1-1     By:  Gallego (Senate Sponsor - Madla)                 H.B. No. 1788
 1-2           (In the Senate - Received from the House April 2, 2001;
 1-3     April 3, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; April 25, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; April 25, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to property, facilities, and equipment of the Val Verde
1-10     County Hospital District.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Sections 10 and 11, Chapter 658, Acts of the 64th
1-13     Legislature, Regular Session, 1975, are amended to read as follows:
1-14           Sec. 10.  (a)  The district, through its board of directors,
1-15     is authorized to enter into an operating, management, or consulting
1-16     contract with regard to its facilities or a part thereof.  The
1-17     contract must provide that the board retains responsibility for and
1-18     control of the district's operation.  A company providing services
1-19     to the district under an operating, management, or consulting
1-20     contract and the officers, directors, and employees of the company,
1-21     while performing services under the contract for the benefit of the
1-22     district, shall be solely employees of the district regarding the
1-23     issue of the immunity or liability of the company and its officers,
1-24     directors, and employees, and shall have immunity or limited
1-25     liability under laws applicable to employees of the hospital
1-26     district (whether statutory or common law) to the extent an
1-27     employee of the hospital district would be so entitled under the
1-28     same circumstances.
1-29           (b)  The board may sell or otherwise dispose of property,
1-30     facilities, or equipment on behalf of the district.  Sale or other
1-31     disposal of the property, facilities, or equipment must be at a
1-32     public sale and at a price and on the terms the board determines
1-33     are most advantageous to the district.
1-34           (c)  The board [district] may lease all or part of property,
1-35     [its buildings and] facilities, or equipment on behalf of the
1-36     district and on [upon] terms and conditions the board considers
1-37     [considered] to be in [to] the best interest of the residents of
1-38     the district.  The term of a [its inhabitants, provided that in no
1-39     event shall any] lease may not exceed [be for a period in excess
1-40     of] 25 years from the date entered.
1-41           (d)  The board may donate to another governmental entity or
1-42     to a charitable organization any surplus personal property or
1-43     equipment if the donation serves a public purpose and is
1-44     accompanied by adequate consideration. [The district shall be
1-45     empowered to sell or otherwise dispose of any property or equipment
1-46     of any nature upon terms and conditions found by the board to be in
1-47     the best interest of its inhabitants, provided, however, that in no
1-48     event shall the board be authorized to sell or dispose of any real
1-49     property unless the board affirmatively finds that the same is not
1-50     needed for the operation of the hospital system.]
1-51           Sec. 11.  (a)  The board of directors of such district shall
1-52     have the power to prescribe the method and manner of making
1-53     purchases and expenditures by and for such hospital district, and
1-54     shall also  be authorized to prescribe all accounting and control
1-55     procedures.
1-56           (b)  All contracts for construction involving the expenditure
1-57     of more than $15,000 may be made only after advertising in the
1-58     manner provided by Subchapter B, Chapter 271, Local Government
1-59     Code, or all contracts for purchases involving the expenditure of
1-60     more than $15,000 may be made only after advertising in the manner
1-61     provided by Subchapter C, Chapter 262, Local Government Code.  The
1-62     provisions of Chapter 2253, Government Code, relating to
1-63     performance and payment bonds, shall apply to construction
1-64     contracts let by the district.
 2-1           (c)  The board may lease or acquire property, facilities, and
 2-2     equipment for the use of the district and may mortgage or pledge
 2-3     the property, facilities, or equipment as security for the payment
 2-4     of the purchase price.  [The district may acquire equipment for use
 2-5     in its hospital system and mortgage or pledge the property so
 2-6     acquired as security for the payment of the purchase price, but any
 2-7     such contract shall provide for the entire obligation of the
 2-8     district to be retired within five years from the date of the
 2-9     contract.]  Except as permitted in the preceding sentence and as
2-10     permitted by Sections 7 and 8 of this Act, the district may incur
2-11     no obligation payable from any revenues of the district, taxes or
2-12     otherwise, except those on hand or to be on hand within the then
2-13     current and following fiscal year of the district.
2-14           SECTION 2.  This Act takes effect immediately if it receives
2-15     a vote of two-thirds of all the members elected to each house, as
2-16     provided by Section 39, Article III, Texas Constitution.  If this
2-17     Act does not receive the vote necessary for immediate effect, this
2-18     Act takes effect September 1, 2001.
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