1-1                                   AN ACT

 1-2     relating to an exception to the open meetings law for certain

 1-3     deliberations of the board of a hospital district.

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

 1-5           SECTION 1.  Section 551.085, Government Code, is amended to

 1-6     read as follows:

 1-7           Sec. 551.085.  GOVERNING BOARD [OF DIRECTORS] OF MUNICIPAL

 1-8     HOSPITAL, HOSPITAL DISTRICT, OR MUNICIPAL HOSPITAL AUTHORITY.  This

 1-9     chapter does not require the governing board [of directors] of a

1-10     municipal hospital, [or of a] municipal hospital authority, or

1-11     hospital district created under general or special law to conduct

1-12     an open meeting to deliberate:

1-13                 (1)  pricing or financial planning information relating

1-14     to a bid or negotiation for the arrangement or provision of [in

1-15     which the hospital offers] services or product lines [as a contract

1-16     service provider] to another person if disclosure of the

1-17     information would give advantage to competitors of the hospital or

1-18     hospital district; or

1-19                 (2)  information relating to a proposed new service or

1-20     product line of the hospital or hospital district before the

1-21     hospital publicly announces the service or product line.

1-22           SECTION 2.  This Act takes effect September 1, 1997.

1-23           SECTION 3.  The importance of this legislation and the

1-24     crowded condition of the calendars in both houses create an

 2-1     emergency and an imperative public necessity that the

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

 2-3     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. 2328 was passed by the House on May

         15, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2328 was passed by the Senate on May

         22, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor