1-1     By:  Bivins                                            S.B. No. 969
 1-2           (In the Senate - Filed February 27, 2001; February 28, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; March 14, 2001, reported favorably by the following
 1-5     vote:  Yeas 7, Nays 0; March 14, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the Deaf Smith County Hospital District.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subsection (b), Section 4, Chapter 59, Acts of
1-11     the 62nd Legislature, Regular Session, 1971, is amended to read as
1-12     follows:
1-13           (b)  The directors serve staggered three-year [two year]
1-14     terms.  An election for the appropriate number of directors shall
1-15     be held on the first Saturday in May of each year.  Any person
1-16     desiring his name to be printed on the ballot as a candidate for
1-17     director shall file a petition signed by not less than 25 qualified
1-18     voters, asking that such name be printed on the ballot, with the
1-19     secretary of the board of directors of the district.  Such petition
1-20     shall be filed with the secretary at least 30 days prior to the
1-21     date of election.  Notice of such election shall be published one
1-22     time in a newspaper of general circulation in the area of the
1-23     district at least 35 days before the election.  A vacancy in the
1-24     office of director shall thereafter be filled by a majority vote of
1-25     the remaining directors, and such appointees shall hold office for
1-26     the unexpired term for which they were appointed.
1-27           SECTION 2.  Subsections (a) and (b), Section 5A, Chapter 59,
1-28     Acts of the 62nd Legislature, Regular Session, 1971, are amended to
1-29     read as follows:
1-30           Sec. 5A.  (a)  The district may spend district funds, enter
1-31     into agreements, or take other action it considers appropriate to
1-32     recruit physicians, nurses, or other trained medical personnel,
1-33     including:
1-34                 (1)  advertising and marketing;
1-35                 (2)  paying travel, recruitment, and relocation
1-36     expenses;
1-37                 (3)  providing and subsidizing office space or other
1-38     facilities for a health care professional, including a physician
1-39     who agrees to render services in the district or to serve as an
1-40     employee of the district; and
1-41                 (4)  subsidizing the income of a health care
1-42     professional, including a physician who agrees to render services
1-43     in the district.
1-44           (b)  The district may enter into contracts with a full-time
1-45     medical, allied health professional, or nursing student who is
1-46     enrolled and in good standing in an accredited school, college, or
1-47     university.  The district may agree to pay the student's tuition or
1-48     other costs or expenses in consideration of the student's
1-49     contractual agreement to render services to the district or to
1-50     serve as an employee of the district on terms prescribed by the
1-51     contract.
1-52           SECTION 3.  Section 10, Chapter 59, Acts of the 62nd
1-53     Legislature, Regular Session, 1971, is amended to read as follows:
1-54           Sec. 10.  The board of directors of such district shall have
1-55     the power to prescribe the method and manner of making purchases
1-56     and expenditures by and for such hospital district, and shall also
1-57     be authorized to prescribe all accounting and control procedures.
1-58     All contracts for construction [or purchases] involving the
1-59     expenditure of more than $15,000 may be made only after competitive
1-60     bidding as provided by Subchapter B, Chapter 271, Local Government
1-61     Code.  The provisions of Chapter 2253, Government Code [Article
1-62     5160, Revised Statutes], relating to performance and payment bonds,
1-63     shall apply to construction contracts let by the district.  The
1-64     district may acquire equipment for use in its hospital system,
 2-1     including medical and health care facilities, and mortgage or
 2-2     pledge the property so acquired as security for the payment of the
 2-3     purchase price, but any such contract shall provide for the entire
 2-4     obligation of the district to be retired within five years from the
 2-5     date of the contract.  The district may lease equipment for use in
 2-6     its hospital system, including medical and health care facilities.
 2-7     The lease must provide that the entire obligation of the district
 2-8     will be retired not later than the end of the fifth year after the
 2-9     date on which the equipment is leased.  Except as permitted in this
2-10     section [the preceding sentence] and [as permitted by] Sections 7
2-11     and 8 of this Act, the district may incur no obligation payable
2-12     from any revenues of the district, taxes or otherwise, except those
2-13     on hand or to be on hand within the then current and following
2-14     fiscal year of the district.
2-15           SECTION 4.  Chapter 59, Acts of the 62nd Legislature, Regular
2-16     Session, 1971, is amended by adding Section 5B to read as follows:
2-17           Sec. 5B.  The district may sponsor and create a nonprofit
2-18     corporation under the Texas Non-Profit Corporation Act (Article
2-19     1396-1.01 et seq., Vernon's Texas Civil Statutes) and may
2-20     contribute funds to or solicit funds for the corporation.  The
2-21     corporation may use funds, other than funds paid by the corporation
2-22     to the district, only to provide health care or other services the
2-23     district may provide under this Act.  The board of directors shall
2-24     establish adequate controls to ensure the corporation uses its
2-25     funds as required by this section.  The corporation may invest
2-26     corporation funds in any manner in which the district may invest
2-27     funds, including investing funds as authorized by Chapter 2256,
2-28     Government Code.
2-29           SECTION 5.  (a)  This Act takes effect September 1, 2001.
2-30           (b)  The election of directors of the Deaf Smith County
2-31     Hospital District scheduled before the effective date of this Act
2-32     to be held in May, 2002, shall be held, and the two directors who
2-33     receive the highest total number of votes shall be elected to serve
2-34     three-year terms, and the directors who receive the third and
2-35     fourth highest total number of votes shall serve two-year terms. If
2-36     two or more persons receive the same total number of votes and it
2-37     is necessary to break the tie so that terms may be assigned under
2-38     this subsection, those persons shall draw lots to determine their
2-39     respective terms.
2-40           (c)  Directors elected in an election held in 2003 shall
2-41     serve three-year terms.
2-42           (d)  Successor directors shall serve three-year terms.
2-43                                  * * * * *