Amend SB 1972 (House Committee Report) by adding the 
following appropriately numbered SECTION to the bill and 
renumbering subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Section 5, Chapter 287, Acts of the 61st 
Legislature, Regular Session, 1969, is amended to read as follows:
	Sec. 5.  The board of directors shall manage, control, and 
administer the hospital system and all funds and resources of the 
district, but in no event shall any operating, depreciation, or 
building fund reserves be invested in any funds or securities 
authorized by law, including Chapter 2256, Government Code.  The 
board is given full authority to establish rules and regulations 
relating to seniority of employees of the district, including a 
retirement plan based thereon, and may give effect to previous 
years of service for those employees who have been continuously 
employed in the operation or management of the hospital facilities 
acquired, including those acquired upon the creation thereof by 
reason of Section 2 of this Act, or constructed by the district.  
The district, through its board of directors, shall have the power 
and authority to sue and be sued, and shall be entitled to all 
causes of action and defenses enjoyed by similar authorities, to 
promulgate rules and regulations governing the operation of the 
hospital, hospital system, its staff, and its employees.  The board 
of directors shall appoint a qualified person to be known as the 
administrator or manager of the hospital district and may in its 
discretion appoint an assistant to the administrator or manager.  
Such administrator or manager and assistant administrator or 
manager, if any, shall serve at the will of the board and shall 
receive such compensation as may be fixed by the board.  The 
administrator or manager shall, upon assuming his duties, execute a 
bond payable to the hospital district in an amount to be set by the 
board of directors, in no event less than $500,000 conditioned that 
he shall perform the duties required of him, and containing such 
other conditions as the board may require.  The administrator or 
manager shall supervise all the work and activities of the district 
and shall have general direction of the affairs of the district, 
subject to the limitations as may be prescribed by the board.  The 
board of directors shall have the authority to appoint to the staff 
such doctors as it may be deemed necessary for the efficient 
operation of the district, and may provide for temporary 
appointments to the staff if warranted by circumstances.  The board 
may employ physicians or other health care providers as the board 
considers necessary for the efficient operation of the district.  
This section does not authorize the board to supervise or control 
the practice of medicine, as prohibited by Subtitle B, Title 3, 
Occupations Code.  The board may delegate to the administrator or 
manager the authority to employ technicians, nurses, and employees 
of the district other than physicians.  Such board shall be 
authorized to contract with any other public or private entity, 
including a county, municipality, hospital district, or any other 
political subdivision, or a charitable organization, to provide 
health care or related services inside or outside of the district.