HBA-MSH C.S.H.B. 3691 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3691 By: Dunnam County Affairs 5/3/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Under the Texas Constitution, the legislature is authorized to provide for by general or special law the creation, establishment, maintenance, and operation of hospital districts. C.S.H.B. 3691 authorizes the creation of the West Medical District. 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. ANALYSIS C.S.H.B. 3691 amends law to authorize the creation of the West Medical District (district) provided that the creation and the levy of taxes are approved by a majority of voters voting at an election called for that purpose and to set forth provisions relating to that election (SECTIONS 1.02 and 3.01-3.08). The bill provides that the boundaries of the district are coextensive with the boundaries of the West Independent School District in McLennan County (SECTION 1.03). The bill exempts an election called under the provisions of the bill from provisions relating to uniform election dates (SECTION 1.04). The bill provides that the district is governed by a board of seven directors (board) who serve three-year terms (SECTIONS 4.01 and 4.03). The bill sets forth provisions relating to the election, qualifications, terms, and compensation of directors and the administration of the board, including naming the temporary directors (SECTIONS 2.01 and 4.01-4.11). The bill authorizes the board to appoint an administrator, assistant administrator, and employ other necessary employees (SECTIONS 4.12-4.14). On creation of the district, the bill authorizes the West Hospital Authority in the authority's sole discretion to convey or transfer property and funds to district. The bill sets forth the general powers and duties of the board, including full responsibility for operating hospital facilities and providing medical care for the district's needy inhabitants (SECTION 5.01-5.04 and 5.12). The bill authorizes the board to adopt rules governing the operations of the hospital and hospital system (SECTIONS 5.05 and 5.06). The bill provides that the board has complete discretion as to the type and extent of services offered. The bill authorizes the board to acquire property, facilities, and equipment, and enter into contracts (SECTIONS 5.07, 5.08, and 5.10). The bill provides that the board shall require reimbursement from a county, municipality, or public hospital located outside the district for the district's care and treatment of a sick, diseased, or injured person of that county, municipality, or public hospital (SECTION 5.11). The bill authorizes the board to accept gifts and endowments, sue and be sued on behalf of the district, provide retirement benefits for employees, spend district funds to recruit physicians, and create a nonprofit corporation (SECTIONS 5.13-5.17). The bill sets forth provisions relating to the finances of the district, including preparation of an annual budget, borrowing of money, and naming of a depository bank (SECTIONS 6.01-6.10). The bill authorizes the board to issue and sell bonds and levy property taxes in an amount not to exceed 75 cents on each $100 valuation of all taxable property in the district with the approval of a majority of the voters of the district and sets forth provisions relating to the election and execution of the bonds and taxes (SECTIONS 7.018.04). The bill sets forth provisions relating to the dissolution of the district (SECTIONS 9.01-9.04). The bill prohibits the state from becoming obligated for the support or maintenance of the district (SECTION 10.01). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3691 differs from the original by removing provisions that granted the power of eminent domain to the district.