1. (a) A person may not be elected or appointed to an elected position on the board unless the person is:

   1. (1) a resident of the district; and
   2. (2) a qualified voter.

2. (b) In addition to the requirements prescribed by Subsection (a), a person is not eligible to serve as a director if the person:

   1. (1) directly or indirectly has an ownership or investment interest in a health care facility located in Palo Pinto County; or

   2. (2) directly or in conjunction with another person or entity has an ownership interest in another business or entity that:

      1. (A) is related to health care; and
      2. (B) provides a good or service to the area served by the district that is the same as or substantially similar to a good or service provided by the district.

3. (c) Subsection (b) does not apply to:

   1. (1) an ownership or investment interest in publicly available shares of a registered investment company, such as a mutual fund, that owns publicly traded equity securities or debt obligations issued by:

      1. (A) a health care facility;
      2. (B) a business or entity described by Subsection (b); or
      3. (C) an entity that owns the health care facility, business, or entity; or
   2. (2) a physician's ownership interest in the physician's own medical practice.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.