1-1     By:  Craddick (Senate Sponsor - Bivins)               H.B. No. 3266

 1-2           (In the Senate - Received from the House April 14, 1997;

 1-3     April 16, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 13, 1997, reported favorably by

 1-5     the following vote:  Yeas 10, Nays 0; May 13, 1997, sent to

 1-6     printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the Midland County Hospital District.

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

1-11           SECTION 1.  Section 3(a), Chapter 112, Acts of the 65th

1-12     Legislature, Regular Session, 1977, is amended to read as follows:

1-13           (a)  The district authorized to be created by this Act is

1-14     charged with the responsibility of establishing a hospital or a

1-15     hospital system, including medical facilities and other health

1-16     facilities, within its boundaries to furnish hospital and medical

1-17     care to the residents of the district.  After this district is

1-18     created as provided in Section 4 of this Act, no other municipality

1-19     or political subdivision has the authority to [of this state may]

1-20     levy taxes or issue bonds or other obligations for hospital

1-21     purposes or for [of indebtedness for the purpose of] providing

1-22     [hospital service or] medical care within the boundaries of the

1-23     district.  This district shall provide all necessary [hospital and]

1-24     medical and hospital care for the needy inhabitants of the

1-25     district.  The district may provide primary care, emergency

1-26     services, preventive medical services, and other health-related

1-27     services outside the boundaries of the district, provided that the

1-28     services serve the purpose of the district as established by this

1-29     Act.

1-30           SECTION 2.  Chapter 112, Acts of the 65th Legislature,

1-31     Regular Session, 1977, is amended by adding Section 5A to read as

1-32     follows:

1-33           Sec. 5A.  (a)  In a general or special election of directors,

1-34     a write-in vote may not be counted unless the name written in

1-35     appears on the list of write-in candidates.

1-36           (b)  To be entitled to a place on the list of write-in

1-37     candidates, a candidate must make a declaration of write-in

1-38     candidacy.

1-39           (c)  A declaration of write-in candidacy must be filed with

1-40     the secretary of the board of directors not later than 5 p.m. of

1-41     the 30th day before election day.  However, if a candidate whose

1-42     name is to appear on the ballot dies or is declared ineligible

1-43     after the 33rd day before election day, a declaration of write-in

1-44     candidacy for the office sought by the deceased or ineligible

1-45     candidate may be filed not later than 5 p.m. of the 27th day before

1-46     election day.

1-47           (d)  Subchapter B, Chapter 146, Election Code, applies to

1-48     write-in voting in an election of directors except to the extent of

1-49     a conflict with this section.

1-50           SECTION 3.  Section 6, Chapter 112, Acts of the 65th

1-51     Legislature, Regular Session, 1977, is amended to read as follows:

1-52           Sec. 6.  The board of directors shall manage, control, and

1-53     administer the hospital or hospital system of the district and all

1-54     funds and resources of the district, but operating, depreciation,

1-55     or building fund reserves may not be invested in any funds or

1-56     securities other than those specified in Articles 836 and 837,

1-57     Revised Civil Statutes of Texas, 1925, as amended.  The board is

1-58     given full authority to establish rules relating to seniority of

1-59     employees of the district and may establish or administer a

1-60     retirement program or elect to participate in any statewide

1-61     retirement program in which the district is eligible to

1-62     participate.  The district may give effect to previous years of

1-63     service for those employees who have been continuously employed in

1-64     the operation or management of the hospital facilities acquired

 2-1     from Midland Memorial Foundation on the creation of the district.

 2-2     The district, through its board of directors, shall have the power

 2-3     and authority to sue and be sued and to promulgate rules governing

 2-4     the operation of the hospital, hospital system, its staff, and its

 2-5     employees.  The board of directors may appoint a qualified person

 2-6     as the administrator of the hospital district and may in its

 2-7     discretion appoint assistants to the administrator.  The

 2-8     administrator and assistant administrator, if any, serve at the

 2-9     will of the board and receive compensation fixed by the board.  The

2-10     administrator shall on assuming his duties execute a bond payable

2-11     to the hospital district in an amount set by the board of

2-12     directors, not less than $10,000, conditioned on performance of the

2-13     duties required of him and containing other conditions as the board

2-14     may require.  The administrator shall supervise all the work and

2-15     activities of the district and shall have general direction of the

2-16     affairs of the district, subject to the limitations prescribed by

2-17     the board.  The board of directors shall have authority to appoint

2-18     and dismiss from the staff such doctors as it deems necessary for

2-19     the efficient operation of the district and may provide for

2-20     temporary appointment to the staff if warranted by circumstances.

2-21     The board may delegate to the administrator the authority to employ

2-22     or contract with technicians, nurses, and other persons or

2-23     employees of the district as deemed advisable by the administrator.

2-24     The board may enter into agreements, spend district funds, and take

2-25     other necessary action to recruit or otherwise obtain physicians

2-26     and other personnel for the district's medical staff or for

2-27     employment with the hospital or hospital system, including medical

2-28     facilities or other health facilities owned or operated by the

2-29     district.  The actions may include advertising and marketing,

2-30     paying recruitment expenses, paying travel and relocation expenses,

2-31     and providing subsidies and scholarships.  The board shall be

2-32     authorized to contract with any person, firm, corporation, [other]

2-33     political subdivision, or governmental agency whereby the district

2-34     will provide investigatory or other services as to the medical,

2-35     hospital, or welfare needs of the inhabitants of the district.  The

2-36     board shall be authorized to contract with any person, firm,

2-37     corporation, hospital or hospital authority, hospital district,

2-38     emergency services district, county, incorporated municipality, or

2-39     any [other] political subdivision of this state, [that is] located

2-40     inside or outside its boundaries, for the hospitalization and

2-41     treatment of [the] sick, diseased, or injured persons.  The

2-42     district may operate or provide for the operation of an ambulance

2-43     or mobile emergency service.  The district may [of any such entity

2-44     and shall have the authority to] contract with the state or its

2-45     agencies, [and] the federal government or its agencies, or a

2-46     person, firm, corporation, hospital, hospital authority, emergency

2-47     services district, county, incorporated municipality, or another

2-48     political subdivision of this state, located inside or outside its

2-49     boundaries, for services provided by the district, including the

2-50     promotion of health,  [for the] hospital treatment of sick,

2-51     diseased, or injured persons, and [for] the training of doctors,

2-52     nurses, and other health care disciplines.  The board of directors

2-53     may exercise all of the [foregoing] powers of this section and all

2-54     other sections of this Act, unless  an operating or [unless a]

2-55     management agreement is entered into with the board of directors,

2-56     in accordance with Section 7 hereof, by which either all or a part

2-57     of such powers shall be exercised pursuant to the operating or [a]

2-58     management agreement.

2-59           SECTION 4.  Section 7, Chapter 112, Acts of the 65th

2-60     Legislature, Regular Session, 1977, is amended to read as follows:

2-61           Sec. 7.  The board of directors, in addition to any other

2-62     powers which it may now or hereafter have, is hereby authorized to

2-63     enter into a management agreement with the Midland Memorial

2-64     Foundation or its successors or any other individual, corporation,

2-65     agency, or governmental subdivision or entity for the management

2-66     and operation of any hospital or part thereof owned by the

2-67     district, under such terms and conditions as may be satisfactory to

2-68     the board of directors and the Midland Memorial Foundation or any

2-69     other individual, corporation, agency, or governmental subdivision

 3-1     or entity.  Such agreement may be for a term of up to 10 years with

 3-2     such options of renewal as deemed advisable.  A nonprofit

 3-3     corporation that manages a hospital or provides services under a

 3-4     contract with the district under this Act and any employee of the

 3-5     corporation are, while performing services under the contract for

 3-6     the benefit of the district, employees of the district for the

 3-7     purposes of Chapters 101 and 102, Civil Practice and Remedies Code.

 3-8           SECTION 5.  Section 11, Chapter 112, Acts of the 65th

 3-9     Legislature, Regular Session, 1977, is amended to read as follows:

3-10           Sec. 11.  The board of directors is given complete discretion

3-11     as to the type, number, and location of buildings and property

3-12     required to establish and maintain an adequate hospital system.

3-13     The hospital system may include facilities for domiciliary care of

3-14     the sick, wounded, and injured, outpatient clinics, dispensaries,

3-15     facilities for geriatric domiciliary care, convalescent home

3-16     facilities, necessary nurses' domiciliaries, and training centers,

3-17     training facilities for doctors, nurses, and other health care

3-18     disciplines, blood banks, community mental health centers, research

3-19     centers or laboratories, parking, and any other facilities deemed

3-20     necessary by the board of directors for a hospital or hospital

3-21     system and a medical facility or other health facility included in

3-22     the hospital or hospital system [for medical and hospital care by

3-23     the board of directors].  The district, through its board of

3-24     directors, is authorized to lease property, facilities, or

3-25     equipment and to enter into leases of all or a part of its

3-26     buildings and facilities with any person, corporation, political

3-27     subdivision, agency, or branch of the state or United States, with

3-28     such terms and conditions as considered to be in the best interest

3-29     of the district; provided that no lease may be for a period in

3-30     excess of 40 years from the date entered.  On the district's

3-31     behalf, the board of directors may hold, construct, condemn,

3-32     purchase, acquire, lease, add to, maintain, operate, regulate,

3-33     sell, convey, [The district may sell] or otherwise dispose of land,

3-34     equipment, or property of any nature, or a property  right,

3-35     hospital facility, or hospital system [any property, real or

3-36     personal, or equipment of any nature] on terms and conditions found

3-37     by the board to be in the best interest of the district's [its]

3-38     inhabitants.

3-39           SECTION 6.  Section 12, Chapter 112, Acts of the 65th

3-40     Legislature, Regular Session, 1977, is amended to read as follows:

3-41           Sec. 12.  The board of directors has the power to prescribe

3-42     the method and manner of making purchases and expenditures by and

3-43     for the hospital district and shall also be authorized to prescribe

3-44     all accounting and control procedures or may delegate all or any of

3-45     those powers, by the adoption of  an appropriate resolution to that

3-46     effect, to the Midland Memorial Foundation or its successors, or to

3-47     an individual, corporation, agency, political subdivision, or other

3-48     entity that enters into an operating or management agreement with

3-49     the district to exercise all or any of those powers.  All contracts

3-50     by the district for construction or purchases involving the

3-51     expenditure of more than $10,000 may be made only after advertising

3-52     in the manner provided by Chapter 252, Local Government Code.  The

3-53     provisions of Chapter 2253, Government Code [Article 5160, Revised

3-54     Civil Statutes of Texas, 1925, as amended], apply to construction

3-55     contracts let by the district.  The district may acquire equipment

3-56     for use in its hospital system, including medical facilities and

3-57     health facilities, and mortgage or pledge the property so acquired

3-58     as security for the payment of the purchase price, but any such

3-59     contract shall provide for the entire obligation of the district to

3-60     be retired within five years from the date of the contract.  Except

3-61     as permitted in the preceding sentence and as permitted by Sections

3-62     9  and 10 of this Act, the district may incur no obligation payable

3-63     from any revenues of the district, taxes or otherwise, except those

3-64     on hand or to be on hand within the current and following fiscal

3-65     year of  the district.

3-66           SECTION 7.  This Act takes effect September 1, 1997.

3-67           SECTION 8.  The importance of this legislation and the

3-68     crowded condition of the calendars in both houses create an

3-69     emergency and an imperative public necessity that the

 4-1     constitutional rule requiring bills to be read on three several

 4-2     days in each house be suspended, and this rule is hereby suspended.

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