HBA-NRS H.B. 1944 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1944
By: Smithee
County Affairs
3/18/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, hospital districts in small towns and rural areas have a
difficult time attracting health care professionals to render services.
Providing or subsidizing income or office space is a good way to attract
health care professionals, such as physicians, to the district. House Bill
1944 authorizes the Deaf Smith County Hospital District to sponsor and
create a nonprofit corporation and to enter into agreements to recruit
hospital personnel, such as physicians. 

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 1944  amends law relating to the Deaf Smith County Hospital
District (district) to enter into agreements or take other action it
considers appropriate to recruit certain hospital personnel, including
advertising and marketing, paying travel, recruitment, and relocation
expenses, providing and subsidizing a health care professional's income,
office space, or other facilities for a professional who agrees to render
services in the district. The bill authorizes the district to enter into
contracts with allied health professionals. The bill removes the provision
that all purchases involving an expenditure of more than $15,000 may be
made only after competitive bidding.  

The bill authorizes the district to sponsor and create a nonprofit
corporation (corporation) under the Texas Non-Profit Corporation Act and
authorizes the district to contribute funds to or solicit funds for the
corporation. The bill authorizes the corporation 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 of the district to establish controls to ensure the
corporation uses its funds as required and authorizes the corporation to
invest corporation funds in any manner in which the district is authorized
to invest funds.  The bill sets forth provisions relating to the election
of directors of the district and provides that directors of the district
serve staggered three-year, rather than two-year, terms. 

EFFECTIVE DATE

September 1, 2001.