HBA-NLM H.B. 3448 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3448
By: Swinford
County Affairs
7/14/1999
Enrolled




BACKGROUND AND PURPOSE 

The Moore County Hospital District (district) has undergone several
changes, since the passage in 1969 of the original enabling legislation
which created the district.  The purpose of this bill is to implement
changes to the enabling legislation in regard to archaic language, and term
limitations and eligibility requirements of the district's board of
directors membership.  

H.B. 3448 sets forth the composition of the board of directors of the
hospital district (board) and the terms of those members. This bill
provides that a specified appointed member of the board must be a member of
the medical staff of the district's hospital.  In addition, the language
defining eligibility for the board referring to any property taxpayer is
updated to any resident of the district.   

H.B. 3448 also prohibits the board from selling a hospital owned and
operated by the hospital district, unless: the agreement for the sale or
lease of the hospital provides for indigent care in the district; the board
has published notice of the proposed sale twice in a newspaper in the
manner provided in the event of a sale of the hospital; and the majority of
the votes cast by voters of the district called and held for that purpose
under the Election Code approve the sale or lease, as appropriate.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4, Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969, as follows: 

(a)  Defines "medical staff."

(b)  Sets forth the composition of the board of directors of the hospital
district (board) and the terms of those members.  

(c)  Provides that the member of the board required to be appointed by the
medical staff of the district's hospital must be a member of the medical
staff of the district's hospital. Provides that the person vacates the
position if the member is no longer a member of the medical staff. 

(d)  Requires the members of the board appointed by the commissioners court
to prescribe the procedures by which the medical staff of the district's
hospital shall select a board member under this section.  

(e)  Requires vacancies in office to be filled for the unexpired term by
the same appointing entity that appointed the vacating member. Deletes
existing text relating to the establishment of the hospital district. 

 (f)  Redesignated from existing Subsection (b).  Sets forth an exception
to the board member's eligibility as provided by Subsections (b) and (c) of
this section.  

(g)  Redesignated from existing Subsection (c).

SECTION 2.  Amends Section 5, Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969, 
to provide that the certain funds in this section in no event shall be
invested in any funds or securities authorized by law, including Chapter
2256 (Public Funds Investment), Government Code, rather than those
specified in Articles 836 (Investments) and 837 (Secondary Investments),
V.T.C.S. Increases the minimum bond amount to be executed from $5,000 to
$500,000. Requires the board to be authorized to contract with any other
public or private entity described in this section, rather than specified
political subdivisions or governmental agencies.   

SECTION 3.  Amends Chapter 287, Acts of the 61st Legislature, Regular
Session, 1969, by adding Section 5A, as follows: 

Sec. 5A.  Requires the board to require reimbursement from certain entities
described by this section.  Authorizes the board to contract with this or
any other state, the United States, or an agency or political subdivision
of those entities, to reimburse the district for the care and treatment of
a sick, diseased, or injured person. Authorizes the board to contract with
certain entities to furnish a mobile emergency service or to provide for
the investigatory or welfare needs of inhabitants of the district or of
persons for whom the public or private entity has an obligation to provide
care. 

SECTION 4.  Amends Section 6, Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969, to update references of any property taxpayer to
resident.  Requires the board to have the authority to make such changes in
the budget, described by this section, as in their sole judgment and
discretion, applicable federal and state law warrants and allows, and the
interest of the residents of the district requires in furtherance of
hospital purposes, rather than taxpayers demands. 

SECTION 5.  Amends Section 7(a), Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969, to include certificates of obligation, or any other
type of financing authorized by the laws of this state, including that type
of financing authorized by Chapter 271 (Purchasing and Contracting
Authority of Municipalities, Counties, and Certain Other Local
Governments), Local Government Code. Makes a nonsubstantive change. 

SECTION 6.  Amends Section 10, Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969, to authorize all contracts for construction or
purchases involving the expenditure of more than $15,000, rather than
$2,000, to be made only after advertising in the manner provided by
Subchapter B (Competitive Bidding on Certain Public Works Contracts),
Chapter 271, Local Government Code, rather than Chapter 163, Acts of the
42nd Legislature, Regular Session, 1931, Article 2368a (Bond and Warrant
Laws of 1931), V.T.C.S.  Deletes the requirement for any such contracts to
provide for the entire obligation of the district to be retired within five
years. 

SECTION 7. Amends Section 11, Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969, 
to require the board to name one or more depositories, rather than banks
within its boundaries to serve as depository.  Requires funds to remain on
deposit, provided that nothing shall limit the power of the board to place
a portion of such funds on time deposit or other forms of deposit. 

SECTION 8.  Amends Section 15, Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969,  
as follows:

Sec. 15. Requires all taxes of the district to be assessed and collected on
appraisal district, rather than county, tax values. 

(a)  Deletes existing text relating to the tax rate not exceeding two
percent of the amounts collected and the prohibition of the amount paid
from exceeding $5,000.  Deletes the text requiring fees to be deposited in
the officers' salary fund.  Deletes the provision that the residue of tax
collection  shall be deposited after deductions of discounts and fees for
assessing and collecting.  Makes conforming and nonsubstantive changes. 
 
(b)  Provides that the bond amount in this section in no event shall be
less than $100,000, rather than $5,000.  Makes conforming and
nonsubstantive changes. Deletes existing text relating to the annual
appointment of five persons to serve as a board of equalization and to a
fixed compensation.  Deletes existing text setting forth the duties and
requirements of the board members and the tax assessor. 

SECTION 9.  Amends Section 17, Chapter 287, Acts of the 61st Legislature,
Regular Session, 1969, to require the district, not later than the
beginning of each operating year, to adopt an application procedure to
determine eligibility for assistance, as provided by Section 61.053
(Application Procedure), Health and Safety Code. Makes nonsubstantive
changes. 

SECTION 10.  Amends Chapter 287, Acts of the 61st Legislature, Regular
Session, 1969, by adding Section 25, as follows: 

Sec. 25. (a)  Defines "long-term lease" for the purposes of this section.

(b)  Prohibits the board from selling a hospital owned and operated by the
hospital district, unless: 

_the agreement for the sale or lease of the hospital provides for indigent
care in the district; 
_in the event of a sale of the hospital, the board has published notice of
the proposed sale twice in a newspaper in the manner provided; and  
_the majority of the votes cast by voters of the district called and held
for that purpose under the Election Code approve the sale or lease, as
appropriate.  

(c)  Sets forth the content of the notice required by this section.

SECTION 11.  (a)  Requires the Moore County Commissioners Court to appoint
two directors to serve terms expiring April 1, 2002, and one director to
serve a term expiring April 1, 2003, to succeed the directors of the Moore
County Hospital District who were appointed by the commissioners court and
whose terms expire in 2000. 

(b)  Requires the Moore County Commissioners Court to appoint one director
to serve a term expiring April 1, 2003, and two directors to serve terms
expiring April 1, 2004, to succeed the directors of the Moore County
Hospital District who were appointed by the commissioners court and whose
terms expire in 2001. 

(c)  Provides that subsequent appointees of the Moore County Commissioners
Court serve three-year terms. 

SECTION 12.  Requires the medical staff of the Moore County Hospital
District to appoint one director of the district in the manner provided by
Section 4, Chapter 287, Acts of the 61st Legislature, Regular Session,
1969, as amended by this Act. 

SECTION 13.  Makes application of the changes made to Section 10, Chapter
287, Acts of the 61st Legislature, Regular Session, 1969, prospective. 

SECTION 14.  Effective date: September 1, 1999.

SECTION 15.  Emergency clause.