73R5072 DLF-F By Delco, Maxey H.B. No. 1181 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to powers and duties of certain municipal hospital 1-3 authorities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter C, Chapter 262, Health and Safety 1-6 Code, is amended by adding Section 262.035 to read as follows: 1-7 Sec. 262.035. POWERS AND DUTIES OF CERTAIN HOSPITAL 1-8 AUTHORITIES; LEASE. (a) This section applies only to an authority 1-9 created in a county with a population of at least 450,000 and in 1-10 which a hospital district is not located. 1-11 (b) A municipality may lease to an authority subject to this 1-12 section all or part of a hospital and any other health facilities 1-13 owned by the municipality. The lease may provide that the 1-14 municipality may retain during the term of the lease specified 1-15 rights relating to the operation of the authority and any leased 1-16 facility. The lease may provide that: 1-17 (1) the municipality may retain the power to appoint 1-18 all directors of the authority, notwithstanding Section 262.012; 1-19 (2) the authority is required to perform specified 1-20 health care services on behalf of the municipality; 1-21 (3) the authority is prohibited from eliminating or 1-22 curtailing specified health care services offered at a leased 1-23 facility without the prior approval of the municipality; 1-24 (4) the authority is prohibited from subletting a 2-1 leased facility, assigning its rights under a lease, entering into 2-2 a management contract for the operation of a leased facility as a 2-3 whole, or pledging the authority's revenues derived from the 2-4 operation of a leased facility, without the approval of the 2-5 municipality; 2-6 (5) the board may be subject to any ethics or conflict 2-7 of interest ordinance adopted by the municipality and any minority 2-8 or women hiring or contracting goals adopted by the municipality; 2-9 and 2-10 (6) the authority is required to comply with Chapter 2-11 252, Local Government Code, relating to purchasing and contracts. 2-12 (c) If the municipality retains in the lease the right to 2-13 appoint all members of the board, the municipality may remove the 2-14 entire board, or any member of the board, at any time without 2-15 cause. The municipality may remove the board or a member of the 2-16 board under this subsection only on the affirmative vote of 2-17 two-thirds of the members of the governing body of the 2-18 municipality. 2-19 (d) The municipality is not liable for the actions of the 2-20 authority, the conduct of the authority's personnel, or any 2-21 condition or use of the authority's property. 2-22 (e) For purposes of Chapters 101 and 102, Civil Practice and 2-23 Remedies Code, a municipal hospital authority subject to this 2-24 section is a unit of local government and not a municipality. 2-25 (f) An authority subject to this section and its employees 2-26 may participate in the municipality's employee retirement plan, 2-27 employee health plans, and other employee benefit plans as 3-1 determined by the municipality's governing body. 3-2 (g) An authority subject to this section is subject to the 3-3 open meetings law, Chapter 271, Acts of the 60th Legislature, 3-4 Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil 3-5 Statutes), and the open records law, Chapter 424, Acts of the 63rd 3-6 Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 3-7 Texas Civil Statutes). 3-8 SECTION 2. The importance of this legislation and the 3-9 crowded condition of the calendars in both houses create an 3-10 emergency and an imperative public necessity that the 3-11 constitutional rule requiring bills to be read on three several 3-12 days in each house be suspended, and this rule is hereby suspended, 3-13 and that this Act take effect and be in force from and after its 3-14 passage, and it is so enacted.