BILL ANALYSIS


                                                        H.B. 2873
                                              By: Johnson (Nixon)
                                      Intergovernmental Relations
                                                          5-22-95
                              Senate Committee Report (Unamended)
BACKGROUND

The Nacogdoches County Hospital District was created by a special
act of the 60th Legislature, Regular Session, 1967, under Article
9, Section 9, Texas Constitution.  After passage of the act,
changes in the federal constitutional law rendered sections of the
act invalid.  In addition, the act has been judicially altered by
judgment of the U.S. District Court of the Eastern District of
Texas.  Inflation has limited the district's ability to efficiently
purchase equipment.

PURPOSE

As proposed, H.B. 2873 amends and sets forth provisions relating to
the Nacogdoches County Hospital District.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the board of directors of the Nacogdoches County Hospital
District under SECTION 7 (Sec. 16B, Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 3, Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, to delete references to
property taxpaying electors as it relates to the creation of the
Nacogdoches County Hospital District (district) and imposition of
a tax as authorized and approved by qualified voters of the area of
the proposed district.  Makes conforming changes.

SECTION 2. Amends Section 4, Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, to provide that one director is
elected from each commissioner precinct, three directors are
elected at large, and that directors serve staggered two-year
terms.  Sets forth the eligibility requirements to be a candidate
for or to serve as a director.  Prohibits an employee of the
district from serving as director.  Sets forth the composition of
the board.  Requires a regular election to be held on the first
Saturday in May, rather than April, of each year and the
appropriate number of successor directors to be elected.  Requires
a petition to be a candidate to specify the commissioner precinct
a person wants to represent or that the person wants to represent
the district at large.  Deletes provisions relating to the election
of an initial board of directors.  Deletes a requirement that a
board member must own land subject to taxation within the hospital
district.  Makes conforming changes.

SECTION 3. Amends Section 6, Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, to make a conforming change.

SECTION 4. Amends Section 7, Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, to make conforming changes.

SECTION 5. Amends Section 10, Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, to authorize all contracts for
construction or purchases involving the expenditure of more than
$10,000, rather than $2,000, to be made only after advertising in
the manner provided by Chapter 271B, Local Government Code, rather
than Article 2368a V.T.C.S.

SECTION 6. Amends Section 15(b), Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, to require all the provisions
of the Tax Code, rather than Title 122, Revised Civil Statutes of
Texas, 1925, to apply to the district, except as in this law
provided to the contrary.  Makes a conforming change.

SECTION 7. Amends Chapter 431, Acts of the 60th Legislature,
Regular Session, 1967, by adding Sections 16A-16E, as follows:

     Sec. 16A.  Authorizes the board to provide retirement benefits
     for employees of the district by establishing or administering
     a retirement program or electing to participate in the Texas
     County and District Retirement System or in any other
     statewide retirement system in which the district is eligible
     to participate.
     
     Sec. 16B.  Authorizes the board to adopt rules governing the
     operation of the hospital and hospital system and the duties,
     functions, and responsibilities of district staff and
     employees.
     
     Sec. 16C.  Authorizes the board to contract with certain
     federal, state, and local government entities for the district
     to furnish a mobile emergency medical service, provide for the
     investigatory or welfare needs of inhabitants of the district,
     or provide a rural health clinic.
     
     Sec. 16D.  (a)  Authorizes registered voters of a defined
     territory that is not included in a district to file a
     petition with the secretary of the board requesting the
     inclusion of the territory in the district.  Requires the
     petition to be signed by a least 50 registered voters of the
     territory or a majority of those voters, whichever is less.
     
     (b)  Requires the board, by order, to set a time, place, and
       date to hold a hearing on the petition to include the
       territory in the district.  Requires the board to set a date
       for the hearing 30 days after the board issues the order.
       
       (c)  Authorizes the board to approve annexation by a
       resolution entered in its minutes if after the hearing the
       board finds that annexation of the territory into the
       district would be feasible and would benefit the district. 
       Provides that the board is not required to include all of
       the territory described in the petition if the board finds
       that a modification or change is necessary or desirable.
       
       (d)  Provides that annexation of territory is final when
       approved by a majority of the voters at an election held in
       the district and by a majority of the voters at a separate
       election held in the territory to be annexed.  Requires the
       voters in the election to approve annexation to also
       determine if the annexed territory will assume its
       proportion of the debts or taxes if added to the district,
       if the district has outstanding debts or taxes.
       
       (e)  Sets forth the required language for a ballot.
       
       (f)  Requires the election to be held within a certain
       period after the date the election is ordered.  Requires the
       election to be ordered and notice of the election to be
       given in the same manner as provided by Section 3 for
       ordering and giving notice of an election authorizing
       creation of the district.  Provides that Section 41.001(a),
       Election Code, does not apply to an election held under this
       section.
       
       Sec. 16E.  (a)  Requires the board to require reimbursement
     from a county, municipality, or public hospital located
     outside the boundaries of the district for the district's care
     and treatment of a sick, diseased, or injured person of that
     county, municipality, or public hospital as provided by
     Chapter 61, Health and Safety Code.
     
     (b)  Requires the board to require reimbursement from the
       sheriff or police chief of a county or municipality for the
       district's care and treatment of a person confined in a jail
       facility of the county or municipality who is not a resident
       of the district.
       
       (c)  Authorizes the board to contract with the state or
       federal government for the state or federal government to
       reimburse the district for treatment of a sick, diseased, or
       injured person.
       
            SECTION 8.   Emergency clause.
           Effective date: upon passage.