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  S.B. No. 1972
  relating to the election by voters regarding the maximum tax rate of
  a hospital district and to the employment of certain physicians and
  health care providers.
         SECTION 1.  Subsection (f), Section 285.231, Health and
  Safety Code, is amended to read as follows:
         (f)  The ballot for the election shall be printed to permit
  voting for or against the proposition:  "The increase by the
  _______________ (name of district) Hospital District of the maximum 
  rate of annual taxes imposed for hospital purposes to a rate not to
  exceed _______________ (insert the amount prescribed by the
  petition, not to exceed 75 cents) on each $100 valuation of all
  taxable property in the district."
         SECTION 2.  Section 5, Chapter 287, Acts of the 61st
  Legislature, Regular Session, 1969, is amended to read as follows:
         Sec. 5.  The board of directors shall manage, control, and
  administer the hospital system and all funds and resources of the
  district, but in no event shall any operating, depreciation, or
  building fund reserves be invested in any funds or securities
  authorized by law, including Chapter 2256, Government Code. The
  board is given full authority to establish rules and regulations
  relating to seniority of employees of the district, including a
  retirement plan based thereon, and may give effect to previous
  years of service for those employees who have been continuously
  employed in the operation or management of the hospital facilities
  acquired, including those acquired upon the creation thereof by
  reason of Section 2 of this Act, or constructed by the district.
  The district, through its board of directors, shall have the power
  and authority to sue and be sued, and shall be entitled to all
  causes of action and defenses enjoyed by similar authorities, to
  promulgate rules and regulations governing the operation of the
  hospital, hospital system, its staff, and its employees. The board
  of directors shall appoint a qualified person to be known as the
  administrator or manager of the hospital district and may in its
  discretion appoint an assistant to the administrator or manager.
  Such administrator or manager and assistant administrator or
  manager, if any, shall serve at the will of the board and shall
  receive such compensation as may be fixed by the board. The
  administrator or manager shall, upon assuming his duties, execute a
  bond payable to the hospital district in an amount to be set by the
  board of directors, in no event less than $500,000 conditioned that
  he shall perform the duties required of him, and containing such
  other conditions as the board may require. The administrator or
  manager shall supervise all the work and activities of the district
  and shall have general direction of the affairs of the district,
  subject to the limitations as may be prescribed by the board. The
  board of directors shall have the authority to appoint to the staff
  such doctors as it may be deemed necessary for the efficient
  operation of the district, and may provide for temporary
  appointments to the staff if warranted by circumstances. The board
  may employ physicians or other health care providers as the board
  considers necessary for the efficient operation of the district.
  This section does not authorize the board to supervise or control
  the practice of medicine, as prohibited by Subtitle B, Title 3,
  Occupations Code. The board may delegate to the administrator or
  manager the authority to employ technicians, nurses, and employees
  of the district other than physicians. Such board shall be
  authorized to contract with any other public or private entity,
  including a county, municipality, hospital district, or any other
  political subdivision, or a charitable organization, to provide
  health care or related services inside or outside of the district.
         SECTION 3.  Section 285.232, Health and Safety Code, is
         SECTION 4.  This Act takes effect September 1, 2007.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1972 passed the Senate on
  May 10, 2007, by the following vote: Yeas 31, Nays 0; and that the
  Senate concurred in House amendment on May 25, 2007, by the
  following vote: Yeas 30, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1972 passed the House, with
  amendment, on May 23, 2007, by the following vote: Yeas 144,
  Nays 0, two present not voting.
  Chief Clerk of the House