1-1                                   AN ACT
 1-2     relating to the Deaf Smith County Hospital District.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsection (b), Section 4, Chapter 59, Acts of
 1-5     the 62nd Legislature, Regular Session, 1971, is amended to read as
 1-6     follows:
 1-7           (b)  The directors serve staggered three-year [two-year]
 1-8     terms.  An election for the appropriate number of directors shall
 1-9     be held on the first Saturday in May of each year.  Any person
1-10     desiring his name to be printed on the ballot as a candidate for
1-11     director shall file a petition signed by not less than 25 qualified
1-12     voters, asking that such name be printed on the ballot, with the
1-13     secretary of the board of directors of the district.  Such petition
1-14     shall be filed with the secretary at least 30 days prior to the
1-15     date of election.  Notice of such election shall be published one
1-16     time in a newspaper of general circulation in the area of the
1-17     district at least 35 days before the election.  A vacancy in the
1-18     office of director shall thereafter be filled by a majority vote of
1-19     the remaining directors, and such appointees shall hold office for
1-20     the unexpired term for which they were appointed.
1-21           SECTION 2.  Subsections (a) and (b), Section 5A, Chapter 59,
1-22     Acts of the 62nd Legislature, Regular Session, 1971, are amended to
1-23     read as follows:
1-24           Sec. 5A.  (a)  The district may spend district funds, enter
1-25     into agreements, or take other action it considers appropriate to
 2-1     recruit physicians, nurses, or other trained medical personnel,
 2-2     including:
 2-3                 (1)  advertising and marketing;
 2-4                 (2)  paying travel, recruitment, and relocation
 2-5     expenses;
 2-6                 (3)  providing and subsidizing office space or other
 2-7     facilities for a health care professional, including a physician
 2-8     who agrees to render services in the district or to serve as an
 2-9     employee of the district; and
2-10                 (4)  subsidizing the income of a health care
2-11     professional, including a physician who agrees to render services
2-12     in the district.
2-13           (b)  The district may enter into contracts with a full-time
2-14     medical, allied health professional, or nursing student who is
2-15     enrolled and in good standing in an accredited school, college, or
2-16     university.  The district may agree to pay the student's tuition or
2-17     other costs or expenses in consideration of the student's
2-18     contractual agreement to render services to the district or to
2-19     serve as an employee of the district on terms prescribed by the
2-20     contract.
2-21           SECTION 3.  Section 10, Chapter 59, Acts of the 62nd
2-22     Legislature, Regular Session, 1971, is amended to read as follows:
2-23           Sec. 10.  The board of directors of such district shall have
2-24     the power to prescribe the method and manner of making purchases
2-25     and expenditures by and for such hospital district, and shall also
2-26     be authorized to prescribe all accounting and control procedures.
 3-1     All contracts for construction [or purchases] involving the
 3-2     expenditure of more than $15,000 may be made only after competitive
 3-3     bidding as provided by Subchapter B, Chapter 271, Local Government
 3-4     Code.  The provisions of Chapter 2253, Government Code [Article
 3-5     5160, Revised Statutes], relating to performance and payment bonds,
 3-6     shall apply to construction contracts let by the district.  The
 3-7     district may acquire equipment for use in its hospital system,
 3-8     including medical and health care facilities, and mortgage or
 3-9     pledge the property so acquired as security for the payment of the
3-10     purchase price, but any such contract shall provide for the entire
3-11     obligation of the district to be retired within five years from the
3-12     date of the contract.  The district may lease equipment for use in
3-13     its hospital system, including medical and health care facilities.
3-14     The lease must provide that the entire obligation of the district
3-15     will be retired not later than the end of the fifth year after the
3-16     date on which the equipment is leased.  Except as permitted in this
3-17     section [the preceding sentence] and [as permitted by] Sections 7
3-18     and 8 of this Act, the district may incur no obligation payable
3-19     from any revenues of the district, taxes or otherwise, except those
3-20     on hand or to be on hand within the then current and following
3-21     fiscal year of the district.
3-22           SECTION 4.  Chapter 59, Acts of the 62nd Legislature, Regular
3-23     Session, 1971, is amended by adding Section 5B to read as follows:
3-24           Sec. 5B.  The district may sponsor and create a nonprofit
3-25     corporation under the Texas Non-Profit Corporation Act (Article
3-26     1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
 4-1     contribute funds to or solicit funds for the corporation.  The
 4-2     corporation may use funds, other than funds paid by the corporation
 4-3     to the district, only to provide health care or other services the
 4-4     district may provide under this Act.  The board of directors shall
 4-5     establish adequate controls to ensure the corporation uses its
 4-6     funds as required by this section.  The corporation may invest
 4-7     corporation funds in any manner in which the district may invest
 4-8     funds, including investing funds as authorized by Chapter 2256,
 4-9     Government Code.
4-10           SECTION 5.  (a)  This Act takes effect September 1, 2001.
4-11           (b)  The election of directors of the Deaf Smith County
4-12     Hospital District scheduled before the effective date of this Act
4-13     to be held in May, 2002, shall be held, and the two directors who
4-14     receive the highest total number of votes shall be elected to serve
4-15     three-year terms, and the directors who receive the third and
4-16     fourth highest total number of votes shall serve two-year terms.
4-17     If two or more persons receive the same total number of votes and
4-18     it is necessary to break the tie so that terms may be assigned
4-19     under this subsection, those persons shall draw lots to determine
4-20     their respective terms.
4-21           (c)  Directors elected in an election held in 2003 shall
4-22     serve three-year terms.
4-23           (d)  Successor directors shall serve three-year terms.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 969 passed the Senate on
         March 22, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 969 passed the House on
         April 27, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor