By Hinojosa                                           H.B. No. 3234

         75R11524 SAW-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the transfer of municipal hospital authority assets for

 1-3     health-related projects.

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

 1-5           SECTION 1.  Section 262.002, Health and Safety Code, is

 1-6     amended by adding Subdivision (9) to read as follows:

 1-7                 (9)  "Health-related projects" means projects,

 1-8     including academic health programs, clinics, and community health

 1-9     education projects, that serve the health needs of the indigent and

1-10     other residents of a municipality that created an authority.

1-11           SECTION 2.  Section 262.005(a), Health and Safety Code,  is

1-12     amended to read as follows:

1-13           (a)  A governing body by ordinance may dissolve an authority

1-14     created by the governing body if the governing body and the

1-15     authority provide for the sale or transfer of the authority's

1-16     assets and liabilities to the municipality or to another person.

1-17     The authority and the governing body may not transfer the assets of

1-18     the authority  without due compensation except to a governmental

1-19     entity that embraces the territory of the authority, including the

1-20     municipality that created the authority or a county in which that

1-21     municipality is located, to fund or support health-related

1-22     projects.

1-23           SECTION 3.  Section 262.033, Health and Safety Code, is

1-24     amended by adding Subsection (e) to read as follows:

 2-1           (e)  The authority may transfer proceeds from the sale of a

 2-2     hospital or part of a hospital to a governmental entity that

 2-3     embraces the territory of the authority, including the municipality

 2-4     that created the authority or a county in which that municipality

 2-5     is located, to fund or support health-related projects.

 2-6           SECTION 4.  Subchapter C, Chapter 262, Health and Safety

 2-7     Code, is amended by adding Section 262.037 to read as follows:

 2-8           Sec. 262.037.  HEALTH-RELATED PROJECTS.  An authority may

 2-9     transfer assets to a governmental entity that embraces the

2-10     territory of the authority, including the municipality that created

2-11     the authority or a county in which that municipality is located, to

2-12     fund or support health-related projects.

2-13           SECTION 5.  The importance of this legislation and the

2-14     crowded condition of the calendars in both houses create an

2-15     emergency and an imperative public necessity that the

2-16     constitutional rule requiring bills to be read on three several

2-17     days in each house be suspended, and this rule is hereby suspended,

2-18     and that this Act take effect and be in force from and after its

2-19     passage, and it is so enacted.