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Regular Session, 2012
SENATE BILL NO. 571
BY SENATORS MILLS, CORTEZ AND PERRY AND REPRESENTATIVES BARRAS,
STUART BISHOP, CHAMPAGNE, HARRISON, HUVAL, NANCY
LANDRY, MONTOUCET, ORTEGO AND ROBI DEAUX
HOSPITALS. Provides for health care service districts. (8/1/12)
AN ACT1
To enact Chapter 10-D of Title 46 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 46:1191 through 1198, relative to health care service districts; to3
provide the authority to create health care service districts; to provide for governing4
boards for health care service districts; to provide for governing board's membership,5
appointment, terms, and compensation; to authorize districts to levy taxes and incur6
debt and issue and sell bonds; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 10-D of Title 46 of the Louisiana Revised Statutes of 1950,9
comprised of R.S. 46:1191 through 1198, is hereby enacted to read as follows: 10
CHAPTER 10-D. HEALTH CARE SERVICE DISTRICTS11
§1191. Legislative intent12
It is the intent of the legislature to allow the governing authorities of13
parishes, upon their own initiative, to form and create one or more health care14
service districts within the respective parishes, or with agreement among the15
governing authorities of the parishes concerned, to combine two or more16
parishes into a single health care service district with such names as the17 SB NO. 571
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governing authorities of the parishes may designate, and, in so doing, the1
governing authorities of the parishes may create health care service districts2
whose boundaries overlap those of other health care service districts to support3
the provision of inpatient and outpatient health care services through the4
facilities operated by LSU Health, as defined in this Chapter.5
§1192. Definitions6
As used in this Chapter and unless the context clearly requires7
otherwise:8
(1)"Board of supervisors" means the Louisiana State University and9
Agricultural and Mechanical College Board of Supervisors.10
(2)" Department" means the Department of Health and Hospitals.11
(3) "District"means health care service district authorized in this12
Chapter.13
(4) "Governing board" means the governing board of the health care14
service district.15
(5) "LSU Health"means the office of health affairs and medical16
education within the Louisiana State University and Agricultural and17
Mechanical College System Office under the Louisiana State University and18
Agricultural and Mechanical College Board of Supervisors that manages the19
delivery of medical education and health services at the three Louisiana State20
University and Agricultural and Mechanical College's health systems21
institutions - Louisiana State University Health Care Services Division,22
Louisiana State University Health Sciences Center at New Orleans, and23
Louisiana State University Health Sciences Center at Shreveport.24
(6) "Secretary" means the secretary of the Department of Health and25
Hospitals.26
§1193. Authority27
A. The governing authorities of the parishes, upon their own initiative,28
are authorized and empowered to form and create one or more districts within29 SB NO. 571
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the respective parishes, or with agreement among the governing authorities of1
the parishes concerned, to combine two or more parishes into a single district2
with such names as the governing authorities of the parishes may designate.3
B. The governing authorities of the parishes may create districts whose4
boundaries overlap those of other districts to support the provision of inpatient5
and outpatient health care services through the facilities operated by LSU6
Health.7
§1194. Purpose8
The purpose of the districts and the governing boards created under the9
provisions of this Chapter shall be:10
(1)To identify local public sources of revenue or expenditure that may11
be used by the department as state match to draw down federal matching funds12
for the provision of health care services provided through LSU Health for the13
low income and uninsured population of the district.14
(2) To participate, so far as circumstances may warrant, in any activity15
designed and conducted to promote the general health of the community.16
(3) To promote and support graduate medical education activities of17
LSU Health in the respective communities with an LSU Health institution.18
(4) To cooperate with other institutions and agencies engaged in19
providing hospital and outpatient health services to residents of the district for20
the purpose of improving access to care for residents of the district. 21
§1195. Powers and duties of governing board22
A. In addition to the duties defined elsewhere in this Chapter, the23
governing board shall have the duty and authority:24
(1) To represent the public interest in supporting health care services in25
the district.26
(2) To advise LSU Health on issues concerning the provision of health27
care services provided through LSU Health for the low income and uninsured28
population of the district. Nothing herein shall bind the administration of an29 SB NO. 571
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LSU Health institution to expend the funds identified in this Chapter in a1
manner that it deems in conflict with ensuring the efficient and effective2
delivery of health care services in the district.3
(3) To conduct public hearings and share public input on the4
community's priorities for the provision of health care services in the district.5
(4) To appoint the necessary standing and special committees that may6
be necessary to carry out the purposes of this Chapter.7
(5) To borrow monies for the district under the terms and conditions8
established by the board.9
(6) To incur debt and issue general obligation bonds for the purpose of10
financing construction of capital projects for the purposes provided in this11
Chapter subject to approval of the State Bond Commission and the approval of12
a majority of the electors of the district voting on the proposition in a regularly13
scheduled election held for that purpose in accordance with the Louisiana14
Election Code. Such bonds shall be issued pursuant to the provisions of Part III15
of Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950, and shall be16
sold pursuant to the provisions of Chapter 13 of Title 39.17
(7) For public purposes of the district, to enter into contracts,18
agreements, or cooperative endeavors with the state and its political19
subdivisions and with any public or private association, corporations, business20
entity or person.21
(8) To enter into agreements with LSU Health for the provision of health22
care in the district for the low income and uninsured population of the district.23
Any agreements shall include but shall not be limited to the following:24
(a) Identification of local recurring public funds eligible for federal25
match for the provision of health care services through LSU Health for the low26
income and uninsured population of the district.27
(b) Detailed plans for the provision of medical services made possible as28
a result of the local funds.29 SB NO. 571
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B. The secretary of the department shall review each such agreement,1
including a plan for the use of state Medicaid and disproportionate share2
dollars. If the secretary finds that the agreement and plans are sufficient to3
support medical care for low income and uninsured population of the district4
and the funds are eligible for federal matching funds to be reimbursed through5
LSU Health, the secretary shall take all appropriate action, together with other6
state and federal officials, to provide the funds to LSU Health as provided in the7
agreement.8
C. The board of supervisors shall review and approve each agreement,9
including the plans for use of the local and federal matching funds to ensure10
that the operations, services, and graduate medical education provided through11
LSU Health in the district are consistent with the goals and mission of LSU12
Health.13
D. The governing board shall collect or cause to be collected all public14
monies identified by the district for the purpose of serving as state match for15
federal matching funds to ensure the provision of health care services delivered16
by LSU Health for the low income and uninsured population of the district.17
E. The department shall then make available for reimbursement these18
local and federally matched funds to the LSU Health facility in the district to19
ensure the continued provision of health care services for the low income and20
uninsured population of the district.21
F. The division of administration shall ensure that sufficient budget22
authority is granted to LSU Health to expend the funds allocated through the23
provisions of this Chapter.24
G. Neither LSU Health nor the division of administration nor the25
department shall displace, replace, or supplant state appropriations from the26
state general fund or other state funds designated for an LSU Health institution27
or facility within a district as a result of the provision of local funds.28
H. The governing board shall submit any reports or information to LSU29 SB NO. 571
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Health, the secretary of the department or the Senate and House committees on1
health and welfare upon request of LSU Health, the secretary or the chairman2
of either committee.3
I. Nothing herein shall sever the management or operation of the4
hospitals from the LSU Health System and the graduate medical education5
training programs supported by LSU Health Sciences Center at New Orleans6
or LSU Health Sciences Center at Shreveport.7
§1196. Taxation8
A. The governing authorities of the parishes are hereby authorized to9
levy and collect a tax on the dollar assessed valuation of all property within the10
district. The amount of the tax and the number of years of its assessment shall11
be set by a majority vote of the governing board of the district.12
B. The tax shall be imposed only after the question of its imposition has13
been approved by a majority of the registered voters of the district voting on the14
proposition at an election held for that purpose in accordance with the15
Louisiana Election Code. Such election shall be on a regularly scheduled16
election date.17
C. The election shall be called by the governing authorities of the18
parishes upon written request by the board of the district. The request by the19
board to the governing authorities shall specifically state the amount of the20
millage and the number of years as voted on by the board of the district.21
D. If approved, the tax shall expire after the number of years specified22
in the proposition, but the tax may be renewed if approved by a majority of the23
registered voters of the district voting on the proposition at a subsequent24
election held as provided in Subsection B of this Section.25
E. The tax shall be collected at the same time and in the same manner as26
ad valorem taxes are collected by the parishes.27
F. Any tax which is unpaid shall be added to the tax rolls of the parish28
governing authorities and shall be enforced with the same authority and subject29 SB NO. 571
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to the same penalties and procedures as unpaid ad valorem taxes.1
G. The parishes shall remit to the district all amounts collected pursuant2
to this Subsection not more than sixty days after collection. However, the3
parishes may retain one percent of the amount collected as a collection fee.4
H. The proceeds of the tax shall be used solely and exclusively for the5
purposes and benefit of the district.6
§1197. Governing board; membership; appointment; terms; compensation7
A. For districts created pursuant to this Chapter, each district shall be8
governed by a board whose membership consists of residents of the respective9
districts. The number of members on the board shall consist of one10
representative from each parish in the region who is appointed by the parish11
governmental authority. If an even number of parishes form a district, the12
governing authority of each parish within that district shall submit a name of13
a resident of the submitting parish to the board of supervisors, and the board14
of supervisors shall choose from the submitted names a member for the15
district's governing board. In the event the district is made up of only one16
parish, the governing authority of the parish shall select three residents of the17
parish to be members of the governing board.18
B. All appointees shall serve terms of three years. No board member19
shall serve more than two three-year terms consecutively.20
C. A vacancy on a governing board shall be filled in the same manner as21
its selection for the remainder of its term.22
D. Each board member shall serve without compensation but shall be23
reimbursed for expenses and mileage at the same rate set by the division of24
administration for state employees for each day in actual attendance at board25
meetings or for representing the board in an official board-approved activity.26
E. The chairman shall be elected by a majority vote of the board. The27
term of the chairman shall be established under the board's bylaws.28
F. The board shall adopt bylaws to provide for the governance of the29 SB NO. 571
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board within ninety days of being established. Such bylaws shall include but not1
be limited to:2
(1) Procedures for the election of board officers, including terms of office3
and methods and grounds for removal. Board officers shall include, at a4
minimum, a chairman, treasurer, and secretary.5
(2) Procedures and grounds for the removal of any board member.6
Grounds for removal shall include the conviction of a felony. Grounds for7
removal may include failure to meet board attendance as provided in the8
bylaws.9
G. All board members of the district shall be subject to the Code of10
Governmental Ethics. No member of the board or of his immediate family shall11
own or have any interest in any public or private organization, business,12
company, or entity conducting business of any kind with the district.13
§1198. Applicability14
The provisions of this Chapter shall not apply to the following:15
(1) Operation and management of any facility under the jurisdiction of16
LSU Health.17
(2) Operation, management, and performance of functions and services18
relating to graduate medical education provided by LSU Health.19
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Christopher D. Adams.
DIGEST
Proposed law provides for health care service districts.
Proposed law provides that governing authorities of parishes, upon their own initiative, may
form and create one or more districts within the respective parishes, or with agreement
among the governing authorities of the parishes concerned, to combine two or more parishes
into a single district with such names as the governing authorities of the parishes may
designate. Proposed law provides that governing authorities of the parishes may create
districts whose boundaries overlap those of other districts to support the provision of
inpatient and outpatient health care services through the facilities operated by LSU Health.
Proposed law provides the purposes of the health care service districts and the districts'
governing boards.
Proposed law provides the governing board shall have the duty and authority: SB NO. 571
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1. To represent the public interest in supporting health care services in the
district.
2. To advise LSU Health on issues concerning the provision of health care
services provided through LSU Health for the low income and uninsured
population of the district. Nothing herein shall bind the administration of an
LSU Health institution to expend the funds identified in this Chapter in a
manner that it deems to be in conflict with ensuring the efficient and
effective delivery of health care services in the district.
3. To conduct public hearings and share public input on the community's
priorities for the provision of health care services in the district.
4. To appoint the necessary standing and special committees that may be
necessary to carry out the purposes of proposed law.
5. To borrow monies for the district under the terms and conditions established
by the board.
6. To incur debt and issue general obligation bonds for the purpose of financing
construction of capital projects for the purposes provided in proposed law
subject to approval of the State Bond Commission and the approval of a
majority of the electors of the district voting on the proposition in a regularly
scheduled election held for that purpose in accordance with the Louisiana
Election Code. Such bonds shall be issued pursuant to the provisions of Part
III of Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950 and
shall be sold pursuant to the provisions of Chapter 13 of Title 39.
7. For public purposes of the district, to enter into contracts, agreements, or
cooperative endeavors with the state and its political subdivisions and with
any public or private association, corporations, business entity or person.
8. To enter into agreements with LSU Health for the provision of health care in
the district for the low income and uninsured population of the district. Any
agreements shall include but shall not be limited to the following:
(a)Identification of local recurring public funds eligible for federal
match for the provision of health care services through LSU Health
for the low income and uninsured population of the district.
(b)Detailed plans for the provision of medical services made possible as
a result of the local funds.
9. To levy and collect ad valorem taxes.
Proposed law provides for the governing boards of the districts and additionally provides for
the membership, appointment, terms, and compensation of board members.
Effective August 1, 2012.
(Adds R.S. 46:1191-1198)