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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation and operation of a mental health services |
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district by the Midland County Hospital District of Midland County, |
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Texas, and the Ector County Hospital District. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 7, Health and Safety Code, is |
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amended by adding Chapter 579 to read as follows: |
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CHAPTER 579. MENTAL HEALTH SERVICES DISTRICTS CREATED BY CERTAIN |
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HOSPITAL DISTRICTS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 579.001. PURPOSE. The purpose of this chapter is to |
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authorize certain hospital districts to create a special district |
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to provide mental health services to the residents of the district. |
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Sec. 579.002. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of a |
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district. |
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(2) "Director" means a member of the board. |
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(3) "District" means a mental health services district |
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created by a hospital district under this chapter. |
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(4) "Hospital district" means a hospital district |
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created under the authority of Sections 4-11, Article IX, Texas |
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Constitution. |
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Sec. 579.003. APPLICABILITY. This chapter applies only to |
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the: |
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(1) Midland County Hospital District of Midland |
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County, Texas; and |
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(2) Ector County Hospital District. |
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SUBCHAPTER B. CREATION AND DISSOLUTION OF DISTRICT |
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Sec. 579.051. CREATION BY CONCURRENT ORDERS. (a) The |
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hospital districts to which this chapter applies may create a |
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district by adopting concurrent orders. |
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(b) A concurrent order to create a district must: |
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(1) be approved by the governing body of each creating |
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hospital district; |
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(2) contain identical provisions; and |
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(3) define the boundaries of the district to be |
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coextensive with the combined boundaries of each creating hospital |
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district. |
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Sec. 579.052. CONTRACT TERMS. (a) Each creating hospital |
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district shall contract with the district for the district to |
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provide mental health services to the hospital district's |
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residents. The contract must: |
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(1) state the term of the contract; |
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(2) specify the purpose, terms, rights, and duties of |
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the district, as authorized by this chapter; |
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(3) specify the financial contributions to be made by |
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each party to the contract to fund the district; and |
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(4) specify the land, buildings, improvements, |
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equipment, and other assets owned by a party to the contract that |
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the district will be required to manage and operate, if any. |
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(b) Chapter 791, Government Code, does not apply to a |
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contract made under this chapter. |
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Sec. 579.053. DISSOLUTION. A district shall be dissolved |
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if the creating hospital districts adopt concurrent orders to |
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dissolve the district and the concurrent orders contain identical |
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provisions. |
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Sec. 579.054. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS |
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AFTER DISSOLUTION. (a) After dissolution of a district under |
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Section 579.053, the board shall continue to control and administer |
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any property, debts, and assets of the district until all funds have |
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been disposed of and all district debts have been paid or settled. |
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(b) If, after administering any property and assets, the |
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board determines that the district's property and assets are |
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insufficient to pay the debts of the district, the district shall |
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transfer the remaining debts to the creating hospital districts in |
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proportion to the funds contributed to the district by each |
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hospital district. |
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(c) If, after complying with Subsection (b) and |
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administering the property and assets, the board determines that |
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unused funds remain, the board shall transfer the unused funds to |
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the creating hospital districts in proportion to the funds |
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contributed to the district by each hospital district. |
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Sec. 579.055. ACCOUNTING AFTER DISSOLUTION. After the |
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district has paid all its debts and has disposed of all its assets |
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and funds as prescribed by Section 579.054, the board shall provide |
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an accounting to each creating hospital district. The accounting |
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must show the manner in which the assets and debts of the district |
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were distributed. |
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SUBCHAPTER C. BOARD OF DIRECTORS |
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Sec. 579.101. BOARD OF DIRECTORS; TERMS; VACANCY. (a) The |
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board consists of six appointed directors. Each creating hospital |
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district shall appoint three directors to the board. |
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(b) Directors serve staggered two-year terms, with one-half |
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of the directors' terms expiring each year. |
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(c) A vacancy in the office of director shall be filled for |
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the unexpired term in the same manner as the original appointment. |
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Sec. 579.102. OFFICERS. (a) The board shall elect from |
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among its members a president. |
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(b) The board shall appoint a secretary, who need not be a |
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director. |
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(c) Each officer of the board serves for a term of one year. |
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(d) The board shall fill a vacancy in a board office for the |
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unexpired term. |
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Sec. 579.103. QUALIFICATIONS FOR OFFICE. (a) To be |
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eligible to serve as a director, a person must be a resident or an |
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officer of the hospital district that appoints the person under |
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Section 579.101. |
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(b) An employee of the district may not serve as a director. |
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Sec. 579.104. COMPENSATION. (a) Directors and officers |
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serve without compensation but may be reimbursed for actual |
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expenses incurred in the performance of official duties. |
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(b) Expenses reimbursed under this section must be: |
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(1) reported in the district's minute book or other |
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district records; and |
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(2) approved by the board. |
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SUBCHAPTER D. POWERS AND DUTIES |
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Sec. 579.151. TRANSFER OF CERTAIN RESPONSIBILITIES OF |
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CREATING HOSPITAL DISTRICT. On creation of a district, each |
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creating hospital district may transfer to the district: |
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(1) management and operation of any real property, |
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improvements, and equipment located wholly in the district that are |
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owned by the creating hospital district and are used to provide |
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mental health services, as specified in the contract under Section |
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579.052; and |
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(2) operating funds and reserves for operating |
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expenses and funds that have been budgeted by the creating hospital |
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district to provide mental health services for residents of the |
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district, as specified in the contract under Section 579.052. |
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Sec. 579.152. POWERS AND DUTIES. A district may, if |
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necessary to provide mental health services to the residents of the |
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creating hospital districts: |
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(1) acquire and hold title to, construct, operate, |
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manage, and maintain real property, including improvements to real |
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property; |
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(2) acquire, operate, manage, and maintain equipment |
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and other personal property; |
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(3) enter into and perform contracts; |
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(4) appoint and employ officers, agents, and |
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employees; |
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(5) sue and be sued; |
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(6) seek and accept gifts, grants, and donations; and |
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(7) perform other acts necessary to accomplish the |
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purpose of the district. |
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Sec. 579.153. RULES. The board may adopt rules governing |
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the operation of the district and the duties, functions, and |
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responsibilities of the district's staff and employees. |
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Sec. 579.154. DISTRICT ADMINISTRATOR; ASSISTANT |
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ADMINISTRATOR. (a) The board shall appoint a qualified person as |
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district administrator. |
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(b) The board may appoint assistant administrators. |
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(c) The district administrator and any assistant |
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administrator serve at the will of the board and are entitled to the |
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compensation determined by the board. |
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SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS |
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Sec. 579.201. DISTRICT FUNDING; LIMITATION. (a) Each |
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creating hospital district shall provide funding for the district's |
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operation as specified in the contract under Section 579.052. |
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(b) The district may not impose a tax or issue bonds or other |
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obligations. |
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Sec. 579.202. BUDGET. (a) The district administrator shall |
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prepare an annual budget for approval by the board. |
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(b) The proposed budget must contain a complete financial |
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statement of: |
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(1) the outstanding obligations of the district; |
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(2) the cash on hand in each district fund; |
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(3) the money received by the district from all |
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sources during the previous year; |
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(4) the money available to the district from all |
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sources during the ensuing year; |
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(5) the balances expected at the end of the year in |
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which the budget is being prepared; |
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(6) the estimated revenue and balances available to |
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cover the proposed budget; and |
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(7) the proposed expenditures and disbursements and |
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the estimated receipts and collections for the following fiscal |
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year. |
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(c) The board shall provide in each annual budget for the |
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payment of all operation and maintenance expenses of the district. |
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Sec. 579.203. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The |
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board shall hold a public hearing on the proposed annual budget. |
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(b) At least 10 days before the date of the hearing, the |
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board shall publish notice of the hearing in a newspaper of general |
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circulation in the district. |
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(c) Any resident of the district is entitled to be present |
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and participate at the hearing. |
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(d) At the conclusion of the hearing, the board shall adopt |
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a budget by acting on the budget proposed by the district |
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administrator. The board may make any changes in the proposed |
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budget that the board judges to be in the interest of the district's |
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residents and that the law warrants. |
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(e) The budget is effective only after adoption by the |
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board. |
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Sec. 579.204. AMENDMENTS TO BUDGET. The budget may be |
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amended as required by circumstances. The board must approve all |
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amendments. |
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Sec. 579.205. RESTRICTION ON EXPENDITURES. Money may be |
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spent only for an expense included in the budget or an amendment to |
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the budget. |
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Sec. 579.206. FISCAL YEAR. The district operates according |
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to a fiscal year that begins on October 1 and ends on September 30. |
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The board may change the fiscal year. |
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Sec. 579.207. AUDIT. The board shall have an independent |
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audit made of the district's financial condition for each fiscal |
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year. |
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Sec. 579.208. INSPECTION OF AUDIT AND DISTRICT RECORDS. |
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The audit and other district records shall be open to inspection at |
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the principal office of each creating hospital district. |
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Sec. 579.209. FINANCIAL REPORT. As soon as practicable |
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after the close of each fiscal year, the district administrator |
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shall prepare for the board: |
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(1) a complete sworn statement of all district money; |
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and |
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(2) a complete account of the disbursements of that |
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money. |
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SECTION 2. Subchapter C, Chapter 1024, Special District |
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Local Laws Code, is amended by adding Section 1024.118 to read as |
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follows: |
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Sec. 1024.118. MENTAL HEALTH SERVICES. (a) The district |
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may provide mental health services, including by contract in the |
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manner prescribed by Chapter 579, Health and Safety Code. |
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(b) The district's provision of mental health services does |
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not prohibit another political subdivision of this state from |
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providing, or taxing to provide for, mental health services inside |
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the boundaries of the district, as provided by Section 13, Article |
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IX, Texas Constitution. |
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SECTION 3. Subchapter C, Chapter 1061, Special District |
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Local Laws Code, is amended by adding Section 1061.122 to read as |
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follows: |
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Sec. 1061.122. MENTAL HEALTH SERVICES. (a) The district |
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may provide mental health services, including by contract in the |
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manner prescribed by Chapter 579, Health and Safety Code. |
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(b) The district's provision of mental health services does |
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not prohibit another political subdivision of this state from |
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providing, or taxing to provide for, mental health services inside |
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the boundaries of the district, as provided by Section 13, Article |
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IX, Texas Constitution. |
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SECTION 4. In making the initial appointment of directors |
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under Section 579.101, Health and Safety Code, as added by this Act, |
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the creating hospital districts shall jointly determine which three |
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directors serve one-year terms and which three directors serve |
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two-year terms. Thereafter, all directors appointed under Section |
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579.101, Health and Safety Code, as added by this Act, are appointed |
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to serve two-year terms. |
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SECTION 5. This Act takes effect September 1, 2023. |
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* * * * * |