BILL ANALYSIS

Senate Research Center	H.B. 3191
88R25838 SRA-F	By: Spiller; Rogers (Springer)
	Local Government
	5/19/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Statutes relating to the election process for a hospital district's board of directors lack clarity and standardization. For the most part, these statutes have not been revised since their initial adoption in 1991 and provisions regarding election deadlines and procedures are not in alignment with the Election Code. Additionally, there is no current provision for the removal of a board member who regularly fails to attend board meetings.

The bill updates laws relating to hospital district boards to create a mechanism for the resignation of a board member that fails to appear at board meetings, align certain provisions with the Election and Government Codes, and provide additional options regarding the duration of board member terms.

H.B. 3191 amends current law relating to the elections and operations of certain hospital districts.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Section 285.081, Health and Safety Code, to read as follows:

Sec. 285.081.� OPTIONAL FOUR-YEAR TERMS.

SECTION 2. Amends Subchapter G, Chapter 285, Health and Safety Code, by adding Sections 285.082 and 285.083, as follows:

Sec. 285.082.� OPTIONAL THREE-YEAR TERMS. (a) Authorizes the governing board (board) of a hospital district (district) created under general or special law, on its own motion, to order that the members of the board are to be elected to serve staggered three-year terms if:

(1)� the members of the board serve staggered four-year terms on the date the board enters the order; and

(2)� Subsection (b), (c), or (d) applies to the board.

(b) Provides that this subsection applies to a board with five members. Requires that the election of board members in the even-numbered year following the date an order is entered under Subsection (a) in which three board members are to be elected be held as previously scheduled. Requires two of the members elected at that election to serve three-year terms, and one of the members elected at that election to serve a four-year term, to be determined by random draw. Requires board members elected in subsequent elections to serve three-year terms.

(c) Provides that this subsection applies to a board with seven members. Requires that the election of board members in the even-numbered year following the date an order is entered under Subsection (a) in which four members are to be elected be held as previously scheduled. Requires two of the members elected at that election to serve three-year terms and two of the members elected at that election to serve four-year terms, to be determined by random draw. Requires board members elected in subsequent elections to serve three-year terms.

(d) Provides that this subsection applies to a board with nine members. Requires that the election of board members in the even-numbered year following the date an order is entered under Subsection (a) in which five members are to be elected be held as previously scheduled. Requires two of the members elected at that election to serve three-year terms and three of the members elected at that election to serve four-year terms, to be determined by random draw. Requires that the election of board members in the next even-numbered year following the date an order is entered under Subsection (a) in which four members are to be elected be held as previously scheduled. Requires three of the members elected at that election to serve three-year terms and one of the members elected at that election to serve a four-year term, to be determined by random draw. Requires board members elected in subsequent elections to serve three-year terms.

Sec. 285.083.� RESIGNATION OF TERM. (a) Provides that a member of the board is considered to have resigned the member's position if the member is absent from five or more regularly scheduled board meetings that the member is eligible to attend in any 12-month period without an excuse approved by a majority vote of the board.

(b) Provides that a resignation under Subsection (a) is effective on the date of the fifth regularly scheduled board meeting at which the member is absent without an excuse approved by the board.

(c) Provides that the validity of an action of the board is not affected by the fact that the action is taken during a period in which a board member is considered to have resigned under Subsection (a).

(d) Provides that this section does not apply to a hospital district created under Chapter 281 (Hospital Districts in Counties of at Least 190,000).

SECTION 3. Amends Section 286.022(c), Health and Safety Code, as follows:

(1) makes a nonsubstantive change to this subdivision;

(2) the method by which directors are to be elected, whether at large, by place, or by a combination of both, so that a specific number of directors are elected from each commissioner precinct and a specific number are elected at large; and

(3) whether directors will be elected to serve two-year or four-year terms.

SECTION 4. Amends Section 286.025(a), Health and Safety Code, to require the commissioners court to give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the proposed district in accordance with Section 4.003 (Method of Giving Notice), Election Code, rather than in the proposed district once a week for two consecutive weeks.

SECTION 5. Amends Section 286.041, Health and Safety Code, as follows:

Sec. 286.041.� BOARD OF DIRECTORS. Requires the directors to be elected at large, by place, or by a combination of both, in accordance with the petition prescribed by Section 286.021 (Petition for Creation of District).

SECTION 6. Amends Section 286.042, Health and Safety Code, as follows:

Sec. 286.042.� DIRECTOR'S ELECTION. (a) Requires the initial directors to be elected at an election to be held on the uniform election date, rather than on the first Saturday, in May following the creation of the district.

(b)� Provides that if the directors are elected at large for two-year terms, certain circumstances are established.

(d) Provides that if the directors are elected from commissioners precincts and at large for two-year terms, certain circumstances are established.

(d-1) Provides that if the directors are elected at large for four-year terms:

(1)� the appropriate number of candidates receiving the highest number of votes at the initial election of directors are directors for the district;

(2)� the number of directors equal to a majority of the directors who receive the highest number of votes at the initial election serve for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year; and

(3)� the remaining directors serve for a term of one year if elected in an odd-numbered year or two years if elected in an even-numbered year.

(d-2)� Provides that if the directors are elected by place for four-year terms:

(1)� the candidate for a place receiving the highest number of votes for election to that place is a director for the district;

(2)� a director elected to fill an even-numbered place at the initial election serves for a term of one year if elected in an odd-numbered year or two years if elected in an even-numbered year; and

(3)� a director elected to fill an odd-numbered place at the initial election serves for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year.

(d-3) Provides that if the directors are elected from commissioners precincts and at large for four-year terms:

(1)� the number of candidates equal to the number of directors to be elected from each precinct who receive the highest number of votes from a commissioner precinct are directors for that precinct;

(2)� the number of candidates equal to the number of directors to be elected at large who receive the highest number of votes from the district at large are directors for the district at large;

(3)� a candidate elected from an odd-numbered precinct at the initial election serves for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year;

(4)� a candidate elected from an even-numbered precinct at the initial election serves for a term of one year if elected in an odd-numbered year or two years if elected in an even-numbered year;

(5)� a candidate elected as the director from the district at large at the initial election serves for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year; and

(6)� if more than one director is elected at large, half of the directors elected at large serve for a term described by Subdivision (4) for a candidate elected from an even-numbered precinct, and the other half serve for a term described by Subdivision (3) for a candidate elected from an odd-numbered precinct.

(e)� Requires that an election, after the initial election of directors, be held on the uniform election date, rather than on the first Saturday, in May of each year or every other year, as applicable, to elect the appropriate number of successor directors for two-year terms or four-year terms as specified in the petition to create the district.

SECTION 7. Amends Section 286.043, Health and Safety Code, as follows:

Sec. 286.043.� NOTICE OF ELECTION. Requires that notice of an election be published in a newspaper with general circulation in the district in accordance with Section 4.003 (Method of Giving Notice), Election Code. Deletes existing text requiring that notice of an election, before the 35th day before the date of an election of directors, be published one time in a newspaper with general circulation in the district.

SECTION 8. Amends the heading to Section 286.044, Health and Safety Code, as follows:

Sec. 286.044.� APPLICATION FOR PLACE ON BALLOT.

SECTION 9. Amends Section 286.044(a), Health and Safety Code, to require a person who wishes to have the person's name printed on the ballot as a candidate for director to file an application with the secretary of the board in accordance with Chapter 144 (Candidate for Office of Political Subdivision Other Than County or City), Election Code.

SECTION 10. Amends Section 286.053, Health and Safety Code, as follows:

Sec. 286.053.� APPOINTMENTS TO STAFF. Authorizes the board to:

(1)� appoint to the staff any health care practitioners, rather than any doctors, the board considers necessary for the efficient operation of the district; and

(2)� grant clinical privileges on a temporary or emergency basis as the board considers necessary, rather than make temporary appointments the board considers necessary.

SECTION 11. Amends Section 286.078(b), Health and Safety Code, to authorize the board to enter into a public work contract as authorized under Chapter 2269 (Contracting and Delivery Procedures for Construction Projects), Government Code, rather than enter into construction contracts that involve spending more than $10,000 only after competitive bidding as provided by Subchapter B (Competitive Bidding on Certain Public Works Contracts), Chapter 271, Local Government Code.

SECTION 12. Amends Section 286.101(f), Health and Safety Code, to delete existing text requiring that the election be held after the 45th day and on or before the 60th day after the date the election is ordered.

SECTION 13. Amends Section 286.102(c), Health and Safety Code, to delete existing text requiring that the election be held not later than the 60th day after the date the election is ordered.

SECTION 14.� Amends Section 286.129, Health and Safety Code, as follows:

Sec. 286.129.� SPENDING AND INVESTMENT LIMITATIONS. (a) Creates an exception under Chapter 315 (Authority to Borrow Money for Public Hospitals). Makes nonsubstantive changes.

(b) Authorizes the board to invest operating, depreciation, or building reserves only in investments authorized under Chapter 2256 (Public Funds Investment), Government Code. Deletes existing text authorizing the board to invest operating, depreciation, or building reserves only in:

(1)� bonds of the United States;

(2)� certificates of indebtedness issued by the United States secretary of the treasury;

(3)� bonds of this state or a county, municipality, or school district of this state; or

(4)� shares or share accounts of savings and loan associations organized under the laws of this state or federal savings and loan associations domiciled in this state, if the shares or share accounts are insured by the Federal Deposit Insurance Corporation.

SECTION 15. Amends Section 1023.054(a), Special District Local Laws Code, as follows:

(a)� Requires the remaining directors, if a vacancy occurs in the office of director, to appoint a director for the unexpired term. Deletes existing text requiring that a vacancy in the office of director be filled for the unexpired term at the next regular election.

SECTION 16. Amends Section 1070.111, Special District Local Laws Code, as follows:

Sec. 1070.111.� CONSTRUCTION CONTRACTS. Deletes existing text authorizing a construction contract that involves the expenditure of more than $10,000 to be made after advertising in the manner provided by Section 286.078 (Construction Contracts), Health and Safety Code.

SECTION 17. Repealers: Section 286.023(g) (relating to requiring that the election to confirm a district's creation be held after the 45th day and on or before the 60th day after the date the election is ordered) and 286.025(b) (relating to requiring that the first publication of the election order appear before the 35th day before the date set for the election), Health and Safety Code.

Repealer: Section 286.044(b) (relating to requiring that the application for a person's name to be printed on the ballot as a candidate for director be filed with the secretary not later than the 31st day before the date of the election), Health and Safety Code.

SECTION 18. Effective date: September 1, 2023.