Title SD, Special District Local Laws Code

Sec. 1023.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The state may not be obligated for the support or maintenance of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009. SUBCHAP…

Sec. 1023.051. BOARD ELECTION; TERMS. (a) The district is governed by a board of nine 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; and (2) an e…

Sec. 1023.052. NOTICE OF ELECTION. Notice of an election of directors shall be published in accordance with Section 4.003, Election Code, in a newspaper with general circulation in the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 20…

Sec. 1023.053. QUALIFICATIONS FOR OFFICE. To be eligible to be a candidate for or to serve as a director, a person must be: (1) a district resident; and (2) a qualified voter. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.054. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (b) If at least five director positions become vacant, the remaining directors may call a special election to fill the vacanci…

Sec. 1023.055. OFFICERS. (a) The board shall elect a president and a vice president from among its members. (b) The board shall appoint a secretary. (c) Each officer of the board serves for a term of one year. (d) The board shall fill a vacancy in a board office for the unexpired…

Sec. 1023.056. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be: (1) reported in the district's records; and (2) approved by the board. Added by…

Sec. 1023.057. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is necessary in any matter relating to district business. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.058. DISTRICT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator. (b) The district administrator serves at the will of the board and is entitled to compensation determined by the board. (c) Before assuming the duties of district admini…

Sec. 1023.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall: (1) supervise the work and activities of the district; and (2) direct the general affairs of the district. Added by Acts 2007, 80th Leg.,…

Sec. 1023.060. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY. (a) The board may appoint qualified persons as: (1) the assistant district administrator; and (2) the attorney for the district. (b) The assistant district administrator and attorney for the district serve at the will of …

Sec. 1023.061. EMPLOYEES; APPOINTMENT AND RECRUITMENT OF STAFF. (a) The district may employ technicians, nurses, fiscal agents, accountants, architects, additional attorneys, and other necessary employees. (b) The board may appoint to the staff any doctors the board considers nec…

Sec. 1023.062. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative or other personnel for the operation of the hospital facilities. (b) The term of the contract may not exceed 25 years. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff…

Sec. 1023.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by: (1) establishing or administering a retirement program; or (2) participating in: (A) the Texas County and District Retirement System; or (B) another statewide retirement syste…

Sec. 1023.101. DISTRICT RESPONSIBILITY. The district has full responsibility for: (1) operating hospital facilities; and (2) providing medical and hospital care for the district's needy inhabitants. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1…

Sec. 1023.102. RESTRICTION ON COUNTY TAXATION AND DEBT. Eastland County may not impose a tax or issue bonds or other obligations to provide hospital or medical care for district residents. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.104. RULES. The board may adopt rules governing: (1) the operation of the hospital and hospital system; and (2) the duties, functions, and responsibilities of district staff and employees. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1…

Sec. 1023.105. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe: (1) the method of making purchases and expenditures by and for the district; and (2) accounting and control procedures for the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.…

Sec. 1023.106. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine: (1) the type, number, and location of buildings required to maintain an adequate hospital system; and (2) the type of equipment necessary for hospital care. (b) The board may: (1) acquire …

Sec. 1023.107. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in property located in district territory if the interest is necessary for the district to exercise a right or authority conferred by this chapter. (…

Sec. 1023.108. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, or electric transmission and …

Sec. 1023.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for any purpose and under any direction, limitation, or other provision prescribed in writing by the donor that is consistent with the proper management of the distr…

Sec. 1023.110. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district. (b) The board may enter into a construction contract that involves the expenditure of more than the amount provided by Section 271.024, Local Government Code, only after c…

Sec. 1023.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a hospital facility for the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR SERVICES. The board may contract with a political subdivision of the state or a state or federal agency for the district to: (1) furnish a mobile emergency medical service; or (2) provide for the investigatory or welfare nee…

Sec. 1023.113. PROVISION OF CERTAIN HEALTH SERVICES. The district may: (1) operate or provide for the operation of a mobile emergency medical service; and (2) establish and operate a home health service. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. Ap…

Sec. 1023.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the financial circumstances of: (1) the patient; and (2) a relative of the patient who is …

Sec. 1023.115. REIMBURSEMENT FOR SERVICES. (a) The board shall require a county, municipality, or public hospital located outside the district to reimburse the district for the district's care and treatment of a sick or injured person of that county, municipality, or hospital, as…

Sec. 1023.116. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued on behalf of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1023.151. BUDGET. (a) The district administrator shall prepare a proposed annual budget for the district. (b) The proposed budget must contain a complete financial statement, including a statement of: (1) the outstanding obligations of the district; (2) the amount of cash on…

Sec. 1023.152. 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 a newspaper with general circulation in the district not later than the 10th day before the date of th…

Sec. 1023.153. AMENDMENTS TO BUDGET. After adoption, the annual budget may be amended on the board's approval. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.155. FISCAL YEAR. (a) The district operates on the fiscal year established by the board. (b) The fiscal year may not be changed: (1) when revenue bonds of the district are outstanding; or (2) more than once in a 24-month period. Added by Acts 2007, 80th Leg., R.S., Ch. …

Sec. 1023.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1023.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records are open to inspection during regular business hours at the district's principal office. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, …

Sec. 1023.158. FINANCIAL REPORT. As soon as practicable after the close of the fiscal year, the district administrator shall prepare for the board: (1) a sworn statement of the amount of district money; and (2) an account of the disbursements of that money. Added by Acts 2007, 80…

Sec. 1023.159. DEPOSITORY. (a) The board shall select at least one bank to serve as a depository for district money. (b) District money, other than money invested as provided by Section 1023.160(b) and money transmitted to a bank for payment of bonds or obligations issued or assu…

Sec. 1023.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as provided by Sections 1023.110, 1023.161, 1023.162, 1023.201, 1023.204, and 1023.205, the district may not incur a debt payable from district revenue other than revenue on hand or to be on hand in the current and i…

Sec. 1023.161. GENERAL AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money at a rate of interest not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made. (b) To secure a loan, the board may pledge: (1) …

Sec. 1023.162. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board determines that: (1) money is not available…

Sec. 1023.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to: (1) purchase, construct, acquire, repair, or renovate buildings or improvements; or (2) equip build…

Sec. 1023.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1023.201, 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 interes…

Sec. 1023.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose. (b) The board may order a bond election. (c) The order calling t…