By: Barrientos S.B. No. 695 A BILL TO BE ENTITLED AN ACT 1-1 relating to powers and duties of certain municipal hospital 1-2 authorities, including the power to have municipalities issue bonds 1-3 on their behalf. 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 in which 1-10 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 the 1-16 facilities leased from the municipality. The lease may provide 1-17 that: 1-18 (1) the municipality may retain the power to appoint 1-19 all directors of the authority, notwithstanding Section 262.012; 1-20 (2) the authority is required to perform specified 1-21 health care services on behalf of the municipality; 1-22 (3) the municipality may agree to fund specified 1-23 health care services; 1-24 (4) the authority is prohibited from eliminating or 2-1 curtailing specified health care services offered at the facilities 2-2 leased from the municipality without prior consultation with or the 2-3 approval of the municipality; 2-4 (5) the authority is prohibited from subletting the 2-5 facilities leased from the municipality or assigning its rights 2-6 under the lease for a total term of more than five years, or 2-7 entering into a management contract for the operation of the 2-8 facilities leased from the municipality as a whole, or pledging the 2-9 authority's revenues derived from the operation of the facilities 2-10 leased from the municipality, without prior consultation with or 2-11 the approval of the municipality; 2-12 (6) the board may be subject to any ethics or conflict 2-13 of interest ordinance applicable to other sovereign city boards and 2-14 commissions adopted by the municipality and any goals for hiring 2-15 and contracting with minorities or women adopted by and for the 2-16 municipality; 2-17 (7) the authority will comply with Chapter 252, Local 2-18 Government Code, relating to purchasing and contracts; 2-19 (8) the municipality may issue general obligation 2-20 bonds for the use and benefit of the authority; 2-21 (9) an authority and its employees may participate in 2-22 the municipality's employee retirement plan, employee health plans, 2-23 and other employee benefit plans; and 2-24 (10) the lease may contain other terms and conditions 2-25 that the municipality and authority agree on and which are not 2-26 prohibited by law or by the constitution. 2-27 (c) If the municipality retains in the lease the right to 3-1 appoint all members of the board, the municipality may remove the 3-2 entire board or any member of the board at any time with cause. 3-3 The municipality may remove the board or a member of the board 3-4 under this subsection only after reasonable written notice to the 3-5 board or board members and on the affirmative vote of a majority of 3-6 the members of the governing body of the municipality. 3-7 (d) For purposes of Chapters 101 and 102, Civil Practice and 3-8 Remedies Code, a municipal hospital authority subject to this 3-9 section is a unit of local government and not a municipality. 3-10 (e) An authority subject to this section is subject to the 3-11 open meetings law, Chapter 271, Acts of the 60th Legislature, 3-12 Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil 3-13 Statutes), and the open records law, Chapter 424, Acts of the 63rd 3-14 Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 3-15 Texas Civil Statutes). 3-16 SECTION 2. The importance of this legislation and the 3-17 crowded condition of the calendars in both houses create an 3-18 emergency and an imperative public necessity that the 3-19 constitutional rule requiring bills to be read on three several 3-20 days in each house be suspended, and this rule is hereby suspended, 3-21 and that this Act take effect and be in force from and after its 3-22 passage, and it is so enacted.