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.