SRC-JJJ S.B. 1526 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1526
By: Bivins
Intergovernmental Relations
3/23/1999
As Filed


DIGEST 

Currently, Texas law does not specifically reference its ability to
participate in contemporary health care delivery models and structures that
take the form of health maintenance organizations (HMO's), preferred
provider organizations, and the like.  S.B. 1526 would allow certain
districts to create or participate in non-profit corporations for the
purpose of delivering health care services.  

PURPOSE

As proposed, S.B. 1526 establishes provisions regarding health care
insurance in 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 Chapter 128, Section 4, 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,
affiliate with, or enter into an arrangement with certain health care
organizations and systems relating to the administration or delivery of
health care services. Authorizes the district to spend district funds to
establish, maintain, and have ownership 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 and may contribute funds to or solicit funds for the
corporation.  Authorizes the corporation to use certain funds only to
provide health care or other services the district may provide.  Requires
the board of directors of the district to establish adequate controls to
ensure that the corporation uses its funds as required.  Authorizes the
corporation to invest corporation funds in any manner in which the district
may invest certain funds.   

SECTION 2.  Amends Chapter 128, Section 8(b), Acts of the 66th Legislature,
Regular Session, 1979, to authorize contracts for construction involving
the expenditure of more than the amount specified in Section 271.024, Local
Government Code, rather than $10,000, to be made only after advertising in
a certain manner.  Provides that the provisions of Chapter 2253, Texas
Government Code , rather than Article 5160, Revised Civil Statues of Texas,
1925, relating to performance and repayment bonds shall apply to
construction contracts let by the district.  Authorizes the board to lease,
purchase, or lease to purchase certain entities, and may pledge the
revenues therefrom as a security for the payment of the purchase price. 

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