(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.
(b) A corporation created under this section may use money contributed by the district only for a district purpose, including the provision of health care or other services the district is authorized to provide under this chapter.

Terms Used In Texas Special District Local Laws Code 1121.114

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

(c) The corporation may invest the corporation’s money in any manner in which the district may invest the district’s money, including investing money as authorized by Chapter 2256, Government Code.
(d) The board shall establish controls to ensure that the corporation uses its money as required by this section.

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