By:  Chisum (Senate Sponsor - Bivins)                 H.B. No. 3457

 1-1     By:  Chisum (Senate Sponsor - Bivins)                 H.B. No. 3457

 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 2, 1997, reported adversely, with

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

 1-6     Nays 0; May 2, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 3457                By:  Galloway

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the Hutchinson County Hospital District.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 4.01(a), Chapter 77, Acts of the 71st

1-13     Legislature, Regular Session, 1989, is amended to read as follows:

1-14           (a)  The district is governed by a board of seven directors,

1-15     four of whom are elected and three of whom are appointed by the

1-16     Commissioners Court of Hutchinson County as prescribed by Section

1-17     4.03 of this Act.

1-18           SECTION 2.  Section 4.03 (d), Chapter 77, Acts of the 71st

1-19     Legislature, Regular Session, 1989, is amended to read as follows:

1-20           (d)  After the initial election of directors, an election

1-21     shall be held on the first Saturday in May each year and the

1-22     appropriate number of successor directors shall be elected for

1-23     staggered three-year terms, with as near as possible to one-third

1-24     of the elected members' terms expiring each year.  The

 2-1     commissioners court shall annually within 10 days of the date that

 2-2     elected directors are elected appoint the appropriate number of

 2-3     successor appointed directors to serve staggered three-year terms.

 2-4     The commissioners court may not appoint a person to serve more than

 2-5     two successive terms.

 2-6           SECTION 3.  Section 4.05, Chapter 77, Acts of the 71st

 2-7     Legislature, Regular Session, 1989, is amended by amending

 2-8     Subsection (a) and adding Subsection (d) to read as follows:

 2-9           (a)  A person who wishes to have his name printed on the

2-10     ballot as a candidate for a position as an elected director, in

2-11     accordance with Chapter 144, Election Code, and to the extent that

2-12     chapter does not conflict with Article 4 of this Act, must file

2-13     with the secretary of the board of directors an application signed

2-14     by the person asking that his name be placed on the ballot.

2-15           (d)  Subchapter C, Chapter 2, Election Code, applies to the

2-16     election of unopposed candidates for the board of directors.

2-17           SECTION 4.  Chapter 77, Acts of the 71st Legislature, Regular

2-18     Session, 1989,is amended by adding Section 4.055 to read as

2-19     follows:

2-20           Sec. 4.055.  WRITE-IN VOTING IN ELECTION.  (a)  In a general

2-21     or special election of directors, a write-in vote may not be

2-22     counted unless the name written in appears on the list of write-in

2-23     candidates.

2-24           (b)  To be entitled to a place on the list of write-in

2-25     candidates, a candidate must make a declaration of write-in

2-26     candidacy.

2-27           (c)  A declaration of write-in candidacy must be filed with

 3-1     the secretary of the board of directors not later than 5 p.m. of

 3-2     the 25th day before election day.  However, if a candidate whose

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

 3-4     after the 28th day before election day, a declaration of write-in

 3-5     candidacy for the office sought by the deceased or ineligible

 3-6     candidate may be filed not later than 5 p.m. of the 22nd day before

 3-7     election day.

 3-8           (d)  Subchapter B, Chapter 146, Election Code, applies to

 3-9     write-in voting in an election of directors except to the extent of

3-10     a conflict with this section.

3-11           SECTION 5.  Section 4.12, Chapter 77, Acts of the 71st

3-12     Legislature, Regular Session, 1989, is amended to read as follows:

3-13           Sec. 4.12.  ADMINISTRATORS [ADMINISTRATOR], ASSISTANT

3-14     ADMINISTRATORS [ADMINISTRATOR], AND ATTORNEY.  (a)  The board may

3-15     appoint qualified persons as administrator of the district,

3-16     administrator of ancillary health care facilities of the district,

3-17     assistant administrators [administrator], and attorney for the

3-18     district.

3-19           (b)  The administrators [administrator], assistant

3-20     administrators [administrator], and attorney serve at the will of

3-21     the board.

3-22           (c)  The administrators [administrator], assistant

3-23     administrators [administrator], and attorney are entitled to

3-24     compensation as determined by the board.

3-25           (d)  Before assuming the administrator's [his] duties, the

3-26     district administrator shall execute a bond payable to the hospital

3-27     district in an amount of not less than $5,000 as determined by the

 4-1     board, conditioned on the faithful performance of the

 4-2     administrator's [his] duties under this Act.  The board may pay for

 4-3     the bond with district funds.

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

 4-5     Legislature, Regular Session, 1989, is amended to read as follows:

 4-6           (b)  The board may delegate to the district administrator the

 4-7     authority to employ persons for the district.

 4-8           SECTION 7.  Section 4.15, Chapter 77, Acts of the 71st

 4-9     Legislature, Regular Session, 1989, is amended to read as follows:

4-10           Sec. 4.15.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

4-11     (a)  The district administrator shall supervise the work and

4-12     activities of district facilities and the staff, employees,

4-13     contractors, and agents of the district.  The district

4-14     administrator [and] shall direct the general affairs of the

4-15     district, subject to the limitations prescribed by the board.

4-16           (b)  The district administrator is responsible for the

4-17     overall management of all district facilities, including ancillary

4-18     health care facilities.

4-19           SECTION 8.  Section 5.02, Chapter 77, Acts of the 71st

4-20     Legislature, Regular Session, 1989, is amended to read as follows:

4-21           Sec. 5.02.  DISTRICT RESPONSIBILITIES.  On creation of the

4-22     district, the district:

4-23                 (1)  assumes full responsibility for operating hospital

4-24     and ancillary health care facilities and for furnishing medical,

4-25     [and] hospital, and ancillary health care for the district's needy

4-26     inhabitants;

4-27                 (2)  assumes any outstanding indebtedness incurred by

 5-1     Hutchinson County in providing hospital care for residents of the

 5-2     territory of the district before the district's creation; and

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

 5-4     mobile emergency medical service.

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

 5-6     Legislature, Regular Session, 1989, is amended to read as follows:

 5-7           Sec. 5.03.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The

 5-8     board shall manage, control, and administer the hospital system,

 5-9     the ancillary health care system, and the funds and resources of

5-10     the district.

5-11           SECTION 10.  Section 5.04, Chapter 77, Acts of the 71st

5-12     Legislature, Regular Session, 1989, is amended to read as follows:

5-13           Sec. 5.04.  DISTRICT RULES.  The board may adopt rules

5-14     governing the operation of the hospital, ancillary health care

5-15     facilities, ancillary health care system, and hospital system and

5-16     the duties, functions, and responsibilities of the [district]

5-17     staff, [and] employees, contractors, or agents of the district.

5-18           SECTION 11.  Section 5.06, Chapter 77, Acts of the 71st

5-19     Legislature, Regular Session, 1989, is amended to read as follows:

5-20           Sec. 5.06.  HOSPITAL AND ANCILLARY HEALTH CARE PROPERTY,

5-21     FACILITIES, AND EQUIPMENT.  (a)  The board has complete discretion

5-22     to [shall] determine the type, number, and location, either inside

5-23     or outside the district, of facilities [buildings] required to

5-24     establish and maintain an adequate hospital system and ancillary

5-25     health care system, and the type of equipment necessary for

5-26     hospital care and ancillary health care, including domiciliary care

5-27     and treatment of sick or injured patients, geriatric services,

 6-1     outpatient clinics, rural health clinics, convalescent home

 6-2     facilities, physician's offices, home health services, durable

 6-3     medical equipment, long-term care, skilled nursing care,

 6-4     intermediate nursing care, hospice care, ambulatory surgery

 6-5     centers, urgent care facilities, operation of a mobile emergency

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

 6-7     considers necessary for the delivery of hospital, medical, and

 6-8     ancillary health care services.

 6-9           (b)  The board may acquire by lease, purchase, or lease to

6-10     purchase property, facilities, supplies, and equipment for the

6-11     district for use in the hospital system and ancillary health care

6-12     system and may mortgage or pledge the property, facilities,

6-13     supplies, or equipment acquired as security for the payment of the

6-14     purchase price.

6-15           (c)  The board, on behalf of the district, may lease or sell

6-16     all or part of the hospital facilities or ancillary health care

6-17     facilities [on behalf of the district].

6-18           (d)  The board, on behalf of the district, may lease, sell,

6-19     or otherwise dispose of all or part of the district's property,

6-20     facilities, supplies, or equipment to a public or private entity

6-21     [on behalf of the district].

6-22           SECTION 12.  Section 5.07(c), Chapter 77, Acts of the 71st

6-23     Legislature, Regular Session, 1989, is amended to read as follows:

6-24           (c)  Chapter 2253, Government Code [Article 5160, Revised

6-25     Statutes], as it relates to performance and payment bonds, applies

6-26     to construction contracts let by the district.

6-27           SECTION 13.  Section 5.08, Chapter 77, Acts of the 71st

 7-1     Legislature, Regular Session, 1989, is amended to read as follows:

 7-2           Sec. 5.08.  DISTRICT OPERATING AND MANAGEMENT CONTRACTS.  The

 7-3     board, on behalf of the district, may enter into operating or

 7-4     management contracts with one or more public or private entities

 7-5     relating to hospital and ancillary health care facilities and

 7-6     services [on behalf of the district].

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

 7-8     the 71st Legislature, Regular Session, 1989, are amended to read as

 7-9     follows:

7-10           (b)  Not later than the beginning of each operating year, the

7-11     district shall adopt an application procedure to determine

7-12     eligibility for assistance, as provided by Section 61.053, Health

7-13     and Safety Code [10.03, Indigent Health Care and Treatment Act

7-14     (Article 4438f, Vernon's Texas Civil Statutes)].

7-15           (c)  The administrator of the district may have an inquiry

7-16     made into the financial circumstances of any patient [residing in

7-17     the district and] admitted to a district facility and into the

7-18     financial circumstances of a relative of the patient who is legally

7-19     responsible for the patient's support.

7-20           SECTION 15.  Sections 5.12(a) and (c), Chapter 77, Acts of

7-21     the 71st Legislature, Regular Session, 1989, are amended to read as

7-22     follows:

7-23           (a)  The board shall require reimbursement from a county,

7-24     city, or public hospital located outside the boundaries of the

7-25     district for the district's care and treatment of a sick, diseased,

7-26     or injured person of that county, city, or public hospital as

7-27     provided by Chapter 61, Health and Safety Code [the Indigent Health

 8-1     Care and Treatment Act (Article 4438f, Vernon's Texas Civil

 8-2     Statutes)].

 8-3           (c)  The board may contract with this or another [the] state,

 8-4     the [or] federal government, or an agency or political subdivision

 8-5     of this or another state or the federal government [for the state

 8-6     or federal government] to reimburse the district for the care and

 8-7     treatment of a sick, diseased, or injured person.

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

 8-9     Legislature, Regular Session, 1989, is amended to read as follows:

8-10           Sec. 5.13.  SERVICE CONTRACTS.  The board may contract with

8-11     any [a] city, county, special district, or state, the federal

8-12     government, an agency or [other] political subdivision of those

8-13     public entities, or a charitable or other private entity [the state

8-14     or with a state or federal agency] for the district to furnish a

8-15     mobile emergency medical service or to provide for the

8-16     investigatory or welfare needs of inhabitants of the district or of

8-17     persons for whom the public or private entity has an obligation to

8-18     provide care.

8-19           SECTION 17.  Chapter 77, Acts of the 71st Legislature,

8-20     Regular Session, 1989, is amended by adding Section 5.19 to read as

8-21     follows:

8-22           Sec. 5.19.  JOINT OWNERSHIP ARRANGEMENTS.  (a)  The board, on

8-23     behalf of the district, may enter into a joint ownership

8-24     arrangement with one or more public or private entities for the:

8-25                 (1)  provision of management or operating services; and

8-26                 (2)  ownership of all or part of real property,

8-27     facilities, equipment, or supplies.

 9-1           (b)  The board must determine the arrangement is in the

 9-2     district's best interest and is for a public purpose of the

 9-3     district before the board enters into an arrangement under this

 9-4     section.

 9-5           SECTION 18.  Section 6.05(d), Chapter 77, Acts of the 71st

 9-6     Legislature, Regular Session, 1989, is amended to read as follows:

 9-7           (d)  At the conclusion of the hearing, the board shall adopt

 9-8     a budget by acting on the budget proposed by the district

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

9-10     budget that the board considers proper to provide adequate

9-11     [hospital] care and treatment at a hospital or ancillary health

9-12     care facility of the district.

9-13           SECTION 19.  Section 6.09(b), Chapter 77, Acts of the 71st

9-14     Legislature, Regular Session, 1989, is amended to read as follows:

9-15           (b)  The board may invest operating, depreciation, or

9-16     building reserves [only] in funds or securities specified by

9-17     Article 836 or 837, Revised Statutes, or by Chapter 2256,

9-18     Government Code, or in any other investment vehicle or fund if the

9-19     board determines that investing the reserves in that vehicle or

9-20     fund is in the district's best interest and does not violate the

9-21     Texas Constitution [the Public Funds Investment Act of 1987

9-22     (Article 842a-2, Vernon's Texas Civil Statutes)].

9-23           SECTION 20.  Section 7.01, Chapter 77, Acts of the 71st

9-24     Legislature, Regular Session, 1989, is amended to read as follows:

9-25           Sec. 7.01.  GENERAL OBLIGATION BONDS.  The board may issue

9-26     and sell bonds authorized by an election in the name and on the

9-27     faith and credit of the hospital district to:

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

 10-2    renovate buildings, facilities, equipment, or improvements for

 10-3    hospital purposes, including facilities and improvements incidental

 10-4    and beneficial to operating and maintaining hospitals and ancillary

 10-5    facilities that provide medical and ancillary health care services

 10-6    and treatment; or

 10-7                (2)  acquire and operate a mobile emergency medical

 10-8    service.

 10-9          SECTION 21.  Sections 7.04(a) and (c), Chapter 77, Acts of

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

10-11    follows:

10-12          (a)  The board may issue revenue bonds to:

10-13                (1)  purchase, construct, acquire, repair, equip, or

10-14    renovate buildings or improvements for hospital and ancillary

10-15    health care purposes;

10-16                (2)  acquire sites to be used for hospital and

10-17    ancillary health care purposes; or

10-18                (3)  acquire and operate a mobile emergency medical

10-19    service to assist the district in carrying out its hospital and

10-20    ancillary health care purposes.

10-21          (c)  The bonds must be issued in the manner provided by

10-22    Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,

10-23    Health and Safety Code [8, 10, 11, 12, and 13, County Hospital

10-24    Authority Act (Article 4494r, Vernon's Texas Civil Statutes)], for

10-25    issuance of revenue bonds by county hospital authorities, or in

10-26    accordance with other laws relating to the issuance of revenue

10-27    bonds by hospital districts.

 11-1          SECTION 22.  (a)  Except as provided by Subsection (b) of

 11-2    this section, this Act takes effect immediately.

 11-3          (b)  Section 4 of this Act takes effect September 1, 1997.

 11-4          SECTION 23.  The importance of this legislation and the

 11-5    crowded condition of the calendars in both houses create an

 11-6    emergency and an imperative public necessity that the

 11-7    constitutional rule requiring bills to be read on three several

 11-8    days in each house be suspended, and this rule is hereby suspended,

 11-9    and that this Act take effect and be in force according to its

11-10    terms, and it is so enacted.

11-11                                 * * * * *