SRC-JFA H.B. 2066 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2066
By: Patterson (Ratliff)
Intergovernmental Relations
4-20-97
Engrossed


DIGEST 

Currently, the Hopkins County Hospital District (district) does not have
the statutory authority to become a member of a nonprofit corporation or
enter into an agreement with a nonprofit corporation. The inability of the
district to establish a 501(A) corporation may place it at a competitive
disadvantage as managed care evolves over the next few years.
Additionally, many of the district's competitors have already formed such
organizations in the interest of keeping up with the evolution of managed
care.  This bill would authorize the district to become a member of a
nonprofit corporation or enter into an agreement with a nonprofit
corporation.   
  
PURPOSE

As proposed, H.B. 2066 authorizes the Hopkins County Hospital District to
become a member of a nonprofit corporation or enter into an agreement with
a nonprofit corporation.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 43, Acts of the 57th Legislature, 1st Called
Session, 1961, by adding Section 6B, as follows:  

Sec. 6B.  Authorizes the Hopkins County Hospital District (district) to
become a member of a nonprofit corporation or enter into an agreement with
a nonprofit corporation to serve the purposes of this Act.  Authorizes the
district, under an agreement with a nonprofit corporation, to require the
nonprofit corporation to grant the district the power to appoint one or
more members of the board of directors of the nonprofit corporation; the
nonprofit corporation obtain the consent of the district before making
changes in the corporation's articles of incorporation or bylaws or before
taking other action; and the district shall receive all or a portion of
the net assets of the nonprofit corporation on the corporation's
dissolution, merger, or consolidation.  Provides that the district is not
liable for any debt, obligation, or other liability of the nonprofit
corporation.  Provides that this section does not affect the district's
authority to  make payments to or otherwise provide funds to the nonprofit
corporation.   

SECTION 2. Emergency clause.
  Effective date: upon passage.