2007S0559-1 02/28/07

By: Watson S.B. No. 1107

A BILL TO BE ENTITLED

AN ACT

relating to the powers of certain hospital districts and to the retirement benefits of employees of the districts and related entities; authorizing the issuance of anticipation notes and the imposition of taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 61.056, Health and Safety Code, is amended by adding Subsections (c) and (d) to read as follows:

(c) A hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003, may affiliate with any person or private entity to provide regional administration and delivery of health care services.

(d) Notwithstanding any other law, for purposes of regional administration and delivery of health care services, a hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003, may fund the administration and delivery of health care services to any individual who is an eligible resident of any entity that is participating in the regional program.

SECTION 2. Subchapter C, Chapter 61, Health and Safety Code, is amended by adding Section 61.067 to read as follows:

Sec. 61.067. SUBROGATION BY CERTAIN HOSPITAL DISTRICTS. (a) This section applies only to a hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003.

(b) The filing of an application for or receipt of health care services provided or paid by a hospital district constitutes an assignment of the applicant's or recipient's right of recovery from:

(1) personal insurance;

(2) other sources; or

(3) another person for personal injury caused by the other person's negligence or wrong.

(c) A person who applies for or receives health care services shall inform the hospital district at the time of application or at any time during eligibility of any unsettled tort claim that may affect medical needs and of any private accident or sickness insurance coverage that is or may be available. An applicant or eligible resident shall inform the district of any injury that is caused by the act or failure to act of some other person. An applicant or eligible resident shall inform the district as required by this subsection not later than the 10th day after the date the person learns of the person's insurance coverage, tort claim, or potential cause of action.

(d) A claim for damages for personal injury does not constitute grounds for denying or discontinuing services under this chapter.

(e) A separate and distinct cause of action in favor of the hospital district is hereby created, and the district may, without written consent, take direct civil action in any court of competent jurisdiction. A suit brought under this section need not be ancillary to or dependent on any other action.

(f) If the person, applicant, eligible resident, recipient, or such individual's beneficiary or legal representative fails to bring an action to recover the cost of services provided or paid by the hospital district before the 91st day after receipt of initial services, the district may bring an action as provided in Subsection (e) after 30 days' written notice to the person, applicant, eligible resident, recipient, or such individual's beneficiary or legal representative of the district's intent to bring an action to recover such costs.

(g) The hospital district's right of recovery under this section is limited to the amount of the cost of services provided or paid by the district and any costs of court and attorney's fees permitted by law.

(h) An applicant or eligible resident who knowingly and intentionally fails to disclose the information required by Subsection (c) is subject to denial of services under this chapter following an administrative hearing.

(i) Procedures established by a hospital district for administrative hearings under this section shall provide for appropriate due process, including procedures for appeals.

SECTION 3. Subchapter B, Chapter 281, Health and Safety Code, is amended by adding Section 281.0285 to read as follows:

Sec. 281.0285. STAFF FOR CERTAIN DISTRICTS. (a) This section applies only to a hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003.

(b) The board of a hospital district described by this section may employ physicians, dentists, or other health care providers as the board considers necessary for the efficient operation of the district. This subsection does not authorize the board to supervise or control the practice of medicine or permit the unauthorized practice of medicine, as prohibited by Subtitle B, Title 3, Occupations Code.

SECTION 4. Subchapter C, Chapter 281, Health and Safety Code, is amended by adding Section 281.0513 to read as follows:

Sec. 281.0513. CONTRACTING AUTHORITY OF CERTAIN DISTRICTS. (a) This section applies only to a district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003.

(b) The board may contract with a person, private entity, or public entity, including a municipality, county, special district, or other political subdivision of this state, to provide or assist in the provision of services.

SECTION 5. Section 281.0565, Health and Safety Code, is amended by adding Subsection (d) to read as follows:

(d) A hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003, may make a capital or other financial contribution to a charitable organization that is formed to provide regional administration and delivery of health care services.

SECTION 6. Subchapter G, Chapter 281, Health and Safety Code, is amended by adding Section 281.124 to read as follows:

Sec. 281.124. ELECTION TO RAISE NOMINAL TAX RATE IN CERTAIN DISTRICTS. (a) This section applies only to a hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003.

(b) A hospital district described in Subsection (a) may hold an election at least 180 days in advance of the date on which the district's tax rate is finally approved in which the district can seek approval from the registered voters of the district to raise the nominal tax rate by a specified dollar amount if that amount would result in the tax rate exceeding the rollback tax rate calculated as provided by Chapter 26, Tax Code, which dollar amount must be specified in the proposition. At the election, the ballots shall be prepared to permit voting for or against the proposition: "Approving the ad valorem tax rate of $_____ per $100 valuation in (name of hospital district) for the _____ tax year, even though that rate exceeds the district rollback tax rate. The proposed ad valorem tax rate exceeds the current ad valorem tax rate by $______." The ballot proposition must include the proposed tax rate, the difference between the proposed and current ad valorem tax rates, and the tax year in which the proposed rate would apply in the appropriate places.

(c) If a majority of the votes cast in the election favor the proposition, the tax rate for the specified tax year is the rate that is approved by the voters, and that rate is not subject to a rollback election under Section 26.07, Tax Code.

(d) If the proposition is not approved as provided by Subsection (c), the board may not adopt that proposed tax rate for the district for the specified tax year.

(e) Notwithstanding any other law, if the voters approve the proposed tax rate at an election held under this section, no body with approval authority over the district's budget or tax rate may disapprove the tax rate approved by the voters or disapprove the budget based solely on the tax rate approved by the voters.

SECTION 7. Subchapter A, Chapter 803, Government Code, is amended by adding Section 803.004 to read as follows:

Sec. 803.004. CERTAIN RETIREMENT SYSTEMS. (a) This section applies only to an employee who:

(1) is a member of a municipal retirement system described by Section 803.0021(1) and who is:

(A) involuntarily transferred by the employing municipality to an employment position with a hospital district located in a county in which the municipality is located, a charitable organization created by that hospital district, or an administrative agency created by that hospital district under Section 791.013; or

(B) employed by a hospital district, a charitable organization created by the hospital district, or an administrative agency created by the hospital district under Section 791.013 after being terminated by a municipality located in the same county as the hospital district; and

(2) participates in a system that is a qualified public retirement system of the hospital district, the charitable organization, or the administrative agency.

(b) Any service credit earned by an employee described by Subsection (a) at the hospital district, charitable organization, or administrative agency will be combined under Section 803.201 to determine whether the employee meets the length-of-service requirements for service retirement under the municipal retirement system.

(c) Upon retirement, an employee described in Subsection (a) will receive a benefit from the municipality as determined under Subchapter D and will receive a benefit from the hospital district, charitable organization, or administrative agency as determined under the terms of the district's, organization's, or agency's retirement plan.

SECTION 8. Subdivision (2), Section 1431.001, Government Code, is amended to read as follows:

(2) "Eligible countywide district" means a flood control district or a hospital district the boundaries of which are substantially coterminous with the boundaries of a county with a population of three million or more or a hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003.

SECTION 9. Section 162.001, Occupations Code, is amended by adding Subsections (d) and (e) to read as follows:

(d) The board shall certify a health organization to contract with or employ physicians licensed by the board if the organization:

(1) is a hospital district:

(A) recognized by a federal agency as a public entity eligible to receive a grant related to a community or federally qualified health center described by Subdivision (2); and

(B) created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003; and

(2) is organized and operated as:

(A) a migrant, community, or homeless health center under the authority of and in compliance with 42 U.S.C. Section 254b or 254c; or

(B) a federally qualified health center under 42 U.S.C. Section 1396d(l)(2)(B).

(e) This section applies to a hospital district described by Subsection (d) only in relation to the hospital district's operations as a community or federally qualified health center described by Subsection (d)(2).

SECTION 10. Section 281.123, Health and Safety Code, is repealed.

SECTION 11. Section 803.004, Government Code, as added by this Act, applies only to a person who retires from a municipality, hospital district, charitable organization, or administrative agency on or after the effective date of this Act. A person who retires from a municipality, hospital district, charitable organization, or administrative agency before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 12. Section 61.067, Health and Safety Code, as added by this Act, applies only to services provided by a hospital district on or after the effective date of this Act. Services provided by a hospital district before the effective date of this Act are governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 13. This Act takes effect September 1, 2007.