Title SD, Special District Local Laws Code

Sec. 1037.006. 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. SUBCHAPTER B. DI…

Sec. 1037.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district at large in the manner provided by Section 1037.0515. (b) Unless four-year terms are established under Section 285.081, Health and Safety Code: (1) directors serve staggered t…

Sec. 1037.0515. ELECTION OF DIRECTORS BY CUMULATIVE VOTING. (a) All directors shall be elected at large using the cumulative voting procedure prescribed by this section. (b) All director positions to be filled at the election shall be voted on as one race by all the voters of the…

Sec. 1037.052. NOTICE OF ELECTION. At least five 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. A…

Sec. 1037.053. 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 registered voters; and (2) filed at…

Sec. 1037.054. QUALIFICATIONS FOR OFFICE. To be eligible to hold office as a director, a person must be a resident property-owning taxpaying voter of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1037.055. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors by majority vote 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. 1037.056. OFFICERS. (a) The board shall elect from among its members a president, vice president, secretary, and other officers as in the judgment of the board are necessary. (b) The president is the chief executive officer of the district and has the same right to vote as a…

Sec. 1037.057. COMPENSATION; EXPENSES. A director serves without compensation but may receive actual expenses incurred in attending to district business on approval of the expenses by the remainder of the board. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02,…

Sec. 1037.058. 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. 1037.059. 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. 1037.060. 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 board shall determine the type, number, and locat…

Sec. 1037.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing hospital care for the district's indigent residents. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Sec. 1037.102. 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 for the area of the district or to provide medical care for district inhabitan…

Sec. 1037.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. (a) The board shall manage, control, and administer the hospital system and the district's money and resources. (b) Unless specifically stated otherwise in this chapter, the board has the power to do anything which, in their…

Sec. 1037.104. 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. 1037.105. 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. 1037.106. 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. 1037.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type of equipment and 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 o…

Sec. 1037.108. 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 for the district to exercise a power, right, or privilege conferre…

Sec. 1037.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment for hospital purposes 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 th…

Sec. 1037.110. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $2,000 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. 1037.111. 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. 1037.112. 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. 1037.113. 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. 1037.114. 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 circumstances of: (1) the patient; and (2) the patient's relatives who are legally lia…

Sec. 1037.115. 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. 1037.151. 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 in each district fund; (3)…

Sec. 1037.152. NOTICE; HEARING; ADOPTION 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 shall be published one time in a newspaper or newspapers that individually or co…

Sec. 1037.153. AMENDMENTS TO BUDGET. The annual 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. 1037.154. 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. 1037.155. AUDIT. (a) The board shall have an independent audit made of the district's financial condition for the fiscal year. (b) As soon as the audit is completed, the audit shall be filed at the district's principal office. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.…

Sec. 1037.156. 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. 1037.157. 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. 1037.158. 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 1037.159(b), and money transmitted to a bank for payment of bon…

Sec. 1037.159. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1037.107(c) and by Subchapter E, the board 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 distr…

Sec. 1037.201. 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 or improvements; and…

Sec. 1037.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1037.201, 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 interest on the bonds a…

Sec. 1037.203. 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. 1037.204. REVENUE BONDS. (a) The board may, without an election, issue revenue bonds to: (1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes; or (2) acquire sites to be used for hospital purposes. (b) The bonds must be…

Sec. 1037.205. 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 the outstan…

Sec. 1037.206. 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. 1037.207. 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…

Sec. 1037.208. 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) the transfer and issuance of the bonds; and (3) profits made in the sale of the bonds. Added by Acts 200…

Sec. 1037.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation. (b) The board shall impose the tax to: (1) pay the interest on and create a sinking fund for bonds and other obligations issued or assumed b…

Sec. 1037.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district. (b) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. Added by Acts …