By Christian                                           H.B. No. 170
         77R891 AEI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the Nacogdoches County Hospital District.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 4, Chapter 431, Acts of the 60th
 1-5     Legislature, Regular Session, 1967, is amended to read as follows:
 1-6           Sec. 4.  (a)  One director is elected from each commissioner
 1-7     precinct and three directors are elected at large. Directors serve
 1-8     staggered three-year [two-year] terms.  Each director and the
 1-9     director's [his] successor in office shall qualify by executing the
1-10     constitutional oath of office, and such directors, acting as a
1-11     board, shall have and exercise the powers hereafter conferred.
1-12           (b)  To be eligible to be a candidate for or to serve as a
1-13     director, a person must be a resident of the district and a
1-14     qualified voter.  In addition to those qualifications, a person who
1-15     is elected from a commissioner precinct or who is appointed to fill
1-16     a vacancy for a commissioner precinct must be a resident of that
1-17     commissioner precinct.  An employee of the district may not serve
1-18     as a director.
1-19           (c)  The board of directors shall organize by electing one of
1-20     their number as president and one of their number as vice
1-21     president.  Each officer of the board serves for a term of one
1-22     year.  The board shall fill a vacancy in a board office for the
1-23     unexpired term.  A secretary, who need not be a director, shall
1-24     also be elected.  Any four members of the board of directors shall
 2-1     constitute a quorum and a majority of the members of the board
 2-2     voting must concur in a matter relating to the business of the
 2-3     district.  All vacancies in the office of director shall be filled
 2-4     for the unexpired term by appointment of the remainder of the board
 2-5     of directors.  In the event the number of directors shall be
 2-6     reduced to less than four for any reason, the remaining directors
 2-7     shall immediately call a special election to fill said vacancies,
 2-8     and upon failure to do so, a district court, upon application of
 2-9     any elector or taxpayer of the district, may issue a mandate
2-10     requiring that such election be ordered by the remaining directors.
2-11           (d)  A regular election of directors shall be held on the
2-12     first Saturday in May of each year and the appropriate number of
2-13     successor directors shall be elected.  Notice of such election
2-14     shall be published in a newspaper of general circulation in the
2-15     county one time in accordance with Section 4.003, Election Code [at
2-16     least 10 days prior to the date of election].  Any person desiring
2-17     the person's [his] name to be printed on the ballot as a candidate
2-18     for director shall file an application [a petition, signed by not
2-19     less than 25 qualified electors asking that such name be printed on
2-20     the ballot,] with the secretary of the board of directors of the
2-21     district, in accordance with Section 144.005, Election Code. The
2-22     application [petition] must specify the commissioner precinct the
2-23     person wants to represent or that the person wants to represent the
2-24     district at large.  [Such petition shall be so filed at least 25
2-25     days prior to the date of election.]  The secretary shall accept
2-26     such application [petition] only if it is accompanied by evidence
2-27     such candidate has the requisite qualifications as herein
 3-1     prescribed.
 3-2           SECTION 2.  Chapter 431, Acts of the 60th Legislature,
 3-3     Regular Session, 1967, is amended by adding Section 4A to read as
 3-4     follows:
 3-5           Sec. 4A.  The district may not employ a person who is related
 3-6     to a director within the second degree by consanguinity or
 3-7     affinity, as defined by Subchapter B, Chapter 573, Government Code,
 3-8     during that director's term of office.  A district employee who is
 3-9     related to a person elected as a director within the second degree
3-10     by consanguinity or affinity shall resign from employment when that
3-11     director takes office.
3-12           SECTION 3.  Section 17, Chapter 431, Acts of the 60th
3-13     Legislature, Regular Session, 1967, is amended to read as follows:
3-14           Sec. 17.  (a)  The application procedure to determine
3-15     eligibility for indigent health care must be adopted not later than
3-16     the beginning of each operating year and must comply with Chapter
3-17     61, Health and Safety Code.
3-18           (b)  Whenever a patient residing within the district has been
3-19     admitted to a district facility [the facilities thereof], the
3-20     administrator or manager may cause inquiry to be made as to the
3-21     patient's financial [his] circumstances and the financial
3-22     circumstances [those] of the relatives of such patient legally
3-23     liable for the patient's [his] support.
3-24           (c)  If the administrator or manager [he] finds that such
3-25     patient or said relatives are able to pay for the patient's [his]
3-26     care and treatment in whole or in part, the board of directors [an
3-27     order] shall issue an order [be made] directing such patient or
 4-1     said relatives to pay to the hospital district for the care and
 4-2     support of such patient a specified sum per week in proportion to
 4-3     their financial ability.
 4-4           (d)  The administrator or manager shall have power and
 4-5     authority to collect such sums from the estate of the patient or
 4-6     the patient's [his] relatives legally liable for the patient's
 4-7     [his] support in the manner provided by law for collection of
 4-8     expenses in the last illness of a deceased person.
 4-9           (e)  If the administrator or manager finds that such patient
4-10     or said relatives are not able to pay either in whole or in part
4-11     for the patient's [his] care and treatment in such hospital, same
4-12     shall become a charge upon the hospital district as to the amount
4-13     of the inability to pay.
4-14           (f)  Should there be any dispute as to the ability to pay or
4-15     doubt in the mind of the administrator or manager, the board of
4-16     directors shall hear and determine same after calling witnesses,
4-17     and shall make such order or orders as may be proper.  Appeals from
4-18     the final order of the board shall lie to the district court.  The
4-19     substantial evidence rule shall apply.
4-20           SECTION 4.  Section 18, Chapter 431, Acts of the 60th
4-21     Legislature, Regular Session, 1967, is amended to read as follows:
4-22           Sec. 18.  (a)  The board of directors of the hospital
4-23     district is authorized on behalf of such district to accept
4-24     donations, gifts and endowments to be held in trust and
4-25     administered by the board of directors for such purposes and under
4-26     such directions, limitations and provisions as may be prescribed in
4-27     writing by the donor not inconsistent with proper management and
 5-1     object of the hospital district.
 5-2           (b)  The board of directors may facilitate achievement of the
 5-3     purpose of the district by creating a charitable organization to
 5-4     provide or arrange for hospital and health care services, develop
 5-5     resources for hospital and health care services, and provide
 5-6     ancillary support services for the district.  For purposes of this
 5-7     subsection, "charitable organization" means an organization exempt
 5-8     from federal income tax under Section 501(a) of the Internal
 5-9     Revenue Code of 1986, as amended, by being listed as an exempt
5-10     organization in Section 501(c)(3) or (4) of the code.  A charitable
5-11     organization created by the board under this subsection is a unit
5-12     of local government for the purposes of Chapter 101, Civil Practice
5-13     and Remedies Code.
5-14           (c)  The board of directors, on behalf of the district, may
5-15     sponsor and create a nonprofit corporation under the Texas
5-16     Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
5-17     Texas Civil Statutes) and may contribute funds to or solicit funds
5-18     for the corporation.  The corporation may use funds, other than
5-19     funds paid by the corporation to the district, only to provide
5-20     health care or other services the district may provide under this
5-21     Act. The board of directors shall establish adequate controls to
5-22     ensure that the corporation uses its funds as required by this
5-23     subsection. The corporation may invest corporation funds in any
5-24     manner in which the district may invest funds, including investing
5-25     funds as authorized by Chapter 2256, Government Code.
5-26           SECTION 5.  (a)  The changes in law made by this Act to
5-27     Section 4, Chapter 431, Acts of the 60th Legislature, Regular
 6-1     Session, 1967, do not apply to a member of the board of directors
 6-2     of the Nacogdoches County Hospital District serving on the board
 6-3     immediately before September 1, 2001, for the remainder of that
 6-4     member's term.
 6-5           (b)  At the election held in 2002, the director who receives
 6-6     the higher number of total votes for an at-large position and the
 6-7     director elected from a precinct who receives a higher number of
 6-8     total votes than the other director elected from a precinct shall
 6-9     serve three-year terms. The remaining two directors elected at that
6-10     election shall serve two-year terms.  If two persons receive the
6-11     same total number of votes and if it is necessary to break the tie
6-12     so that terms may be assigned under this subsection, those persons
6-13     shall draw lots to determine their respective terms.
6-14           (c)  Directors elected in an election held in 2003 shall
6-15     serve three-year terms.
6-16           (d)  Successor directors shall serve three-year terms.
6-17           SECTION 6.  Section 4A, Chapter 431, Acts of the 60th
6-18     Legislature, Regular Session, 1967, as added by this Act, applies
6-19     to all employees regardless of the date on which employment began.
6-20     A  district employee who is related to a current director within
6-21     the second degree by consanguinity or affinity, as defined by
6-22     Subchapter B, Chapter 573, Government Code, shall immediately
6-23     resign from employment.
6-24           SECTION 7.  This Act takes effect September 1, 2001.