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
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   2-53  Name:  Jan Friese                                x
   2-54  Representing:  Austin Hospital Authority
   2-55  City:  Austin
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   2-57  Name:  Bruce Todd, Mayor                         x
   2-58  Representing:  City of Austin
   2-59  City:  Austin
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   2-61                                                  FOR   AGAINST  ON
   2-62  ___________________________________________________________________
   2-63  Name:  Byron Marshall                            x
   2-64  Representing:  City of Austin
   2-65  City:  Austin
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