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.