By Lucio                                              S.B. No. 1614
         76R8792 KLA-D                           
                                A BILL TO BE ENTITLED
 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 FACILITY FOR
 1-7     OUTPATIENT HEALTH CARE SERVICES.  (a)  The Texas Department of
 1-8     Health shall contract for the construction of a new physical
 1-9     facility for outpatient health care services out of funds
1-10     appropriated to the department for that purpose.  The physical
1-11     facility must be:
1-12                 (1)  located at the site of the South Texas Hospital;
1-13     or
1-14                 (2)  colocated with the Regional Academic Health Center
1-15     at a common site in Harlingen, Texas, and adjacent to the center.
1-16           (b)  The contract under this section must specify that the
1-17     physical facility be designed and constructed to allow for the
1-18     provision of all outpatient health care services, including
1-19     outpatient tuberculosis services, provided at the South Texas
1-20     Hospital on the effective date of this Act.
1-21           (c)  If the physical facility constructed under Subsection
1-22     (a) of this section is colocated with the Regional Academic Health
1-23     Center, the contract under this section must specify that, to the
1-24     maximum extent possible, that facility and the Regional Academic
 2-1     Health Center must be designed and constructed together to realize
 2-2     potential savings in construction costs and long-term maintenance
 2-3     and operations costs by using common central utility plants,
 2-4     cafeterias, laundry facilities, maintenance facilities, and other
 2-5     support facilities.  The board of regents of The University of
 2-6     Texas System shall cooperate with the Texas Department of Health to
 2-7     coordinate the structure and design of the physical facilities of
 2-8     the facility constructed under Subsection (a) of this section and
 2-9     the Regional Academic Health Center to achieve a maximally
2-10     efficient use of resources.
2-11           SECTION 2.  OUTPATIENT HEALTH CARE SERVICES.  (a)  On
2-12     completion of a new physical facility required by Section 1 of this
2-13     Act, the provision of all outpatient health care services,
2-14     including outpatient tuberculosis services, provided by the South
2-15     Texas Hospital on the effective date of this Act shall be
2-16     transferred to the new physical facility.
2-17           (b)  The Texas Department of Health may contract with a
2-18     political subdivision for the management and operation of the
2-19     physical facility constructed under Section 1 of this Act and for
2-20     the provision of outpatient health care services at the facility.
2-21           SECTION 3.  INPATIENT HEALTH CARE AND LABORATORY SERVICES.
2-22     (a)   Out of funds appropriated to the Texas Department of Health
2-23     to provide inpatient health care services, the department shall
2-24     contract with any public or private health care provider or entity
2-25     for the provision of  inpatient health care services, including
2-26     inpatient tuberculosis services, and laboratory services provided
2-27     by the South Texas Hospital on the effective date of this Act.
 3-1           (b)  After entering into contracts required by Subsection (a)
 3-2     of this section, the South Texas Hospital shall cease to provide
 3-3     inpatient health care services.
 3-4           SECTION 4.  INTERIM RENOVATION OF PHYSICAL FACILITIES OF THE
 3-5     SOUTH TEXAS HOSPITAL.  Out of funds appropriated to the department
 3-6     for the purpose of this section, the Texas Department of Health
 3-7     shall contract for minimally necessary structural and design
 3-8     renovations to the physical facilities of the South Texas Hospital
 3-9     required for reaccreditation during 1999 by the Joint Commission on
3-10     Accreditation of Healthcare Organizations, required for compliance
3-11     with Texas Accessibility Standards and the federal Americans with
3-12     Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), as
3-13     amended, and required for the continued operation of the South
3-14     Texas Hospital to provide outpatient health care services until
3-15     construction of a new physical facility for the provision of those
3-16     services is completed.
3-17           SECTION 5.  FUTURE OF THE SOUTH TEXAS HOSPITAL.  (a)  The
3-18     South Texas Hospital shall close after:
3-19                 (1)  the person with whom the department has contracted
3-20     for the provision of inpatient health care and laboratory services
3-21     under Section 3 of this Act has begun providing those services; and
3-22                 (2)  the provision of outpatient health care services
3-23     is transferred to a new physical facility as required by Section 2
3-24     of this Act.
3-25           (b)  The Texas Board of Health and the General Services
3-26     Commission shall collaborate to prepare leasing and other options
3-27     for potential future uses of the physical facilities of the South
 4-1     Texas Hospital.
 4-2           SECTION 6.  CONTINUATION OF SUPPORT SERVICES.  (a)  If the
 4-3     new physical facility constructed as required by Section 1 of this
 4-4     Act is colocated with the Regional Academic Health Center, the
 4-5     Texas Department of Health and the Texas Department of Mental
 4-6     Health and  Mental Retardation shall enter into an interagency
 4-7     contract to provide for the continuation of support services for
 4-8     the facility operated by the Texas Department of Mental Health and
 4-9     Mental Retardation that is colocated with the South Texas Hospital.
4-10           (b)  The contract may include a provision requiring the Texas
4-11     Department of Health to continue providing employees for support
4-12     facilities at the site.
4-13           SECTION 7.  DISPLACED EMPLOYEES OF THE SOUTH TEXAS HOSPITAL.
4-14     (a)  To the extent possible out of available funds appropriated to
4-15     the Texas Department of Health, the department shall reassign a
4-16     member of the employee class of the department who is employed at
4-17     the South Texas Hospital and whose position is displaced as a
4-18     result of a contract entered into by the Texas Department of Health
4-19     under this Act or the closing of the South Texas Hospital to an
4-20     open position within the department for which the member is
4-21     qualified.
4-22           (b)  A contract awarded by the Texas Department of Health
4-23     under this Act must include a provision that, to the maximum extent
4-24     possible as determined by the contracting entity, the contracting
4-25     entity shall offer an employee of the South Texas Hospital whose
4-26     position is displaced as a result of the contract a similar
4-27     employment position with the contracting entity.
 5-1           SECTION 8.  TIME FRAME.  Not later than September 1, 2000,
 5-2     the Texas Department of Health shall enter into the contracts
 5-3     required by this Act.
 5-4           SECTION 9.  AMENDMENT.  Subchapter B, Chapter 814, Government
 5-5     Code, is amended by adding Section 814.1043 to read as follows:
 5-6           Sec. 814.1043.  TEMPORARY SERVICE RETIREMENT OPTION FOR
 5-7     MEMBERS AFFECTED BY THE TRANSFER OF SERVICES FROM THE SOUTH TEXAS
 5-8     HOSPITAL.  (a)  This section applies only to members of the
 5-9     employee class whose positions with the Texas Department of Health
5-10     at the South Texas Hospital are eliminated as a result of contracts
5-11     with public or private health care providers or entities or as a
5-12     result of the closing of the South Texas Hospital and who separate
5-13     from state service at that time.
5-14           (b)  A member described by Subsection (a) is eligible to
5-15     retire and receive a service retirement annuity if the member's
5-16     age and service credit, each increased by three years, would meet
5-17     age and service requirements for service retirement under Section
5-18     814.104(a) at the time the member separates from state service as
5-19     described by Subsection (a).  The annuity of a person who retires
5-20     under this subsection is computed on the person's accrued service
5-21     credit increased by three years.
5-22           (c)  A member described by Subsection (a) becomes eligible to
5-23     retire and receive a service retirement annuity on the date on
5-24     which the member would have met the age and service requirements
5-25     for service retirement under Section 814.104(a) had the member
5-26     remained employed by the state if, on the date of separation from
5-27     state service, the member's age and service credit, each increased
 6-1     by five years, would meet age and service requirements for service
 6-2     retirement under Section 814.104(a).  The annuity of a person who
 6-3     retires under this subsection is computed on the person's accrued
 6-4     service credit.
 6-5           (d)  If a member described by Subsection (c) is reemployed by
 6-6     the state before retirement, the time between the member's
 6-7     separation from state service and reemployment may be used only to
 6-8     compute eligibility for service retirement and may not be used to
 6-9     compute the amount of any service retirement annuity.
6-10           (e)  A member who applies to retire under this section and
6-11     the Texas Department of Health shall provide documentation required
6-12     by the retirement system to establish eligibility to retire under
6-13     this section.
6-14           (f)  This section applies only to positions eliminated on or
6-15     after the effective date of this section as a result of:
6-16                 (1)  a contract with a public or private health care
6-17     provider or entity entered into on or before September 1, 2000; or
6-18                 (2)  the closing of the South Texas Hospital.
6-19           SECTION 10.  SCHEDULE.  Not later than September 1, 2000, the
6-20     Texas Department of Health shall enter into the contracts required
6-21     by this Act.
6-22           SECTION 11.  EMERGENCY.  The importance of this legislation
6-23     and the crowded condition of the calendars in both houses create an
6-24     emergency and an imperative public necessity that the
6-25     constitutional rule requiring bills to be read on three several
6-26     days in each house be suspended, and this rule is hereby suspended,
6-27     and that this Act take effect and be in force from and after its
 7-1     passage, and it is so enacted.