Title SD, Special District Local Laws Code

Sec. 1074.005. 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 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.006. 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 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013. SUBCHAPT…

Sec. 1074.051. BOARD ELECTION; TERM. (a) The board consists of six directors elected from the district in accordance with former Section 3.04(f), Chapter 132, Acts of the 74th Legislature, Regular Session, 1995. (b) Directors serve staggered three-year terms. (c) A directors' ele…

Sec. 1074.052. NOTICE OF ELECTION. Not earlier than the 30th day or later than the 10th day before the date of a directors' election, notice of the election must be published one time in a newspaper of general circulation in the district. Added by Acts 2011, 82nd Leg., R.S., Ch. …

Sec. 1074.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is: (1) a resident of the district; and (2) a qualified voter. (b) A person is not eligible to serve as a director if the person is: (1) the district administrat…

Sec. 1074.054. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall fill the vacancy for the unexpired term. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.055. 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 a one-year term. (c) The board shall fill a vacancy in a board office for the une…

Sec. 1074.056. 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. 1074.057. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is necessary in any matter relating to district business. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.058. 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. 1074.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall supervise the work and activities of the district. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.060. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district if warranted. (b) The board may employ, and may delegate to the district administrator the authority to …

Sec. 1074.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities and providing medical and hospital care for the district's needy residents. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located wholly or partly in the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district residents. Added by Acts …

Sec. 1074.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's business, money, and resources. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.104. HOSPITAL SYSTEM. (a) The district shall provide for: (1) the establishment of a hospital system by: (A) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment; and (B) equipping the buildings; and (2) the administration of the distric…

Sec. 1074.105. 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 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.106. 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 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01,…

Sec. 1074.107. 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 lease all or …

Sec. 1074.108. 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 to exercise a right or authority conferred by this chapter. (b) Th…

Sec. 1074.109. 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. 1074.110. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than the amount provided by Section 271.024, Local Government Code, may be made only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. Add…

Sec. 1074.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The district 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 distric…

Sec. 1074.113. 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 for the medical, hospital, or welfare needs of district …

Sec. 1074.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) The district shall provide without charge to a patient residing in the district the care and treatment that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay. (b) When a p…

Sec. 1074.115. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1074.151. BUDGET. (a) The district administrator 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; (2) the cash on hand to the credit of each dist…

Sec. 1074.152. 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. 1074.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board. (b) The fiscal year may not be changed: (1) during a period that revenue bonds of the district are outstanding; or (2) more than once in a 24-month period. Added by Acts 201…

Sec. 1074.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.157. 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 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.158. 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. 1074.159. DEPOSITORY. (a) The board shall select one or more banks to serve as a depository for district money. (b) All district money, other than money invested as provided by Section 1074.160 and money transmitted to a bank for payment of bonds or obligations issued or ass…

Sec. 1074.160. INVESTMENT RESTRICTIONS. The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.161. 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 authorized district obligations at the time the loan is made if the board declares that: (1) money is not available to …

Sec. 1074.201. 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: (1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; (2) equipping buildings or …

Sec. 1074.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund and to pay the principal of and interest on the bonds as t…

Sec. 1074.203. REVENUE BONDS. (a) The board may issue revenue bonds to: (1) purchase, construct, acquire, repair, equip, or renovate a building or improvement for hospital purposes; (2) acquire a site for hospital purposes; or (3) acquire and operate a mobile emergency service to…

Sec. 1074.204. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district. (b) A refunding bond may be: (1) sold, with the proceeds of the refunding bond applied to the payment of outstanding…

Sec. 1074.205. BOND ELECTION. (a) The district may issue bonds, other than refunding bonds, to be wholly or partly secured by an ad valorem tax only if the bonds are authorized by a majority of the district voters at an election that is held in the district. (b) The bond election…

Sec. 1074.206. MATURITY OF BONDS. District bonds must mature not later than the 40th anniversary of the date of issuance. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Sec. 1074.207. EXECUTION OF BONDS. The board president shall execute the district's bonds in the district's name, and the board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), S…

Sec. 1074.208. ADDITIONAL MEANS OF SECURING PAYMENT OF BONDS. In addition to the authority to issue general obligation bonds and revenue bonds under this subchapter, the board may provide for the security and payment of district bonds from a pledge of a combination of ad valorem …