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          A BILL TO BE ENTITLED
         | 
      
      
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			 | 
        
          AN ACT
         | 
      
      
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        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: | 
      
      
        | 
           
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                     (1)  "Board" means the board of directors of the  | 
      
      
        | 
           
			 | 
        district. | 
      
      
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                     (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  | 
      
      
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        a public entity performing an essential public function. | 
      
      
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			 | 
               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. | 
      
      
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			 | 
               (b)  The Wood County Commissioners Court shall order an  | 
      
      
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			 | 
        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  | 
      
      
        | 
           
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        an election that is signed by at least 50 registered voters who are  | 
      
      
        | 
           
			 | 
        residents of the territory of the proposed district. | 
      
      
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			 | 
               (c)  The order calling an election under this section must  | 
      
      
        | 
           
			 | 
        state: | 
      
      
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                     (1)  the nature of the election, including the  | 
      
      
        | 
           
			 | 
        proposition that is to appear on the ballot; | 
      
      
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			 | 
                     (2)  the date of the election; | 
      
      
        | 
           
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                     (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. | 
      
      
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			 | 
               (f)  The ballot for an election under this section must be  | 
      
      
        | 
           
			 | 
        printed to permit voting for or against the proposition:  "The  | 
      
      
        | 
           
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        creation of the Mineola Area Medical District, providing for the  | 
      
      
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        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. | 
      
      
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               (d)  A person must be a qualified voter of the district to  | 
      
      
        | 
           
			 | 
        serve as a temporary director. | 
      
      
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			 | 
               (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. | 
      
      
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			 | 
               (b)  The temporary board shall appoint a secretary, who need  | 
      
      
        | 
           
			 | 
        not be a temporary director. | 
      
      
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			 | 
               (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. | 
      
      
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			 | 
               (c)  The board may pay for a director's bond with district  | 
      
      
        | 
           
			 | 
        money. | 
      
      
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			 | 
               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. | 
      
      
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			 | 
               (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. | 
      
      
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			 | 
               (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. | 
      
      
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               Sec. 1120.305.  TRANSFER OR ADMINISTRATION OF ASSETS.  (a)   | 
      
      
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        If a majority of the votes in an election under this subchapter  | 
      
      
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        favor dissolution, the board shall: | 
      
      
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                     (1)  transfer the land, buildings, improvements,  | 
      
      
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        equipment, and other assets belonging to the district to Wood  | 
      
      
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        County or another governmental entity in Wood County; or | 
      
      
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                     (2)  administer the property, assets, and debts of the  | 
      
      
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        district until all money has been disposed of and all district debts  | 
      
      
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        have been paid or settled. | 
      
      
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               (b)  If the board makes the transfer under Subsection (a)(1),  | 
      
      
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        the county or entity assumes all debts and obligations of the  | 
      
      
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        district at the time of the transfer and the district is dissolved. | 
      
      
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               (c)  If Subsection (a)(1) does not apply and the board  | 
      
      
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        administers the property, assets, and debts of the district under  | 
      
      
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        Subsection (a)(2), the district is dissolved when all money has  | 
      
      
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        been disposed of and all district debts have been paid or settled. | 
      
      
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               Sec. 1120.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS  | 
      
      
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        TAXES.  (a)  After the board determines that the district is  | 
      
      
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        dissolved, the board shall: | 
      
      
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                     (1)  determine the debt owed by the district; and | 
      
      
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                     (2)  impose on the property included in the district's  | 
      
      
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        tax rolls a tax that is in proportion of the debt to the property  | 
      
      
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        value. | 
      
      
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               (b)  On the payment of all outstanding debts and obligations  | 
      
      
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        of the district, the board shall order the secretary to return to  | 
      
      
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        each district taxpayer the taxpayer's pro rata share of all unused  | 
      
      
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        tax money. | 
      
      
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               (c)  A taxpayer may request that the taxpayer's share of  | 
      
      
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        surplus tax money be credited to the taxpayer's county taxes.  If a  | 
      
      
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        taxpayer requests the credit, the board shall direct the secretary  | 
      
      
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        to transmit the funds to the tax assessor-collector for the county  | 
      
      
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        in which the taxpayer resides. | 
      
      
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               Sec. 1120.307.  REPORT; DISSOLUTION ORDER.  (a)  After the  | 
      
      
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        district has paid all its debts and has disposed of all its money  | 
      
      
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        and other assets as prescribed by this subchapter, the board shall  | 
      
      
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        file a written report with the Wood County Commissioners Court  | 
      
      
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        summarizing the board's actions in dissolving the district. | 
      
      
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               (b)  Not later than the 10th day after the date the Wood  | 
      
      
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        County Commissioners Court receives the report and determines that  | 
      
      
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        the requirements of this subchapter have been fulfilled, the  | 
      
      
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        commissioners court shall enter an order dissolving the district  | 
      
      
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        and releasing the board from any further duty or obligation. | 
      
      
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               SECTION 2.  (a)  The members of the board of directors of the  | 
      
      
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        Mineola Area Medical District elected at the first election held  | 
      
      
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        under Section 1120.051, Special District Local Laws Code, as added  | 
      
      
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        by this Act, shall draw lots to determine which five directors serve  | 
      
      
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        a two-year term and which four directors serve a one-year term. | 
      
      
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               (b)  Successor directors shall serve two-year terms. | 
      
      
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               SECTION 3.  (a)  Except as provided by Subsection (b) of this  | 
      
      
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        section, this Act takes effect immediately if it receives a vote of  | 
      
      
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        two-thirds of all the members elected to each house, as provided by  | 
      
      
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        Section 39, Article III, Texas Constitution. | 
      
      
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               (b)  If this Act does not receive the vote necessary for  | 
      
      
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        immediate effect: | 
      
      
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                     (1)  this Act takes effect September 1, 2015; and | 
      
      
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                     (2)  Section 1120.109, Special District Local Laws  | 
      
      
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        Code, as added by this Act, has no effect. |