Title SD, Special District Local Laws Code

Sec. 1062.005. 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. 1062.051. 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; and (2) an election shall be …

Sec. 1062.052. NOTICE OF ELECTION. At least 10 days before the date of an election of directors, notice of the election shall be published one time in a newspaper of general circulation in the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. Apr…

Sec. 1062.053. QUALIFICATIONS FOR OFFICE. (a) To be qualified for election to the board, a person must be: (1) a district resident; and (2) a qualified voter. (b) A district employee may not serve as a director. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02,…

Sec. 1062.054. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors by majority vote shall elect a director to hold office for the remainder of the unexpired term. (b) If the number of directors is reduced to fewer than four for any reason, th…

Sec. 1062.055. OFFICERS. (a) The board shall elect a president and a vice president from among its members. (b) The board shall elect a person, who is not required to be a director, to serve as secretary and treasurer. (c) Each officer of the board serves for a term of one year. …

Sec. 1062.056. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for actual expenses incurred in attending to district business. The expenses must be: (1) reported in the district's records; and (2) approved by the remainder of th…

Sec. 1062.057. VOTING REQUIREMENT. A concurrence of four 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. 1062.058. 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. 1062.059. 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 affairs of the district. Added by Acts 2007, 80th Leg., R.S., C…

Sec. 1062.060. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff or may employ any doctors, technicians, nurses, and other employees the board considers necessary for the efficient operation of the district. (b) The district may employ fis…

Sec. 1062.061. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative and other personnel for the operation of the hospital facilities. (b) The term of the contract may not exceed 25 years from the date the contract is entered. Added by Acts 2007, 80th Leg., R.…

Sec. 1062.062. EDUCATIONAL PROGRAMS; COURSES. The board may provide or contract to provide educational programs or courses for district employees and medical staff. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1062.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by: (1) establishing or administering a retirement program; or (2) participating in a statewide retirement system. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1…

Sec. 1062.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for 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, 2009…

Sec. 1062.102. 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. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B.…

Sec. 1062.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1062.104. HOSPITAL SYSTEM. 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 …

Sec. 1062.105. RULES. The board may adopt rules for the operation of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1062.106. 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. 1062.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system. Nothing here prohibits the establishing and equipping of a clinic as a part of the hospital sys…

Sec. 1062.108. 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. 1062.109. 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 inconsisten…

Sec. 1062.110. CONSTRUCTION CONTRACTS. The board may contract for construction only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1062.111. 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. 1062.112. 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. 1062.113. NONPROFIT CORPORATION. (a) The district may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation. (a-1) Expired. (b) The corporation may use district money only to provide …

Sec. 1062.114. 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. 1062.151. BUDGET. The district administrator shall prepare an annual budget for approval by the board. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1062.152. NOTICE; HEARING; APPROVAL OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget. (b) At least 10 days before the date of the hearing, notice of the hearing must be published one time in a newspaper of general circulation in the district…

Sec. 1062.153. 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. 1062.154. 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. 1062.155. FISCAL YEAR. (a) The district operates on 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. Added by Acts 2007, 80th Leg., R.S., Ch. 920 …

Sec. 1062.156. 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. 1062.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual 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. 1062.158. 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. 1062.159. DEPOSITORY. (a) The board shall select one or more banks to serve as a depository for district money. (b) District money shall be immediately deposited on receipt with a depository bank, except that sufficient money must be remitted to the place or places designate…

Sec. 1062.160. SPENDING AND INVESTMENT RESTRICTIONS.Except as otherwise provided by Section 1062.107(e) 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 district fiscal year.…

Sec. 1062.161. GENERAL AUTHORITY TO BORROW MONEY; 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. (b) To secure a loan, the board may pledge: (1) district rev…

Sec. 1062.162. 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. 1062.201. 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; (2) equip building…

Sec. 1062.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1062.201, 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. 1062.203. 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 election shall …

Sec. 1062.204. REVENUE BONDS. (a) The board may issue revenue bonds to: (1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes; (2) acquire sites to be used for hospital purposes; or (3) acquire and operate a mobile emergency …

Sec. 1062.205. MATURITY OF BONDS. District 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. 1062.206. 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. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 316…