HBA-CMT, MSH, EDN H.B. 170 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 170
By: Christian
County Affairs
7/26/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, the Nacogdoches County Hospital District was
governed by a board of seven directors who served staggered two-year terms.
Three-year terms improve the stability and continuity of the district by
reducing election-related demands on directors.  Also, the district was not
authorized to create a charitable organization or a nonprofit corporation
to provide or arrange for various health care services for the district.
Such measures were implemented in other hospital districts in the state.
House Bill 170 sets forth guidelines regarding the election and terms of
directors and authorizes the creation of a charitable organization and a
nonprofit corporation. 

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

House Bill 170 amends provisions relating to the powers and duties of the
Nacogdoches County Hospital District (district).  The bill provides that
directors of the district serve staggered three-year terms rather than
two-year terms.  The bill sets forth provisions regarding notice of the
regular election of directors and the application procedure for a person's
name to be printed on the ballot as a candidate for director.  

The bill prohibits the district from employing a person who is related to a
director within the second degree by consanguinity or affinity during that
director's term of office and requires that a district employee who is
related  to a person elected as a director within the second degree by
consanguinity or affinity resign from employment when that director takes
office.  The bill requires a district employee who is related to a current
director within the second degree by consanguinity or affinity to
immediately resign from employment.   

The bill provides that the application procedure to determine eligibility
for indigent health care must be adopted not later than the beginning of
each operating year and must comply with the Indigent Health Care and
Treatment Act.    

The bill authorizes the board of directors to create a charitable
organization to provide or arrange for hospital and health care services,
develop resources for hospital and health care services, and provide
ancillary support services for the district.  The bill further authorizes
the board of directors to sponsor and create a nonprofit corporation under
the Texas Non-Profit Corporation Act and to contribute funds to or solicit
funds for the corporation.  The corporation is authorized to use funds,
other than funds paid by the corporation to the district, only to provide
health care or other services the district is authorized to provide. The
bill requires the board of directors to establish adequate controls to
ensure that the corporation uses its funds as mandated and authorizes the
corporation to invest corporation funds in any manner in which the district
is authorized to invest funds, including investing funds as authorized by
the Public Funds Investment Act.    


 EFFECTIVE DATE

September 1, 2001.