SRC-SEW H.B. 170 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 170
77R7270 YDB-DBy: Christian (Staples)
Intergovernmental Relations
5/8/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, the Nacogdoches County Hospital District (district) is
not authorized to create a charitable organization or a nonprofit
corporation to provide or arrange for various health care services for the
district. Such measures have been implemented in other hospital districts
in the state. H.B. 170 sets forth and modifies provisions regarding the
issuance of bonds and public securities by the district and authorizes the
board of directors of the district to create a charitable organization and
a nonprofit corporation.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 7, Chapter 431, Acts of the 60th Legislature,
Regular Session, 1967, as follows:   

Sec. 7.  (a) Replaces the text "in Article 704, Revised Statutes" with " by
Section 1251.003, Government Code." 

(b)  Deletes text requiring refunding bonds to bear interest at the same or
lower rate than borne by the debt refunded, unless it is shown
mathematically that a saving will result in the total amount of interest to
be paid on said refunding bonds.  Deletes text requiring refunding bonds to
be issued and payments of outstanding indebtedness to be made in the manner
specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended
(Article 717k, V. T. C. S.)  if such bonds are to be sold and the proceeds
applied to such payments. 

(c)  Requires a public security issued by the Nacogdoches County Hospital
District (district) to bear interest at a rate not to exceed the maximum
interest rate allowed by Chapter 1204, Government Code.  Deletes text
requiring the bonds of the district to bear interest not to exceed six
percent per annum.  Deletes text requiring bonds to be executed in the the
name of the hospital district and in its behalf by the president of the
board and countersigned by the secretary.  Requires bonds to be executed in
the manner provided by Chapter 618, Government Code (rather than Chapter
204, Acts of the 57th Legislature, Regular Session, 1961 (Article 717j-1,
V.T.C.S.), as amended), and requires bonds to be subject to the
requirements of Chapter 1202, Government Code.  Deletes text regarding
approval by the Attorney General of Texas and registration by the
Comptroller of Public Accounts and make conforming changes. 
 
SECTION 2.  Amends Section 17, Chapter 431, Acts of the 60th Legislature,
Regular Session, 1967, as follows: 

 Sec. 17.  (a) Requires the application procedure to determine eligibility
for indigent health care to be adopted not later than the beginning of each
operating year and to comply with Chapter 61, Health and Safety Code. 

(b)  Makes a nonsubstantive change.  Authorizes the administrator or
manager, whenever a patient residing within the district has been admitted
to a district facility (rather than the facilities thereof), to cause
inquiry to be made as to the patient's financial circumstances and the
financial circumstances of the relatives of such patient legally liable for
the patient's support. 

(c)  Makes a nonsubstantive change.  Requires the administrator or manager,
if the administrator or manager finds that such patient or said relatives
are able to pay for the patient's care and treatment in whole or in part,
to issue an order directing such patient or said relatives to pay to the
hospital district for the care and support of such patient a specified sum
for an agreed term regarding payment that is (rather than per week) in
proportion to their financial ability. 

 (d) - (f).  Makes conforming and nonsubstantive changes.  
 
SECTION 3.  Amends Section 18, Chapter 431, Acts of the 60th Legislature,
Regular Session, 1967, as follows: 

 Sec. 18.  (a) Makes a nonsubstantive change. 

(b)  Authorizes the board of directors to facilitate achievement of the
purpose of the district by creating a charitable organization for certain
purposes.  Defines "charitable organization."  Provides that a charitable
organization created by the board under this subsection is a unit of local
government for the purposes of Chapter 101, Civil Practice and Remedies
Code. 

(c)  Sets forth guidelines regarding the powers of the district.
Authorizes the corporation to use funds, other than funds paid by the
corporation to the district, only for certain purposes.  Requires the board
of directors 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 4.  Effective date:  September 1, 2001.