1-1     By:  Seaman (Senate Sponsor - Armbrister)             H.B. No. 2348

 1-2           (In the Senate - Received from the House April 21, 1997;

 1-3     April 23, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 5, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 11,

 1-6     Nays 0; May 5, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2348                   By:  Lucio

 1-8                                   AN ACT

 1-9     relating to the operation of the Jackson County Hospital District.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 4(e), Chapter 275, Acts of the 66th

1-12     Legislature, Regular Session, 1979, is amended to read as follows:

1-13           (e)  Except in the case of runoff elections, the board shall

1-14     publish notice of each election of directors in a newspaper or

1-15     newspapers that individually or collectively provide general

1-16     circulation in the district one time at least 30 days before the

1-17     date of the election.  A candidate for director shall file with the

1-18     secretary of the board of directors at least 45 [35] days before

1-19     the election a request to have his or her name printed on the

1-20     ballot for the position for which he or she desires to be a

1-21     candidate.  The board shall canvass the returns and declare the

1-22     results.  A vacancy in office shall be filled for the unexpired

1-23     term by appointment by the remainder of the board of directors.

1-24           SECTION 2.  Chapter 275, Acts of the 66th Legislature,

1-25     Regular Session, 1979, is amended by amending Sections 5 and 9 and

1-26     by adding Sections 4A, 4B, and 8A to read as follows:

1-27           Sec. 4A.  TERMS.  (a)  Notwithstanding Section 4 of this Act,

1-28     the board, on its own motion, may order that the members of the

1-29     board serve staggered three-year or four-year terms.

1-30           (b)  If the board orders staggered three-year terms, the

1-31     members of the  board are to be elected as follows:

1-32                 (1)  if the first election that occurs at least 120

1-33     days after the date on which an order under Subsection (a) of this

1-34     section is entered is an election in an even-numbered year:

1-35                       (A)  the four directors elected at that first

1-36     even-numbered year election shall draw lots to determine the three

1-37     directors that serve three-year terms and the director that serves

1-38     a two-year term;

1-39                       (B)  the at-large director elected at the first

1-40     odd-numbered year election after the order to change the terms

1-41     shall serve a three-year term; and

1-42                       (C)  the four other directors elected at the

1-43     first odd-numbered year election after the order to change the

1-44     terms shall draw lots to determine which two directors serve

1-45     three-year terms and which two directors serve one-year terms;

1-46                 (2)  if the first election that occurs at least 120

1-47     days after the date on which an order under Subsection (a) of this

1-48     section is entered is an election in an odd-numbered year:

1-49                       (A)  the at-large director elected at that first

1-50     odd-numbered year election serves a three-year term;

1-51                       (B)  the four other directors elected at that

1-52     first odd-numbered year election shall draw lots to determine the

1-53     two directors that serve three-year terms and the two directors

1-54     that serve two-year terms; and

1-55                       (C)  the four directors elected at the first

1-56     even-numbered year election after the order to change the terms

1-57     shall draw lots to determine which three directors serve three-year

1-58     terms and which director serves a one-year term.

1-59           (c)  If the board orders four-year terms, the members of the

1-60     board are to be elected in accordance with Section 285.081, Health

1-61     and Safety Code.

1-62           (d)  After an initial change under this section from

1-63     staggered two-year terms, the board may not change the terms again.

1-64           Sec. 4B.  ELECTIONS.  (a)  In a general or special election

 2-1     of directors, a write-in vote may not be counted unless the name

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

 2-3           (b)  To be entitled to a place on the list of write-in

 2-4     candidates, a candidate must make a declaration of write-in

 2-5     candidacy.

 2-6           (c)  A declaration of write-in candidacy must be filed with

 2-7     the secretary of the board of directors not later than 5 p.m. of

 2-8     the 45th day before election day.  However, if a candidate whose

 2-9     name is to appear on the ballot dies or is declared ineligible

2-10     after the 48th day before election day, a declaration of write-in

2-11     candidacy for the office sought by the deceased or ineligible

2-12     candidate may be filed not later than 5 p.m. of the 42nd day before

2-13     election day.

2-14           (d)  Subchapter B, Chapter 146, Election Code, applies to

2-15     write-in voting in an election of directors except to the extent of

2-16     a conflict with this section.

2-17           (e)  Subchapter C, Chapter 2, Election Code, applies to the

2-18     election of unopposed candidates for the board of directors.

2-19           Sec. 5.  POWERS AND DUTIES.  The board shall manage, control,

2-20     and administer the hospital system and all funds and resources of

2-21     the district, but in no event shall any operating, depreciation, or

2-22     building reserves be invested in any funds or securities other than

2-23     those specified in Article 836 or 837, Revised Civil Statutes of

2-24     Texas, 1925, as amended.  The district through its board may sue

2-25     and be sued and may promulgate rules governing the operation of the

2-26     hospital, the hospital system, its staff, and its employees.  The

2-27     board may appoint a qualified administrator or assistant

2-28     administrator for each hospital of the district and an attorney may

2-29     be appointed for the district.  The administrators, the attorney,

2-30     and the assistant administrators, if any, shall serve at the will

2-31     of the board and shall receive the compensation determined by the

2-32     board.  An administrator shall, on assuming his or her duties,

2-33     execute a bond payable to the hospital district in an amount to be

2-34     set by the board, in no event less than $5,000, conditioned that he

2-35     or she shall perform the duties required of him or her, and

2-36     containing such other conditions as the board may require.  The

2-37     expense of the bond may be paid from funds of the district.  The

2-38     administrator shall supervise all the work and activities of his or

2-39     her hospital and shall have general direction of the affairs of his

2-40     or her hospital, subject to the limitations as may be prescribed by

2-41     the board.  The board may appoint to the staff doctors it may deem

2-42     necessary for the efficient operation of the district and may

2-43     provide for temporary appointments to the staff if warranted by

2-44     circumstances.  The board may delegate to an administrator the

2-45     authority to employ doctors, technicians, nurses, and employees of

2-46     the district or of his or her hospital.  The board may contract

2-47     with other political subdivisions or governmental agencies whereby

2-48     the district will provide investigatory or other services as to

2-49     facilities for the medical care, hospital, or welfare needs of the

2-50     inhabitants of the district and may contract with any county or

2-51     incorporated municipality located outside its boundaries for

2-52     reimbursement for the care and treatment of the sick, deceased, or

2-53     injured persons of that county or municipality.  The district may

2-54     also contract with the state or agencies of the federal government

2-55     for the reimbursement for the treatment of sick, diseased, or

2-56     injured persons.  The district may provide health care services

2-57     outside the geographic boundaries of the district provided that the

2-58     services serve the purposes of the district.

2-59           Sec. 8A.  INDEBTEDNESS.  The district may incur indebtedness

2-60     or borrow money on the credit of the district or secured by any

2-61     source of revenue, including district taxes to be levied by the

2-62     district in the next 12-month period, that is not pledged to pay

2-63     the principal or interest on district bonds.  The district may

2-64     incur indebtedness or borrow money in any amount, at an annual rate

2-65     of interest that does not exceed the maximum annual percentage rate

2-66     allowed by law for district obligations at the time the loan is

2-67     made, and on other terms and conditions the district considers

2-68     advisable.

2-69           Sec. 9.  DISTRICT PROPERTY.  (a)  The district may sell or

 3-1     otherwise dispose of any real or personal property or equipment of

 3-2     any nature on terms and conditions found by the board to be in the

 3-3     best interests of its inhabitants, except that the board may not

 3-4     sell or close a hospital transferred to the district by Jackson

 3-5     County or the Edna Hospital District unless the sale or closing of

 3-6     the hospital is approved by a two-thirds majority of the qualified

 3-7     electors of the district voting at an election called and held for

 3-8     that purpose.  The board may not call an election on the question

 3-9     of the sale or closing of one of those hospitals without the

3-10     concurrence of seven directors and may not call an election for

3-11     that purpose within 12 months of a preceding election for that

3-12     purpose.

3-13           (b)  The board may prescribe the method and manner of making

3-14     purchases and expenditures by and for the hospital district and may

3-15     prescribe all accounting and control procedures.  Contracts for

3-16     construction involving the expenditure of more than $10,000 may be

3-17     made only after advertising in the  manner provided by Subchapter

3-18     B, Chapter 271, Local Government Code [163, General Laws, Acts of

3-19     the 42nd Legislature, Regular Session, 1931, as amended (Article

3-20     2368a, Vernon's Texas Civil Statutes)].  The provisions of Chapter

3-21     2253, Government Code [Article 5160, Revised Civil Statutes of

3-22     Texas, 1925, as amended], relating to performance and payment bonds

3-23     shall apply to construction contracts let by the district.  The

3-24     district may acquire equipment for use in its hospital system and

3-25     mortgage or pledge the property acquired as security for the

3-26     payment of the purchase price.  Except as permitted in the

3-27     preceding sentence and Sections 7, [and] 8, and 8A of this Act, the

3-28     district may incur no obligation payable from revenues of the

3-29     district, tax or otherwise, except those on hand or to be on hand

3-30     within the then current and following fiscal years of the district.

3-31           (c)  Subject to Chapter 104, Health and Safety Code [the

3-32     Texas Health Planning and Development Act, as amended (Article

3-33     4418h, Vernon's Texas Civil Statutes)], after providing for the

3-34     interest and sinking funds requirement of the bonded indebtedness

3-35     created by the Edna Hospital District and assumed by the Jackson

3-36     County Hospital District and further providing for any tax revenue

3-37     that may be required to support operations expense, together with

3-38     annual maintenance requirements for each facility, the board shall

3-39     allocate to the hospital transferred to the district by Jackson

3-40     County an amount not to exceed the next $150,000 of tax income

3-41     available for repairs and improvements required to maintain

3-42     operations during each of the three years following creation of the

3-43     district.  A similar additional allocation may be made for the

3-44     hospital located in Edna in the event the board determines that

3-45     need therefor exists.

3-46           SECTION 3.  The importance of this legislation and the

3-47     crowded condition of the calendars in both houses create an

3-48     emergency and an imperative public necessity that the

3-49     constitutional rule requiring bills to be read on three several

3-50     days in each house be suspended, and this rule is hereby suspended.

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