Texas 2009 - 81st Regular

Texas House Bill HB4730 Compare Versions

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1	1	H.B. No. 4730
2	2
3	3
4	4	AN ACT
5	5	relating to the Martin County Hospital District.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 3, Chapter 674, Acts of the 60th
8	8	Legislature, Regular Session, 1967, is amended to read as follows:
9	9	Sec. 3. (a) The Board of Hospital Managers consists of six
10	10	managers appointed by the Martin County Commissioners Court.
11	11	Managers serve staggered two-year terms, with three managers
12	12	appointed each year. To be qualified to serve as a manager, a
13	13	person must be a Hospital District resident and a registered voter.
14	14	An employee of the District may not serve as a manager. [As soon as
15	15	the Hospital District is created and authorized at the election
16	16	hereinabove provided, the Commissioners Court shall appoint a Board
17	17	of Hospital Managers, consisting of six (6) members, three of whom
18	18	shall serve for a term of two (2) years and three of whom shall serve
19	19	for a term of one (1) year; thereafter, three members shall be
20	20	appointed each year to serve for a term of two (2) years.] Failure
21	21	of any member of the Board of Hospital Managers to attend three (3)
22	22	consecutive regular meetings of the Board shall cause a vacancy in
23	23	his office, unless such absence is excused by formal action of the
24	24	Board. In the event a vacancy occurs on the Board of Hospital
25	25	Managers, the remaining members shall appoint a member to fill such
26	26	vacancy for the remainder of the term of office so vacated. The
27	27	Board of Hospital Managers shall serve without compensation but may
28	28	be reimbursed for their actual and necessary traveling and other
29	29	expenses incurred in the performance of their duties as determined
30	30	by the Board of Hospital Managers. The duties of the Board of the
31	31	Hospital Managers shall be to manage, control and administer the
32	32	hospital or hospital system of the Hospital District. The Board of
33	33	Hospital Managers shall have the power and authority to sue and be
34	34	sued and to promulgate rules and regulations for the operation of
35	35	the hospital or hospital system, including the authority to adopt
36	36	and amend bylaws governing the proceedings of the Board.
37	37	(b) The Board shall appoint a general manager, to be known
38	38	as the Administrator of the Hospital District, and who shall
39	39	receive such compensation as may be fixed by the Board. The
40	40	Administrator shall be subject to removal at any time by the Board.
41	41	The Administrator shall, before entering into the discharge of his
42	42	duties, execute a bond payable to the District, in the amount of not
43	43	less than Ten Thousand Dollars ($10,000.00), conditioned that he
44	44	shall well and faithfully perform the duties required of him, and
45	45	containing such other conditions as the Board may require. The
46	46	Board may pay for the bond with District money. The Administrator
47	47	shall perform all duties which may be required of him by the Board,
48	48	and shall supervise all of the work and activities of the District,
49	49	and have general direction of the affairs of the District, within
50	50	such limitations as may be prescribed by the Board. He shall be a
51	51	person qualified by training and experience for the position of
52	52	Administrator.
53	53	(c) The Board of Hospital Managers shall give the authority
54	54	to the Administrator to employ such employees of every kind and
55	55	character as may be deemed advisable for the efficient operation of
56	56	the hospital or hospital system.
57	57	(d) The Board of Hospital Managers shall be authorized to
58	58	contract with any county for care and treatment of the county's
59	59	sick, diseased and injured persons, and with the state and agencies
60	60	of the Federal Government for the care and treatment of such persons
61	61	for whom the state and such agencies of the Federal Government are
62	62	responsible. Further, under the same conditions, the Board of
63	63	Hospital Managers may enter into such contracts with the state and
64	64	Federal Government as may be necessary to establish or continue a
65	65	retirement program for the benefit of its employees.
66	66	(e) The Board of Hospital Managers may in addition to
67	67	retirement programs authorized by this Act establish such other
68	68	retirement program for the benefit of its employees as it deems
69	69	necessary and advisable.
70	70	(f) A majority of the Board of Hospital Managers present
71	71	shall constitute a quorum for the transaction of any business. The
72	72	Board shall elect a Chair and Vice Chair from among its members.
73	73	The Board shall appoint a Secretary, who need not be a manager.
74	74	Each officer of the Board serves a one-year term. The Board shall
75	75	fill a vacancy in a Board office for the remainder of the unexpired
76	76	term. [From among its members, the Board shall choose a Chairman,
77	77	who shall preside; or in his absence a Chairman Pro Tem shall
78	78	preside; and the Administrator or any member of the Board may be
79	79	appointed Secretary.] The Board shall require the Secretary to
80	80	keep suitable records of all proceedings of each meeting of the
81	81	Board in accordance with Subchapter B, Chapter 551, Government
82	82	Code. [Such records shall be read and signed after each meeting by
83	83	the Chairman or the member presiding, and attested by the
84	84	Secretary. The Board shall have a seal, on which shall be engraved
85	85	the name of the Hospital District; and said seal shall be kept by
86	86	the Secretary and used in authentication of all acts of the Board.]
87	87	SECTION 2. Chapter 674, Acts of the 60th Legislature,
88	88	Regular Session, 1967, is amended by adding Section 3A to read as
89	89	follows:
90	90	Sec. 3A. (a) The board may employ physicians or other
91	91	health care providers as the board considers necessary for the
92	92	efficient operation of the district.
93	93	(b) The board shall adopt and maintain policies to ensure
94	94	that a physician employed under this section exercises independent
95	95	medical judgment when providing care to patients at the hospital
96	96	operated by the district. The policies adopted under this
97	97	subsection must include policies relating to:
98	98	(1) credentialing;
99	99	(2) quality assurance;
100	100	(3) utilization review;
101	101	(4) peer review;
102	102	(5) medical decision-making; and
103	103	(6) due process.
104	104	(c) A physician employed by the district under this section
105	105	is subject to the same standards and procedures regarding
106	106	credentialing, peer review, quality of care, and privileges as a
107	107	physician not employed by the district.
108	108	(d) The district shall give equal consideration regarding
109	109	the issuance of credentials and privileges to physicians employed
110	110	by the hospital and physicians not employed by the district.
111	111	(e) A physician employed by the district shall retain
112	112	independent medical judgment in providing care to patients at the
113	113	hospital operated by the district and may not be penalized for
114	114	reasonably advocating for patient care.
115	115	(f) This section may not be construed as altering, voiding,
116	116	or prohibiting any relationship between a hospital and a physician,
117	117	including a contract or arrangement with an approved nonprofit
118	118	health corporation that is certified under Section 162.001(b),
119	119	Occupations Code, and that holds a certificate of authority issued
120	120	under Chapter 844, Insurance Code.
121	121	(g) A contract to employ a physician pursuant to this
122	122	section shall not include a covenant not to compete upon
123	123	termination of the contract.
124	124	(h) This section may not be construed as authorizing the
125	125	board to supervise or control the practice of medicine, as
126	126	prohibited by Subtitle B, Title 3, Occupations Code.
127	127	SECTION 3. Section 14, Chapter 674, Acts of the 60th
128	128	Legislature, Regular Session, 1967, is amended to read as follows:
129	129	Sec. 14. (a) The Board of Hospital Managers shall have the
130	130	power and authority to issue and sell general obligation [, as the
131	131	obligations of such Hospital District,] bonds for the purchase,
132	132	construction, acquisition, repair or renovation of buildings and
133	133	improvements and equipping same, for hospital purposes and for any
134	134	or all of such purposes; provided that a sufficient tax shall be
135	135	levied to create an interest and sinking fund to pay the interest
136	136	and principal as same matures and that said tax, together with any
137	137	other taxes levied for said District, shall not exceed Seventy-five
138	138	Cents (75) on the One Hundred Dollars ($100.00) valuation of
139	139	taxable property in any one year. Such bonds shall be executed in
140	140	the name of the Hospital District and on its behalf by the Chairman
141	141	of the Board of Hospital Managers, and countersigned by the
142	142	Secretary of the Board, and shall be subject to the same
143	143	requirements in the manner of approval thereof by the Attorney
144	144	General of the State of Texas and registration thereof by the
145	145	Comptroller of Public Accounts of the State of Texas as are by law
146	146	provided for such approval and registration of bonds of the county;
147	147	and the approval of such bonds by the Attorney General shall have
148	148	the same force and effect as is by law given to his approval of bonds
149	149	of the county.
150	150	(b) The Hospital District may issue general obligation
151	151	bonds only if the bonds are authorized by a majority of the voters
152	152	of the District voting in an election held for that purpose. The
153	153	Board of Hospital Managers, in ordering the election, shall provide
154	154	for clerks as in county elections and shall specify the date of the
155	155	election, the location of the polling places, the presiding and
156	156	alternate election judges for each polling place, the amount of the
157	157	bonds to be authorized, and the maximum maturity of the bonds. The
158	158	Board shall give notice of the Board election in the manner provided
159	159	by Section 1251.003, Government Code. Chapter 41, Election Code,
160	160	does not apply to an election held under this section. The Board
161	161	shall declare the results of the election [No bonds shall be issued
162	162	by such Hospital District (except refunding bonds) until authorized
163	163	by a majority vote of the legally qualified property taxpaying
164	164	voters residing in such Hospital District voting at an election
165	165	called and held in accordance with the provisions of Chapter 1,
166	166	Title 22, of the Revised Civil Statutes of the State of Texas
167	167	(1925), as amended, relating to county bonds. Such election shall
168	168	be called by the Board of Hospital Managers, and such Board shall
169	169	designate the places for holding said election and shall name the
170	170	persons who shall conduct said election, in the manner provided by
171	171	general law. In the event the initial bonds are voted at an
172	172	election called by the Commissioners Court at the time of the
173	173	election for the creation of the District, such initial election
174	174	shall be governed by the provisions of Section 2 hereof].
175	175	(c) In the manner hereinabove provided, the bonds of such
176	176	Hospital District may, without the necessity of any election
177	177	therefor, be issued for the purpose of refunding or paying off any
178	178	bonded indebtedness theretofore assumed by the Hospital District
179	179	and any bonds theretofore issued by the Hospital District; such
180	180	refunding bonds may be sold and the proceeds thereof applied to the
181	181	payment of any such outstanding bonds or may be exchanged in whole
182	182	or in part for not less than a like amount of said outstanding bonds
183	183	and interest matured thereon, but unpaid; provided the average
184	184	interest cost per annum on the refunding bonds, computed in
185	185	accordance with the recognized standard bond interest cost tables,
186	186	shall not exceed the average interest cost per annum so computed
187	187	upon the bonds to be discharged out of the proceeds of the refunding
188	188	bonds, unless the total interest cost on the refunding bonds,
189	189	computed to their respective maturity dates, is less than the total
190	190	interest cost so computed on the bonds to be discharged out of such
191	191	proceeds. In the foregoing computations, any premium or premiums
192	192	required to be paid upon the bonds to be refunded as a condition to
193	193	the payment in advance of their stated maturity dates shall be taken
194	194	into account as an addition to the net interest cost to the Hospital
195	195	District of the refunding bonds.
196	196	(d) The Board of Hospital Managers may issue revenue bonds
197	197	to purchase, construct, acquire, repair, renovate, or equip
198	198	buildings or improvements for hospital purposes, or acquire sites
199	199	to be used for hospital purposes. The bonds must be payable from
200	200	and secured by a pledge of all or part of the revenue derived from
201	201	the operation of the Hospital District's hospitals. The bonds may
202	202	be additionally secured by a mortgage or deed of trust lien on all
203	203	or part of District property. The bonds must be issued in the
204	204	manner and in accordance with the procedures and requirements
205	205	prescribed by Sections 264.042, 264.043, 264.046, 264.047,
206	206	264.048, and 264.049, Health and Safety Code, for issuance of
207	207	revenue bonds by county hospital authorities.
208	208	SECTION 4. Chapter 674, Acts of the 60th Legislature,
209	209	Regular Session, 1967, is amended by adding Sections 14A and 14B to
210	210	read as follows:
211	211	Sec. 14A. In addition to the authority to issue general
212	212	obligation bonds and revenue bonds under this Act, the Board of
213	213	Hospital Managers may provide for the security and payment of
214	214	Hospital District bonds from a pledge of a combination of ad valorem
215	215	taxes as authorized by Section 14(a) of this Act and revenue and
216	216	other sources authorized by Section 14(d) of this Act.
217	217	Sec. 14B. The Hospital District may use the proceeds of
218	218	bonds issued under this Act to pay:
219	219	(1) any expense the Board of Hospital Managers
220	220	determines is reasonable and necessary to issue, sell, and deliver
221	221	the bonds;
222	222	(2) interest payments on the bonds during a period of
223	223	acquisition or construction of a project or facility to be provided
224	224	through the bonds, not to exceed five years;
225	225	(3) costs related to the operation and maintenance of
226	226	a project or facility to be provided through the bonds:
227	227	(A) during an estimated period of acquisition or
228	228	construction, not to exceed five years; and
229	229	(B) for one year after the project or facility is
230	230	acquired or constructed;
231	231	(4) costs related to the financing of the bond funds,
232	232	including debt service reserve and contingency funds;
233	233	(5) costs related to the bond issuance;
234	234	(6) costs related to the acquisition of land or
235	235	interests in land for a project or facility to be provided through
236	236	the bonds; and
237	237	(7) costs of construction of a project or facility to
238	238	be provided through the bonds, including the payment of related
239	239	professional services and expenses.
240	240	SECTION 5. Chapter 674, Acts of the 60th Legislature,
241	241	Regular Session, 1967, is amended by adding Section 17A to read as
242	242	follows:
243	243	Sec. 17A. (a) The Hospital District may be dissolved only
244	244	on approval of a majority of the voters of the District voting in an
245	245	election held for that purpose.
246	246	(b) The Board of Hospital Managers may order an election on
247	247	the question of dissolving the Hospital District and disposing of
248	248	the District's assets and obligations.
249	249	(c) The Board of Hospital Managers shall order an election
250	250	if the Board receives a petition requesting an election that is
251	251	signed by at least 15 percent of the registered voters in the
252	252	Hospital District.
253	253	(d) The order calling the election must state:
254	254	(1) the nature of the election, including the
255	255	proposition to appear on the ballot;
256	256	(2) the date of the election;
257	257	(3) the hours during which the polls will be open; and
258	258	(4) the location of the polling places.
259	259	(e) Section 41.001(a), Election Code, does not apply to an
260	260	election ordered under this section.
261	261	(f) The Board of Hospital Managers shall give notice of an
262	262	election under this section by publishing once a week for two
263	263	consecutive weeks a substantial copy of the election order in a
264	264	newspaper with general circulation in the Hospital District. The
265	265	first publication of the notice must appear not later than the 35th
266	266	day before the date of the election.
267	267	(g) The ballot for an election under this section must be
268	268	printed to permit voting for or against the proposition: "The
269	269	dissolution of the Martin County Hospital District."
270	270	(h) If a majority of the votes in an election under this
271	271	section favor dissolution, the Board of Hospital Managers shall
272	272	find that the Hospital District is dissolved.
273	273	(i) If a majority of the votes in the election do not favor
274	274	dissolution, the Board of Hospital Managers shall continue to
275	275	administer the Hospital District and another election on the
276	276	question of dissolution may not be held before the first
277	277	anniversary of the date of the most recent election on the question
278	278	of dissolution.
279	279	(j) If a majority of the votes in the election held under
280	280	this section favor dissolution, the Board of Hospital Managers
281	281	shall:
282	282	(1) transfer the land, buildings, improvements,
283	283	equipment, and other assets that belong to the Hospital District to
284	284	Martin County or another governmental entity in Martin County; or
285	285	(2) administer the property, assets, and debts until
286	286	all money has been disposed of and all Hospital District debts have
287	287	been paid or settled.
288	288	(k) If the Hospital District makes the transfer under
289	289	Subsection (j)(1), the county or entity assumes all debts and
290	290	obligations of the District at the time of the transfer, and the
291	291	District is dissolved.
292	292	(l) If Subsection (j)(1) does not apply and the Board
293	293	administers the property, assets, and debts of the Hospital
294	294	District under Subsection (j)(2), the District is dissolved when
295	295	all money has been disposed of and all District debts have been paid
296	296	or settled.
297	297	(m) After the Board of Hospital Managers finds that the
298	298	Hospital District is dissolved, the Board shall:
299	299	(1) determine the debt owed by the District; and
300	300	(2) impose on the property included in the District's
301	301	tax rolls a tax that is in proportion of the debt to the property
302	302	value.
303	303	(n) On the payment of all outstanding debts and obligations
304	304	of the Hospital District, the Board of Hospital Managers shall
305	305	order the Secretary to return to each District taxpayer the
306	306	taxpayer's pro rata share of all unused tax money.
307	307	(o) A taxpayer may request that the taxpayer's share of
308	308	surplus tax money be credited to the taxpayer's county taxes. If a
309	309	taxpayer requests the credit, the Board of Hospital Managers shall
310	310	direct the Secretary to transmit the money to the county tax
311	311	assessor-collector.
312	312	(p) After the Hospital District has paid all its debts and
313	313	has disposed of all its money and other assets as prescribed by this
314	314	section, the Board of Hospital Managers shall file a written report
315	315	with the Commissioners Court of Martin County summarizing the
316	316	Board's actions in dissolving the District.
317	317	(q) Not later than the 10th day after the date the
318	318	Commissioners Court of Martin County receives the report and
319	319	determines that the requirements of this section have been
320	320	fulfilled, the commissioners court shall enter an order dissolving
321	321	the Hospital District and releasing the Board of Hospital Managers
322	322	from any further duty or obligation.
323	323	SECTION 6. The changes in law made by this Act to the
324	324	qualifications of and the prohibitions applying to members of the
325	325	Board of Hospital Managers of the Martin County Hospital District
326	326	do not affect the entitlement of a member serving on the Board
327	327	immediately before the effective date of this Act to continue to
328	328	carry out the functions of the Board for the remainder of the
329	329	member's term. The changes in law apply only to a member appointed
330	330	on or after the effective date of this Act. This Act does not
331	331	prohibit a person who is a member of the Board on the effective date
332	332	of this Act from being reappointed to the Board if the person has
333	333	the qualifications required for membership under Section 3, Chapter
334	334	674, Acts of the 60th Legislature, Regular Session, 1967, as
335	335	amended by this Act.
336	336	SECTION 7. This Act takes effect immediately if it receives
337	337	a vote of two-thirds of all the members elected to each house, as
338	338	provided by Section 39, Article III, Texas Constitution. If this
339	339	Act does not receive the vote necessary for immediate effect, this
340	340	Act takes effect September 1, 2009.
341	341	______________________________ ______________________________
342	342	President of the Senate Speaker of the House
343	343	I certify that H.B. No. 4730 was passed by the House on May 5,
344	344	2009, by the following vote: Yeas 144, Nays 0, 1 present, not
345	345	voting; and that the House concurred in Senate amendments to H.B.
346	346	No. 4730 on May 29, 2009, by the following vote: Yeas 142, Nays 0,
347	347	1 present, not voting.
348	348	______________________________
349	349	Chief Clerk of the House
350	350	I certify that H.B. No. 4730 was passed by the Senate, with
351	351	amendments, on May 25, 2009, by the following vote: Yeas 31, Nays
352	352	0.
353	353	______________________________
354	354	Secretary of the Senate
355	355	APPROVED: __________________
356	356	Date
357	357	__________________
358	358	Governor