1-1                                   AN ACT

 1-2     relating to intergovernmental contracting by and other power of

 1-3     certain hospital districts.

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

 1-5           SECTION 1.  Section 281.050, Health and Safety Code, is

 1-6     amended to read as follows:

 1-7           Sec. 281.050.  POWERS RELATING TO DISTRICT PROPERTY,

 1-8     FACILITIES, AND EQUIPMENT.  With the approval of the commissioners

 1-9     court, the board may construct, condemn, acquire, lease, add to,

1-10     maintain, operate, develop, regulate, sell, exchange, and convey

1-11     any property, property right, equipment, hospital facility, or

1-12     system to maintain a hospital, building, or other facility or to

1-13     provide a service required by the district.  Approval of the

1-14     commissioners court shall be required for the sale or lease of a

1-15     hospital facility regardless of the provisions of Section 285.051.

1-16           SECTION 2.  Section 281.051, Health and Safety Code, is

1-17     amended to read as follows:

1-18           Sec. 281.051.  CONTRACTING AUTHORITY.  (a)  With the approval

1-19     of the commissioners court, the board may, in performing its powers

1-20     under Section 281.050, contract or cooperate with:

1-21                 (1)  the federal government;

1-22                 (2)  this state;

1-23                 (3)  another governmental entity [a municipality]; or

1-24                 (4)  [another hospital district; or]

 2-1                 [(5)]  a privately owned or operated hospital [located

 2-2     in the district].

 2-3           (b)  [The commissioners court and the board must determine

 2-4     that a contract under Subsection (a) is:]

 2-5                 [(1)  expedient and advantageous to the district under

 2-6     existing circumstances;]

 2-7                 [(2)  for fair and reasonable compensation; and]

 2-8                 [(3)  on other terms, including duration, as considered

 2-9     necessary to assist the district in performing its duty to provide

2-10     medical and hospital care to needy county inhabitants.]

2-11           [(c)]  With the approval of the commissioners court, the

2-12     board may contract with:

2-13                 (1)  a county for care and treatment of the county's

2-14     sick, diseased, or injured persons; and

2-15                 (2)  this state or the federal government for care and

2-16     treatment of sick, diseased, or injured persons for whom the state

2-17     or federal government is responsible.

2-18           (c) [(d)]  The board shall encourage and promote

2-19     participation by all sectors of the business community, including

2-20     small businesses and businesses owned by members of a minority

2-21     group or by women, in the process by which the district enters into

2-22     contracts.  The board shall develop a plan for the district to

2-23     identify and remove barriers that do not have a definite or

2-24     objective relationship to quality or competence and that unfairly

2-25     discriminate against small businesses and businesses owned by

2-26     members of a minority or by women.  These barriers may include

2-27     contracting procedures and contract specifications or conditions.

 3-1           SECTION 3.  This Act takes effect September 1, 1997.

 3-2           SECTION 4.  The importance of this legislation and the

 3-3     crowded condition of the calendars in both houses create an

 3-4     emergency and an imperative public necessity that the

 3-5     constitutional rule requiring bills to be read on three several

 3-6     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 794 was passed by the House on April

         3, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 794 on May 6, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 794 was passed by the Senate, with

         amendments, on May 1, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor