BWH H.B. 3266 75(R)BILL ANALYSIS


COUNTY AFFAIRS
H.B. 3266
By: Craddick
3-26-97
Committee Report (Unamended)



BACKGROUND

Presently, hospitals are suffering due to the continual and dramatic
change in the health care business.  Smaller communities in Texas have
been particularly affected by having a hard time finding and retaining the
kind of medical help they need.  Without the support of regional
hospitals, some of the smaller hospitals would have to cut back on their
services dramatically, if not completely. 

PURPOSE

This bill would help to clarify the authority of the district to respond
to and participate in solutions to help smaller governmental hospitals
stay fully functional, which could retain a high level of health care in
smaller communities. 

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 3(a), Chapter 112, Acts of the 65th Legislature,
Regular Session, 1977. 
 (a).  Authorizes responsibility of a created district to establish a
hospital system and includes medical facilities and other health
facilities to be included in "hospital system".  After this district is
created, no other municipality or political subdivision has the authority
to levy taxes or issue bonds or other obligations for hospital purposes or
for providing medical care within the boundaries of the district.  This
district may provide primary care, emergency services, preventive medical
services, and other health-related services outside of the district.       

SECTION 2. Amends Chapter 112, Acts of the 65th Legislature, Regular
Session, 1977, by adding Section 5a. 
 
 Sec. 5A.     (a)  A write-in vote will count only if the candidate's name
appears on the list of write-in candidates in a general or special
election of directors. 

 (b)  The candidate must declare to be placed on the list of write-in
candidates. 

 (c).  A declaration of write-in candidacy must be filed with the
secretary of the board of directors no later than 5 p.m. of the 30th day
before the election day.  If a write-in candidate dies or becomes
ineligible after the 33rd day before the election day, the write-in
position of the office sought may be filed no later than 5 p.m. of the
27th day before election day. 

 (d).  Subchapter B, Chapter 146, Election Code, applies to write-in
voting. 

SECTION 3. Amends Section 6, Chapter 112, Acts of the 65th Legislature,
Regular Session, 1977. 
 Sec. 6.  Changes the current language "hospital system" to "hospital or
hospital system of  the district".  It also allows the board to enter into
agreements, spend district funds, and take other necessary action to
recruit or otherwise obtain physicians and other personnel for the
district's medical staff or for employment with the hospital or hospital
system, including medical facilities or other health facilities owned or
operated by the district.  The actions may include advertising and
marketing, paying recruitment expenses, paying travel and relocation
expenses, and providing subsidies and scholarships.  Language changes are
made to allow the board to contract with all types of organizations
involved in the operation of the hospital or district.  Also allows the
district to operate or provide for the operation of an ambulance or mobile
emergency service.  Makes language changes to allow the board to contract
with all types of organizations for services provided by the district.
Allows the board of directors to exercise all powers of this Act unless an
operating or management agreement is entered into with the board of
directors in accordance with Sec. 7 of the Act.     

SECTION 4.  Amends Section 7, Chapter 112, Acts of the 65th Legislature,
Regular Session, 1977. 
 Sec. 7.  The board of directors is authorized to enter into a management
agreement with Midland Memorial Foundation or its successors or any other
individual, corporation, agency, or governmental subdivision or entity.
This agreement may be for a term of up to ten years.  A nonprofit
corporation that manages a hospital or an employee of the corporation are
employees of the district for the purposes of Chapters 101 and 102, Civil
Practice and Remedies Code.  

SECTION 5.  Amends Section 11, Chapter 112, Acts of the 65th Legislature,
Regular Session, 1977. 
 Sec. 11.  The board of directors is given complete discretion as to the
maintenance of the hospital and has authorization to enter into leases of
all or part of its buildings with any person as considered to be in the
best interest of the district; provided no lease may be in excess of 40
years.  Also, on the district's behalf, the board of directors may hold,
construct, condemn, purchase, acquire, lease, add to, maintain, operate,
regulate, sell, convey, or otherwise dispose of land, equipment, property,
hospital facility, hospital system, or property right. 

SECTION 6.  Amends Section 12, Chapter 112, Acts of the 65th Legislature,
Regular Session, 1977. 
 Sec. 12.  The board of directors may prescribe the method and manner of
making purchases and expenditures by and for the hospital district and
shall be authorized to prescribe all accounting and control procedures or
may delegate all or any of those powers to the Midland Memorial Foundation
or its successors, or to an individual, corporation, agency, political
subdivision, or other entity that enters into an operating or management
agreement with the district.  Contracts by the district for construction
or purchases involving more than $10,000 may be made only after
advertising in the manner provided by Chapter 252, Local Government Code.
The provisions of Chapter 2253, Government Code, apply to construction
contracts let by the district.  The district may acquire equipment for use
in its hospital system, including medical facilities and health
facilities, and mortgage or pledge property but any such contract shall
provide for the obligation of the district to be retired within five years
from the date of the contract.  The district may bring no obligation
payable upon itself from any revenues of the district, taxes or otherwise,
except those on hand with the current and following fiscal year of the
district. 

SECTION 7. Effective date: September 1, 1997.

SECTION 8. Emergency clause.