SRC-VRA S.B. 1905 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1905
78R9404 EMT-DBy: Barrientos
Intergovernmental Relations
4/14/2003
As Filed


DIGEST AND PURPOSE 

Currently, Travis County provides publicly-supported health care for
residents of that county, as well as for several surrounding counties.
Rising health care costs, Central Texas' increasing population, and the
strain on local jurisdictions' finances caused by current national
economic conditions have combined to create a crisis in the region's
health care delivery system.  As proposed, S.B. 1905 provides for the
transfer of a municipally-owned hospital and other health care related
assets to a countywide hospital district created by the voting public.
Additionally, the bill sets forth ballot proposition language, and
establishes the membership and terms of the district's governing board. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 281.002, Health and Safety Code, by adding
Subsection (c) to authorize a county with at least 190,000 inhabitants
that has within its boundaries a municipality that owns and operates a
hospital or hospital system for indigent or needy persons to create a
countywide hospital district and take over the hospital or hospital system
to furnish medical aid and hospital care to indigent and needy persons
residing in the district.  

SECTION 2.  Amends Section 281.004, Health and Safety Code, as follows:

(a) Requires a ballot for an election to include the proposition:  "The
creation of a hospital district and the levy of a tax not to
exceed________ (insert the amount prescribed by the petition, not to
exceed 75 cents) on each $100 of the taxable value of property taxable by
the district." 

(b)   Requires a ballot for an election, if the county or a municipality
in the county has any outstanding bonds issued for hospital purposes, to
include the proposition: "The creation of a hospital district and the levy
of a tax not to exceed_______ (insert the amount prescribed by the
petition, not to exceed 75 cents) on each $100 of the taxable value of
property taxable by the district, and the assumption by the district of
all outstanding bonds previously issued for hospital purposes by _______
County and by any municipality in the county."   


SECTION 3.  Amends Section 281.021, Health and Safety Code, by adding
Subsection (d) to require the district, if a district is created under
this chapter in Travis County, to be governed by a nine-member board of
hospital managers, appointed by specific criteria. 

SECTION 4.  Amends Section 281.022, Health and Safety Code, by adding
Subsection (c) to provide that the members of a board of hospital managers
appointed under Section 281.021(d) serve staggered four-year terms, with
as near as possible to one-fourth of the members' terms expiring each
year.  Provides the terms of appointment. 

 SECTION 5.  Amends Section 281.041, Health and Safety Code, by amending
Subsections (a) and (b) and adding Subsections (e) and (f), as follows: 

(a)  Makes a conforming change.  Adds new language to existing text
relating to a municipality owning or operating a hospital or hospital
system. 

 (b)  Makes a conforming change.

(e)  Provides that a county or municipality transferring property or funds
under this section is not required to transfer to the district certain
properties. 

(f)  Provides that a transfer of an asset under this section, including a
federally qualified health center, that would violate federal or state law
unless a waiver or other authorization or approval is granted by  federal
or state agency may not occur until the required waiver, authorization, or
approval is obtained.  Provides that a facility designated as a federally
qualified health center under 42 U.S.C. Section 1396d(1)(2)(B), as
amended, may not be transferred to the district until the district board
has confirmed that the transfer will not jeopardize the federal
designation of that facility.   

SECTION 6.  Amends Section 281.043, Health and Safety Code, to provide
that on the creation of the district, the district assumes, without
prejudice to the rights of third parties, any outstanding contract
obligations legally incurred by the county or municipality, or both, for
the construction, support, maintenance, or operation of hospital
facilities and the provision of health care services or hospital care,
including mental health care, to indigent residents of the county or
municipality before the creation of the district.  

SECTION 7.  Effective date:  upon passage or September 1, 2003.