BILL ANALYSIS



C.S.H.B. 3134
By: Chisum
03-27-95
Committee Report (Substituted)


BACKGROUND

The board of the Hutchinson County Hospital District has been faced
with several administrative problems, including attracting and
retaining qualified physicians and health care professionals,
attracting qualified members to become directors of the district,
and temporary budget problems.  At the request of the Hutchinson
County Hospital District, HB 3134 was filed to address these
issues.

PURPOSE

To assist the Hutchinson County Hospital District in attracting
qualified directors, health care professionals and employees by
changing the term for the board of directors from 2 to 3 years, to
authorize the district to purchase liability insurance, to expend
funds on recruitment programs, and to allow the district to borrow
funds.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 77, Acts of the 71st Legislature, 1989,
by amending Section 4.03 (d) to change the term of directors from
two years to three years.

SECTION 2.  Adds Sections 5.16, 5.17 and 5.18 to Chapter 77, Acts
of the 71st Legislature, 1989 as follows:

     Sec. 5.16 INSURANCE.  (a)  Allows the district to purchase
liability insurance for the officers, administrators and employees
of the district covering duties performed for the district or at a
district facility.
     (b)  Allows the district to defend or indemnify the officers,
administrators, or employees for any claim, cost, or expense
incurred as a result of performing duties for the district or at a
district facility; also allows the board to establish a self-insurance program to fund an indemnity obligation.

     Sec. 5.17 FUNDS FOR RECRUITING AND FOR HEALTH CARE EDUCATION
PROGRAMS.  (a)  Allows the district to take actions and use
resources to recruit physicians or other personnel for the
district, including advertising and marketing, paying travel and
relocating expenses, providing loans or scholarships for persons
enrolled in health care education courses if the person contracts
to later work for the district, and subsidizing or providing rent
free office space or other facilities.
     (b)  Allows the district to use resources and take actions to
become involved in health care education programs for current or
prospective staff.

     Sec. 5.18.  BORROWING FUNDS.  Allows the board to borrow money
for operating expenses in an amount less than district revenues the
district expects to receive during the fiscal year in which the
money is borrowed; allows the district to pledge all or part of the
revenue received during a year to pay indebtedness.


SECTION 3.  (a) Effective date of September 1, 1995.
           (b) Election of directors in May 1996 and determination
of who shall serve the two year term and who shall serve the three
year term.
           (c) Election of directors in May 1997 and determination
of who shall serve the two year term and who shall serve the three
year term.
           (d) Commissioners court shall appoint the appointed
officers so the members serve staggered three year terms.

SECTION 4.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill stated that the elected directors would serve
three year terms. The committee substitute states that the
directors will serve staggered three year terms, with as near as
possible to one-third of the elected members' terms expiring each
year. The committee substitute, in Section 3, adds the following:
subsections (b) and (c) regarding who shall serve the three year
term and who shall serve the two year term pursuant to the May 1996
and May 1997 elections; and subsection (d) stating the
commissioners court shall stagger the term of appointed members so
that the appointed members serve staggered three year terms. This
subsection expires December 31, 1997.

SUMMARY OF COMMITTEE ACTION

HB 3134 was considered by the County Affairs Committee in a public
hearing on 3/29/95. The committee considered a complete committee
substitute to HB 3134. The substitute was adopted without
objection. HB 3134 was reported favorably as substituted with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 8
ayes, 0 nays, 0 pnv, 1 absent.