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.