H.B. No. 3191 AN ACT relating to the elections and operations of certain hospital districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Section 285.081, Health and Safety Code, is amended to read as follows: Sec. 285.081. OPTIONAL FOUR-YEAR TERMS. SECTION 2. Subchapter G, Chapter 285, Health and Safety Code, is amended by adding Sections 285.082 and 285.083 to read as follows: Sec. 285.082. OPTIONAL THREE-YEAR TERMS. (a) The governing board of a hospital district created under general or special law may, on its own motion, order that the members of the governing board are to be elected to serve staggered three-year terms if: (1) the members of the governing board serve staggered four-year terms on the date the governing board enters the order; and (2) Subsection (b), (c), or (d) applies to the governing board. (b) This subsection applies to a governing board of a hospital district with five members. The election of board members in the even-numbered year following the date an order is entered under Subsection (a) in which three board members are to be elected shall be held as previously scheduled. Two of the members elected at that election shall serve three-year terms, and one of the members elected at that election shall serve a four-year term, to be determined by random draw. Board members elected in subsequent elections shall serve three-year terms. (c) This subsection applies to a governing board of a hospital district with seven members. The election of board members in the even-numbered year following the date an order is entered under Subsection (a) in which four members are to be elected shall be held as previously scheduled. Two of the members elected at that election shall serve three-year terms and two of the members elected at that election shall serve four-year terms, to be determined by random draw. Board members elected in subsequent elections shall serve three-year terms. (d) This subsection applies to a governing board of a hospital district with nine members. The election of board members in the even-numbered year following the date an order is entered under Subsection (a) in which five members are to be elected shall be held as previously scheduled. Two of the members elected at that election shall serve three-year terms and three of the members elected at that election shall serve four-year terms, to be determined by random draw. The election of board members in the next even-numbered year following the date an order is entered under Subsection (a) in which four members are to be elected shall be held as previously scheduled. Three of the members elected at that election shall serve three-year terms and one of the members elected at that election shall serve a four-year term, to be determined by random draw. Board members elected in subsequent elections shall serve three-year terms. Sec. 285.083. RESIGNATION OF TERM. (a) A member of the governing board of a hospital district is considered to have resigned the member's position if the member is absent from five or more regularly scheduled board meetings that the member is eligible to attend in any 12-month period without an excuse approved by a majority vote of the board. (b) A resignation under Subsection (a) is effective on the date of the fifth regularly scheduled board meeting at which the member is absent without an excuse approved by the board. (c) The validity of an action of the board is not affected by the fact that the action is taken during a period in which a board member is considered to have resigned under Subsection (a). (d) This section does not apply to a hospital district created under Chapter 281. SECTION 3. Section 286.022(c), Health and Safety Code, is amended to read as follows: (c) The petition may provide: (1) the number of directors for the district, which number must be an odd number; [and] (2) the method by which directors are to be elected, whether at large, by place, or by a combination of both, so that a specific number of directors are elected from each commissioner precinct and a specific number are elected at large; and (3) whether directors will be elected to serve two-year or four-year terms. SECTION 4. Section 286.025(a), Health and Safety Code, is amended to read as follows: (a) The commissioners court shall give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the proposed district in accordance with Section 4.003, Election Code [once a week for two consecutive weeks]. SECTION 5. Section 286.041, Health and Safety Code, is amended to read as follows: Sec. 286.041. BOARD OF DIRECTORS. The directors shall be elected at large, by place, or by a combination of both, in accordance with the petition prescribed by Section 286.021. SECTION 6. Section 286.042, Health and Safety Code, is amended to read as follows: Sec. 286.042. DIRECTOR'S ELECTION. (a) The initial directors shall be elected at an election to be held on the uniform election date [first Saturday] in May following the creation of the district. (b) If the directors are elected at large for two-year terms: (1) the appropriate number of candidates receiving the highest number of votes at the initial election of directors are directors for the district; (2) the number of directors equal to a majority of the directors who receive the highest number of votes at the initial election serve for a term of two years; and (3) the remaining directors serve for a term of one year. (c) If the directors are elected by place for two-year terms: (1) the candidate for a place receiving the highest number of votes for election to that place is a director for the district; (2) a director elected to fill an even-numbered place at the initial election serves for a term of one year; and (3) a director elected to fill an odd-numbered place at the initial election serves for a term of two years. (d) If the directors are elected from commissioners precincts and at large for two-year terms: (1) the number of candidates equal to the number of directors to be elected from each precinct who receive the highest number of votes from a commissioner precinct are directors for that precinct; (2) the number of candidates equal to the number of directors to be elected at large who receive the highest number of votes from the district at large are directors for the district at large; (3) a candidate elected from an odd-numbered precinct at the initial election serves for a term of two years; (4) a candidate elected from an even-numbered precinct at the initial election serves for a term of one year; (5) a candidate elected as the director from the district at large at the initial election serves for a term of two years; and (6) if more than one director is elected at large, half of the directors elected serve two-year terms, and the other half serve one-year terms. (d-1) If the directors are elected at large for four-year terms: (1) the appropriate number of candidates receiving the highest number of votes at the initial election of directors are directors for the district; (2) the number of directors equal to a majority of the directors who receive the highest number of votes at the initial election serve for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year; and (3) the remaining directors serve for a term of one year if elected in an odd-numbered year or two years if elected in an even-numbered year. (d-2) If the directors are elected by place for four-year terms: (1) the candidate for a place receiving the highest number of votes for election to that place is a director for the district; (2) a director elected to fill an even-numbered place at the initial election serves for a term of one year if elected in an odd-numbered year or two years if elected in an even-numbered year; and (3) a director elected to fill an odd-numbered place at the initial election serves for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year. (d-3) If the directors are elected from commissioners precincts and at large for four-year terms: (1) the number of candidates equal to the number of directors to be elected from each precinct who receive the highest number of votes from a commissioner precinct are directors for that precinct; (2) the number of candidates equal to the number of directors to be elected at large who receive the highest number of votes from the district at large are directors for the district at large; (3) a candidate elected from an odd-numbered precinct at the initial election serves for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year; (4) a candidate elected from an even-numbered precinct at the initial election serves for a term of one year if elected in an odd-numbered year or two years if elected in an even-numbered year; (5) a candidate elected as the director from the district at large at the initial election serves for a term of three years if elected in an odd-numbered year or four years if elected in an even-numbered year; and (6) if more than one director is elected at large, half of the directors elected at large serve for a term described by Subdivision (4) for a candidate elected from an even-numbered precinct, and the other half serve for a term described by Subdivision (3) for a candidate elected from an odd-numbered precinct. (e) After the initial election of directors, an election shall be held on the uniform election date [first Saturday] in May of each year or every other year, as applicable, to elect the appropriate number of successor directors for two-year terms or four-year terms as specified in the petition to create the district. SECTION 7. Section 286.043, Health and Safety Code, is amended to read as follows: Sec. 286.043. NOTICE OF ELECTION. Notice [Before the 35th day before the date of an election of directors, notice] of an [the] election shall be published [one time] in a newspaper with general circulation in the district in accordance with Section 4.003, Election Code. SECTION 8. The heading to Section 286.044, Health and Safety Code, is amended to read as follows: Sec. 286.044. APPLICATION FOR PLACE ON BALLOT [PETITION]. SECTION 9. Section 286.044(a), Health and Safety Code, is amended to read as follows: (a) A person who wishes to have the person's name printed on the ballot as a candidate for director must file an application with the secretary of the board in accordance with Chapter 144, Election Code. SECTION 10. Section 286.053, Health and Safety Code, is amended to read as follows: Sec. 286.053. APPOINTMENTS TO STAFF. The board may: (1) appoint to the staff any health care practitioners [doctors] the board considers necessary for the efficient operation of the district; and (2) grant clinical privileges on a [make] temporary or emergency basis as [appointments] the board considers necessary. SECTION 11. Section 286.078(b), Health and Safety Code, is amended to read as follows: (b) The board may enter into a public work contract as authorized under Chapter 2269, Government Code [construction contracts that involve spending more than $10,000 only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code]. SECTION 12. Section 286.101(f), Health and Safety Code, is amended to read as follows: (f) [The election shall be held after the 45th day and on or before the 60th day after the date the election is ordered.] The election shall be ordered and notice of the election shall be given in the same manner as provided by Sections 286.024 and 286.025 for ordering and giving notice of an election authorizing creation of the district. Section 41.001(a), Election Code, does not apply to an election held under this section. SECTION 13. Section 286.102(c), Health and Safety Code, is amended to read as follows: (c) [The election shall be held not later than the 60th day after the date the election is ordered.] Section 41.001(a), Election Code, does not apply to an election ordered under this section. SECTION 14. Section 286.129, Health and Safety Code, is amended to read as follows: Sec. 286.129. SPENDING AND INVESTMENT LIMITATIONS. (a) Except as provided by Sections [Section] 286.078(a), [and by Sections] 286.141, 286.144, and 286.145, and Chapter 315, the district may not incur a debt payable from revenues of the district other than the revenues on hand or to be on hand in the current and immediately following fiscal year of the district. (b) The board may invest operating, depreciation, or building reserves only in investments authorized under Chapter 2256, Government Code [: [(1) bonds of the United States; [(2) certificates of indebtedness issued by the United States secretary of the treasury; [(3) bonds of this state or a county, municipality, or school district of this state; or [(4) shares or share accounts of savings and loan associations organized under the laws of this state or federal savings and loan associations domiciled in this state, if the shares or share accounts are insured by the Federal Deposit Insurance Corporation]. SECTION 15. Section 1023.054(a), Special District Local Laws Code, is amended to read as follows: (a) If a [A] vacancy occurs in the office of director, the remaining directors shall appoint a director [shall be filled] for the unexpired term [at the next regular election]. SECTION 16. Section 1070.111, Special District Local Laws Code, is amended to read as follows: Sec. 1070.111. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code, or Subchapter B, Chapter 271, Local Government Code[, or Section 286.078, Health and Safety Code]. SECTION 17. The following provisions of the Health and Safety Code are repealed: (1) Section 286.023(g); (2) Section 286.025(b); and (3) Section 286.044(b). SECTION 18. This Act takes effect September 1, 2023. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3191 was passed by the House on May 12, 2023, by the following vote: Yeas 129, Nays 11, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 3191 was passed by the Senate on May 24, 2023, by the following vote: Yeas 30, Nays 1. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor