By: Hughes (Senate Sponsor - Eltife) H.B. No. 4212
         (In the Senate - Received from the House May 24, 2015;
  May 24, 2015, read first time and referred to Committee on
  Administration; May 26, 2015, reported favorably by the following
  vote:  Yeas 7, Nays 0; May 26, 2015, sent to printer.)
Click here to see the committee vote
 
 
 
  COMMITTEE VOTE
 
 
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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.
 
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