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 provides [and

1-15     the 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 shall not transfer the assets

1-18     of the authority without due compensation except to the

1-19     municipality or county that created the authority to fund or

1-20     support health-related projects.

1-21           SECTION 3.  Section 262.033, Health and Safety Code, is

1-22     amended by adding Subsection (e) to read as follows:

1-23           (e)  The authority shall transfer proceeds from the sale of a

1-24     hospital or part of a hospital to the municipality or county that

 2-1     created the authority to fund or support health-related projects.

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

 2-3     Code, is amended by adding Section 262.037 to read as follows:

 2-4           Sec. 262.037.  HEALTH-RELATED PROJECTS.  An authority shall

 2-5     transfer assets to the municipality or county that created the

 2-6     authority to fund or support health-related projects.

 2-7           SECTION 5.  The importance of this legislation and the

 2-8     crowded condition of the calendars in both houses create an

 2-9     emergency and an imperative public necessity that the

2-10     constitutional rule requiring bills to be read on three several

2-11     days in each house be suspended, and this rule is hereby suspended,

2-12     and that this Act take effect and be in force from and after its

2-13     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 3234 was passed by the House on May

         2, 1997, by the following vote:  Yeas 142, Nays 0, 2 present, not

         voting; and that the House concurred in Senate amendments to H.B.

         No. 3234 on May 30, 1997, by the following vote:  Yeas 136, Nays 0,

         1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 3234 was passed by the Senate, with

         amendments, on May 28, 1997, by the following vote:  Yeas 27, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor