IMF H.B. 2328 75(R)BILL ANALYSIS


STATE AFFAIRS
H.B. 2328
By: Turner, Sylvester
4-25-97
Committee Report (Amended)



BACKGROUND 

Currently, Boards of Directors of Municipal Hospitals and Municipal
Hospital Authorities are not required to hold open meetings to deliberate
the pricing or financial planning of a bid or negotiation for the
provision of goods and services or information relating to a new product
line or proposed service. 

PURPOSE

As proposed, H.B. 2328 would provide the same private meeting allowances
for hospital districts as are afforded to municipal hospitals and
municipal hospital authorities. 

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 Section 551.085 of the Government Code to include
hospital districts created under general or special law to be listed under
the provision of entities not required to conduct certain open meetings.
The section allows hospital district boards the opportunity to discuss in
private information relating to bids or negotiations for the arrangement
or provision of services of product lines if the information would give
advantage to competitors of the hospital district.  The section also
provides hospital district boards the opportunity to discuss in private
information relating to a proposed new service or product line of the
hospital district.  

SECTION 2.  Effective date:  September 1, 1997.

SECTION 3.  Emergency clause.

EXPLANATION OF AMENDMENT

The amendment to H.B. 2328 deleted "Board of Directors" and replaced it
with the name of the entity which actually governs the hospital districts,
that is the "Governing Board".  The second part of the amendment
reinstates the language previously deleted in the original bill, "before
the hospital publicly announces the service or product line."  This
language was reinstated to make it clear that information relating to a
proposed new service line or product line of the hospital district will
become public at some point in time.  This satisfied the concerns of
individuals concerned about open records issues.