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.