BILL ANALYSIS

 

 

 

C.S.H.B. 3191

By: Spiller

County Affairs

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

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. C.S.H.B. 3191 seeks to update 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.

 

CRIMINAL JUSTICE IMPACT

 

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

Hospital Districts in General

 

C.S.H.B. 3191 amends the Health and Safety Code to authorize the governing board of a hospital district created under general or special law, on its own motion, to order that the members of the governing board are to be elected to serve staggered three-year terms. This authority is contingent on the members of the governing board serving staggered four-year terms on the date the governing board enters the order and on the governing board having five, seven, or nine members. The bill provides for the transition to the three-year term length, with different procedures depending on the number of board members.

 

C.S.H.B. 3191 establishes that a member of the governing board of a hospital district 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. The bill makes such a resignation effective on the date of the fifth regularly scheduled board meeting at which the member is absent without an excuse approved by the board. The bill establishes that the validity of a board action is not affected by the fact that the action is taken during a period in which a board member is considered to have resigned as such. The bill exempts from these resignation provisions a hospital district that was created by a county with at least 190,000 inhabitants.

 

Hospital Districts Created by Voter Approval     

 

C.S.H.B. 3191 authorizes a petition for the creation of a hospital district to provide whether members of the district's board of directors will be elected to serve two-year or four-year terms and sets out procedures regarding the election of initial directors in a district with four-year director terms. The bill changes requirements for publishing newspaper notice of an election for the creation of a district or election of district directors and requirements for filing an application for a place on the ballot as a candidate for director to align those requirements with applicable Election Code provisions. The bill clarifies that the date on which director elections are held is a uniform election date.

 

C.S.H.B. 3191 replaces the authorization for a board to appoint doctors to the staff with the authorization to appoint health care practitioners to the staff. The bill also replaces the authorization for a board to make temporary appointments the board considers necessary with the authorization to grant clinical privileges on a temporary or emergency basis as the board considers necessary.

 

C.S.H.B. 3191 removes a provision conditioning a board's authority to enter into a construction contract that involves spending more than $10,000 on compliance with competitive bidding requirements provided by Local Government Code provisions relating to the purchasing and contracting authority of certain local governments. The bill authorizes a board to enter into a public work contract as authorized under Government Code provisions relating to contracting and delivery procedures for construction projects.

 

C.S.H.B. 3191 removes or repeals the following requirements relating to the timing of certain district elections:

ˇ         a requirement that an 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;

ˇ         a requirement that an election for the expansion of district territory be held after the 45th day and on or before the 60th day after the date the election is ordered; and

ˇ         a requirement that a district dissolution election be held not later than the 60th day after the date the election is ordered.

 

C.S.H.B. 3191 replaces provisions listing the only types of bonds, certificates of indebtedness, shares, and share accounts in which a board may invest operating, depreciation, or building reserves with a provision specifying that a board may invest such reserves only in investments authorized under the Public Funds Investment Act.

 

Eastland Memorial Hospital District Director Vacancies

 

C.S.H.B. 3191 amends the Special District Local Laws Code to replace the requirement that a vacancy in the office of director for the Eastland Memorial Hospital District be filled for the unexpired term at the next regular election with the requirement that the remaining directors appoint a director to fill the vacancy for the unexpired term.

 

Repeals

 

C.S.H.B. 3191 repeals the following provisions of the Health and Safety Code:

ˇ         Section 286.023(g);

ˇ         Section 286.025(b); and

ˇ         Section 286.044(b).

 

EFFECTIVE DATE

 

September 1, 2023.

 

COMPARISON OF INTRODUCED AND SUBSTITUTE

 

While C.S.H.B. 3191 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

 

The substitute includes provisions absent in the introduced that authorize certain hospital district governing boards to order that board members are to be elected to serve staggered three-year terms.

 

The substitute includes a provision absent in the introduced that exempts a hospital district that was created by a county with at least 190,000 inhabitants from provisions of the bill establishing that a board member 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.

 

The substitute includes a provision absent in the introduced that replaces the requirement that a vacancy in the office of director for the Eastland Memorial Hospital District be filled for the unexpired term at the next regular election with the requirement that the remaining directors appoint a director to fill a vacancy for the unexpired term.