76R10142 KLA-F                           
         By Chisum                                             H.B. No. 3122
         Substitute the following for H.B. No. 3122:
         By Swinford                                       C.S.H.B. No. 3122
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers, duties, and operations of the
 1-3     Dallam-Hartley Counties Hospital District.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 4, Chapter 128, Acts of the 66th
 1-6     Legislature, Regular Session, 1979, is amended by adding
 1-7     Subsections (d) and (e) to read as follows:
 1-8           (d)  The district may contract with, affiliate with, have an
 1-9     ownership interest in, or enter into another arrangement with a
1-10     managed care system, a preferred provider organization, a health
1-11     maintenance organization, a medical services organization, another
1-12     provider of alternative health care or delivery system, or a
1-13     private hospital to jointly administer or deliver health care
1-14     services.  The district may spend district funds to establish,
1-15     maintain, and have an ownership interest in partnerships,
1-16     corporations, or other entities involved in the delivery of health
1-17     care services.
1-18           (e)  The district may sponsor, create, and have a membership
1-19     interest in a nonstock corporation under the Texas Non-Profit
1-20     Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
1-21     Statutes) and may contribute funds to or solicit funds for the
1-22     corporation.  The corporation may use funds, other than funds paid
1-23     by the corporation to the district, only to provide health care or
1-24     other services the district may provide under this Act.  The board
 2-1     of directors of the hospital district shall establish adequate
 2-2     controls to ensure that the corporation uses its funds as required
 2-3     by this subsection.  The corporation may invest corporation funds
 2-4     in any manner in which the district may invest funds, including
 2-5     investing funds as authorized by Chapter 2256, Government Code.
 2-6           SECTION 2.  Section 8(b), Chapter 128, Acts of the 66th
 2-7     Legislature, Regular Session, 1979, is amended to read as follows:
 2-8           (b)  The board may prescribe the method and manner of making
 2-9     purchases and expenditures by and for the hospital district, and
2-10     may prescribe all accounting and control procedures.  Contracts for
2-11     construction involving the expenditure of the amount specified by
2-12     Section 271.024, Local Government Code, [more than  $10,000] may be
2-13     made only after advertising in the manner provided by Subchapter B,
2-14     Chapter 271, Local Government Code.  The provisions of Chapter
2-15     2253, Government Code [Article 5160, Revised Civil Statutes of
2-16     Texas, 1925, as amended], relating to performance and  payment
2-17     bonds [shall] apply to construction contracts let by the district.
2-18     The board may acquire by lease, purchase, or lease to purchase
2-19     property, facilities, supplies, or equipment.  The board [and] may
2-20     mortgage or pledge the property, facilities, supplies, or equipment
2-21     and may pledge the revenues from the property, facilities,
2-22     supplies, or equipment as security for the payment of the purchase
2-23     price.  Except as permitted in this subsection and Sections 4A, 6,
2-24     and 7 of this Act, the district may incur no obligation payable
2-25     from revenues of the district, tax or otherwise, except those on
2-26     hand or to be on hand within the then current and following fiscal
2-27     years of the district.
 3-1           SECTION 3.  The importance of this legislation and the
 3-2     crowded condition of the calendars in both houses create an
 3-3     emergency and an imperative public necessity that the
 3-4     constitutional rule requiring bills to be read on three several
 3-5     days in each house be suspended, and this rule is hereby suspended,
 3-6     and that this Act take effect and be in force from and after its
 3-7     passage, and it is so enacted.