BWH C.S.H.B. 2348 75(R) BILL ANALYSIS COUNTY AFFAIRS C.S.H.B. 2348 By: Seaman 4-2-97 Committee Report (Substituted) BACKGROUND The Jackson County Hospital District currently elects members of the board for two year terms, the administrator of the hospital lacks authority to hire physicians, and cannot provide services outside the boundaries of the district. Currently, the district cannot borrow money for its operations, and it lacks clear bidding procedures. Legislative action is needed to change the district's operating procedures. PURPOSE The purpose of this legislation is to provide the hospital district with greater flexibility in its operating procedures. 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. Chapter 275, Acts of the 66th Legislative, Regular Session, 1979 is amended. by amending Sections 5 and 9 and by adding Sections 4A, 4B, and 8A. New Section 4A is added as follows: 1) New Subsection 4A. (a) allows the board to order its members to serve staggered three or four year terms; 2) New Subsection 4A. (b) outlines the procedures for the board to follow if three year terms are ordered, the election procedures if the first election that occurs at least 120 days after the date on which an order is issued by the Board is entered during an even-numbered or oddnumbered year; 3) New Subsecion 4A. (c) requires that if the Board orders four-year terms, the directors are to be elected in accordance with Section 285.081, Health and Safety Code; and 4) New Subsection 4A. (d) prevents the board from changing the number of years in a director's term after changing from the present staggered two-year terms. New Section 4B is added as follows: 1) New Subsection 4B. (a) provides that, in a general or special election, a vote for a write-in candidate cannot be counted unless the name was on the list of write-in candidates; 2) New Subsection 4B. (b) requires a candidate to make a declaration of write-in candidacy to be on the list of write-in candidates; 3) New Subsection 4B. (c) outlines the procedures for write-in candidacy. 4) New Subsection 4B. (d) applies Subchapter B, Chapter 146, Election Code to write-in voting in election for directors to the Board; and 5) New Subsection 4B. (e) allows the Board not to hold an election for unopposed candidates to the Board. Section 5 is amended to allow the board to grant authority to the administrator to employ doctors at the hospital. This section also allows the district to provide health care services outside the geographic boundaries of the district provided the services serve the purposes of the district. New Section. 8A. allows the district to incur indebtedness or borrow money for district purposes on the credit of the district or secured by any source of revenues from a district hospital. Limits the annual percentage rate for district borrowing to not exceed the maximum allowed by law. Subsection. 9 (b) is amended to allow the district to advertise for bids of construction contracts in excess of $10,000 in accordance with Subchapter B, Chapter 271, Local Government Code. Adds Section 8A of this act to previous law as exceptions for the payment of district obligations by revenues, taxes, or otherwise. SECTION 2. Effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute makes the following changes to the original: 1) The substitute amends Section 8A of the original by adding new language to clarify the meaning of revenue and to allow the district to incur indebtedness; and 2) The substitute amends the original by adding Subchapter B to the reference on Chapter 271 of the Local Government Code.