1-1 By: Barrientos S.B. No. 695 1-2 (In the Senate - Filed March 8, 1993; March 9, 1993, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; April 6, 1993, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 7, Nays 0; 1-6 April 6, 1993, sent to printer.) 1-7 COMMITTEE VOTE 1-8 Yea Nay PNV Absent 1-9 Armbrister x 1-10 Leedom x 1-11 Carriker x 1-12 Henderson x 1-13 Madla x 1-14 Moncrief x 1-15 Patterson x 1-16 Rosson x 1-17 Shapiro x 1-18 Wentworth x 1-19 Whitmire x 1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 695 By: Wentworth 1-21 A BILL TO BE ENTITLED 1-22 AN ACT 1-23 relating to powers and duties of certain municipal hospital 1-24 authorities, including the power to have municipalities issue bonds 1-25 on their behalf. 1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-27 SECTION 1. Subchapter C, Chapter 262, Health and Safety 1-28 Code, is amended by adding Section 262.035 to read as follows: 1-29 Sec. 262.035. POWERS AND DUTIES OF CERTAIN HOSPITAL 1-30 AUTHORITIES; LEASE. (a) This section applies only to an authority 1-31 created in a county with a population of at least 450,000 in which 1-32 a hospital district is not located. 1-33 (b) A municipality may lease to an authority subject to this 1-34 section all or part of a hospital and any other health facilities 1-35 owned by the municipality. The lease may provide that the 1-36 municipality may retain during the term of the lease specified 1-37 rights relating to the operation of the authority and the 1-38 facilities leased from the municipality. The lease may provide 1-39 that: 1-40 (1) the municipality may retain the power to appoint 1-41 all directors of the authority, notwithstanding Section 262.012; 1-42 (2) the authority is required to perform specified 1-43 health care services on behalf of the municipality; 1-44 (3) the municipality may agree to fund specified 1-45 health care services; 1-46 (4) the authority is prohibited from eliminating or 1-47 curtailing specified health care services offered at the facilities 1-48 leased from the municipality without prior consultation with or the 1-49 approval of the municipality; 1-50 (5) the authority is prohibited from subletting the 1-51 facilities leased from the municipality or assigning its rights 1-52 under the lease for a total term of more than five years, or 1-53 entering into a management contract for the operation of the 1-54 facilities leased from the municipality as a whole, or pledging the 1-55 authority's revenues derived from the operation of the facilities 1-56 leased from the municipality, without prior consultation with or 1-57 the approval of the municipality; 1-58 (6) the board may be subject to any ethics or conflict 1-59 of interest ordinance applicable to other sovereign city boards and 1-60 commissions adopted by the municipality and any goals for hiring 1-61 and contracting with minorities or women adopted by and for the 1-62 municipality; 1-63 (7) the authority will comply with Chapter 252, Local 1-64 Government Code, relating to purchasing and contracts; 1-65 (8) the municipality may issue general obligation 1-66 bonds for the use and benefit of the authority; 1-67 (9) an authority and its employees may participate in 1-68 the municipality's employee retirement plan, employee health plans, 2-1 and other employee benefit plans; and 2-2 (10) the lease may contain other terms and conditions 2-3 that the municipality and authority agree on and which are not 2-4 prohibited by law or by the constitution. 2-5 (c) If the municipality retains in the lease the right to 2-6 appoint all members of the board, the municipality may remove the 2-7 entire board or any member of the board at any time with cause. 2-8 The municipality may remove the board or a member of the board 2-9 under this subsection only after reasonable written notice to the 2-10 board or board members and on the affirmative vote of a majority of 2-11 the members of the governing body of the municipality. 2-12 (d) The municipality is not liable for the actions of the 2-13 authority, the conduct of the authority's personnel, or any 2-14 condition or use of the authority's property. 2-15 (e) For purposes of Chapters 101 and 102, Civil Practice and 2-16 Remedies Code, a municipal hospital authority subject to this 2-17 section is a unit of local government and not a municipality. 2-18 (f) An authority subject to this section is subject to the 2-19 open meetings law, Chapter 271, Acts of the 60th Legislature, 2-20 Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil 2-21 Statutes), and the open records law, Chapter 424, Acts of the 63rd 2-22 Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 2-23 Texas Civil Statutes). 2-24 SECTION 2. The importance of this legislation and the 2-25 crowded condition of the calendars in both houses create an 2-26 emergency and an imperative public necessity that the 2-27 constitutional rule requiring bills to be read on three several 2-28 days in each house be suspended, and this rule is hereby suspended, 2-29 and that this Act take effect and be in force from and after its 2-30 passage, and it is so enacted. 2-31 * * * * * 2-32 Austin, 2-33 Texas 2-34 April 6, 1993 2-35 Hon. Bob Bullock 2-36 President of the Senate 2-37 Sir: 2-38 We, your Committee on Intergovernmental Relations to which was 2-39 referred S.B. No. 695, have had the same under consideration, and I 2-40 am instructed to report it back to the Senate with the 2-41 recommendation that it do not pass, but that the Committee 2-42 Substitute adopted in lieu thereof do pass and be printed. 2-43 Armbrister, 2-44 Chairman 2-45 * * * * * 2-46 WITNESSES 2-47 FOR AGAINST ON 2-48 ___________________________________________________________________ 2-49 Name: Laura S. Martin x 2-50 Representing: Austin Hospital Authority 2-51 City: Austin 2-52 ------------------------------------------------------------------- 2-53 Name: Jan Friese x 2-54 Representing: Austin Hospital Authority 2-55 City: Austin 2-56 ------------------------------------------------------------------- 2-57 Name: Bruce Todd, Mayor x 2-58 Representing: City of Austin 2-59 City: Austin 2-60 ------------------------------------------------------------------- 2-61 FOR AGAINST ON 2-62 ___________________________________________________________________ 2-63 Name: Byron Marshall x 2-64 Representing: City of Austin 2-65 City: Austin 2-66 -------------------------------------------------------------------