NRS S.B. 969 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 969
By: Bivins
County Affairs
4/22/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, hospital districts in small towns and rural areas have a
difficult time attracting health care professionals to render services.
Subsidizing income or providing office space is a good way to attract
health care professionals such as physicians to the district. Senate Bill
969 authorizes the Deaf Smith County Hospital District to sponsor and
create a nonprofit corporation and to enter into agreements to recruit
hospital personnel such as physicians. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 969 authorizes the Deaf Smith County Hospital District
(district) to enter into agreements or take other action it considers
appropriate to recruit certain hospital personnel, including advertising
and marketing, paying travel, recruitment, and relocation expenses,
subsidizing a health care professional's income, providing office space or
other facilities for a professional who agrees to render services in the
district. The bill authorizes the district to enter into contracts with
allied health professionals. The bill removes the provision that all
purchases involving an expenditure of more than $15,000 may be made only
after competitive bidding.  

The bill authorizes the district to sponsor and create a nonprofit
corporation (corporation) under the Texas Non-Profit Corporation Act and to
contribute funds to or solicit funds for the corporation. The bill
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 is authorized to provide. The bill requires the board of
directors of the district to establish controls to ensure the corporation
uses its funds as required and authorizes the corporation to invest
corporation funds in any manner in which the district is authorized to
invest funds.  The bill sets forth provisions relating to the election of
directors of the district and provides that directors of the district serve
staggered three-year, rather than two-year, terms. 

EFFECTIVE DATE

September 1, 2001.