By:  Bivins                                           S.B. No. 1526
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the Dallam-Hartley Counties Hospital District.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Section 4, Chapter 128, Acts of the 66th
 1-4     Legislature, Regular Session, 1979, is amended by adding
 1-5     subsections (d) and (e) to read as follows:
 1-6           (d)  The district may contract with, affiliate with, have an
 1-7     ownership interest in, or enter into another arrangement with a
 1-8     managed care system, a preferred provider organization, a health
 1-9     maintenance organization, a medical services organization, another
1-10     provider of alternative health care or delivery system or a private
1-11     hospital to jointly administer or deliver health care services.
1-12     The district may spend district funds to establish, maintain and
1-13     have an ownership interest in, partnerships, corporations, or other
1-14     entities involved in the delivery of health care services.
1-15           (e)  The district may sponsor, create and have a membership
1-16     interest in a nonstock corporation under the Texas Non-Profit
1-17     Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
1-18     Statutes) and may contribute funds to or solicit funds for the
1-19     corporation.  The corporation may use funds, other than funds paid
1-20     by the corporation to the district, only to provide health care or
1-21     other services the district may provide under the Act.  The board
1-22     of directors of the district shall establish adequate controls to
 2-1     ensure that the corporation uses its funds as required by this
 2-2     subsection.  The corporation may invest corporation funds in any
 2-3     manner in which the district may invest funds, including investing
 2-4     funds as authorized by Chapter 2256, Government Code.
 2-5           SECTION 2.  Sec. 8(b), Chapter 128, Acts of the 66th
 2-6     Legislature, Regular Session, 1979, is amended to read as follows:
 2-7           (b)  The board may prescribe the method and manner of making
 2-8     purchases and expenditures by and for the hospital district, and
 2-9     may prescribe all accounting and control procedures.  Contracts for
2-10     construction involving the expenditure of more than [$10,000] the
2-11     amount specified in Subchapter B, Chapter 271, Section 271.024,
2-12     Local Government Code, may be made only after advertising in the
2-13     manner provided by Subchapter B, Chapter 251, Local Government
2-14     Code.  The provisions of [Article 5160, Revised Civil Statutes of
2-15     Texas, 1925,] Chapter 2253, Tex. Government Code, as amended,
2-16     relating to performance and repayment bonds shall apply to
2-17     construction contracts let by the district.  The board may acquire
2-18     by lease, purchase, or lease to purchase property, facilities,
2-19     supplies, or equipment and may mortgage or pledge the property,
2-20     facilities, supplies or equipment, and the revenues therefrom, as
2-21     security for the payment of the purchase price.  Except as
2-22     permitted in this subsection and Sections 4A, 6, and 7 of this Act,
2-23     the district may incur no obligation payable from revenues of the
2-24     district, tax or otherwise, except those on hand or to be on hand
2-25     within the then current and following fiscal years of the district.
2-26           SECTION 3.  The importance of this legislation and the
 3-1     crowded condition of the calendars in both houses create an
 3-2     emergency and an imperative public necessity that the
 3-3     constitutional rule requiring bills to be read on three several
 3-4     days in each house be suspended, and this rule is hereby suspended,
 3-5     and that this Act take effect and be in force from and after its
 3-6     passage, and it is so enacted.