * (Emphasis added)
The assumption of outstanding indebtedness is not a condition precedent to the creation of a hospital district. Section 9 of Article IX expressly provides that the assumption of outstanding indebtedness if any, is to occur after the district is created. The assumption of indebtedness provision quoted above begins with the statement “any district so created.” In order for a district to be created under Art. IX, Sec. 9, (1) the Legislature must by law provide for the creation; and (2) the creation must be approved by a majority of the qualified property taxpaying electors of the district voting in an election called for passing on the creation of the district.
Appellants’ contention that the assumption of outstanding indebtedness must occur prior to the creation of the district and as an “indispensable condition to creating the hospital district” is not correct. Even if there were some “outstanding indebtedness” which the Edna Hospital District is required to assume, that fact would be irrelevant in this case brought by appellants to have the creation of the Edna Hospital District declared invalid and to enjoin the district from levying taxes and issuing bonds and other obligations for hospital purposes.
Appellants also argue that the assumption of indebtedness provision of the Enabling Act is inconsistent with Art. IX, Sec. 9 and thus renders the entire Enabling Act unconstitutional. The portion of the Enabling Act of which appellants complain provides:
“ * * * Since there is no hospital, hospital system or hospital facilities of any nature presently owned by Jackson County or any city or town within the boundaries of said district, no provisions are made herein for the transfer of properties or equipment or the assumption of outstanding indebtedness hereto- ' fore incurred for hospital purposes. ⅝ ‡ ⅜ »
If it is assumed, however, that the legislative statement above quoted is incorrect in that it predicates its conclusion that there is no outstanding indebtedness on a misstatement of the law, i.