Title SD, Special District Local Laws Code

Sec. 1118.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district's hospital system and any indebtedness incurred by the district under this chapter may not become a charge against or obligation of this state. Added by Acts 2009, 81…

Sec. 1118.006. 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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Redesi…

Sec. 1118.051. BOARD ELECTION; TERMS. (a) The board consists of five directors elected by district voters. (b) Directors serve staggered four-year terms. (c) An election shall be held on the first Tuesday after the first Monday in November of each year to elect the appropriate nu…

Sec. 1118.052. QUALIFICATIONS FOR OFFICE. (a) To qualify for election to the board, a person must be: (1) a district resident; and (2) a qualified voter. (b) A person may not serve on the board if the person is: (1) a party to a contract with the district to perform services for …

Sec. 1118.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) Each director shall qualify for office by executing a good and sufficient commercial bond for $1,000 that is: (1) payable to the district; and (2) conditioned on the faithful performance of the director's …

Sec. 1118.054. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors by majority vote shall appoint a director for the unexpired term. (b) The appointed director must have the qualifications required by Section 1118.052. (c) If the number of di…

Sec. 1118.055. OFFICERS. The board shall elect from among its members a chairman, a vice-chairman, a secretary, and a treasurer at the first meeting after each directors' election. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Redesigna…

Sec. 1118.056. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for necessary expenses incurred in the performance of official duties. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Rede…

Sec. 1118.057. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is sufficient in any matter relating to the business of the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 5(g) (part).) Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, ef…

Sec. 1118.058. DISTRICT ADMINISTRATOR. (a) The board may authorize the appointment, engagement, or employment of a district administrator to manage the operations of the district. (b) The district administrator serves at the will of the board and is subject to rules adopted by th…

Sec. 1118.059. EMPLOYMENT OF MEDICAL STAFF AND OTHER HEALTH CARE PROVIDERS. (a) The board may employ physicians, dentists, or other health care providers as the board considers necessary for the efficient operation of the district. (b) This section does not authorize the board to…

Sec. 1118.060. APPOINTMENT AND REMOVAL OF MEDICAL STAFF. (a) The board may appoint a physician to or remove a physician from the staff of any hospital or hospital system that is a component of the district's operations as the board considers necessary for the efficient operation …

Sec. 1118.061. RECRUITMENT AND RETENTION OF MEDICAL STAFF AND PROFESSIONAL PERSONNEL. The board may, consistent with applicable federal and state laws, recruit and retain physicians, nurses, technicians, and other professional personnel through: (1) scholarship programs; (2) agre…

Sec. 1118.062. OTHER DISTRICT EMPLOYEES. (a) The board may authorize the employment of persons necessary for the efficient operation of the district. (b) An employee serves at the will of the board and is subject to rules adopted by the board. Added by Acts 2009, 81st Leg., R.S.,…

Sec. 1118.063. 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. 1118.064. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. The board shall: (1) maintain all district records, including books, accounts, notices, minutes, and other matters of the district and its operation, at the district office; and (2) make those records available for public …

Sec. 1118.101. DISTRICT RESPONSIBILITY. (a) The district has the responsibility of undertaking any measure, consistent with Section 9, Article IX, Texas Constitution, and this chapter, that the board determines is necessary to provide hospital and medical care to the district's n…

Sec. 1118.102. ANNUAL DETERMINATION OF CARE. The board, based on the estimated amount of revenue and balances available to cover the proposed annual budget for the district, may annually determine the type and extent of hospital and medical care services offered by the district. …

Sec. 1118.103. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations to provide hospital service or medical care in the district. Added by Acts 2009, 81st Le…

Sec. 1118.104. MANAGEMENT AND CONTROL OF DISTRICT. The management and control of the district is vested in the board, and the board has full power to manage and control the district. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Redesig…

Sec. 1118.105. RULES. (a) The board shall adopt rules for the efficient operation of the district, including district facilities. (b) The board shall: (1) publish the rules in book form; and (2) provide copies to interested persons on request at district expense. Added by Acts 20…

Sec. 1118.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe the method of making purchases and expenditures and the manner of accounting and control used by the district. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Re…

Sec. 1118.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board may: (1) lease or acquire property, including facilities and equipment, for the use of the district; and (2) mortgage or pledge the property as security for the payment of the purchase price. (b) The board…

Sec. 1118.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in real, personal, or mixed property located in district territory if the interest is necessary or convenient for the district to exercise a power or…

Sec. 1118.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper man…

Sec. 1118.110. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district. (b) A construction contract awarded by the district that involves the expenditure of more than the amount provided by Section 271.024, Local Government Code, must be compe…

Sec. 1118.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to hospital services or medical care the district is authorized to provide. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1,…

Sec. 1118.112. CONTRACTS WITH POLITICAL SUBDIVISIONS OR GOVERNMENT AGENCIES FOR HOSPITAL AND MEDICAL CARE. The board may contract with a municipality or other political subdivision or a state or federal agency to provide hospital and medical care for needy persons who reside outs…

Sec. 1118.113. PAYMENT FOR TREATMENT; PROCEDURES. (a) A person who resides in the district is entitled to receive necessary medical and hospital care regardless of whether the person has the ability to pay for the care and may apply to receive this care without cost. (b) The boar…

Sec. 1118.114. REIMBURSEMENT FOR SERVICE. (a) The board shall require a county, municipal, or other public hospital located outside the district to reimburse the district for the district's care and treatment of a patient of that hospital as provided by Chapter 61, Health and Saf…

Sec. 1118.115. CHARITABLE ORGANIZATION. (a) In this section, "charitable organization" means an organization that is exempt from federal income tax under Section 501(a) of the Internal Revenue Code of 1986 by being listed as an exempt organization in Section 501(c)(3) or 501(c)(4…

Sec. 1118.116. NONPROFIT CORPORATION. (a) The board, on the district's behalf, may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation. (b) The corporation may use money, other than mone…

Sec. 1118.151. BUDGET. The district administrator shall prepare a proposed budget that includes: (1) proposed expenditures and disbursements; (2) estimated receipts and collections for the next fiscal year; and (3) the amount of taxes required to be imposed to meet the proposed b…

Sec. 1118.152. ADOPTION OF PROPOSED BUDGET: NOTICE AND HEARING. (a) The board shall hold a public hearing on the proposed budget. (b) Notice of the hearing must be published at least once in a newspaper of general circulation in the district not later than the 10th day before the…

Sec. 1118.153. FISCAL YEAR. The district's fiscal year is from September 1 through August 31. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Redesignated from Special District Local Laws Code, Section 1072.153 by Acts 2011, 82nd Leg., R.…

Sec. 1118.154. ANNUAL AUDIT. (a) The board annually shall require an independent audit of the district's books and records. (b) On or before March 1 of each year, the board shall: (1) file a copy of the audit with the district; and (2) provide a copy of the audit at each public l…

Sec. 1118.155. DEPOSITORY. (a) The board by resolution shall designate a bank in Maverick County as the district's depository. A designated bank serves for two years and until a successor is designated. (b) All district money shall be deposited in the depository and secured in th…

Sec. 1118.156. AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money at a rate of not more than 10 percent a year on district notes to pay the obligations if the board declares that money is not available to meet authorized district obligations, which creates an eme…

Sec. 1118.201. BONDS. The district may issue bonds to: (1) purchase, construct, acquire, repair, or renovate buildings or improvements; and (2) equip buildings for hospital purposes. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Redesig…

Sec. 1118.202. TAX TO PAY GENERAL OBLIGATION BONDS. The board may issue general obligation bonds only if the board imposes an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature. Added by…

Sec. 1118.203. BOND ELECTION. (a) The board may issue general obligation bonds only if the bonds are authorized by a majority of district voters voting in an election held for that purpose. (b) The board may order a bond election at any time. (c) The order calling an election mus…

Sec. 1118.204. REVENUE BONDS. (a) The district may issue revenue bonds to: (1) acquire, construct, repair, renovate, or equip buildings or improvements for hospital purposes; or (2) acquire real property for district purposes. (b) The bonds must be payable from and secured by a p…

Sec. 1118.205. REFUNDING BONDS. (a) The board may 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 bond applied to the payment of the outstanding indebtedness; or (2) exchan…

Sec. 1118.206. MATURITY OF BONDS. District bonds must mature not later than 50 years after the date of issuance. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Redesignated from Special District Local Laws Code, Section 1072.206 by Acts …

Sec. 1118.207. EXECUTION OF BONDS. (a) The board chairman shall execute the district's bonds in the district's name. (b) The board secretary shall countersign the bonds. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. Redesignated from Sp…

Sec. 1118.208. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state: (1) bonds issued by the district; (2) any transaction relating to the bonds; and (3) profits made in the sale of the bonds. Added by Acts 2009…