H.B. No. 3134
    1-1                                AN ACT
    1-2  relating to the operation of the Hutchinson County Hospital
    1-3  District.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 4.03(d), Chapter 77, Acts of the 71st
    1-6  Legislature, Regular Session, 1989, is amended to read as follows:
    1-7        (d)  After the initial election of directors, an election
    1-8  shall be held on the first Saturday in May each year and the
    1-9  appropriate number of successor directors shall be elected for
   1-10  staggered three-year <two-year> terms, with as near as possible to
   1-11  one-third of the elected members' terms expiring each year.  The
   1-12  commissioners court shall annually within 10 days of the date that
   1-13  elected directors are elected appoint the appropriate number of
   1-14  directors to serve staggered three-year terms.  The commissioners
   1-15  court may not appoint a person to serve more than two successive
   1-16  terms.
   1-17        SECTION 2.  Chapter 77, Acts of the 71st Legislature, Regular
   1-18  Session, 1989, is amended by adding Sections 5.16, 5.17, and 5.18
   1-19  to read as follows:
   1-20        Sec. 5.16.  LIABILITY COVERAGE; INDEMNIFICATION.  (a)  The
   1-21  board may purchase and maintain liability insurance coverage for an
   1-22  officer, director, board appointee, member of the medical staff, or
   1-23  district employee to protect the person from liability that arises
    2-1  from performing a duty in the person's capacity as an officer or
    2-2  employee of the district or member of the medical staff.
    2-3        (b)  The board may agree to defend or indemnify an officer,
    2-4  director, board appointee, member of the medical staff, or district
    2-5  employee with regard to a claim, cost, expense, or liability
    2-6  incurred as a result of performing a duty in the person's capacity
    2-7  as an officer or employee of the district or member of the medical
    2-8  staff.  The board may establish a self-insurance program to fund an
    2-9  indemnity obligation under this subsection.
   2-10        Sec. 5.17.  EXPENDITURES FOR RECRUITING AND CONDUCTING
   2-11  EDUCATION PROGRAMS.  (a)  The board may spend district funds, enter
   2-12  into agreements, and take other necessary action to recruit
   2-13  physicians and other persons to serve on the district's medical
   2-14  staff or to be employed by the district, including:
   2-15              (1)  advertising and marketing;
   2-16              (2)  paying travel, recruiting, and relocation
   2-17  expenses;
   2-18              (3)  providing a loan or scholarship to a physician or
   2-19  other person currently enrolled in health care education courses at
   2-20  an institution of higher education who contractually agrees to
   2-21  become a district employee or a member of the medical staff; and
   2-22              (4)  providing offices without the payment of rent or
   2-23  by otherwise subsidizing the cost of office space or other
   2-24  facilities for a health care professional, including a physician.
   2-25        (b)  The board may spend district funds, enter into
    3-1  agreements, and take other necessary action to conduct, participate
    3-2  in, or otherwise assist in providing health care educational
    3-3  programs for current or prospective staff members or employees.
    3-4        Sec. 5.18.  BORROWING FUNDS.  The board may borrow money to
    3-5  pay the district's operating expenses in an amount not to exceed
    3-6  the amount of tax or other revenue the district expects to receive
    3-7  during the fiscal year in which the money is borrowed.  The
    3-8  district may pledge all or part of the tax or other revenue
    3-9  received during the fiscal year in which the board borrows money
   3-10  under this section to repay the indebtedness.
   3-11        SECTION 3.  (a)  This Act takes effect September 1, 1995.
   3-12        (b)  The election of directors scheduled before the effective
   3-13  date of this Act to be held in May 1996 shall be held, and the
   3-14  director who receives the highest total number of votes shall be
   3-15  elected to serve a three-year term, and the director who receives
   3-16  the second highest total number of votes shall be  elected to serve
   3-17  a two-year term.
   3-18        (c)  The election of directors scheduled before the effective
   3-19  date of this Act to be held in May 1997 shall be held, and the
   3-20  director who receives the highest total number of votes shall be
   3-21  elected to serve a three-year term, and the director who receives
   3-22  the second highest total number of votes shall be elected to serve
   3-23  a two-year term.
   3-24        (d)  The commissioners court of Hutchinson County shall
   3-25  stagger the terms of appointed members so that the appointed
    4-1  members serve staggered three-year terms.  This subsection expires
    4-2  December 31, 1997.
    4-3        SECTION 4.  The importance of this legislation and the
    4-4  crowded condition of the calendars in both houses create an
    4-5  emergency and an imperative public necessity that the
    4-6  constitutional rule requiring bills to be read on three several
    4-7  days in each house be suspended, and this rule is hereby suspended.