HBA-MSH H.B. 3691 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3691
By: Dunnam
County Affairs
7/26/2001
Enrolled



BACKGROUND AND PURPOSE 

Under the Texas Constitution, the legislature is authorized to provide for,
by general or special law, the creation, establishment, maintenance, and
operation of hospital districts.  House Bill 3691 authorizes the creation
of the West Medical District. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3691 authorizes the creation of the West Medical District
(district) provides the creation and the levy of taxes are approved by the
voters and sets forth provisions relating to that election (SECTIONS 1.02
and 3.01-3.08).  The bill provides that the boundaries of the district are
coextensive with the boundaries of the West Independent School District in
McLennan County (SECTION 1.03).  The bill exempts such an election from
provisions relating to uniform election dates (SECTION 1.04).  The bill
provides that the district is governed by a board of seven directors who
serve three-year terms (SECTIONS 4.01 and 4.03).   

The bill set forth provisions relating to the election, qualifications,
terms, and compensation of directors, and administration of the board,
including naming the temporary directors (SECTIONS 2.01 and 4.01-4.11). The
bill authorizes the board to appoint an administrator, assistant
administrator, and employ other necessary employees (SECTIONS 4.12-4.14).
On creation of the district, the bill authorizes the West Hospital
Authority in the authority's sole discretion to convey or transfer property
and funds to district.  The bill sets forth the general powers and duties
of the board, including full responsibility for operating hospital
facilities and providing medical care for the district's needy inhabitants
(SECTIONS 5.01-5.04, and 5.12). The bill authorizes the board to adopt
rules governing the operations of the hospital and hospital system
(SECTIONS 5.05 and 5.06). The bill provides that the board has complete
discretion as to the type and extent of services offered.  The bill
authorizes the board to acquire property, facilities, and equipment, and
enter into contracts (SECTIONS 5.07, 5.08, and 5.14).  

The bill authorizes the district to exercise the power of eminent domain,
and sets forth provisions relating to that power (SECTIONS 5.10 and 5.11).
The bill provides that the board shall require reimbursement from a county,
municipality, or public hospital located outside the district for the
district's care and treatment of a sick, diseased, or injured person of
that county, municipality, or public hospital (SECTION 5.13).  The bill
authorizes the board to accept gifts and endowments, sue and be sued on
behalf of the district, provide retirement  benefits for employees, spend
district funds to recruit physicians, and create a nonprofit corporation
(SECTIONS 5.15-5.19).  The bill sets forth provisions relating to the
finances of the district, including preparation of an annual budget,
borrowing of money, and naming of a depository bank (SECTIONS 6.01-6.10).
The bill authorizes the board to issue and sell bonds and levy property
taxes in an amount not to exceed 75 cents on each $100 valuation of all
taxable property in the district with the approval of a majority of the
voters of the district and sets forth provisions relating to the election
and  execution of the bonds and taxes (SECTIONS 7.01-8.04).  The bill sets
forth provisions relating to the dissolution of the district (SECTIONS
9.01-9.04).  The bill prohibits the state from becoming obligated for the
support or maintenance of the district (SECTION 10.01). 

EFFECTIVE DATE

June 16, 2001.