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.  Section 4(e), Chapter 275, Acts of the 66th

 1-5     Legislature, Regular Session, 1979, is amended to read as follows:

 1-6           (e)  Except in the case of runoff elections, the board shall

 1-7     publish notice of each election of directors in a newspaper or

 1-8     newspapers that individually or collectively provide general

 1-9     circulation in the district one time at least 30 days before the

1-10     date of the election.  A candidate for director shall file with the

1-11     secretary of the board of directors at least 45 [35] days before

1-12     the election a request to have his or her name printed on the

1-13     ballot for the position for which he or she desires to be a

1-14     candidate.  The board shall canvass the returns and declare the

1-15     results.  A vacancy in office shall be filled for the unexpired

1-16     term by appointment by the remainder of the board of directors.

1-17           SECTION 2.  Chapter 275, Acts of the 66th Legislature,

1-18     Regular Session, 1979, is amended by amending Sections 5 and 9 and

1-19     by adding Sections 4A, 4B, and 8A to read as follows:

1-20           Sec. 4A.  TERMS.  (a)  Notwithstanding Section 4 of this Act,

1-21     the board, on its own motion, may order that the members of the

1-22     board serve staggered three-year or four-year terms.

1-23           (b)  If the board orders staggered three-year terms, the

 2-1     members of the  board are to be elected as follows:

 2-2                 (1)  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 even-numbered year:

 2-5                       (A)  the four directors elected at that first

 2-6     even-numbered year election shall draw lots to determine the three

 2-7     directors that serve three-year terms and the director that serves

 2-8     a two-year term;

 2-9                       (B)  the at-large director elected at the first

2-10     odd-numbered year election after the order to change the terms

2-11     shall serve a three-year term; and

2-12                       (C)  the four other directors elected at the

2-13     first odd-numbered year election after the order to change the

2-14     terms shall draw lots to determine which two directors serve

2-15     three-year terms and which two directors serve one-year terms;

2-16                 (2)  if the first election that occurs at least 120

2-17     days after the date on which an order under Subsection (a) of this

2-18     section is entered is an election in an odd-numbered year:

2-19                       (A)  the at-large director elected at that first

2-20     odd-numbered year election serves a three-year term;

2-21                       (B)  the four other directors elected at that

2-22     first odd-numbered year election shall draw lots to determine the

2-23     two directors that serve three-year terms and the two directors

2-24     that serve two-year terms; and

2-25                       (C)  the four directors elected at the first

 3-1     even-numbered year election after the order to change the terms

 3-2     shall draw lots to determine which three directors serve three-year

 3-3     terms and which director serves a one-year term.

 3-4           (c)  If the board orders four-year terms, the members of the

 3-5     board are to be elected in accordance with Section 285.081, Health

 3-6     and Safety Code.

 3-7           (d)  After an initial change under this section from

 3-8     staggered two-year terms, the board may not change the terms again.

 3-9           Sec. 4B.  ELECTIONS.  (a)  In a general or special election

3-10     of directors, a write-in vote may not be counted unless the name

3-11     written in appears on the list of write-in candidates.

3-12           (b)  To be entitled to a place on the list of write-in

3-13     candidates, a candidate must make a declaration of write-in

3-14     candidacy.

3-15           (c)  A declaration of write-in candidacy must be filed with

3-16     the secretary of the board of directors not later than 5 p.m. of

3-17     the 45th day before election day.  However, if a candidate whose

3-18     name is to appear on the ballot dies or is declared ineligible

3-19     after the 48th day before election day, a declaration of write-in

3-20     candidacy for the office sought by the deceased or ineligible

3-21     candidate may be filed not later than 5 p.m. of the 42nd day before

3-22     election day.

3-23           (d)  Subchapter B, Chapter 146, Election Code, applies to

3-24     write-in voting in an election of directors except to the extent of

3-25     a conflict with this section.

 4-1           (e)  Subchapter C, Chapter 2, Election Code, applies to the

 4-2     election of unopposed candidates for the board of directors.

 4-3           Sec. 5.  POWERS AND DUTIES.  The board shall manage, control,

 4-4     and administer the hospital system and all funds and resources of

 4-5     the district, but in no event shall any operating, depreciation, or

 4-6     building reserves be invested in any funds or securities other than

 4-7     those specified in Article 836 or 837, Revised Civil Statutes of

 4-8     Texas, 1925, as amended.  The district through its board may sue

 4-9     and be sued and may promulgate rules governing the operation of the

4-10     hospital, the hospital system, its staff, and its employees.  The

4-11     board may appoint a qualified administrator or assistant

4-12     administrator for each hospital of the district and an attorney may

4-13     be appointed for the district.  The administrators, the attorney,

4-14     and the assistant administrators, if any, shall serve at the will

4-15     of the board and shall receive the compensation determined by the

4-16     board.  An administrator shall, on assuming his or her duties,

4-17     execute a bond payable to the hospital district in an amount to be

4-18     set by the board, in no event less than $5,000, conditioned that he

4-19     or she shall perform the duties required of him or her, and

4-20     containing such other conditions as the board may require.  The

4-21     expense of the bond may be paid from funds of the district.  The

4-22     administrator shall supervise all the work and activities of his or

4-23     her hospital and shall have general direction of the affairs of his

4-24     or her hospital, subject to the limitations as may be prescribed by

4-25     the board.  The board may appoint to the staff doctors it may deem

 5-1     necessary for the efficient operation of the district and may

 5-2     provide for temporary appointments to the staff if warranted by

 5-3     circumstances.  The board may delegate to an administrator the

 5-4     authority to employ doctors, technicians, nurses, and employees of

 5-5     the district or of his or her hospital.  The board may contract

 5-6     with other political subdivisions or governmental agencies whereby

 5-7     the district will provide investigatory or other services as to

 5-8     facilities for the medical care, hospital, or welfare needs of the

 5-9     inhabitants of the district and may contract with any county or

5-10     incorporated municipality located outside its boundaries for

5-11     reimbursement for the care and treatment of the sick, deceased, or

5-12     injured persons of that county or municipality.  The district may

5-13     also contract with the state or agencies of the federal government

5-14     for the reimbursement for the treatment of sick, diseased, or

5-15     injured persons.  The district may provide health care services

5-16     outside the geographic boundaries of the district provided that the

5-17     services serve the purposes of the district.

5-18           Sec. 8A.  INDEBTEDNESS.  The district may incur indebtedness

5-19     or borrow money on the credit of the district or secured by any

5-20     source of revenue, including district taxes to be levied by the

5-21     district in the next 12-month period, that is not pledged to pay

5-22     the principal or interest on district bonds.  The district may

5-23     incur indebtedness or borrow money in any amount, at an annual rate

5-24     of interest that does not exceed the maximum annual percentage rate

5-25     allowed by law for district obligations at the time the loan is

 6-1     made, and on other terms and conditions the district considers

 6-2     advisable.

 6-3           Sec. 9.  DISTRICT PROPERTY.  (a)  The district may sell or

 6-4     otherwise dispose of any real or personal property or equipment of

 6-5     any nature on terms and conditions found by the board to be in the

 6-6     best interests of its inhabitants, except that the board may not

 6-7     sell or close a hospital transferred to the district by Jackson

 6-8     County or the Edna Hospital District unless the sale or closing of

 6-9     the hospital is approved by a two-thirds majority of the qualified

6-10     electors of the district voting at an election called and held for

6-11     that purpose.  The board may not call an election on the question

6-12     of the sale or closing of one of those hospitals without the

6-13     concurrence of seven directors and may not call an election for

6-14     that purpose within 12 months of a preceding election for that

6-15     purpose.

6-16           (b)  The board may prescribe the method and manner of making

6-17     purchases and expenditures by and for the hospital district and may

6-18     prescribe all accounting and control procedures.  Contracts for

6-19     construction involving the expenditure of more than $10,000 may be

6-20     made only after advertising in the  manner provided by Subchapter

6-21     B, Chapter 271, Local Government Code [163, General Laws, Acts of

6-22     the 42nd Legislature, Regular Session, 1931, as amended (Article

6-23     2368a, Vernon's Texas Civil Statutes)].  The provisions of Chapter

6-24     2253, Government Code [Article 5160, Revised Civil Statutes of

6-25     Texas, 1925, as amended], relating to performance and payment bonds

 7-1     shall apply to construction contracts let by the district.  The

 7-2     district may acquire equipment for use in its hospital system and

 7-3     mortgage or pledge the property acquired as security for the

 7-4     payment of the purchase price.  Except as permitted in the

 7-5     preceding sentence and Sections 7, [and] 8, and 8A of this Act, the

 7-6     district may incur no obligation payable from revenues of the

 7-7     district, tax or otherwise, except those on hand or to be on hand

 7-8     within the then current and following fiscal years of the district.

 7-9           (c)  Subject to Chapter 104, Health and Safety Code [the

7-10     Texas Health Planning and Development Act, as amended (Article

7-11     4418h, Vernon's Texas Civil Statutes)], after providing for the

7-12     interest and sinking funds requirement of the bonded indebtedness

7-13     created by the Edna Hospital District and assumed by the Jackson

7-14     County Hospital District and further providing for any tax revenue

7-15     that may be required to support operations expense, together with

7-16     annual maintenance requirements for each facility, the board shall

7-17     allocate to the hospital transferred to the district by Jackson

7-18     County an amount not to exceed the next $150,000 of tax income

7-19     available for repairs and improvements required to maintain

7-20     operations during each of the three years following creation of the

7-21     district.  A similar additional allocation may be made for the

7-22     hospital located in Edna in the event the board determines that

7-23     need therefor exists.

7-24           SECTION 3.  The importance of this legislation and the

7-25     crowded condition of the calendars in both houses create an

 8-1     emergency and an imperative public necessity that the

 8-2     constitutional rule requiring bills to be read on three several

 8-3     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. 2348 was passed by the House on April

         18, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 2348 on May 14, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2348 was passed by the Senate, with

         amendments, on May 12, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor