By Seaman                                             H.B. No. 2348

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the operation of the Jackson County Hospital District.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 275, Acts of the 66th Legislature,

 1-5     Regular Session, 1979, is amended by amending Sections 5 and 9 and

 1-6     by adding Sections 4A, 4B, and 8A to read as follows:

 1-7           Sec. 4A.  TERMS.  (a)  Notwithstanding Section 4 of this Act,

 1-8     the board, on its own motion, may order that the members of the

 1-9     board serve staggered three-year or four-year terms.

1-10           (b)  If the board orders staggered three-year terms, the

1-11     members of the  board are to be elected as follows:

1-12                 (1)  if the first election that occurs at least 120

1-13     days after the date on which an order under Subsection (a) of this

1-14     section is entered is an election in an even-numbered year:

1-15                       (A)  the four directors elected at that first

1-16     even-numbered year election shall draw lots to determine the three

1-17     directors that serve three-year terms and the director that serves

1-18     a two-year term;

1-19                       (B)  the at-large director elected at the first

1-20     odd-numbered year election after the order to change the terms

1-21     shall serve a three-year term; and

1-22                       (C)  the four other directors elected at the

1-23     first odd-numbered year election after the order to change the

1-24     terms shall draw lots to determine which two directors serve

 2-1     three-year terms and which two directors serve one-year terms;

 2-2                 (2)  if the first election that occurs at least 120

 2-3     days after the date on which an order under Subsection (a) of this

 2-4     section is entered is an election in an odd-numbered year:

 2-5                       (A)  the at-large director elected at that first

 2-6     odd-numbered year election serves a three-year term;

 2-7                       (B)  the four other directors elected at that

 2-8     first odd-numbered year election shall draw lots to determine the

 2-9     two directors that serve three-year terms and the two directors

2-10     that serve two-year terms; and

2-11                       (C)  the four directors elected at the first

2-12     even-numbered year election after the order to change the terms

2-13     shall draw lots to determine which three directors serve three-year

2-14     terms and which director serves a one-year term.

2-15           (c)  If the board orders four-year terms, the members of the

2-16     board are to be elected in accordance with Section 285.081, Health

2-17     and Safety Code.

2-18           (d)  After an initial change under this section from

2-19     staggered two-year terms, the board may not change the terms again.

2-20           Sec. 4B.  ELECTIONS.  (a)  In a general or special election

2-21     of directors, a write-in vote may not be counted unless the name

2-22     written in appears on the list of write-in candidates.

2-23           (b)  To be entitled to a place on the list of write-in

2-24     candidates, a candidate must make a declaration of write-in

2-25     candidacy.

2-26           (c)  A declaration of write-in candidacy must be filed with

2-27     the secretary of the board of directors not later than 5 p.m. of

 3-1     the 45th day before election day.  However, if a candidate whose

 3-2     name is to appear on the ballot dies or is declared ineligible

 3-3     after the 48th day before election day, a declaration of write-in

 3-4     candidacy for the office sought by the deceased or ineligible

 3-5     candidate may be filed not later than 5 p.m. of the 42nd day before

 3-6     election day.

 3-7           (d)  Subchapter B, Chapter 146, Election Code, applies to

 3-8     write-in voting in an election of directors except to the extent of

 3-9     a conflict with this section.

3-10           (e)  Subchapter C, Chapter 2, Election Code, applies to the

3-11     election of unopposed candidates for the board of directors.

3-12           Sec. 5.  POWERS AND DUTIES.  The board shall manage, control,

3-13     and administer the hospital system and all funds and resources of

3-14     the district, but in no event shall any operating, depreciation, or

3-15     building reserves be invested in any funds or securities other than

3-16     those specified in Article 836 or 837, Revised Civil Statutes of

3-17     Texas, 1925, as amended.  The district through its board may sue

3-18     and be sued and may promulgate rules governing the operation of the

3-19     hospital, the hospital system, its staff, and its employees.  The

3-20     board may appoint a qualified administrator or assistant

3-21     administrator for each hospital of the district and an attorney may

3-22     be appointed for the district.  The administrators, the attorney,

3-23     and the assistant administrators, if any, shall serve at the will

3-24     of the board and shall receive the compensation determined by the

3-25     board.  An administrator shall, on assuming his or her duties,

3-26     execute a bond payable to the hospital district in an amount to be

3-27     set by the board, in no event less than $5,000, conditioned that he

 4-1     or she shall perform the duties required of him or her, and

 4-2     containing such other conditions as the board may require.  The

 4-3     expense of the bond may be paid from funds of the district.  The

 4-4     administrator shall supervise all the work and activities of his or

 4-5     her hospital and shall have general direction of the affairs of his

 4-6     or her hospital, subject to the limitations as may be prescribed by

 4-7     the board.  The board may appoint to the staff doctors it may deem

 4-8     necessary for the efficient operation of the district and may

 4-9     provide for temporary appointments to the staff if warranted by

4-10     circumstances.  The board may delegate to an administrator the

4-11     authority to employ doctors, technicians, nurses, and employees of

4-12     the district or of his or her hospital.  The board may contract

4-13     with other political subdivisions or governmental agencies whereby

4-14     the district will provide investigatory or other services as to

4-15     facilities for the medical care, hospital, or welfare needs of the

4-16     inhabitants of the district and may contract with any county or

4-17     incorporated municipality located outside its boundaries for

4-18     reimbursement for the care and treatment of the sick, deceased, or

4-19     injured persons of that county or municipality.  The district may

4-20     also contract with the state or agencies of the federal government

4-21     for the reimbursement for the treatment of sick, diseased, or

4-22     injured persons.  The district may provide health care services

4-23     outside the geographic boundaries of the district provided that the

4-24     services serve the purposes of the district.

4-25           Sec. 8A.  INDEBTEDNESS.  The district may incur indebtedness

4-26     or borrow money on the credit of the district or secured by any

4-27     source of revenue, including district taxes to be levied by the

 5-1     district in the next 12-month period, that is not pledged to pay

 5-2     the principal or interest on district bonds.  The district may

 5-3     incur indebtedness or borrow money in any amount, at an annual rate

 5-4     of interest that does not exceed the maximum annual percentage rate

 5-5     allowed by law for district obligations at the time the loan is

 5-6     made, and on other terms and conditions the district considers

 5-7     advisable.

 5-8           Sec. 9.  DISTRICT PROPERTY.  (a)  The district may sell or

 5-9     otherwise dispose of any real or personal property or equipment of

5-10     any nature on terms and conditions found by the board to be in the

5-11     best interests of its inhabitants, except that the board may not

5-12     sell or close a hospital transferred to the district by Jackson

5-13     County or the Edna Hospital District unless the sale or closing of

5-14     the hospital is approved by a two-thirds majority of the qualified

5-15     electors of the district voting at an election called and held for

5-16     that purpose.  The board may not call an election on the question

5-17     of the sale or closing of one of those hospitals without the

5-18     concurrence of seven directors and may not call an election for

5-19     that purpose within 12 months of a preceding election for that

5-20     purpose.

5-21           (b)  The board may prescribe the method and manner of making

5-22     purchases and expenditures by and for the hospital district and may

5-23     prescribe all accounting and control procedures.  Contracts for

5-24     construction involving the expenditure of more than $10,000 may be

5-25     made only after advertising in the manner provided by Subchapter B,

5-26     Chapter 271, Local Government Code [163, General Laws, Acts of the

5-27     42nd Legislature, Regular Session, 1931, as amended (Article 2368a,

 6-1     Vernon's Texas Civil Statutes)].  The provisions of Chapter 2253,

 6-2     Government Code [Article 5160, Revised Civil Statutes of Texas,

 6-3     1925, as amended], relating to performance and payment bonds shall

 6-4     apply to construction contracts let by the district.  The district

 6-5     may acquire equipment for use in its hospital system and mortgage

 6-6     or pledge the property acquired as security for the payment of the

 6-7     purchase price.  Except as permitted in the preceding sentence and

 6-8     Sections 7, [and] 8, and 8A of this Act, the district may incur no

 6-9     obligation payable from revenues of the district, tax or otherwise,

6-10     except those on hand or to be on hand within the then current and

6-11     following fiscal years of the district.

6-12           (c)  Subject to the Texas Health Planning and Development

6-13     Act, as amended (Article 4418h, Vernon's Texas Civil Statutes),

6-14     after providing for the interest and sinking funds requirement of

6-15     the bonded indebtedness created by the Edna Hospital District and

6-16     assumed by the Jackson County Hospital District and further

6-17     providing for any tax revenue that may be required to support

6-18     operations expense, together with annual maintenance requirements

6-19     for each facility, the board shall allocate to the hospital

6-20     transferred to the district by Jackson County an amount not to

6-21     exceed the next $150,000 of tax income available for repairs and

6-22     improvements required to maintain operations during each of the

6-23     three years following creation of the district.  A similar

6-24     additional allocation may be made for the hospital located in Edna

6-25     in the event the board determines that need therefor exists.

6-26           SECTION 2.  The importance of this legislation and the

6-27     crowded condition of the calendars in both houses create an

 7-1     emergency and an imperative public necessity that the

 7-2     constitutional rule requiring bills to be read on three several

 7-3     days in each house be suspended, and this rule is hereby suspended.