HBA-MPA H.B. 3771 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3771 By: Gallego County Affairs 4/5/1999 Introduced BACKGROUND AND PURPOSE In 1965, the 59th Legislature established the Hospital District of Maverick County (district) to deliver health care services to the people of Maverick County. In the enabling act, the legislature set forth all of the guidelines and regulations by which the district was to operate. It also established the criteria and procedures for election of its governing body. Health care and its delivery system exist in an environment that changes rapidly. Because of this changing environment, the district is faced with an obligation to deliver services under authority that is no longer adequate to meet the needs of Maverick County. To remedy this situation the board of directors of the district has asked that its enabling statute be modified to improve the district's ability to fulfill its obligation to deliver health care services. H.B. 3771 updates the enabling statute of the Hospital District of Maverick County and gives it appropriate authority to efficiently deliver health care services. 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. Provides that the name of the Hospital District of Maverick County is changed to the Maverick County Hospital District (district), and that all references in Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, should reflect that change. SECTION 2. Amends Section 3, Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, to provide that the district is charged with the responsibility of undertaking any measure, consistent with Section 9 (Hospital Districts; Creation, Operation, Powers, Duties and Dissolution), Article IX, Texas Constitution, and Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, that the board of directors of the district (board) determines is necessary to provide, rather than establishing a hospital or hospital system within its boundaries to furnish, hospital and medical care to the residents of the district Requires the district to undertake any measure, consistent with Section 9, Article IX, Texas Constitution, and Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, that the board determines necessary to provide all necessary hospital and medical care for needy inhabitants of the district. SECTION 3. Amends Section 5, Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, as follows: Sec. 3. BOARD OF DIRECTORS, CREATION. (a) Provides that management and control of the district is vested in the board consisting of five members, to be elected by qualified electors of the district, rather than electors who own taxable property within the district and who have duly rendered that property for taxation. (b) Deletes requirement that to qualify for election to the board a person must be 21 years old, a resident of the district for at least two years, and own taxable property within the district, duly rendered for taxation. Makes conforming and nonsubstantive changes. (c) Prohibits a person from serving on the board if the person is party to a contract with the district to perform services for compensation, or an employee of the district. Deletes provisions having to do with the appointment of the original board. (d) Provides that on the first Tuesday after the first Monday in November an election must be held to elect the appropriate number of successor directors. Deletes provisions having to do with election of successors to the original board. Makes a conforming change. (e) Requires an elected director to serve for a four, rather than two, year term in a manner prescribed to allow for staggered terms starting in the year 2000 for a two-year term, in 2001 for a three-year term, and for four-year terms in all subsequent elections. (f) Provides that a person appointed to fill an unexpired term of a board vacancy by unanimous consent must have the qualifications required by this section. (g) Provides that a majority of the membership of the board constitutes a quorum for the transaction of business and a majority of the directors voting is sufficient in matters relating to the business of the district. SECTION 4. Amends Section 8(c), Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, to authorize the board to use the proceeds of the tax authorized under this section to pay the indebtedness issued or assumed by the district. Makes list of prescribed uses of tax proceeds nonrestrictive by deleting the word "only," and makes a nonsubstantive change. SECTION 5. Amends Sections 9(c) and (d), Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, to prohibit the board from issuing bonds that mature more than 50, rather than 40, years from the date of issuance. Prohibits the board from issuing general obligation bonds until approved by a majority of qualified electors. Requires the board to canvass the returns and declare the results of the election. Makes conforming changes. SECTION 6. Amends Section 10, Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, by amending the heading, deleting existing Subsections (a) and (e), redesignating Subsections (b) (d) as (a) - (c), and adding new Subsections (d) - (j), as follows: Sec. 10. New title: BONDS, ISSUANCE, AND REDEMPTION. (a) Makes no change. (b) Makes no change. (c) Makes no change. (d) Authorizes the district to issue revenue bonds to acquire, construct, repair, renovate, or equip buildings and improvements for hospital purposes, and acquire real property for district purposes. (e) Provides that revenue bonds issued under Subsection (d) must be payable from and secured by a pledge of all or part of the district's revenue from operation of the hospital system. (f) Provides that revenue bonds must be issued in accordance with Sections 264.042 (Form and Procedure), 264.043 (Terms), 264.044 (Notice), 264.045 (Referendum), 264.046 (Junior Lien Bonds; Parity Bonds), 264.047 (Bond Proceeds; Investment of Funds), 264.048 (Refunding Bonds), and 264.049 (Approval and Registration of Bonds), Health and Safety Code, for the issuance of revenue bonds by county hospital authorities. (g) Authorizes the district to issue refunding bonds to refund an outstanding indebtedness the district has issued or assumed. Provides that the bonds must be issued in a manner provided by Article 717k-3 (Refunding Bonds; Issuance by Public Agencies; Approval; Registration; etc.) V.T.C.S. Authorizes the refunding bonds to be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness. Provides that the refunding bonds must be issued and payments made in the manner provided by Article 717k (State, County, Municipality, or Political Subdivision; Issuer of Bonds, Notes, etc.), V.T.C.S., if such bonds are to be sold and proceeds applied to indebtedness. (h) Provides that district bonds and indebtedness are legal and authorized investments for certain enumerated entities. (i) Provides that district bonds are eligible to secure deposits of public funds of the state, municipalities, counties, school districts, and other political subdivisions, and are lawful and sufficient securities to the extent of their face value, if accompanied by unmatured coupons. (j) Provides that the bonds issued by the district and related transactions and profits made therefrom are exempt from taxation. SECTION 7. Amends Section 11, Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, by amending existing Subsections (d), (e), and (g), which is redesignated as Subsection (i), and adding new Subsections (f), (g), and (j)- (s), as follows: Sec. 11. POWERS AND DUTIES OF THE BOARD OF DIRECTORS. (a) Makes no change. (b) Makes no change. (c) Makes no change. (d) Requires the board to file a copy of an annual required audit with the district and each public library in the district no later than January 1 of each year, rather than with the comptroller no later than December 1 of each year. (e) Authorizes the board to authorize the appointment , engagement or employment of employees necessary for the efficient operation of the district, and an administrator to manage the operation of the district and hire personnel necessary for the efficient operation of the district. Makes nonsubstantive changes. (f) Provides that a person appointed, engaged, or employed serves at the will and subject to the rules of the board. (g) Authorizes the board to require a person to execute a bond payable to the district of not less that $10,000 conditioned on the person's faithful performance of the duties of administrator. Authorizes the board to pay for the bond with district funds. (h) Redesignated from existing Subsection (f). (i) Authorizes the board to enter into any contract with a state or federal agency to provide hospital and medical care for needy persons who reside outside the district. Redesignated from existing Subsection (g). (j) Requires the board to require reimbursement from the sheriff of Maverick County or the police chief of a municipality for care and treatment of a person confined in a jail who is not a resident of the district, and from a county, municipal, or other public hospital outside the district for care and treatment for a patient of that hospital, as provided by Chapter 61 (Indigent Health Care and Treatment Act), Health and Safety Code. (k) Authorizes the board to appoint or remove a physician from a component of the district's operation as necessary for the efficient operation of the district. Authorizes the board to adopt rules relating to methods of appointing or removing members of the medical staff, including temporary appointments. (l) Authorizes the board to recruit and retain physicians, nurses, and technicians through enumerated methods, consistent with applicable state and federal laws. (m) Authorizes the board to provide retirement benefits for employees by establishing or administering a retirement program, or participating in the Texas County and District Retirement System or any other statewide retirement system for which it is eligible. (n) Authorizes the board to determine the type and extent of the hospital and medical care services offered by the district. (o) Authorizes the board to lease or acquire property, facilities, and equipment for the use of the district and mortgage or pledge it as security for the payment of the purchase price. (p) Authorizes the board to sell, lease or otherwise dispose of property, facilities, or equipment on behalf of the district. Requires such transactions to be at a public sale and at a price and terms determined by the board to be most advantageous to the district. Authorizes the board to donate surplus personal property or equipment to another governmental entity or charitable organization. Defines "charitable organization." (q) Authorizes the board to enter into a construction contract on behalf of the district. Provides that a construction contract awarded for more than $15,000 must be competitively bid, as provided in Subchapter B (Competitive Bidding for Certain Public Works Projects), Chapter 271, Local Government Code. Provides that Chapter 2253 (Public Work Payment and Performance Bond), Government Code, applies to construction contracts let by the district. (r) Authorizes the board to enter into operating and management contracts with respect to any of the hospital services or medical care the district provides. (s) Authorizes the board to create a charitable organization, having the meaning assigned in Subsection (p), to provide or arrange for hospital or health care services, develop resources, and provide ancillary support services for the district. Provides that a charitable organization created under this subsection is a unit of local government for the purposes of Chapter 101 (Tort Claims), Civil Practice and Remedies Code. SECTION 8. Amends Section 12, Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, to require the administrator to prepare a proposed budget, and the board to adopt a budget, after a hearing, that includes any changes to the proposed budget that the board determines are in the best interest of the district. Makes conforming and nonsubstantive changes. SECTION 9. Amends Section 13, Chapter 172, Acts of the 59th Legislature, Regular Session, 1965, to make nonsubstantive changes to the procedure for investigating a person's ability to pay for care and treatment, and collecting the amount determined to be owed. Authorizes a party who is not satisfied with the result of the board's order resulting from this process to appeal to the district court, and the substantial evidence rule applies to the appeal, rather than the appeal being de novo as that term is used in appeals from the justice courts to the county court. SECTION 10.Emergency clause. Effective date: upon passage.