75R9256 CLG-D                           

         By Chisum                                             H.B. No. 3457

         Substitute the following for H.B. No. 3457:

         By Lewis of Orange                                C.S.H.B. No. 3457

                                A BILL TO BE ENTITLED

 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 directors to serve staggered three-year terms.  [The

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

1-21     successive terms.]

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

1-23     Legislature, Regular Session, 1989, is amended to read as follows:

1-24           (a)  A person who wishes to have his name printed on the

 2-1     ballot as a candidate for a position as an elected director, in

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

 2-3     chapter does not conflict with Article 4 of this Act, must file

 2-4     with the secretary of the board of directors an application signed

 2-5     by the person asking that his name be placed on the ballot.

 2-6           SECTION 4.  Chapter 77, Acts of the 71st Legislature, Regular

 2-7     Session, 1989, is amended by adding Section 4.055 to read as

 2-8     follows:

 2-9           Sec. 4.055.  WRITE-IN VOTING IN ELECTION.  (a)  In a general

2-10     or special election of directors, a write-in vote may not be

2-11     counted unless the name written in appears on the list of write-in

2-12     candidates.

2-13           (b)  To be entitled to a place on the list of write-in

2-14     candidates, a candidate must make a declaration of write-in

2-15     candidacy.

2-16           (c)  A declaration of write-in candidacy must be filed with

2-17     the secretary of the board of directors not later than 5 p.m. of

2-18     the 45th day before election day.  However, if a candidate whose

2-19     name is to appear on the ballot dies or is declared ineligible

2-20     after the 48th day before election day, a declaration of write-in

2-21     candidacy for the office sought by the deceased or ineligible

2-22     candidate may be filed not later than 5 p.m. of the 42nd day before

2-23     election day.

2-24           (d)  Subchapter B, Chapter 146, Election Code, applies to

2-25     write-in voting in an election of directors except to the extent of

2-26     a conflict with this section.

2-27           (e)  Subchapter C, Chapter 2, Election Code, applies to the

 3-1     election of unopposed candidates for the board of directors.

 3-2           SECTION 5.  Section 4.12, Chapter 77, Acts of the 71st

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

 3-4           Sec. 4.12.  ADMINISTRATORS [ADMINISTRATOR], ASSISTANT

 3-5     ADMINISTRATORS [ADMINISTRATOR], AND ATTORNEY.  (a)  The board may

 3-6     appoint qualified persons as administrator of the district,

 3-7     administrator of ancillary health care facilities of the district,

 3-8     assistant administrators [administrator], and attorney for the

 3-9     district.

3-10           (b)  The administrators [administrator], assistant

3-11     administrators [administrator], and attorney serve at the will of

3-12     the board.

3-13           (c)  The administrators [administrator], assistant

3-14     administrators [administrator], and attorney are entitled to

3-15     compensation as determined by the board.

3-16           (d)  Before assuming the administrator's [his] duties, the

3-17     district administrator shall execute a bond payable to the hospital

3-18     district in an amount of not less than $5,000 as determined by the

3-19     board, conditioned on the faithful performance of the

3-20     administrator's [his] duties under this Act.  The board may pay for

3-21     the bond with district funds.

3-22           SECTION 6.  Section 4.14(b), Chapter 77, Acts of the 71st

3-23     Legislature, Regular Session, 1989, is amended to read as follows:

3-24           (b)  The board may delegate to the district administrator the

3-25     authority to employ persons for the district.

3-26           SECTION 7.  Section 4.15, Chapter 77, Acts of the 71st

3-27     Legislature, Regular Session, 1989, is amended to read as follows:

 4-1           Sec. 4.15.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

 4-2     (a)  The district administrator shall supervise the work and

 4-3     activities of district facilities and the staff, employees,

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

 4-5     administrator [and] shall direct the general affairs of the

 4-6     district, subject to the limitations prescribed by the board.

 4-7           (b)  The district administrator is responsible for the

 4-8     overall management of all district facilities, including ancillary

 4-9     health care facilities.

4-10           SECTION 8.  Section 5.02, Chapter 77, Acts of the 71st

4-11     Legislature, Regular Session, 1989, is amended to read as follows:

4-12           Sec. 5.02.  DISTRICT RESPONSIBILITIES.  On creation of the

4-13     district, the district:

4-14                 (1)  assumes full responsibility for operating hospital

4-15     and ancillary health care facilities and for furnishing medical,

4-16     [and] hospital, and ancillary health care for the district's needy

4-17     inhabitants;

4-18                 (2)  assumes any outstanding indebtedness incurred by

4-19     Hutchinson County in providing hospital care for residents of the

4-20     territory of the district before the district's creation; and

4-21                 (3)  may operate or provide for the operation of a

4-22     mobile emergency medical service.

4-23           SECTION 9.  Section 5.03, Chapter 77, Acts of the 71st

4-24     Legislature, Regular Session, 1989, is amended to read as follows:

4-25           Sec. 5.03.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The

4-26     board shall manage, control, and administer the hospital system,

4-27     the ancillary health care system, and the funds and resources of

 5-1     the district.

 5-2           SECTION 10.  Section 5.04, Chapter 77, Acts of the 71st

 5-3     Legislature, Regular Session, 1989, is amended to read as follows:

 5-4           Sec. 5.04.  DISTRICT RULES.  The board may adopt rules

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

 5-6     facilities, ancillary health care system, and hospital system and

 5-7     the duties, functions, and responsibilities of the [district]

 5-8     staff, [and] employees, contractors, or agents of the district.

 5-9           SECTION 11.  Section 5.06, Chapter 77, Acts of the 71st

5-10     Legislature, Regular Session, 1989, is amended to read as follows:

5-11           Sec. 5.06.  HOSPITAL AND ANCILLARY HEALTH CARE PROPERTY,

5-12     FACILITIES, AND EQUIPMENT.  (a)  The board has complete discretion

5-13     to [shall] determine the type, number, and location, either inside

5-14     or outside the district, of facilities [buildings] required to

5-15     establish and maintain an adequate hospital system and ancillary

5-16     health care system, and the type of equipment necessary for

5-17     hospital care and ancillary health care, including domiciliary care

5-18     and treatment of sick or injured patients, geriatric services,

5-19     outpatient clinics, rural health clinics, convalescent home

5-20     facilities, physician's offices, home health services, durable

5-21     medical equipment, long-term care, skilled nursing care,

5-22     intermediate nursing care, hospice care, ambulatory surgery

5-23     centers, urgent care facilities, operation of a mobile emergency

5-24     medical service, and any other facility or equipment the board

5-25     considers necessary for the delivery of hospital, medical, and

5-26     ancillary health care services.

5-27           (b)  The board may acquire by lease, purchase, or lease to

 6-1     purchase property, facilities, supplies, and equipment for the

 6-2     district for use in the hospital system and ancillary health care

 6-3     system and may mortgage or pledge the property, facilities,

 6-4     supplies, or equipment acquired as security for the payment of the

 6-5     purchase price.

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

 6-7     all or part of the hospital facilities or ancillary health care

 6-8     facilities [on behalf of the district].

 6-9           (d)  The board, on behalf of the district, may lease, sell,

6-10     or otherwise dispose of all or part of the district's property,

6-11     facilities, supplies, or equipment to a public or private entity

6-12     [on behalf of the district].

6-13           SECTION 12.  Section 5.07(c), Chapter 77, Acts of the 71st

6-14     Legislature, Regular Session, 1989, is amended to read as follows:

6-15           (c)  Chapter 2253, Government Code [Article 5160, Revised

6-16     Statutes], as it relates to performance and payment bonds, applies

6-17     to construction contracts let by the district.

6-18           SECTION 13.  Section 5.08, Chapter 77, Acts of the 71st

6-19     Legislature, Regular Session, 1989, is amended to read as follows:

6-20           Sec. 5.08.  DISTRICT OPERATING AND MANAGEMENT CONTRACTS.  The

6-21     board, on behalf of the district, may enter into operating or

6-22     management contracts with one or more public or private entities

6-23     relating to hospital and ancillary health care facilities and

6-24     services [on behalf of the district].

6-25           SECTION 14.  Sections 5.11(b) and (c), Chapter 77, Acts of

6-26     the 71st Legislature, Regular Session, 1989, are amended to read as

6-27     follows:

 7-1           (b)  Not later than the beginning of each operating year, the

 7-2     district shall adopt an application procedure to determine

 7-3     eligibility for assistance, as provided by Section 61.053, Health

 7-4     and Safety Code [10.03, Indigent Health Care and Treatment Act

 7-5     (Article 4438f, Vernon's Texas Civil Statutes)].

 7-6           (c)  The administrator of the district may have an inquiry

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

 7-8     the district and] admitted to a district facility and into the

 7-9     financial circumstances of a relative of the patient who is legally

7-10     responsible for the patient's support.

7-11           SECTION 15.  Sections 5.12(a) and (c), Chapter 77, Acts of

7-12     the 71st Legislature, Regular Session, 1989, are amended to read as

7-13     follows:

7-14           (a)  The board shall require reimbursement from a county,

7-15     city, or public hospital located outside the boundaries of the

7-16     district for the district's care and treatment of a sick, diseased,

7-17     or injured person of that county, city, or public hospital as

7-18     provided by Chapter 61, Health and Safety Code [the Indigent Health

7-19     Care and Treatment Act (Article 4438f, Vernon's Texas Civil

7-20     Statutes)].

7-21           (c)  The board may contract with this or another [the] state,

7-22     the [or] federal government, or an agency or political subdivision

7-23     of this or another state or the federal government [for the state

7-24     or federal government] to reimburse the district for the care and

7-25     treatment of a sick, diseased, or injured person.

7-26           SECTION 16.  Section 5.13, Chapter 77, Acts of the 71st

7-27     Legislature, Regular Session, 1989, is amended to read as follows:

 8-1           Sec. 5.13.  SERVICE CONTRACTS.  The board may contract with

 8-2     any [a] city, county, special district, or state, the federal

 8-3     government, an agency or [other] political subdivision of those

 8-4     public entities, or a charitable or other private entity [the state

 8-5     or with a state or federal agency] for the district to furnish a

 8-6     mobile emergency medical service or to provide for the

 8-7     investigatory or welfare needs of inhabitants of the district or of

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

 8-9     provide care.

8-10           SECTION 17.  Chapter 77, Acts of the 71st Legislature,

8-11     Regular Session, 1989, is amended by adding Section 5.19 to read as

8-12     follows:

8-13           Sec. 5.19.  JOINT OWNERSHIP ARRANGEMENTS.  (a)  The board, on

8-14     behalf of the district, may enter into a joint ownership

8-15     arrangement with one or more public or private entities for the:

8-16                 (1)  provision of management or operating services; and

8-17                 (2)  ownership of all or part of real property,

8-18     facilities, equipment, or supplies.

8-19           (b)  The board must determine the arrangement is in the

8-20     district's best interest and is for a public purpose of the

8-21     district before the board enters into an arrangement under this

8-22     section.

8-23           SECTION 18.  Section 6.05(d), Chapter 77, Acts of the 71st

8-24     Legislature, Regular Session, 1989, is amended to read as follows:

8-25           (d)  At the conclusion of the hearing, the board shall adopt

8-26     a budget by acting on the budget proposed  by the district

8-27     administrator.  The board may make any changes in the proposed

 9-1     budget that the board considers proper to provide adequate

 9-2     [hospital] care and treatment at a hospital or ancillary health

 9-3     care facility of the district.

 9-4           SECTION 19.  Section 6.09(b), Chapter 77, Acts of the 71st

 9-5     Legislature, Regular Session, 1989, is amended to read as follows:

 9-6           (b)  The board may invest operating, depreciation, or

 9-7     building reserves [only] in funds or securities specified by

 9-8     Article 836 or 837, Revised Statutes, or by Chapter 2256,

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

9-10     board determines that investing the reserves in that vehicle or

9-11     fund is in the district's best interest and does not violate the

9-12     Texas Constitution [the Public Funds Investment Act of 1987

9-13     (Article 842a-2, Vernon's Texas Civil Statutes)].

9-14           SECTION 20.  Section 7.01, Chapter 77, Acts of the 71st

9-15     Legislature, Regular Session, 1989, is amended to read as follows:

9-16           Sec. 7.01.  GENERAL OBLIGATION BONDS.  The board may issue

9-17     and sell bonds authorized by an election in the name and on the

9-18     faith and credit of the hospital district to:

9-19                 (1)  purchase, construct, acquire, equip, repair, or

9-20     renovate buildings, facilities, equipment, or improvements for

9-21     hospital purposes, including facilities and improvements incidental

9-22     and beneficial to operating and maintaining hospitals and ancillary

9-23     facilities that provide medical and ancillary health care services

9-24     and treatment; or

9-25                 (2)  acquire and operate a mobile emergency medical

9-26     service.

9-27           SECTION 21.  Sections 7.04(a) and (c), Chapter 77, Acts of

 10-1    the 71st Legislature, Regular Session, 1989, are amended to read as

 10-2    follows:

 10-3          (a)  The board may issue revenue bonds to:

 10-4                (1)  purchase, construct, acquire, repair, equip, or

 10-5    renovate buildings or improvements for hospital and ancillary

 10-6    health care purposes;

 10-7                (2)  acquire sites to be used for hospital and

 10-8    ancillary health care purposes; or

 10-9                (3)  acquire and operate a mobile emergency medical

10-10    service to assist the district in carrying out its hospital and

10-11    ancillary health care purposes.

10-12          (c)  The bonds must be issued in the manner provided by

10-13    Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,

10-14    Health and Safety Code [8, 10, 11, 12, and 13, County Hospital

10-15    Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for

10-16    issuance of revenue bonds by county hospital authorities, or in

10-17    accordance with other laws relating to the issuance of revenue

10-18    bonds by hospital districts.

10-19          SECTION 22.  (a) Except as provided by Subsection (b) of this

10-20    section, this Act takes effect immediately.

10-21          (b)  Section 4 of this Act takes effect September 1, 1997.

10-22          SECTION 23.  The importance of this legislation and the

10-23    crowded condition of the calendars in both houses create an

10-24    emergency and an imperative public necessity that the

10-25    constitutional rule requiring bills to be read on three several

10-26    days in each house be suspended, and this rule is hereby suspended,

10-27    and that this Act take effect and be in force according to its

 11-1    terms, and it is so enacted.