Title SD, Special District Local Laws Code

Sec. 1026.005. 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. Added by Ac…

Sec. 1026.006. 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. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1026.007. 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. SUBCHAPT…

Sec. 1026.051. BOARD ELECTION; TERMS. (a) The board consists of nine directors elected from the district at large. (b) Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code. Added by Acts 2007, 80th Leg., R.S…

Sec. 1026.052. NOTICE OF ELECTION. At least 30 days before the date of an election of directors, notice of the election shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district. Added by Acts 2007, 80th Le…

Sec. 1026.053. BALLOT PETITION.A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must be: (1) signed by at least 10 qualified taxpaying voters; and (2) …

Sec. 1026.054. QUALIFICATIONS FOR OFFICE. (a) A person may not be appointed or elected as a director unless the person is: (1) a district resident; and (2) a qualified voter. (b) A person is not eligible to serve as a director if the person is: (1) the district administrator; (2)…

Sec. 1026.055. BOARD VACANCY.If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1026.056. OFFICERS. (a) The board shall elect: (1) a president and a 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 …

Sec. 1026.057. 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. 1026.058. PETITION TO CHANGE NUMBER OF DIRECTORS. (a) A petition to increase or decrease the number of directors by one or two directors may be presented to the board at any time. (b) A petition to increase or decrease the number of directors must: (1) be executed by at leas…

Sec. 1026.059. VOTING REQUIREMENT. A concurrence of five directors is sufficient 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. 1026.060. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator. (b) The board may appoint an assistant administrator. (c) The district administrator and any assistant administrator serve at the will of the …

Sec. 1026.061. 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 affairs of the district. Added by Acts 2007, 80th Leg., R.S., C…

Sec. 1026.062. EMPLOYEES; APPOINTMENT OF STAFF. (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, a…

Sec. 1026.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for providing 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, 2009.

Sec. 1026.102. 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 district inhabitants. Added by Acts 2007, 80th …

Sec. 1026.103. 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. 1026.104. 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 …

Sec. 1026.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1026.106. 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. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02…

Sec. 1026.107. 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 c…

Sec. 1026.108. 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 priv…

Sec. 1026.109. 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 directors, limitations, or other provisions prescribed in writing by the donor that are not inconsistent …

Sec. 1026.110. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code. Added by Acts 2007, 80th Leg., R.S., Ch…

Sec. 1026.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1026.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality. (b) The board may …

Sec. 1026.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services as to the medical, hospital, or welfare needs of distric…

Sec. 1026.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of: (1) the patient; and (2) the patient's relatives who are legally liable for the patient's suppor…

Sec. 1026.115. REIMBURSEMENT FOR SERVICES. If the district provides care or treatment for a sick or injured person who is not a district resident, the district may collect the reasonable value of the hospital care from a political subdivision responsible for that care. Venue in a…

Sec. 1026.116. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. 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. 1026.151. BUDGET. (a) The district administrator or, if there is none, the president of the board 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…

Sec. 1026.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget. (b) Notice of the hearing must be published one time at least 10 days before the date of the hearing. (c) Any district taxpayer is entitled to be present a…

Sec. 1026.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1026.154. 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. 1026.155. FISCAL YEAR. (a) The district operates on a fiscal year established by the board. (b) The fiscal year may not be changed more than once in a 24-month period. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1026.156. AUDIT. The board 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. 1026.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection 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, 2009.

Sec. 1026.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator 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. Added by Acts …

Sec. 1026.159. 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 1026.160(b) and money transmitted to a bank for payment of bond…

Sec. 1026.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1026.107(c) and by 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 di…

Sec. 1026.201. 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 and improvements; an…

Sec. 1026.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1026.201, 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. 1026.203. 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 calling the election shall provide for clerks as i…

Sec. 1026.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1026.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name. (b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. Added by Acts 2007, 80th Le…