1-1                                   AN ACT

 1-2     relating to the Hutchinson County Hospital District.

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

 1-4           SECTION 1.  Section 4.01(a), Chapter 77, Acts of the 71st

 1-5     Legislature, Regular Session, 1989, is amended to read as follows:

 1-6           (a)  The district is governed by a board of seven directors,

 1-7     four of whom are elected and three of whom are appointed by the

 1-8     Commissioners Court of Hutchinson County as prescribed by Section

 1-9     4.03 of this Act.

1-10           SECTION 2.  Section 4.03(d), Chapter 77, Acts of the 71st

1-11     Legislature, Regular Session, 1989, is amended to read as follows:

1-12           (d)  After the initial election of directors, an election

1-13     shall be held on the first Saturday in May each year and the

1-14     appropriate number of successor directors shall be elected for

1-15     staggered three-year terms, with as near as possible to one-third

1-16     of the elected members' terms expiring each year.  The

1-17     commissioners court shall annually within 10 days of the date that

1-18     elected directors are elected appoint the appropriate number of

1-19     successor appointed directors to serve staggered three-year terms.

1-20     The commissioners court may not appoint a person to serve more than

1-21     two successive terms.

1-22           SECTION 3.  Section 4.05, Chapter 77, Acts of the 71st

1-23     Legislature, Regular Session, 1989, is amended by amending

 2-1     Subsection (a) and adding Subsection (d) to read as follows:

 2-2           (a)  A person who wishes to have his name printed on the

 2-3     ballot as a candidate for a position as an elected director, in

 2-4     accordance with Chapter 144, Election Code, and to the extent that

 2-5     chapter does not conflict with Article 4 of this Act, must file

 2-6     with the secretary of the board of directors an application signed

 2-7     by the person asking that his name be placed on the ballot.

 2-8           (d)  Subchapter C, Chapter 2, Election Code, applies to the

 2-9     election of unopposed candidates for the board of directors.

2-10           SECTION 4.  Chapter 77, Acts of the 71st Legislature, Regular

2-11     Session, 1989, is amended by adding Section 4.055 to read as

2-12     follows:

2-13           Sec. 4.055.  WRITE-IN VOTING IN ELECTION.  (a)  In a general

2-14     or special election of directors, a write-in vote may not be

2-15     counted unless the name written in appears on the list of write-in

2-16     candidates.

2-17           (b)  To be entitled to a place on the list of write-in

2-18     candidates, a candidate must make a declaration of write-in

2-19     candidacy.

2-20           (c)  A declaration of write-in candidacy must be filed with

2-21     the secretary of the board of directors not later than 5 p.m. of

2-22     the 25th day before election day.  However, if a candidate whose

2-23     name is to appear on the ballot dies or is declared ineligible

2-24     after the 28th day before election day, a declaration of write-in

2-25     candidacy for the office sought by the deceased or ineligible

 3-1     candidate may be filed not later than 5 p.m. of the 22nd day before

 3-2     election day.

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

 3-4     write-in voting in an election of directors except to the extent of

 3-5     a conflict with this section.

 3-6           SECTION 5.  Section 4.12, Chapter 77, Acts of the 71st

 3-7     Legislature, Regular Session, 1989, is amended to read as follows:

 3-8           Sec. 4.12.  ADMINISTRATORS [ADMINISTRATOR], ASSISTANT

 3-9     ADMINISTRATORS [ADMINISTRATOR], AND ATTORNEY.  (a)  The board may

3-10     appoint qualified persons as administrator of the district,

3-11     administrator of ancillary health care facilities of the district,

3-12     assistant administrators [administrator], and attorney for the

3-13     district.

3-14           (b)  The administrators [administrator], assistant

3-15     administrators [administrator], and attorney serve at the will of

3-16     the board.

3-17           (c)  The administrators [administrator], assistant

3-18     administrators [administrator], and attorney are entitled to

3-19     compensation as determined by the board.

3-20           (d)  Before assuming the administrator's [his] duties, the

3-21     district administrator shall execute a bond payable to the hospital

3-22     district in an amount of not less than $5,000 as determined by the

3-23     board, conditioned on the faithful performance of the

3-24     administrator's [his] duties under this Act.  The board may pay for

3-25     the bond with district funds.

 4-1           SECTION 6.  Section 4.14(b), Chapter 77, Acts of the 71st

 4-2     Legislature, Regular Session, 1989, is amended to read as follows:

 4-3           (b)  The board may delegate to the district administrator the

 4-4     authority to employ persons for the district.

 4-5           SECTION 7.  Section 4.15, Chapter 77, Acts of the 71st

 4-6     Legislature, Regular Session, 1989, is amended to read as follows:

 4-7           Sec. 4.15.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

 4-8     (a)  The district administrator shall supervise the work and

 4-9     activities of district facilities and the staff, employees,

4-10     contractors, and agents of the district.  The district

4-11     administrator [and] shall direct the general affairs of the

4-12     district, subject to the limitations prescribed by the board.

4-13           (b)  The district administrator is responsible for the

4-14     overall management of all district facilities, including ancillary

4-15     health care facilities.

4-16           SECTION 8.  Section 5.02, Chapter 77, Acts of the 71st

4-17     Legislature, Regular Session, 1989, is amended to read as follows:

4-18           Sec. 5.02.  DISTRICT RESPONSIBILITIES.  On creation of the

4-19     district, the district:

4-20                 (1)  assumes full responsibility for operating hospital

4-21     and ancillary health care facilities and for furnishing medical,

4-22     [and] hospital, and ancillary health care for the district's needy

4-23     inhabitants;

4-24                 (2)  assumes any outstanding indebtedness incurred by

4-25     Hutchinson County in providing hospital care for residents of the

 5-1     territory of the district before the district's creation; and

 5-2                 (3)  may operate or provide for the operation of a

 5-3     mobile emergency medical service.

 5-4           SECTION 9.  Section 5.03, Chapter 77, Acts of the 71st

 5-5     Legislature, Regular Session, 1989, is amended to read as follows:

 5-6           Sec. 5.03.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The

 5-7     board shall manage, control, and administer the hospital system,

 5-8     the ancillary health care system, and the funds and resources of

 5-9     the district.

5-10           SECTION 10.  Section 5.04, Chapter 77, Acts of the 71st

5-11     Legislature, Regular Session, 1989, is amended to read as follows:

5-12           Sec. 5.04.  DISTRICT RULES.  The board may adopt rules

5-13     governing the operation of the hospital, ancillary health care

5-14     facilities, ancillary health care system, and hospital system and

5-15     the duties, functions, and responsibilities of the [district]

5-16     staff, [and] employees, contractors, or agents of the district.

5-17           SECTION 11.  Section 5.06, Chapter 77, Acts of the 71st

5-18     Legislature, Regular Session, 1989, is amended to read as follows:

5-19           Sec. 5.06.  HOSPITAL AND ANCILLARY HEALTH CARE PROPERTY,

5-20     FACILITIES, AND EQUIPMENT.  (a)  The board has complete discretion

5-21     to [shall] determine the type, number, and location, either inside

5-22     or outside the district, of facilities [buildings] required to

5-23     establish and maintain an adequate hospital system and ancillary

5-24     health care system, and the type of equipment necessary for

5-25     hospital care and ancillary health care, including domiciliary care

 6-1     and treatment of sick or injured patients, geriatric services,

 6-2     outpatient clinics, rural health clinics, convalescent home

 6-3     facilities, physician's offices, home health services, durable

 6-4     medical equipment, long-term care, skilled nursing care,

 6-5     intermediate nursing care, hospice care, ambulatory surgery

 6-6     centers, urgent care facilities, operation of a mobile emergency

 6-7     medical service, and any other facility or equipment the board

 6-8     considers necessary for the delivery of hospital, medical, and

 6-9     ancillary health care services.

6-10           (b)  The board may acquire by lease, purchase, or lease to

6-11     purchase property, facilities, supplies, and equipment for the

6-12     district for use in the hospital system and ancillary health care

6-13     system and may mortgage or pledge the property, facilities,

6-14     supplies, or equipment acquired as security for the payment of the

6-15     purchase price.

6-16           (c)  The board, on behalf of the district, may lease or sell

6-17     all or part of the hospital facilities or ancillary health care

6-18     facilities [on behalf of the district].

6-19           (d)  The board, on behalf of the district, may lease, sell,

6-20     or otherwise dispose of all or part of the district's property,

6-21     facilities, supplies, or equipment to a public or private entity

6-22     [on behalf of the district].

6-23           SECTION 12.  Section 5.07(c), Chapter 77, Acts of the 71st

6-24     Legislature, Regular Session, 1989, is amended to read as follows:

6-25           (c)  Chapter 2253, Government Code [Article 5160, Revised

 7-1     Statutes], as it relates to performance and payment bonds, applies

 7-2     to construction contracts let by the district.

 7-3           SECTION 13.  Section 5.08, Chapter 77, Acts of the 71st

 7-4     Legislature, Regular Session, 1989, is amended to read as follows:

 7-5           Sec. 5.08.  DISTRICT OPERATING AND MANAGEMENT CONTRACTS.  The

 7-6     board, on behalf of the district, may enter into operating or

 7-7     management contracts with one or more public or private entities

 7-8     relating to hospital and ancillary health care facilities and

 7-9     services [on behalf of the district].

7-10           SECTION 14.  Sections 5.11(b) and (c), Chapter 77, Acts of

7-11     the 71st Legislature, Regular Session, 1989, are amended to read as

7-12     follows:

7-13           (b)  Not later than the beginning of each operating year, the

7-14     district shall adopt an application procedure to determine

7-15     eligibility for assistance, as provided by Section 61.053, Health

7-16     and Safety Code [10.03, Indigent Health Care and Treatment Act

7-17     (Article 4438f, Vernon's Texas Civil Statutes)].

7-18           (c)  The administrator of the district may have an inquiry

7-19     made into the financial circumstances of any patient [residing in

7-20     the district and] admitted to a district facility and into the

7-21     financial circumstances of a relative of the patient who is legally

7-22     responsible for the patient's support.

7-23           SECTION 15.  Sections 5.12(a) and (c), Chapter 77, Acts of

7-24     the 71st Legislature, Regular Session, 1989, are amended to read as

7-25     follows:

 8-1           (a)  The board shall require reimbursement from a county,

 8-2     city, or public hospital located outside the boundaries of the

 8-3     district for the district's care and treatment of a sick, diseased,

 8-4     or injured person of that county, city, or public hospital as

 8-5     provided by Chapter 61, Health and Safety Code [the Indigent Health

 8-6     Care and Treatment Act (Article 4438f, Vernon's Texas Civil

 8-7     Statutes)].

 8-8           (c)  The board may contract with this or another [the] state,

 8-9     the [or] federal government, or an agency or political subdivision

8-10     of this or another state or the [for the state or] federal

8-11     government to reimburse the district for the care and treatment of

8-12     a sick, diseased, or injured person.

8-13           SECTION 16.  Section 5.13, Chapter 77, Acts of the 71st

8-14     Legislature, Regular Session, 1989, is amended to read as follows:

8-15           Sec. 5.13.  SERVICE CONTRACTS.  The board may contract with

8-16     any [a] city, county, special district, or state, the federal

8-17     government, an agency or [other] political subdivision of those

8-18     public entities, or a charitable or other private entity [the state

8-19     or with a state or federal agency] for the district to furnish a

8-20     mobile emergency medical service or to provide for the

8-21     investigatory or welfare needs of inhabitants of the district or of

8-22     persons for whom the public or private entity has an obligation to

8-23     provide care.

8-24           SECTION 17.  Chapter 77, Acts of the 71st Legislature,

8-25     Regular Session, 1989, is amended by adding Section 5.19 to read as

 9-1     follows:

 9-2           Sec. 5.19.  JOINT OWNERSHIP ARRANGEMENTS.  (a)  The board, on

 9-3     behalf of the district, may enter into a joint ownership

 9-4     arrangement with one or more public or private entities for the:

 9-5                 (1)  provision of management or operating services; and

 9-6                 (2)  ownership of all or part of real property,

 9-7     facilities, equipment, or supplies.

 9-8           (b)  The board must determine the arrangement is in the

 9-9     district's best interest and is for a public purpose of the

9-10     district before the board enters into an arrangement under this

9-11     section.

9-12           SECTION 18.  Section 6.05(d), Chapter 77, Acts of the 71st

9-13     Legislature, Regular Session, 1989, is amended to read as follows:

9-14           (d)  At the conclusion of the hearing, the board shall adopt

9-15     a budget by acting on the budget proposed by the district

9-16     administrator.  The board may make any changes in the proposed

9-17     budget that the board considers proper to provide adequate

9-18     [hospital] care and treatment at a hospital or ancillary health

9-19     care facility of the district.

9-20           SECTION 19.  Section 6.09(b), Chapter 77, Acts of the 71st

9-21     Legislature, Regular Session, 1989, is amended to read as follows:

9-22           (b)  The board may invest operating, depreciation, or

9-23     building reserves [only] in funds or securities specified by

9-24     Article 836 or 837, Revised Statutes, or by Chapter 2256,

9-25     Government Code, or in any other investment vehicle or fund if the

 10-1    board determines that investing the reserves in that vehicle or

 10-2    fund is in the district's best interest and does not violate the

 10-3    Texas Constitution [the Public Funds Investment Act of 1987

 10-4    (Article 842a-2, Vernon's Texas Civil Statutes)].

 10-5          SECTION 20.  Section 7.01, Chapter 77, Acts of the 71st

 10-6    Legislature, Regular Session, 1989, is amended to read as follows:

 10-7          Sec. 7.01.  GENERAL OBLIGATION BONDS.  The board may issue

 10-8    and sell bonds authorized by an election in the name and on the

 10-9    faith and credit of the hospital district to:

10-10                (1)  purchase, construct, acquire, equip, repair, or

10-11    renovate buildings, facilities, equipment, or improvements for

10-12    hospital purposes, including facilities and improvements incidental

10-13    and beneficial to operating and maintaining hospitals and ancillary

10-14    facilities that provide medical and ancillary health care services

10-15    and treatment; or

10-16                (2)  acquire and operate a mobile emergency medical

10-17    service.

10-18          SECTION 21.  Sections 7.04(a) and (c), Chapter 77, Acts of

10-19    the 71st Legislature, Regular Session, 1989, are amended to read as

10-20    follows:

10-21          (a)  The board may issue revenue bonds to:

10-22                (1)  purchase, construct, acquire, repair, equip, or

10-23    renovate buildings or improvements for hospital and ancillary

10-24    health care purposes;

10-25                (2)  acquire sites to be used for hospital and

 11-1    ancillary health care purposes; or

 11-2                (3)  acquire and operate a mobile emergency medical

 11-3    service to assist the district in carrying out its hospital and

 11-4    ancillary health care purposes.

 11-5          (c)  The bonds must be issued in the manner provided by

 11-6    Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,

 11-7    Health and Safety Code [8, 10, 11, 12, and 13, County Hospital

 11-8    Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for

 11-9    issuance of revenue bonds by county hospital authorities, or in

11-10    accordance with other laws relating to the issuance of revenue

11-11    bonds by hospital districts.

11-12          SECTION 22.  (a)  Except as provided by Subsection (b) of

11-13    this section, this Act takes effect immediately.

11-14          (b)  Section 4 of this Act takes effect September 1, 1997.

11-15          SECTION 23.  The importance of this legislation and the

11-16    crowded condition of the calendars in both houses create an

11-17    emergency and an imperative public necessity that the

11-18    constitutional rule requiring bills to be read on three several

11-19    days in each house be suspended, and this rule is hereby suspended,

11-20    and that this Act take effect and be in force according to its

11-21    terms, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 3457 was passed by the House on April

         11, 1997, by the following vote:  Yeas 132, Nays 0, 2 present, not

         voting; and that the House concurred in Senate amendments to H.B.

         No. 3457 on May 14, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 3457 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