1-1     By:  Hinojosa (Senate Sponsor - Lucio)                H.B. No. 3234

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 14, 1997, reported favorably, as

 1-5     amended, by the following vote:  Yeas 9, Nays 0; May 14, 1997, sent

 1-6     to printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                                By:  Lucio

 1-8     Amend H.B. No. 3234 as follows:

 1-9           (1)  In SECTION 2, Subsection (a) of Section 262.005, Health

1-10     and Safety Code (page 1, lines 29 and 30, Engrossed Version), after

1-11     "body" strike "and the authority provide" and add "provides"

1-12           (2)  In SECTION 2, Subsection (a) of Section 262.005, Health

1-13     and Safety Code (page 1, line 32, Engrossed Version), after "The"

1-14     strike "authority and the"

1-15                            A BILL TO BE ENTITLED

1-16                                   AN ACT

1-17     relating to the transfer of municipal hospital authority assets for

1-18     health-related projects.

1-19           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-20           SECTION 1.  Section 262.002, Health and Safety Code, is

1-21     amended by adding Subdivision (9) to read as follows:

1-22                 (9)  "Health-related projects" means projects,

1-23     including academic health programs, clinics, and community health

1-24     education projects, that serve the health needs of the indigent and

1-25     other residents of a municipality that created an authority.

1-26           SECTION 2.  Section 262.005(a), Health and Safety Code,  is

1-27     amended to read as follows:

1-28           (a)  A governing body by ordinance may dissolve an authority

1-29     created by the governing body if the governing body and the

1-30     authority provide for the sale or transfer of the authority's

1-31     assets and liabilities to the municipality or to another person.

1-32     The authority and the governing body may not transfer the assets of

1-33     the authority  without due compensation except to a governmental

1-34     entity that embraces the territory of the authority, including the

1-35     municipality that created the authority or a county in which that

1-36     municipality is located, to fund or support health-related

1-37     projects.

1-38           SECTION 3.  Section 262.033, Health and Safety Code, is

1-39     amended by adding Subsection (e) to read as follows:

1-40           (e)  The authority may transfer proceeds from the sale of a

1-41     hospital or part of a hospital to a governmental entity that

1-42     embraces the territory of the authority, including the municipality

1-43     that created the authority or a county in which that municipality

1-44     is located, to fund or support health-related projects.

1-45           SECTION 4.  Subchapter C, Chapter 262, Health and Safety

1-46     Code, is amended by adding Section 262.037 to read as follows:

1-47           Sec. 262.037.  HEALTH-RELATED PROJECTS.  An authority may

1-48     transfer assets to a governmental entity that embraces the

1-49     territory of the authority, including the municipality that created

1-50     the authority or a county in which that municipality is located, to

1-51     fund or support health-related projects.

1-52           SECTION 5.  The importance of this legislation and the

1-53     crowded condition of the calendars in both houses create an

1-54     emergency and an imperative public necessity that the

1-55     constitutional rule requiring bills to be read on three several

1-56     days in each house be suspended, and this rule is hereby suspended,

1-57     and that this Act take effect and be in force from and after its

1-58     passage, and it is so enacted.

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