BILL ANALYSIS
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Under current law, bonding is available to serve as financial assurance for hospital districts, but insurance policies are not.
C.S.H.B. 97 would add an insurance policy as an acceptable form of financial assurance.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
SECTION 1. Amends Section 4.07, Chapter 550, Acts of the 71st Legislature, Regular Session, 1989, by enabling each director of a hospital district to purchase an appropriate insurance policy that names the district as its sole beneficiary. It requires the board to determine the appropriate type and value of the bond or insurance policy for directors under this section, and it is required that the insurance policy be kept in the permanent records of the district. The insurance policy and premiums may be paid for using district funds.
SECTION 2. Amends Section 5.07, Chapter 550, Acts of the 71st Legislature, Regular Session, 1989, by changing the amount for which the board may enter into construction contracts after competitive bidding from $10,000 to $25,000 (the amount provided by Section 271.024, Local Government Code). Replaces the reference to Article 5160, Revised Statutes with Chapter 2253, Government Code, as it relates to performance and payment bonds, and applies to construction contracts let by the district.
SECTION 3. Amends the heading to Section 5.15, Chapter 550, Acts of the 71st Legislature, Regular Session, 1989 by adding "non-waiver of immunity" so that the heading reads, "AUTHORITY TO SUE AND BE SUED; VENUE; NON-WAIVER OF IMMUNITY."
SECTION 4. Amends Section 5.15, Chapter 550, Acts of the 71st Legislature, Regular Session, 1989 by adding Subsection (c), which states that nothing in the Act may be construed to waive sovereign or governmental immunity.
SECTION 5. Effective Date
EFFECTIVE DATE
Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2005.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The original bill required the board to determine the appropriate type and value of a bond or insurance policy for each director individually. The substitute to H.B. 97 requires that the board determine the appropriate type and value of a bond or insurance policy required for all directors.