79R10468 HLT-F

By:  Keffer of Eastland                                           H.B. No. 3537



A BILL TO BE ENTITLED

AN ACT

relating to the board of directors of the Palo Pinto County Hospital 
District.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 4, Chapter 84, Acts of the 59th 
Legislature, Regular Session, 1965, is amended by adding 
Subsections (a-1)-(a-5) to read as follows:
	(a-1)  In addition to the requirements prescribed by 
Subsection (a) of this section, a person is not eligible to serve on 
the Board of Directors if the person:
		(1)  has an ownership or investment interest, directly 
or indirectly, in a health care facility located in Palo Pinto 
County; or
		(2)  has an ownership interest, directly or in 
conjunction with another person or entity, in another business or 
entity related to health care that provides a good or service to the 
area served by the District that is the same as or substantially 
similar to a good or service provided by the District.
	(a-2)  Subsection (a-1) of this section does not apply to:              
		(1)  an ownership or investment interest in publicly 
available shares of a registered investment company, such as a 
mutual fund, that owns publicly traded equity securities or debt 
obligations issued by a health care facility or another business or 
entity related to health care described by Subsection (a-1) of this 
section or by an entity that owns the health care facility, 
business, or entity; or
		(2)  a physician's ownership interest in the 
physician's own medical practice.
	(a-3)  It is a ground for removal from the Board of Directors 
that a member violates a prohibition established by Subsection 
(a-1) of this section.
	(a-4)  The validity of an action of the Board of Directors is 
not affected by the fact that the action is taken when a ground for 
removal of a member of the Board of Directors exists.
	(a-5)  A member of the Board of Directors may be removed for a 
ground provided by Subsection (a-3) of this section, using the 
procedures provided by Subchapter B, Chapter 87, Local Government 
Code, for removing a county official.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.