SRC-ARR H.B. 3122 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3122
76R10142 KLA-FBy: Chisum (Bivins)
Intergovernmental Relations
5/3/1999
Engrossed


DIGEST 

Currently, the law does not make specific reference to the ability of the
Dallam-Hartley Counties Hospital District (district) to participate in
certain contemporary health care delivery systems, such as health
maintenance organizations, preferred provider organizations, and other
managed health care delivery structures. H.B. 3122 would authorize the
district to contract with, affiliate with, or have ownership interest in
these entities, and create or participate in other nonprofit corporations
for the purpose of delivering health care services. 

PURPOSE

As proposed, H.B. 3122 regulates the powers, duties, and operations of the
Dallam-Hartley Counties Hospital District. 

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 Section 4, Chapter 128, Acts of the 66th Legislature,
Regular Session, 1979, by adding Subsections (d) and (e), to authorize the
Dallam-Hartley Counties Hospital District (district) to contract with other
organizations to jointly administer or deliver health care services.
Authorize the district to spend district funds to establish, maintain, and
have an ownership interest in partnerships, corporations, or other entities
involved in the delivery of health care services. Authorizes the district
to sponsor, create, and have a membership interest in a nonstock
corporation under the Texas Non-Profit Corporation Act and to contribute
funds to or solicit funds for the corporation. Authorizes the corporation
to use funds other than funds paid by the corporation to the district, only
to provide health care or other services the district may provide under
this Act. Requires the board of directors of the hospital district (board)
to establish adequate controls to ensure that the corporation uses its
funds as required by this subsection. Authorizes the corporation to invest
corporation funds in any manner in which the district may invest funds,
including investing funds as authorized by Chapter 2256, Government Code. 

SECTION 2. Amends Section 8(b), Chapter 128, Acts of the 66th Legislature,
Regular Session, 1979, to authorize contracts for construction involving
the expenditure of the amount specified by Section 271.024, Local
Government Code, rather more than $10,000, to be made only after
advertising in the manner provided by Chapter 271, Local Government Code.
Provides that provisions of Chapter 2253, Government Code, rather than
Article 5160, V.T.C.S., relating to performance and payment bonds apply to
construction contracts let by the district. Authorizes the board to pledge
the revenues from the property, facilities supplies, or equipment as
security for the payment of the purchase price.  

SECTION 3. Emergency clause.
                      Effective date: upon passage.