1-1                                   AN ACT
 1-2     relating to the long-range plan for the South Texas Hospital and
 1-3     the provision of tuberculosis and other health care services in the
 1-4     Lower Rio Grande Valley.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  CONSTRUCTION OF NEW PHYSICAL FACILITIES FOR
 1-7     OUTPATIENT HEALTH CARE SERVICES.  (a)  The Texas Department of
 1-8     Health shall contract for the construction of an initial, new
 1-9     physical facility for outpatient health care services out of funds
1-10     appropriated to the department for that purpose.
1-11           (b)  The initial physical facility constructed under
1-12     Subsection (a) of this section must be:
1-13                 (1)  located at the site of the South Texas Hospital in
1-14     Harlingen, Texas; or
1-15                 (2)  colocated with the initial site of the Regional
1-16     Academic Health Center at a common site in Harlingen, Texas, and
1-17     adjacent to the center.
1-18           (c)  The contract under Subsection (a) of this section for
1-19     the construction of the initial physical facility in Harlingen,
1-20     Texas, must specify that the physical facility be designed and
1-21     constructed to allow for the provision of all outpatient health
1-22     care services, including outpatient tuberculosis services, provided
1-23     at the South Texas Hospital on the effective date of this Act.  The
1-24     facility may be designed and constructed to allow for the provision
 2-1     of additional outpatient health care services.
 2-2           (d)  If the initial physical facility constructed under
 2-3     Subsection (a) of this section is colocated with the Regional
 2-4     Academic Health Center, the contract under this section must
 2-5     specify that, to the maximum extent possible, that facility and the
 2-6     Regional Academic Health Center must be designed and constructed
 2-7     together to realize potential savings in construction costs and
 2-8     long-term maintenance and operations costs by using common central
 2-9     utility plants, cafeterias, laundry facilities, maintenance
2-10     facilities, and other support facilities.  The board of regents of
2-11     The University of Texas System shall cooperate with the Texas
2-12     Department of Health to coordinate the structure and design of the
2-13     physical facilities of the facility constructed under Subsection
2-14     (a) of this section and the Regional Academic Health Center to
2-15     achieve a maximally efficient use of resources.
2-16           (e)  Out of funds available to the Texas Department of Health
2-17     for that purpose, the department may contract for the construction
2-18     of additional physical facilities for outpatient health care
2-19     services, including outpatient tuberculosis services.  One facility
2-20     may be located in McAllen, Texas, and another facility may be
2-21     located in Brownsville, Texas.
2-22           SECTION 2.  OUTPATIENT HEALTH CARE SERVICES.  (a)  On
2-23     completion of the initial physical facility in Harlingen, Texas,
2-24     required by Section 1 of this Act, the provision of all outpatient
2-25     health care services, including outpatient tuberculosis services,
2-26     provided by the South Texas Hospital on the effective date of this
2-27     Act shall be transferred to that facility.
 3-1           (b)  The Texas Department of Health may contract with one or
 3-2     more public or private health care providers or entities for the
 3-3     management and operation of the physical facilities constructed
 3-4     under Section 1 of this Act and for the provision of outpatient
 3-5     health care services at those facilities.
 3-6           SECTION 3.  INPATIENT HEALTH CARE AND RELATED LABORATORY
 3-7     SERVICES.  Out of funds appropriated to the Texas Department of
 3-8     Health to provide inpatient health care services, the department
 3-9     shall contract with one or more public or private health care
3-10     providers or entities, including a political subdivision that is
3-11     located in the Rio Grande Valley region and is responsible for
3-12     providing health care services to its residents, for the provision
3-13     of inpatient health care services, including inpatient tuberculosis
3-14     services, and related laboratory services provided by the South
3-15     Texas Hospital on the effective date of this Act.
3-16           SECTION 4.  INTERIM RENOVATION OF PHYSICAL FACILITIES OF
3-17     SOUTH TEXAS HOSPITAL.  Out of funds appropriated to the department
3-18     for the purpose of this section, the Texas Department of Health
3-19     shall contract for minimally necessary structural and design
3-20     renovations to the physical facilities of the South Texas Hospital
3-21     required for compliance with Texas Accessibility Standards and the
3-22     federal Americans with Disabilities Act of 1990 (42 U.S.C. Section
3-23     12101 et seq.), as amended, and for the continued operation of the
3-24     South Texas Hospital to provide outpatient health care services
3-25     until construction of the initial physical facility required by
3-26     Section 1 of this Act in Harlingen, Texas, for the provision of
3-27     those services is completed.
 4-1           SECTION 5.  FUTURE OF SOUTH TEXAS HOSPITAL.  The Texas Board
 4-2     of Health shall give the Texas Department of Mental Health and
 4-3     Mental Retardation the first option to lease the current physical
 4-4     facilities of the South Texas Hospital on completion of
 4-5     construction of the initial physical facility required by Section 1
 4-6     of this Act for outpatient health care services in Harlingen,
 4-7     Texas, and after contracting providers or entities under Section 3
 4-8     of this Act have begun providing inpatient health care and related
 4-9     laboratory services.  If the Texas Department of Mental Health and
4-10     Mental Retardation does not lease the facilities, the Texas Board
4-11     of Health shall study and prepare leasing and other options for
4-12     potential future uses of the facilities.
4-13           SECTION 6.  CONTINUATION OF SUPPORT SERVICES.  (a)  If the
4-14     initial physical facility constructed as required by Section 1 of
4-15     this Act is colocated with the Regional Academic Health Center, the
4-16     Texas Department of Health and the Texas Department of Mental
4-17     Health and Mental Retardation shall enter into an interagency
4-18     contract to provide for the continuation of support services for
4-19     the facility operated by the Texas Department of Mental Health and
4-20     Mental Retardation that is colocated with the South Texas Hospital.
4-21           (b)  The contract may include a provision requiring the Texas
4-22     Department of Health to continue providing employees for support
4-23     facilities at the site.
4-24           SECTION 7.  DISPLACED EMPLOYEES OF SOUTH TEXAS HOSPITAL.  (a)
4-25     Out of available funds appropriated to the Texas Department of
4-26     Health, the department shall reassign a member of the employee
4-27     class of the department who is employed at the South Texas Hospital
 5-1     and whose position is displaced as a result of a contract entered
 5-2     into by the Texas Department of Health under this Act or the
 5-3     transfer of services from the South Texas Hospital to an open
 5-4     position within the department in reasonable proximity to the South
 5-5     Texas Hospital and for which the member is qualified. If
 5-6     reassignment of a member of the employee class to another position
 5-7     within the department is not possible, the department shall provide
 5-8     job placement assistance to the member.
 5-9           (b)  A contract awarded by the Texas Department of Health
5-10     under this Act must include a provision that the contracting entity
5-11     shall offer an employee of the South Texas Hospital whose position
5-12     is displaced as a result of the contract a similar employment
5-13     position with the contracting entity before offering the position
5-14     to any other person if the contracting entity determines that the
5-15     displaced employee is qualified for the position.
5-16           SECTION 8.  TIME FRAME.  Not later than September 1, 2000,
5-17     the Texas Department of Health shall enter into the contracts
5-18     required by this Act.
5-19           SECTION 9.  AMENDMENTS.  (a)  Subchapter B, Chapter 814,
5-20     Government Code, is amended by adding Section 814.1043 to read as
5-21     follows:
5-22           Sec. 814.1043.  TEMPORARY SERVICE RETIREMENT OPTION FOR
5-23     MEMBERS EMPLOYED AT SOUTH TEXAS HOSPITAL.  (a)  This section
5-24     applies only to members of the employee class who are employed by
5-25     the Texas Department of Health at the South Texas Hospital on or
5-26     after the effective date of this section and on or before September
5-27     1, 2000, and who separate from state service during that time.
 6-1           (b)  A member described by Subsection (a) is eligible to
 6-2     retire and receive a service retirement annuity if the member's age
 6-3     and service credit, each increased by three years, would meet age
 6-4     and service requirements for service retirement under Section
 6-5     814.104(a) at the time the member separates from state service as
 6-6     described by Subsection (a).  The annuity of a person who retires
 6-7     under this subsection is computed on the person's accrued service
 6-8     credit increased by three years.
 6-9           (c)  A member described by Subsection (a) becomes eligible to
6-10     retire and receive a service retirement annuity on the date on
6-11     which the member would have met the age and service requirements
6-12     for service retirement under Section 814.104(a) had the member
6-13     remained employed by the state if, on the date of separation from
6-14     state service, the member's age and service credit, each increased
6-15     by five years, would meet age and service requirements for service
6-16     retirement under Section 814.104(a).  The annuity of a person who
6-17     retires under this subsection is computed on the person's accrued
6-18     service credit.
6-19           (d)  If a member described by Subsection (c) is reemployed by
6-20     the state before retirement, the time between the member's
6-21     separation from state service and reemployment may be used only to
6-22     compute eligibility for service retirement and may not be used to
6-23     compute the amount of any service retirement annuity.
6-24           (e)  A member who applies to retire under this section and
6-25     the Texas Department of Health shall provide documentation required
6-26     by the retirement system to establish eligibility to retire under
6-27     this section.
 7-1           (b)  Section 13.003, Health and Safety Code, is amended to
 7-2     read as follows:
 7-3           Sec. 13.003.  SERVICES AT SOUTH TEXAS HOSPITAL.   (a)  The
 7-4     primary purpose of the South Texas Hospital is to provide inpatient
 7-5     and outpatient services, either directly or by contract with one or
 7-6     more public or private health care providers or entities, to the
 7-7     residents of the Lower Rio Grande Valley.
 7-8           (b)  The board may establish at the South Texas Hospital:
 7-9                 (1)  cancer screening;
7-10                 (2)  diagnostic services;
7-11                 (3)  educational services;
7-12                 (4)  obstetrical services;
7-13                 (5)  gynecological services; [and]
7-14                 (6)  other inpatient health care services; and
7-15                 (7)  outpatient health care services, including
7-16     diagnostic, treatment, disease management, and supportive care
7-17     services.
7-18           SECTION 10.  This Act takes effect only if a specific
7-19     appropriation for the implementation of this Act is provided in
7-20     H.B. No. 1 (General Appropriations Act), Acts of the 76th
7-21     Legislature, Regular Session, 1999.  If no specific appropriation
7-22     is provided in H.B. No. 1, the General Appropriations Act, this Act
7-23     has no effect.
7-24           SECTION 11.  EMERGENCY.  The importance of this legislation
7-25     and the crowded condition of the calendars in both houses create an
7-26     emergency and an imperative public necessity that the
7-27     constitutional rule requiring bills to be read on three several
 8-1     days in each house be suspended, and this rule is hereby suspended,
 8-2     and that this Act take effect and be in force from and after its
 8-3     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3504 was passed by the House on April
         27, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 3504 on May 21, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3504 was passed by the Senate, with
         amendments, on May 19, 1999, by the following vote:  Yeas 29, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor