S.B. No. 1861
 
 
 
 
AN ACT
  relating to the Angleton-Danbury Hospital District of Brazoria
  County, Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (f), Section 1002.051, Special
  District Local Laws Code, is amended to read as follows:
         (f)  Directors serve staggered four-year terms. The
  district shall hold an election each odd-numbered year to elect the
  appropriate number of directors [two-year terms unless four-year
  terms are established under Section 285.081, Health and Safety
  Code. If the directors serve two-year terms, the terms of directors
  elected to odd-numbered positions expire in even-numbered years and
  the terms of directors elected to even-numbered positions expire in
  odd-numbered years].
         SECTION 2.  Section 1002.058, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1002.058.  [STAFF PHYSICIAN] OFFICE FACILITIES.
  (a)  In this section, "licensed health care professional" means any
  individual who is licensed or certified by or registered in this
  state to provide health care.
         (b)  The board shall determine the type, number, and location
  of buildings necessary to establish and maintain office facilities
  for staff physicians, physicians employed under Section 1002.061,
  and other licensed health care professionals to provide adequate
  health [medical] care services for the district within the licensed
  health care professionals' scope of license.
         (c) [(b)]  The board may:
               (1)  acquire property and equipment and construct
  facilities for the district for use by staff physicians, physicians
  employed under Section 1002.061, and other licensed health care
  professionals; and
               (2)  mortgage or pledge the property, equipment, or
  facilities as security for the payment of the purchase price or
  construction cost.
         (d) [(c)]  The board may lease the office facilities and
  equipment to staff physicians, physicians employed under Section
  1002.061, and other licensed health care professionals or may sell
  or otherwise dispose of the property, facilities, and equipment.
         SECTION 3.  Subchapter B, Chapter 1002, Special District
  Local Laws Code, is amended by adding Section 1002.061 to read as
  follows:
         Sec. 1002.061.  EMPLOYMENT OF PHYSICIANS. (a)  The board
  may employ a physician and retain all or part of the professional
  income generated by the physician for medical services provided at
  a hospital or other health care facility owned or operated by the
  district if the board satisfies the requirements of this section.
         (b)  The board shall:
               (1)  appoint a chief medical officer for the district
  who has been recommended by the medical staff of the district; and
               (2)  adopt, maintain, and enforce policies to ensure
  that a physician employed by the district exercises the physician's
  independent medical judgment in providing care to patients.
         (c)  The policies adopted under this section must include:
               (1)  policies relating to:
                     (A)  credentialing and privileges;
                     (B)  quality assurance;
                     (C)  utilization review;
                     (D)  peer review and due process; and
                     (E)  medical decision-making; and
               (2)  the implementation of a complaint mechanism to
  process and resolve complaints regarding interference or attempted
  interference with a physician's independent medical judgment.
         (d)  The policies adopted under this section must be approved
  by the medical staff of the hospital.  In the event of a conflict
  between a policy adopted by the board and approved by the medical
  staff under this section and a policy of the hospital, a conflict
  management process shall be jointly developed by the medical staff
  of the hospital and the board and implemented to resolve that
  conflict.
         (e)  For all matters relating to the practice of medicine,
  each physician employed by the district shall ultimately report to
  the chief medical officer of the district.
         (f)  The chief medical officer shall notify the Texas Medical
  Board that the board is employing physicians under this section and
  that the chief medical officer is the board's designated contact
  with the Texas Medical Board.  The chief medical officer shall
  immediately report to the Texas Medical Board any action or event
  that the chief medical officer reasonably and in good faith
  believes constitutes a compromise of the independent medical
  judgment of a physician in caring for a patient.
         (g)  The board shall give equal consideration regarding the
  issuance of medical staff membership and privileges to physicians
  employed by the district and physicians not employed by the
  district.
         (h)  A physician employed by the district shall retain
  independent medical judgment in providing care to patients and may
  not be disciplined for reasonably advocating for patient care.
         (i)  If the district provides professional liability
  coverage for physicians employed by the district, a physician
  employed by the district may participate in the selection of the
  professional liability coverage, has the right to an independent
  defense at the physician's own cost, and retains the right to
  consent to the settlement of any action or proceeding brought
  against the physician.
         (j)  If a physician employed by the district enters into an
  employment agreement that includes a covenant not to compete, the
  agreement is subject to Section 15.50, Business & Commerce Code,
  and any other applicable provision.
         (k)  The board may not delegate to the chief executive
  officer of the district the authority to hire, terminate, or make
  any other personnel decisions relating to a physician.
         (l)  This section applies to medical services provided by a
  physician at a hospital or other health care facility owned or
  operated by the district.
         (m)  This section may not be construed as authorizing the
  board to supervise or control the practice of medicine as
  prohibited under Subtitle B, Title 3, Occupations Code.
         SECTION 4.  Section 1002.251, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1002.251.  DEPOSITORY.  The [As soon as practicable
  after the creation election results favorably to the creation of
  the district, the] board shall by resolution designate a bank
  within the county as the district's depository, and all funds of the
  district shall be secured in the manner provided for the security of
  county funds. Such depository shall serve for a period of five
  [two] years and until a successor has been selected.
         SECTION 5.  Subsection (b), Section 1002.252, Special
  District Local Laws Code, is amended to read as follows:
         (b)  To secure a loan or line of credit, the board may pledge:
               (1)  revenue of the district that is not pledged to pay
  the district's bonded indebtedness;
               (2)  taxes to be imposed by the district in the next
  12-month period that are not pledged to pay the principal of or
  interest on district bonds; or
               (3)  district bonds that have been authorized but not
  sold.
         SECTION 6.  (a)  Notwithstanding Section 1002.051, Special
  District Local Laws Code, as amended by this Act, an election of the
  board of directors of the Angleton-Danbury Hospital District of
  Brazoria County, Texas, shall be held in May 2014, and the directors
  elected to places 1, 3, 5, 7, and 9 at the election shall serve
  three-year terms.
         (b)  The election of the board of directors scheduled to be
  held in May 2015 must be held, and the directors elected to places
  2, 4, 6, and 8 at that election shall serve four-year terms.
         (c)  The directors elected at the elections to be held in May
  2017 and May 2019 shall serve four-year terms.
         SECTION 7.  (a)  Except as provided by Subsection (b) of
  this section:
               (1)  this Act takes effect immediately if it receives a
  vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2013.
         (b)  Section 1002.051, Special District Local Laws Code, as
  amended by this Act, takes effect January 1, 2014.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1861 passed the Senate on
  May 2, 2013, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1861 passed the House on
  May 20, 2013, by the following vote:  Yeas 147, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor