By Gallego                                            H.B. No. 1788
         77R5027 YDB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to property, facilities, and equipment of the Val Verde
 1-3     County Hospital District.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 10 and 11, Chapter 658, Acts of the 64th
 1-6     Legislature, Regular Session, 1975, are amended to read as follows:
 1-7           Sec. 10.  (a)  The district, through its board of directors,
 1-8     is authorized to enter into an operating, management, or consulting
 1-9     contract with regard to its facilities or a part thereof.  The
1-10     contract must provide that the board retains responsibility for and
1-11     control of the district's operation.  A company providing services
1-12     to the district under an operating, management, or consulting
1-13     contract and the officers, directors, and employees of the company,
1-14     while performing services under the contract for the benefit of the
1-15     district, shall be solely employees of the district regarding the
1-16     issue of the immunity or liability of the company and its officers,
1-17     directors, and employees, and shall have immunity or limited
1-18     liability under laws applicable to employees of the hospital
1-19     district (whether statutory or common law) to the extent an
1-20     employee of the hospital district would be so entitled under the
1-21     same circumstances.
1-22           (b)  The board may sell or otherwise dispose of property,
1-23     facilities, or equipment on behalf of the district.  Sale or other
1-24     disposal of the property, facilities, or equipment must be at a
 2-1     public sale and at a price and on the terms the board determines
 2-2     are most advantageous to the district.
 2-3           (c)  The board [district] may lease all or part of property,
 2-4     [its buildings and] facilities, or equipment on behalf of the
 2-5     district and on [upon] terms and conditions the board considers
 2-6     [considered] to be in [to] the best interest of the residents of
 2-7     the district.  The term of a [its inhabitants, provided that in no
 2-8     event shall any] lease may not exceed [be for a period in excess
 2-9     of] 25 years from the date entered.
2-10           (d)  The board may donate to another governmental entity or
2-11     to a charitable organization any surplus personal property or
2-12     equipment if the donation serves a public purpose and is
2-13     accompanied by adequate consideration. [The district shall be
2-14     empowered to sell or otherwise dispose of any property or equipment
2-15     of any nature upon terms and conditions found by the board to be in
2-16     the best interest of its inhabitants, provided, however, that in no
2-17     event shall the board be authorized to sell or dispose of any real
2-18     property unless the board affirmatively finds that the same is not
2-19     needed for the operation of the hospital system.]
2-20           Sec. 11.  (a)  The board of directors of such district shall
2-21     have the power to prescribe the method and manner of making
2-22     purchases and expenditures by and for such hospital district, and
2-23     shall also  be authorized to prescribe all accounting and control
2-24     procedures.
2-25           (b)  All contracts for construction involving the expenditure
2-26     of more than $15,000 may be made only after advertising in the
2-27     manner provided by Subchapter B, Chapter 271, Local Government
 3-1     Code, or all contracts for purchases involving the expenditure of
 3-2     more than $15,000 may be made only after advertising in the manner
 3-3     provided by Subchapter C, Chapter 262, Local Government Code.  The
 3-4     provisions of Chapter 2253, Government Code, relating to
 3-5     performance and payment bonds, shall apply to construction
 3-6     contracts let by the district.
 3-7           (c)  The board may lease or acquire property, facilities, and
 3-8     equipment for the use of the district and may mortgage or pledge
 3-9     the property, facilities, or equipment as security for the payment
3-10     of the purchase price.  [The district may acquire equipment for use
3-11     in its hospital system and mortgage or pledge the property so
3-12     acquired as security for the payment of the purchase price, but any
3-13     such contract shall provide for the entire obligation of the
3-14     district to be retired within five years from the date of the
3-15     contract.]  Except as permitted in the preceding sentence and as
3-16     permitted by Sections 7 and 8 of this Act, the district may incur
3-17     no obligation payable from any revenues of the district, taxes or
3-18     otherwise, except those on hand or to be on hand within the then
3-19     current and following fiscal year of the district.
3-20           SECTION 2.  This Act takes effect immediately if it receives
3-21     a vote of two-thirds of all the members elected to each house, as
3-22     provided by Section 39, Article III, Texas Constitution.  If this
3-23     Act does not receive the vote necessary for immediate effect, this
3-24     Act takes effect September 1, 2001.