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        |  | COMMITTEE VOTE | 
      
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        |  | YeaNayAbsentPNV | 
      
        |  | HancockX | 
      
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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | 
      
        |  | relating to the creation of the Mineola Area Medical District; | 
      
        |  | granting the authority to impose a tax and issue bonds; granting the | 
      
        |  | power of eminent domain. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Subtitle A, Title 3, Special District Local Laws | 
      
        |  | Code, is amended by adding Chapter 1120 to read as follows: | 
      
        |  | CHAPTER 1120.  MINEOLA AREA MEDICAL DISTRICT | 
      
        |  | SUBCHAPTER A.  GENERAL PROVISIONS | 
      
        |  | Sec. 1120.001.  DEFINITIONS.  In this chapter: | 
      
        |  | (1)  "Board" means the board of directors of the | 
      
        |  | district. | 
      
        |  | (2)  "Director" means a member of the board. | 
      
        |  | (3)  "District" means the Mineola Area Medical | 
      
        |  | District. | 
      
        |  | Sec. 1120.002.  DISTRICT AUTHORIZATION.  The Mineola Area | 
      
        |  | Medical District may be created and, if created, operates and is | 
      
        |  | financed as a hospital district as provided by Section 9, Article | 
      
        |  | IX, Texas Constitution, and by this chapter. | 
      
        |  | Sec. 1120.003.  ESSENTIAL PUBLIC FUNCTION.  The district is | 
      
        |  | a public entity performing an essential public function. | 
      
        |  | Sec. 1120.004.  DISTRICT TERRITORY.  The boundaries of the | 
      
        |  | district are coextensive with the boundaries of the Mineola | 
      
        |  | Independent School District. | 
      
        |  | Sec. 1120.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE | 
      
        |  | OBLIGATION.  The state may not be obligated for the support or | 
      
        |  | maintenance of the district. | 
      
        |  | Sec. 1120.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE. | 
      
        |  | The legislature may not make a direct appropriation for the | 
      
        |  | construction, maintenance, or improvement of a district facility. | 
      
        |  | SUBCHAPTER A-1.  TEMPORARY PROVISIONS | 
      
        |  | Sec. 1120.021.  CREATION ELECTION; ORDERING ELECTION.  (a) | 
      
        |  | The district may be created and a tax may be authorized only if the | 
      
        |  | creation and the tax are approved by a majority of the registered | 
      
        |  | voters of the territory of the proposed district voting at an | 
      
        |  | election called and held for that purpose. | 
      
        |  | (b)  The Wood County Commissioners Court shall order an | 
      
        |  | election for the registered voters of the territory of the proposed | 
      
        |  | district on the question of creation of the Mineola Area Medical | 
      
        |  | District if the commissioners court receives a petition requesting | 
      
        |  | an election that is signed by at least 50 registered voters who are | 
      
        |  | residents of the territory of the proposed district. | 
      
        |  | (c)  The order calling an election under this section must | 
      
        |  | state: | 
      
        |  | (1)  the nature of the election, including the | 
      
        |  | proposition that is to appear on the ballot; | 
      
        |  | (2)  the date of the election; | 
      
        |  | (3)  the hours during which the polls will be open; and | 
      
        |  | (4)  the location of the polling places. | 
      
        |  | (d)  Section 41.001(a), Election Code, does not apply to an | 
      
        |  | election ordered under this section. | 
      
        |  | (e)  The Wood County Commissioners Court shall give notice of | 
      
        |  | an election under this section by publishing a substantial copy of | 
      
        |  | the election order in a newspaper with general circulation in Wood | 
      
        |  | County once a week for two consecutive weeks.  The first publication | 
      
        |  | must appear not later than the 30th day before the date set for the | 
      
        |  | election. | 
      
        |  | (f)  The ballot for an election under this section must be | 
      
        |  | printed to permit voting for or against the proposition:  "The | 
      
        |  | creation of the Mineola Area Medical District, providing for the | 
      
        |  | imposition of an ad valorem tax at a rate not to exceed 75 cents on | 
      
        |  | each $100 valuation on all taxable property in the district." | 
      
        |  | (g)  The Wood County Commissioners Court shall find that the | 
      
        |  | Mineola Area Medical District is created if a majority of the voters | 
      
        |  | voting in the election held under this section favor the creation of | 
      
        |  | the district. | 
      
        |  | Sec. 1120.022.  TEMPORARY DIRECTORS.  (a)  If the creation of | 
      
        |  | the district is approved at the election held under Section | 
      
        |  | 1120.021, the Wood County Commissioners Court shall appoint nine | 
      
        |  | temporary directors to represent the district at large. | 
      
        |  | (b)  Temporary directors serve until the date of the next | 
      
        |  | regular election of directors that occurs after the date of the | 
      
        |  | election held under Section 1120.021 and that allows sufficient | 
      
        |  | time to comply with other requirements of law. | 
      
        |  | (c)  A vacancy on the temporary board of directors shall be | 
      
        |  | filled by appointment by the Wood County Commissioners Court. | 
      
        |  | (d)  A person must be a qualified voter of the district to | 
      
        |  | serve as a temporary director. | 
      
        |  | (e)  An employee of the district may not serve as a temporary | 
      
        |  | director. | 
      
        |  | Sec. 1120.023.  TEMPORARY OFFICERS.  (a)  The temporary | 
      
        |  | board shall elect a president and a vice president from among the | 
      
        |  | temporary directors. | 
      
        |  | (b)  The temporary board shall appoint a secretary, who need | 
      
        |  | not be a temporary director. | 
      
        |  | (c)  The temporary board shall fill a vacancy in a board | 
      
        |  | office for the remainder of the unexpired term. | 
      
        |  | SUBCHAPTER B.  DISTRICT ADMINISTRATION | 
      
        |  | Sec. 1120.051.  BOARD ELECTION; TERM.  (a)  The board | 
      
        |  | consists of nine directors elected at large. | 
      
        |  | (b)  An election shall be held each year on an authorized | 
      
        |  | uniform election date to elect the appropriate number of directors. | 
      
        |  | (c)  Directors serve staggered two-year terms. | 
      
        |  | Sec. 1120.052.  NOTICE.  Notice of the directors' election | 
      
        |  | shall be published at least once in a newspaper with general | 
      
        |  | circulation in the district in accordance with Section 4.003(a), | 
      
        |  | Election Code. | 
      
        |  | Sec. 1120.053.  QUALIFICATION FOR OFFICE.  (a)  To be | 
      
        |  | eligible to hold office on the board, a person must be: | 
      
        |  | (1)  a resident of the district; and | 
      
        |  | (2)  a qualified voter. | 
      
        |  | (b)  An administrator or an employee of the district may not | 
      
        |  | serve as a director. | 
      
        |  | Sec. 1120.054.  DIRECTOR'S BOND.  (a)  Before assuming the | 
      
        |  | duties of office, each director must execute a bond in the amount of | 
      
        |  | $5,000 payable to the district and conditioned on the faithful | 
      
        |  | performance of the director's duties. | 
      
        |  | (b)  The bond shall be kept in the permanent records of the | 
      
        |  | district. | 
      
        |  | (c)  The board may pay for a director's bond with district | 
      
        |  | money. | 
      
        |  | Sec. 1120.055.  BOARD VACANCY.  If a vacancy occurs in the | 
      
        |  | office of director, the remaining directors shall appoint a | 
      
        |  | director for the remainder of the unexpired term. | 
      
        |  | Sec. 1120.056.  OFFICERS.  (a)  The board shall elect a | 
      
        |  | president and a vice president from among the directors. | 
      
        |  | (b)  The board shall appoint a secretary, who need not be a | 
      
        |  | director. | 
      
        |  | (c)  Each officer of the board serves a one-year term. | 
      
        |  | (d)  The board shall fill a vacancy in a board office for the | 
      
        |  | remainder of the unexpired term. | 
      
        |  | Sec. 1120.057.  COMPENSATION; REIMBURSEMENT.  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. | 
      
        |  | Sec. 1120.058.  VOTING REQUIREMENT.  A concurrence of a | 
      
        |  | majority of the directors voting is necessary in matters relating | 
      
        |  | to district business. | 
      
        |  | Sec. 1120.059.  DISTRICT ADMINISTRATOR; ADMINISTRATOR'S | 
      
        |  | BOND.  (a)  The board may appoint a qualified person as district | 
      
        |  | administrator. | 
      
        |  | (b)  The district administrator serves at the will of the | 
      
        |  | board. | 
      
        |  | (c)  The district administrator is entitled to compensation | 
      
        |  | determined by the board. | 
      
        |  | (d)  Before assuming the duties of district administrator, | 
      
        |  | the administrator must execute a bond payable to the district in an | 
      
        |  | amount not less than $5,000, as determined by the board, | 
      
        |  | conditioned on the faithful performance of the administrator's | 
      
        |  | duties. | 
      
        |  |  | 
      
        |  | (e)  The board may pay for the bond with district money. | 
      
        |  | Sec. 1120.060.  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 general affairs of the district. | 
      
        |  | Sec. 1120.061.  ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY. | 
      
        |  | (a)  The board may appoint qualified persons as assistant district | 
      
        |  | administrator and attorney for the district. | 
      
        |  | (b)  The assistant district administrator and attorney for | 
      
        |  | the district serve at the will of the board. | 
      
        |  | (c)  The assistant district administrator and attorney for | 
      
        |  | the district are entitled to compensation determined by the board. | 
      
        |  | Sec. 1120.062.  EMPLOYEES.  (a)  The district may employ | 
      
        |  | nurses, technicians, fiscal agents, accountants, architects, | 
      
        |  | additional attorneys, and other necessary employees. | 
      
        |  | (b)  The board may delegate to the district administrator the | 
      
        |  | authority to employ persons for the district. | 
      
        |  | Sec. 1120.063.  APPOINTMENT AND REMOVAL OF MEDICAL STAFF. | 
      
        |  | The board may: | 
      
        |  | (1)  appoint to the medical staff any doctor the board | 
      
        |  | considers necessary for the efficient operation of the district; | 
      
        |  | (2)  remove any doctor from the medical staff, after | 
      
        |  | due process, if the board considers the doctor's removal necessary | 
      
        |  | for the efficient operation of the district; and | 
      
        |  | (3)  make temporary appointments to the medical staff | 
      
        |  | as the board considers necessary. | 
      
        |  | Sec. 1120.064.  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 system in which | 
      
        |  | the district is eligible to participate. | 
      
        |  | SUBCHAPTER C.  POWERS AND DUTIES | 
      
        |  | Sec. 1120.101.  DISTRICT RESPONSIBILITY.  The district has | 
      
        |  | full responsibility for operating hospital facilities and | 
      
        |  | providing medical and hospital care for the district's needy | 
      
        |  | residents. | 
      
        |  | Sec. 1120.102.  MANAGEMENT, CONTROL, AND ADMINISTRATION. | 
      
        |  | The board shall manage, control, and administer the hospital system | 
      
        |  | and the money and resources of the district. | 
      
        |  | Sec. 1120.103.  RULES.  The board may adopt rules governing: | 
      
        |  | (1)  the operation of the hospital and hospital system; | 
      
        |  | and | 
      
        |  | (2)  the duties, functions, and responsibilities of | 
      
        |  | district staff and employees. | 
      
        |  | Sec. 1120.104.  PURCHASING AND ACCOUNTING PROCEDURES.  The | 
      
        |  | board may prescribe: | 
      
        |  | (1)  the method of making purchases and expenditures by | 
      
        |  | and for the district; and | 
      
        |  | (2)  accounting and control procedures for the | 
      
        |  | district. | 
      
        |  | Sec. 1120.105.  PROVISION OF CERTAIN HEALTH SERVICES.  (a) | 
      
        |  | The district may operate or provide for the operation of a mobile | 
      
        |  | emergency medical service. | 
      
        |  | (b)  The district may operate or provide for home health | 
      
        |  | services, long-term care, skilled nursing care, intermediate | 
      
        |  | nursing care, or hospice care. | 
      
        |  | Sec. 1120.106.  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: | 
      
        |  | (1)  acquire property, facilities, and equipment for | 
      
        |  | the district for use in the hospital system; | 
      
        |  | (2)  mortgage or pledge the property, facilities, or | 
      
        |  | equipment as security for payment of the purchase price; | 
      
        |  | (3)  sell or otherwise dispose of property, facilities, | 
      
        |  | or equipment for the district; or | 
      
        |  | (4)  lease hospital facilities for the district. | 
      
        |  | Sec. 1120.107.  OPERATING AND MANAGEMENT CONTRACTS.  The | 
      
        |  | board may enter into operating or management contracts relating to | 
      
        |  | hospital facilities for the district. | 
      
        |  | Sec. 1120.108.  SERVICE CONTRACTS.  (a)  The board may | 
      
        |  | contract with a public or private hospital, a political subdivision | 
      
        |  | of the state, or a state or federal agency for the district to | 
      
        |  | provide a mobile emergency medical service or other health care | 
      
        |  | services needed to provide for the investigatory or welfare needs | 
      
        |  | of residents of the district. | 
      
        |  | (b)  The board may contract with a person to receive or | 
      
        |  | supply the services the board considers necessary for the effective | 
      
        |  | operation of the district. | 
      
        |  | Sec. 1120.109.  EMINENT DOMAIN.  (a)  The district may | 
      
        |  | exercise the power of eminent domain to acquire a fee simple or | 
      
        |  | other interest in property located in district territory if the | 
      
        |  | interest is necessary for the district to exercise the rights or | 
      
        |  | authority conferred by this chapter. | 
      
        |  | (b)  The district must exercise the power of eminent domain | 
      
        |  | in the manner provided by Chapter 21, Property Code, except that the | 
      
        |  | district is not required to deposit with the trial court money or a | 
      
        |  | bond as provided by Section 21.021(a), Property Code. | 
      
        |  | (c)  In a condemnation proceeding brought by the district, | 
      
        |  | the district is not required to: | 
      
        |  | (1)  pay in advance or provide bond or other security | 
      
        |  | for costs in the trial court; | 
      
        |  | (2)  provide bond for the issuance of a temporary | 
      
        |  | restraining order or a temporary injunction; or | 
      
        |  | (3)  provide a bond for costs or a supersedeas bond on | 
      
        |  | an appeal or petition for review. | 
      
        |  | Sec. 1120.110.  COST OF RELOCATING OR ALTERING PROPERTY.  In | 
      
        |  | exercising the power of eminent domain, if the board requires | 
      
        |  | relocating, raising, lowering, rerouting, changing the grade, or | 
      
        |  | altering the construction of any railroad, highway, pipeline, or | 
      
        |  | electric transmission and electric distribution, telegraph, or | 
      
        |  | telephone line, conduit, pole, or facility, the district shall pay | 
      
        |  | the actual cost of that activity to provide a comparable | 
      
        |  | replacement, without enhancement of facilities, after deducting | 
      
        |  | the net salvage value derived from the old facility. | 
      
        |  | Sec. 1120.111.  GIFTS AND ENDOWMENTS.  The board may accept | 
      
        |  | for the district a gift or endowment to be held in trust for any | 
      
        |  | purpose and under any direction, limitation, or provision in | 
      
        |  | writing by the donor that is consistent with the proper management | 
      
        |  | of the district. | 
      
        |  | Sec. 1120.112.  PAYMENT FOR TREATMENT; PROCEDURES.  (a) | 
      
        |  | When a person who resides in the district is admitted as a patient | 
      
        |  | to a district facility, the district administrator may have an | 
      
        |  | inquiry made into the financial circumstances of: | 
      
        |  | (1)  the patient; and | 
      
        |  | (2)  a relative of the patient who is legally | 
      
        |  | responsible for the patient's support. | 
      
        |  | (b)  To the extent that the patient or a relative of the | 
      
        |  | patient who is legally responsible for the patient's support cannot | 
      
        |  | pay for care and treatment provided by the district, the district | 
      
        |  | shall supply the care and treatment without charging the patient or | 
      
        |  | the patient's relative. | 
      
        |  | (c)  On determining that the patient or a relative legally | 
      
        |  | responsible for the patient's support can pay for all or part of the | 
      
        |  | care and treatment provided by the district, the district | 
      
        |  | administrator shall report that determination to the board, and the | 
      
        |  | board shall issue an order directing the patient or the relative to | 
      
        |  | pay the district a specified amount each week.  The amount must be | 
      
        |  | based on the person's ability to pay. | 
      
        |  | (d)  The district administrator may collect money owed to the | 
      
        |  | district from the patient's estate or from that of a relative | 
      
        |  | legally responsible for the patient's support in the manner | 
      
        |  | provided by law for the collection of expenses in the last illness | 
      
        |  | of a deceased person. | 
      
        |  | (e)  If there is a dispute relating to a person's ability to | 
      
        |  | pay or if the district administrator has any doubt concerning a | 
      
        |  | person's ability to pay, the board shall call witnesses, hear and | 
      
        |  | resolve the question, and issue a final order.  The order may be | 
      
        |  | appealed to a district court in any county in which the district is | 
      
        |  | located.  The substantial evidence rule applies to an appeal under | 
      
        |  | this subsection. | 
      
        |  | Sec. 1120.113.  REIMBURSEMENT FOR SERVICES.  (a)  The board | 
      
        |  | shall require a county, municipality, or public hospital located | 
      
        |  | outside of the district to reimburse the district for the | 
      
        |  | district's care and treatment of a sick or injured person of that | 
      
        |  | county, municipality, or hospital, as provided by Chapter 61, | 
      
        |  | Health and Safety Code. | 
      
        |  | (b)  The board shall require the sheriff of Wood County to | 
      
        |  | reimburse the district for the district's care and treatment of a | 
      
        |  | person who is confined in a jail facility of Wood County and is not a | 
      
        |  | resident of the district. | 
      
        |  | (c)  On behalf of the district, the board may contract with | 
      
        |  | the state or federal government for that government to reimburse | 
      
        |  | the district for treatment of a sick or injured person. | 
      
        |  | Sec. 1120.114.  AUTHORITY TO SUE AND BE SUED.  The board may | 
      
        |  | sue and be sued on behalf of the district. | 
      
        |  | Sec. 1120.115.  CONSTRUCTION CONTRACTS; ADVERTISING FOR | 
      
        |  | CERTAIN CONSTRUCTION CONTRACTS.  (a)  The board may enter into a | 
      
        |  | construction contract on the district's behalf. | 
      
        |  | (b)  The board may enter into a construction contract only | 
      
        |  | after competitive bidding as provided by Subchapter B, Chapter 271, | 
      
        |  | Local Government Code, if the amount of the contract is greater than | 
      
        |  | the amount provided by Section 271.024 of that code. | 
      
        |  | SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS | 
      
        |  | Sec. 1120.151.  BUDGET.  (a)  The district administrator | 
      
        |  | shall prepare a proposed annual budget for the district. | 
      
        |  | (b)  The proposed budget must contain a complete financial | 
      
        |  | statement, including a statement of: | 
      
        |  | (1)  the outstanding obligations of the district; | 
      
        |  | (2)  the amount of cash on hand to the credit of each | 
      
        |  | fund of the district; | 
      
        |  | (3)  the amount of money received by the district from | 
      
        |  | all sources during the previous year; | 
      
        |  | (4)  the amount of money available to the district from | 
      
        |  | all sources during the ensuing year; | 
      
        |  | (5)  the amount of the balances expected at the end of | 
      
        |  | the year in which the budget is being prepared; | 
      
        |  | (6)  the estimated amount of revenues and balances | 
      
        |  | available to cover the proposed budget; and | 
      
        |  | (7)  the estimated tax rate required. | 
      
        |  | Sec. 1120.152.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a) | 
      
        |  | The board shall hold a public hearing on the proposed budget. | 
      
        |  | (b)  The board shall publish notice of the hearing in a | 
      
        |  | newspaper with general circulation in the district not later than | 
      
        |  | the 10th day before the date of the hearing. | 
      
        |  | (c)  Any district resident is entitled to be present and | 
      
        |  | participate at the hearing. | 
      
        |  | (d)  At the conclusion of the hearing, the board shall adopt | 
      
        |  | a budget by acting on the budget proposed by the district | 
      
        |  | administrator.  The board may make a change in the proposed budget | 
      
        |  | that the board determines to be in the interests of the taxpayers. | 
      
        |  | (e)  The budget is effective only after adoption by the | 
      
        |  | board. | 
      
        |  | Sec. 1120.153.  AMENDMENT OF BUDGET.  After the budget is | 
      
        |  | adopted, the budget may be amended on the board's approval. | 
      
        |  | Sec. 1120.154.  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 in which revenue bonds of the | 
      
        |  | district are outstanding; or | 
      
        |  | (2)  more than once in a 24-month period. | 
      
        |  | Sec. 1120.155.  ANNUAL AUDIT.  The board shall have an annual | 
      
        |  | audit made of the financial condition of the district. | 
      
        |  | Sec. 1120.156.  INSPECTION OF ANNUAL AUDIT AND DISTRICT | 
      
        |  | RECORDS.  The annual audit and other district records are open to | 
      
        |  | inspection during regular business hours at the principal office of | 
      
        |  | the district. | 
      
        |  | Sec. 1120.157.  FINANCIAL REPORT.  As soon as practicable | 
      
        |  | after the close of each fiscal year, the district administrator | 
      
        |  | shall prepare for the board a sworn statement of the amount of | 
      
        |  | district money and an account of the disbursement of that money. | 
      
        |  | Sec. 1120.158.  DEBT LIMITATION.  Except as provided by this | 
      
        |  | chapter and Chapter 1207, Government Code, the district may not | 
      
        |  | incur a debt payable from district revenue other than revenue | 
      
        |  | available in the current fiscal year and the immediately following | 
      
        |  | fiscal year of the district. | 
      
        |  | Sec. 1120.159.  DEPOSITORY.  (a)  The board shall select at | 
      
        |  | least one bank to serve as a depository for district money. | 
      
        |  | (b)  The board may solicit bids from local financial | 
      
        |  | institutions to determine which institution may serve as a | 
      
        |  | depository for district money. | 
      
        |  | (c)  District money, other than money invested as provided by | 
      
        |  | Section 1120.160 and money transmitted to a bank for payment of | 
      
        |  | bonds or obligations issued or assumed by the district, shall be | 
      
        |  | deposited as received with the depository bank and shall remain on | 
      
        |  | deposit.  This subsection does not limit the board's power to place | 
      
        |  | part of the district's money on time deposit or to purchase | 
      
        |  | certificates of deposit. | 
      
        |  | Sec. 1120.160.  RESTRICTION ON INVESTMENT.  The board may | 
      
        |  | invest operating, depreciation, or building reserves only in funds | 
      
        |  | or securities specified by Chapter 2256, Government Code. | 
      
        |  | SUBCHAPTER E. BONDS | 
      
        |  | Sec. 1120.201.  GENERAL OBLIGATION BONDS.  If authorized by | 
      
        |  | an election, the board may issue and sell general obligation bonds | 
      
        |  | in the name and on the faith and credit of the district to: | 
      
        |  | (1)  purchase, construct, acquire, repair, or renovate | 
      
        |  | buildings or improvements; | 
      
        |  | (2)  equip buildings or improvements for hospital | 
      
        |  | purposes; or | 
      
        |  | (3)  acquire and operate a mobile emergency medical | 
      
        |  | service. | 
      
        |  | Sec. 1120.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At | 
      
        |  | the time general obligation bonds are issued by the district under | 
      
        |  | Section 1120.201, the board shall impose an ad valorem tax in an | 
      
        |  | amount sufficient to create an interest and sinking fund to pay the | 
      
        |  | principal of and interest on the bonds as the bonds mature. | 
      
        |  | (b)  The tax required by this section together with any other | 
      
        |  | tax the district imposes in any year may not exceed the limit | 
      
        |  | approved by the voters at the election authorizing the imposition | 
      
        |  | of taxes. | 
      
        |  | Sec. 1120.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The | 
      
        |  | district may issue general obligation bonds only if the bonds are | 
      
        |  | authorized by a majority of the voters voting in an election held | 
      
        |  | for that purpose. | 
      
        |  | (b)  The board may order a bond election.  The order calling | 
      
        |  | the election must specify: | 
      
        |  | (1)  the nature and date of the election; | 
      
        |  | (2)  the hours during which the polls will be open; | 
      
        |  | (3)  the location of polling places; | 
      
        |  | (4)  the amounts of the bonds to be authorized; and | 
      
        |  | (5)  the maximum maturity of the bonds. | 
      
        |  | (c)  Notice of a bond election must be given as provided by | 
      
        |  | Chapter 1251, Government Code. | 
      
        |  | (d)  The board shall declare the results of the election. | 
      
        |  | Sec. 1120.204.  REVENUE BONDS.  (a)  The board may issue | 
      
        |  | revenue bonds to: | 
      
        |  | (1)  acquire, purchase, construct, repair, renovate, | 
      
        |  | or equip buildings or improvements for hospital purposes; | 
      
        |  | (2)  acquire sites to be used for hospital purposes; or | 
      
        |  | (3)  acquire and operate a mobile emergency medical | 
      
        |  | service to assist the district in carrying out its hospital | 
      
        |  | purposes. | 
      
        |  | (b)  The bonds must be payable from and secured by a pledge of | 
      
        |  | all or part of the revenues derived from the operation of the | 
      
        |  | district's hospital system. | 
      
        |  | (c)  The bonds may be additionally secured by a mortgage or | 
      
        |  | deed of trust lien on all or part of the district property. | 
      
        |  | (d)  The bonds must be issued in the manner provided by | 
      
        |  | Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, | 
      
        |  | Health and Safety Code, for issuance of revenue bonds by county | 
      
        |  | hospital authorities. | 
      
        |  | Sec. 1120.205.  MATURITY.  District bonds must mature not | 
      
        |  | later than 40 years after the date of their issuance. | 
      
        |  | Sec. 1120.206.  EXECUTION OF BONDS.  (a)  The board president | 
      
        |  | shall execute district bonds in the district's name. | 
      
        |  | (b)  The board secretary shall countersign the bonds in the | 
      
        |  | manner provided by Chapter 618, Government Code. | 
      
        |  | Sec. 1120.207.  BONDS NOT SUBJECT TO TAXATION.  The | 
      
        |  | following are not subject to taxation by the state or by a political | 
      
        |  | subdivision of the state: | 
      
        |  | (1)  bonds issued by the district; | 
      
        |  | (2)  any transaction relating to the bonds; and | 
      
        |  | (3)  profits made in the sale of the bonds. | 
      
        |  | SUBCHAPTER F.  AD VALOREM TAX | 
      
        |  | Sec. 1120.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board | 
      
        |  | shall impose a tax on all property in the district subject to | 
      
        |  | hospital district taxation. | 
      
        |  | (b)  The tax may be used to pay: | 
      
        |  | (1)  indebtedness issued or assumed by the district; | 
      
        |  | and | 
      
        |  | (2)  the maintenance and operating expenses of the | 
      
        |  | district. | 
      
        |  | (c)  The district may not impose a tax to pay the principal of | 
      
        |  | or interest on revenue bonds issued under this chapter. | 
      
        |  | Sec. 1120.252.  TAX RATE.  (a)  The tax rate on all taxable | 
      
        |  | property in the district for all purposes may not exceed 75 cents on | 
      
        |  | each $100 valuation of the property according to the most recent | 
      
        |  | certified tax appraisal roll of the district. | 
      
        |  | (b)  In setting the tax rate, the board shall consider | 
      
        |  | district income from sources other than taxation. | 
      
        |  | Sec. 1120.253.  TAX ASSESSOR-COLLECTOR.  The board may | 
      
        |  | provide for the appointment of a tax assessor-collector for the | 
      
        |  | district or may contract for the assessment and collection of taxes | 
      
        |  | as provided by the Tax Code. | 
      
        |  | SUBCHAPTER G.  DISSOLUTION | 
      
        |  | Sec. 1120.301.  DISSOLUTION; ELECTION.  (a)  The district | 
      
        |  | may be dissolved only on approval of a majority of the voters voting | 
      
        |  | in an election held for that purpose. | 
      
        |  | (b)  The board may order an election on the question of | 
      
        |  | dissolving the district and disposing of the district's assets and | 
      
        |  | obligations. | 
      
        |  | (c)  The board shall order an election if the board receives | 
      
        |  | a petition requesting an election that is signed by at least 15 | 
      
        |  | percent of the district's registered voters. | 
      
        |  | (d)  The order calling the election must state: | 
      
        |  | (1)  the nature of the election, including the | 
      
        |  | proposition that is to appear on the ballot; | 
      
        |  | (2)  the date of the election; | 
      
        |  | (3)  the hours during which the polls will be open; and | 
      
        |  | (4)  the location of the polling places. | 
      
        |  | (e)  Section 41.001(a), Election Code, does not apply to an | 
      
        |  | election ordered under this section. | 
      
        |  | Sec. 1120.302.  NOTICE OF ELECTION.  (a)  The board shall | 
      
        |  | give notice of an election under this subchapter by publishing a | 
      
        |  | substantial copy of the election order in a newspaper with general | 
      
        |  | circulation in the district once a week for two consecutive weeks. | 
      
        |  | (b)  The first publication must appear not later than the | 
      
        |  | 30th day before the date set for the election. | 
      
        |  | Sec. 1120.303.  BALLOT.  The ballot for an election under | 
      
        |  | this subchapter must be printed to permit voting for or against the | 
      
        |  | proposition: "The dissolution of the Mineola Area Medical | 
      
        |  | District." | 
      
        |  | Sec. 1120.304.  ELECTION RESULTS.  (a)  If a majority of the | 
      
        |  | votes in an election under this subchapter favor dissolution, the | 
      
        |  | board shall order that the district be dissolved. | 
      
        |  | (b)  If a majority of the votes in an election under this | 
      
        |  | subchapter do not favor dissolution, the board shall continue to | 
      
        |  | administer the district, and another election on the question of | 
      
        |  | dissolution may not be held before the first anniversary of the date | 
      
        |  | of the most recent election to dissolve the district. | 
      
        |  | Sec. 1120.305.  TRANSFER OR ADMINISTRATION OF ASSETS.  (a) | 
      
        |  | If a majority of the votes in an election under this subchapter | 
      
        |  | favor dissolution, the board shall: | 
      
        |  | (1)  transfer the land, buildings, improvements, | 
      
        |  | equipment, and other assets belonging to the district to Wood | 
      
        |  | County or another governmental entity in Wood County; or | 
      
        |  | (2)  administer the property, assets, and debts of the | 
      
        |  | district until all money has been disposed of and all district debts | 
      
        |  | have been paid or settled. | 
      
        |  | (b)  If the board makes the transfer under Subsection (a)(1), | 
      
        |  | the county or entity assumes all debts and obligations of the | 
      
        |  | district at the time of the transfer and the district is dissolved. | 
      
        |  | (c)  If Subsection (a)(1) does not apply and the board | 
      
        |  | administers the property, assets, and debts of the district under | 
      
        |  | Subsection (a)(2), the district is dissolved when all money has | 
      
        |  | been disposed of and all district debts have been paid or settled. | 
      
        |  | Sec. 1120.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS | 
      
        |  | TAXES.  (a)  After the board determines that the district is | 
      
        |  | dissolved, the board shall: | 
      
        |  | (1)  determine the debt owed by the district; and | 
      
        |  | (2)  impose on the property included in the district's | 
      
        |  | tax rolls a tax that is in proportion of the debt to the property | 
      
        |  | value. | 
      
        |  | (b)  On the payment of all outstanding debts and obligations | 
      
        |  | of the district, the board shall order the secretary to return to | 
      
        |  | each district taxpayer the taxpayer's pro rata share of all unused | 
      
        |  | tax money. | 
      
        |  | (c)  A taxpayer may request that the taxpayer's share of | 
      
        |  | surplus tax money be credited to the taxpayer's county taxes.  If a | 
      
        |  | taxpayer requests the credit, the board shall direct the secretary | 
      
        |  | to transmit the funds to the tax assessor-collector for the county | 
      
        |  | in which the taxpayer resides. | 
      
        |  | Sec. 1120.307.  REPORT; DISSOLUTION ORDER.  (a)  After the | 
      
        |  | district has paid all its debts and has disposed of all its money | 
      
        |  | and other assets as prescribed by this subchapter, the board shall | 
      
        |  | file a written report with the Wood County Commissioners Court | 
      
        |  | summarizing the board's actions in dissolving the district. | 
      
        |  | (b)  Not later than the 10th day after the date the Wood | 
      
        |  | County Commissioners Court receives the report and determines that | 
      
        |  | the requirements of this subchapter have been fulfilled, the | 
      
        |  | commissioners court shall enter an order dissolving the district | 
      
        |  | and releasing the board from any further duty or obligation. | 
      
        |  | SECTION 2.  (a)  The members of the board of directors of the | 
      
        |  | Mineola Area Medical District elected at the first election held | 
      
        |  | under Section 1120.051, Special District Local Laws Code, as added | 
      
        |  | by this Act, shall draw lots to determine which five directors serve | 
      
        |  | a two-year term and which four directors serve a one-year term. | 
      
        |  | (b)  Successor directors shall serve two-year terms. | 
      
        |  | SECTION 3.  (a)  Except as provided by Subsection (b) of this | 
      
        |  | section, this Act takes effect immediately if it receives a vote of | 
      
        |  | two-thirds of all the members elected to each house, as provided by | 
      
        |  | Section 39, Article III, Texas Constitution. | 
      
        |  | (b)  If this Act does not receive the vote necessary for | 
      
        |  | immediate effect: | 
      
        |  | (1)  this Act takes effect September 1, 2015; and | 
      
        |  | (2)  Section 1120.109, Special District Local Laws | 
      
        |  | Code, as added by this Act, has no effect. | 
      
        |  |  | 
      
        |  | * * * * * |