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 -------------------------------------------------------------------