By Rodriguez                                           H.B. No. 794

         75R8244 SAW-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to intergovernmental contracting by certain hospital

 1-3     districts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 281.051, Health and Safety Code, is

 1-6     amended to read as follows:

 1-7           Sec. 281.051.  CONTRACTING AUTHORITY.  (a)  With the approval

 1-8     of the commissioners court, the board may, in performing its powers

 1-9     under Section 281.050, contract or cooperate with:

1-10                 (1)  the federal government;

1-11                 (2)  this state;

1-12                 (3)  another governmental entity [a municipality]; or

1-13                 (4)  [another hospital district; or]

1-14                 [(5)]  a privately owned or operated hospital [located

1-15     in the district].

1-16           (b)  [The commissioners court and the board must determine

1-17     that a contract under Subsection (a) is:]

1-18                 [(1)  expedient and advantageous to the district under

1-19     existing circumstances;]

1-20                 [(2)  for fair and reasonable compensation; and]

1-21                 [(3)  on other terms, including duration, as considered

1-22     necessary to assist the district in performing its duty to provide

1-23     medical and hospital care to needy county inhabitants.]

1-24           [(c)]  With the approval of the commissioners court, the

 2-1     board may contract with:

 2-2                 (1)  a county for care and treatment of the county's

 2-3     sick, diseased, or injured persons; and

 2-4                 (2)  this state or the federal government for care and

 2-5     treatment of sick, diseased, or injured persons for whom the state

 2-6     or federal government is responsible.

 2-7           (c) [(d)]  The board shall encourage and promote

 2-8     participation by all sectors of the business community, including

 2-9     small businesses and businesses owned by members of a minority

2-10     group or by women, in the process by which the district enters into

2-11     contracts.  The board shall develop a plan for the district to

2-12     identify and remove barriers that do not have a definite or

2-13     objective relationship to quality or competence and that unfairly

2-14     discriminate against small businesses and businesses owned by

2-15     members of a minority or by women.  These barriers may include

2-16     contracting procedures and contract specifications or conditions.

2-17           SECTION 2.  This Act takes effect September 1, 1997.

2-18           SECTION 3.  The importance of this legislation and the

2-19     crowded condition of the calendars in both houses create an

2-20     emergency and an imperative public necessity that the

2-21     constitutional rule requiring bills to be read on three several

2-22     days in each house be suspended, and this rule is hereby suspended.