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.