BWH S.B. 992 75(R)    BILL ANALYSIS


COUNTY AFFAIRS
S.B. 992
By: Nixon, Drew (Hightower)
4-16-97
Committee Report (Amended)



BACKGROUND 

Currently, the Tyler County Hospital District is governed by statute
created by the 58th Legislature in 1963.  Although the health care
industry has undergone enormous change since 1963, this statute has
undergone only minimal revision.  In an effort to create a more viable
entity while updating statutory law, this legislation allows the Board of
Hospital Managers of the District to appoint a hospital manager who is a
resident and voter in the district, authorizes the Commissioners Court of
the County to fill vacancies by appointment, and provides for additional
record-keeping oversight by the board.  In addition, S.B. 992 gives the
board greater latitude in the appointment of an administrator, assistant
administrator, and attorney, as well as authority to recruit trained
medical personnel to server the district.  Finally, the district would be
able to expand its continuum of serve rices to increase its fiscal
viability, including the care of the aged and disabled through the use of
nursing facilities, home health, and personal care facilities. 

PURPOSE

As proposed, S.B. 992 establishes the operation of the Tyler County
Hospital District. 

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

Currently, the Tyler County Hospital District is governed by statute
created by the 58th Legislature in 1963.  Although the health care
industry has undergone enormous change since 1963, this statute has
undergone only minimal revision.  In an effort to create a more viable
entity while updating statutory law, this legislation allows the Board of
Hospital Managers of the DIstrict to appoint a hospital manager who is a
resident and voter in the district, authorizes the Commissioners Court of
the County to fill vacancies by appointment, and provides for additional
record-keeping oversight by the board.  In addition, S.B. 992 gives the
board greater latitude in the appointment of an administrator, assistant
administrator, and attorney, as well as authority to recruit trained
medical personnel to server the district.  Finally, the district would be
able to expand its continuum of serve rices to increase its fiscal
viability, including the care of the aged and disabled through the use of
nursing facilities, home health, and personal care facilities. 

PURPOSE

As proposed, S.B. 992 establishes the operation of the Tyler County
Hospital District. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

 SECTION 1.  Amends Chapter 110, Acts of the 58th Legislature, Regular
Session, 1963, by amending Sections 2-12, 15, and 17, and adding Sections
21 and 22, as follows: 

Sec. 2.  Requires the Tyler County Hospital District (district) to provide
for the establishment, administration, maintenance, operation, and
financing of a hospital or hospital system within its boundaries.
Authorizes the district to provide any services of facilities necessary
for certain hospital or medical care.  Requires an election for creation
of a hospital district to be initiated upon a petition of 50 resident
qualified voters, rather than 50 resident qualified property taxpaying
voters.  Makes conforming changes. 

Sec. 3.  Deletes the existing provisions regarding tax collections on
property subject to hospital district taxation.  Sets forth the terms by
which the Board of Hospital Managers of the District (board) is required
to publish notice of tax rates, give notice of and conduct a public
hearing, and enter an order levying taxes on certain property. 

Sec. 4.  Requires the district, in issuing bonds, to comply with Article
717k-3, V.T.C.S. Required the district, in selling the refunding bonds and
applying the proceeds to the payment of outstanding indebtedness, to
comply with Article 717k, V.T.C.S.  Deletes the existing provisions
regarding the interest const on refunding bonds.  Sets forth the terms by
which the district is authorized to issue revenue bonds, and by which the
bonds are required to be payable, secured, and executed.  Sets forth the
terms by which bonds are issued by the district, any transactions relating
to the bonds, and profits made in their sale are free from taxation.
Prohibits the district from imposing taxes to pay the principal of, or
interest on, revenue bonds.  Provides that the Tax Code governs the
appraisal, assessment, and collection of district taxes.  Authorizes the
board to provide for the appointment of a tax assessor-collector or
contract for the assessment and collection of taxes.  Sets forth the
procedure governing the maturation and interest bearing rate of district
bonds.  Makes conforming and nonsubstantive changes.   

Sec. 5.  Make a conforming change.

Sec. 6.  Requires a hospital manager to be a resident and qualified voter
of the district.  Prohibits an employee of the district from serving as a
hospital manager.  Requires the Commissioners Court of the County
(commissioners court) to fill a vacancy by appointment.  Requires expenses
reimbursed  sunder this section to be reported in the district's minute
book or other records. Authorizes the board to appoint an administrator,
an assistant administrator, and an attorney to server at the will of the
board and receive compensation, rather than requiring the board to appoint
a general manager, or administrator of the hospital district.  Sets forth
the terms by which the board is authorized to require the administrator to
execute a bond payable to the district in an amount set by the board of
not less than $5,000, rather than requiring the administrator to execute
sa bond in an amount of not less than $10,000.  Deletes requirement that
the administrator be subject to removal by the board at any time.  Sets
forth the terms regarding the board's authority to appoint, remove, and
hire employees.  Sets forth the terms by which the board may spend
district funds to recruit certain trained medical personnel; may contract
with medical or health occupation students for employment; and many
provide retirement benefits for employees. Establishes the procedure
regarding the purchase, lease, mortgage, and contract of hospital
property, facilities, and equipment.  Authorizes the board to bring suit
to enforce payment of taxes and to foreclose liens to secure the payment
of taxes due the district.  Sets forth the terms by which the board is
required to see reimbursement for care of certain sick, diseased, or
injured persons.  Deletes the provisions regarding employee retirement
programs.  REquires the board to elect, rather than choose, a president,
rather than chairman, and a vice president.  Authorizes the board to
appoint a secretary.  Sets forth the term of each officer, and the method
of filing vacancies.  Deletes the existing provisions regarding the
chairman and secretary of the board.   

Sec. 7.  Sets for the terms by which the board is required to cause an
annual audit to be made of the financial condition, rather than books and
records, of the district. 

Sex. 8.  Establishes the conditions under which the district is required
to publish notice of a public hearing on the proposed budget preceding the
date of the hearing.  Establishes the  conditions under which the board is
required to adopt a budget.  Makes conforming changes. 

Sec. 10.  Requires the hospital district organized in pursuance of this
Act to have the right and power of eminent domain for the purpose of
acquiring by condemnation certain property provided that the said district
shall not be required to make deposits in the registry of the trial court
of the sum required by Section 21.021(a), Property Code, rather than
Paragraph numbered 2 in Article 3268, V.T.C.S., 1925.  Deletes the
provision prohibiting the district from being required, in condemnation
proceeding, to give bond for any appeal or writ of error proceeding to any
Court of Civil Appeals, or to the Supreme Court. 

Sec. 11.  Authorizes the board to purchase, sell, and invest the district
funds in investments authorized by Chapter 225b, Government Code.  Deletes
the provision requiring the board to select a depository which shall be on
or the same depository selected by the county. 

Sec. 12.  Requires all records, reports, books, papers, and accounts
pertaining to the district to be make available as required by CHapter
552, Government Code.  Deletes the provision regarding the inspection of a
hospital district. 

Sec. 15.  Requires the district, without charge, to provide care to a
patient for which the patient or a relative of the patient cannot pay.
Sets forth the terms by which the district is required to adopt an
application procedure to determine eligibility for assistance.  Sets forth
the terms by which the administrator is required to inquire as to the
financial circumstances of a patient or relative who is legally
responsible for the patient's support.  Establishes the conditions under
which the board is required to issue an order directing the patient or
relative to pay the hospital district; and by which the hospital district
is required to pay, if the patient or relative is unable. 

Sec. 17.  Sets forth the terms by which all bonds issued by or assumed by
the district are legal and authorized investments for savings and loan
associations, rather than building and loan associations. 

Sec 21.  Authorizes the board to borrow money at a certain rate if the
board declarers that funds are unavailable to meet lawfully authorized
obligations and that an emergency exists.  Authorizes the board to secure
a loan by pledging certain district revenues, district taxes, and district
bonds. Sets forth the terms by which a loan must mature.  Prohibits the
board from spending money obtained from a loan except for the originally
specified purpose. 

Sec. 22.  Sets for the terms by which the district is authorized to be
dissolved only if the dissolution is approved by a majority of the
qualified voters.  Sets forth the terms by which the board is authorized
to order an election on the question of dissolving the district and
disposing of its assets and obligations, and is required to five notice of
the election.  Establishes the conditions under which the board is
required to find that the district is dissolved and shall transfer the
land, buildings, equipment, and assets or administer the property, assets,
and debts.  Requires the board, after finding that the district is
dissolved, to determine the debt owed and impose a taw on the property.
Sets forth the terms by which another dissolution election may not be held
if the board is required to order the secretary to return the pro rata
share of unused tax money to each district taxpayer, and file a written
report.  Requires the commissioners court to enter an order dissolving the
district and disbanding the board at a certain date.  Sets forth the
certain prohibitions regarding the dissolution of a district and the sale
or transfer of the district's assets and liabilities.  Establishes the
conditions under which the sale or transfer of the district's assets and
liabilities are required to satisfy its debt and bond obligations in a
manner that protects the interests of district residents. 

SECTION 2.  Repealer:  Section 13, Chapter 110, Acts of the 58th
Legislature, Regular Session. 1963. 

SECTION 3. Effective date:  September 1, 1997.

SECTION 4.  Emergency clause.

 EXPLANATION OF AMENDMENTS

Committee amendment no. 1 provides that the Board may enter into
construction contracts for the district as it may relate to performance
and payment of bonds.  This amendment gives the Board the authority to
manage bonds the district issues for construction.