1-1                                   AN ACT

 1-2     relating to charitable organizations created by certain hospital

 1-3     districts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter C, Chapter 281, Health and Safety

 1-6     Code, is amended by adding Section 281.0565 to read as follows:

 1-7           Sec. 281.0565.  CHARITABLE ORGANIZATIONS.  (a)  In this

 1-8     section, "charitable organization" means an organization that is

 1-9     exempt from federal income tax under Section 501(a) of the Internal

1-10     Revenue Code of 1986 by being listed as an exempt organization in

1-11     Section 501(c)(3) or 501(c)(4) of the code.

1-12           (b)  A district may create a charitable organization to

1-13     facilitate the management of a district health care program by

1-14     providing or arranging health care services, developing resources

1-15     for health care services, or providing ancillary support services

1-16     for the district.

1-17           (c)  A charitable organization created by a district under

1-18     this section is a unit of local government for purposes of Chapter

1-19     101, Civil Practice and Remedies Code.

1-20           SECTION 2.  This Act takes effect September 1, 1997, and

1-21     applies to a charitable organization regardless of the date on

1-22     which the organization was created.

1-23           SECTION 3.  The importance of this legislation and the

1-24     crowded condition of the calendars in both houses create an

 2-1     emergency and an imperative public necessity that the

 2-2     constitutional rule requiring bills to be read on three several

 2-3     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1567 was passed by the House on April

         18, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1567 was passed by the Senate on May

         5, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor