BILL ANALYSIS S.B. 1643 By: Nixon Intergovernmental Relations 4-20-95 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, S.B. 1643 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.