By: Madla, Bernsen S.B. No. 115
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to creating a foundation to finance health programs in the
1-3 rural areas of the state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
1-6 amended by adding Chapter 110 to read as follows:
1-7 CHAPTER 110. RURAL HEALTH FOUNDATION
1-8 Sec. 110.001. CREATION OF FOUNDATION. (a) The Center for
1-9 Rural Health Initiatives shall establish the Rural Health
1-10 Foundation as a nonprofit corporation that complies with the Texas
1-11 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
1-12 Texas Civil Statutes), except as otherwise provided by this
1-13 chapter, and qualifies as an organization exempt from federal
1-14 income tax under Section 501(c)(3), Internal Revenue Code of 1986,
1-15 as amended.
1-16 (b) The Center for Rural Health Initiatives shall ensure
1-17 that the Rural Health Foundation operates independently of any
1-18 state agency or political subdivision of the state.
1-19 Sec. 110.002. POWERS AND DUTIES. (a) The Rural Health
1-20 Foundation shall raise money from foundations, governmental
1-21 entities, and other sources to finance health programs in the rural
1-22 areas of the state.
1-23 (b) The Rural Health Foundation shall have the powers that
1-24 are necessary and convenient to carry out its duties.
1-25 (c) The Rural Health Foundation shall develop and implement
2-1 policies and procedures that clearly separate the responsibilities
2-2 and activities of the foundation from the Center for Rural Health
2-3 Initiatives.
2-4 Sec. 110.003. BOARD OF DIRECTORS. (a) The Rural Health
2-5 Foundation is governed by a board of five directors appointed by
2-6 the executive committee of the Center for Rural Health Initiatives
2-7 from individuals recommended by the executive director of the
2-8 Center for Rural Health Initiatives.
2-9 (b) Members of the board of directors of the Rural Health
2-10 Foundation serve for staggered terms of six years, with as near as
2-11 possible to one-third of the members' terms expiring February 1 of
2-12 each odd-numbered year.
2-13 (c) Appointments to the board of directors of the Rural
2-14 Health Foundation shall be made without regard to the race, color,
2-15 disability, sex, religion, age, or national origin of the
2-16 appointees.
2-17 (d) The board of directors of the Rural Health Foundation
2-18 shall ensure that the foundation remains eligible for an exemption
2-19 from federal income tax under Section 501(a), Internal Revenue Code
2-20 of 1986, as amended, by being listed as an exempt organization
2-21 under Section 501(c)(3) of that code, as amended.
2-22 Sec. 110.004. RESTRICTIONS ON BOARD APPOINTMENT, MEMBERSHIP,
2-23 AND EMPLOYMENT. (a) In this section, "Texas trade association"
2-24 means a cooperative and voluntarily joined association of business
2-25 or professional competitors in this state designed to assist its
2-26 members and its industry or profession in dealing with mutual
3-1 business or professional problems and in promoting their common
3-2 interest.
3-3 (b) A person may not be a member of the board of directors
3-4 of the Rural Health Foundation and may not be a foundation employee
3-5 employed in a "bona fide executive, administrative, or professional
3-6 capacity," as that phrase is used for purposes of establishing an
3-7 exemption to the overtime provisions of the federal Fair Labor
3-8 Standards Act of 1938 (29 U.S.C. Section 201 et seq.), as amended,
3-9 if:
3-10 (1) the person is an officer, employee, or paid
3-11 consultant of a Texas trade association in the field of health
3-12 care; or
3-13 (2) the person's spouse is an officer, manager, or
3-14 paid consultant of a Texas trade association in the field of health
3-15 care.
3-16 (c) A person may not be a member of the board of directors
3-17 of the Rural Health Foundation or act as the general counsel to the
3-18 board of directors or the foundation if the person is required to
3-19 register as a lobbyist under Chapter 305, Government Code, because
3-20 of the person's activities for compensation on behalf of a
3-21 profession related to the operation of the foundation.
3-22 Sec. 110.005. REMOVAL OF BOARD MEMBER. (a) It is a ground
3-23 for removal from the board of directors of the Rural Health
3-24 Foundation that a member:
3-25 (1) is ineligible for membership under Section
3-26 110.004;
4-1 (2) cannot, because of illness or disability,
4-2 discharge the member's duties for a substantial part of the
4-3 member's term; or
4-4 (3) is absent from more than half of the regularly
4-5 scheduled board meetings that the member is eligible to attend
4-6 during a calendar year without an excuse approved by a majority
4-7 vote of the board of directors.
4-8 (b) The validity of an action of the board of directors of
4-9 the Rural Health Foundation is not affected by the fact that it is
4-10 taken when a ground for removal of a board member exists.
4-11 (c) If the executive director of the Center for Rural Health
4-12 Initiatives has knowledge that a potential ground for removal
4-13 exists, the executive director shall notify the presiding officer
4-14 of the board of directors of the Rural Health Foundation of the
4-15 potential ground. The presiding officer shall then notify the
4-16 governor and the attorney general that a potential ground for
4-17 removal exists. If the potential ground for removal involves the
4-18 presiding officer, the executive director shall notify the next
4-19 highest ranking officer of the board of directors, who shall then
4-20 notify the governor and the attorney general that a potential
4-21 ground for removal exists.
4-22 Sec. 110.006. VACANCY. A vacancy on the board of directors
4-23 of the Rural Health Foundation shall be filled for the remainder of
4-24 the unexpired term in the same manner as the original appointment.
4-25 Sec. 110.007. OFFICERS. The board of directors of the Rural
4-26 Health Foundation shall elect from among its members a presiding
5-1 officer, an assistant presiding officer, and other officers the
5-2 board considers necessary. The presiding officer and assistant
5-3 presiding officer serve for a period of one year and may be
5-4 reelected.
5-5 Sec. 110.008. MEETINGS. The board of directors of the Rural
5-6 Health Foundation may meet as often as necessary, but shall meet at
5-7 least twice a year.
5-8 Sec. 110.009. TAX EXEMPTION. All income, property, and
5-9 other assets of the Rural Health Foundation are exempt from
5-10 taxation by the state and political subdivisions of the state.
5-11 Sec. 110.010. MEMORANDUM OF UNDERSTANDING. The Rural Health
5-12 Foundation and the Center for Rural Health Initiatives shall enter
5-13 into a memorandum of understanding that:
5-14 (1) requires the board of directors and staff of the
5-15 foundation to report to the executive director and executive
5-16 committee of the Center for Rural Health Initiatives;
5-17 (2) allows the Center for Rural Health Initiatives to
5-18 provide staff functions to the foundation;
5-19 (3) allows the Center for Rural Health Initiatives to
5-20 expend funds on the foundation; and
5-21 (4) outlines the financial contributions to be made to
5-22 the foundation from funds obtained from grants and other sources.
5-23 Sec. 110.011. RECORDS. (a) The Rural Health Foundation
5-24 shall maintain financial records and reports independently from
5-25 those of the Center for Rural Health Initiatives.
5-26 (b) The Rural Health Foundation shall comply with all filing
6-1 requirements of the secretary of state and the Internal Revenue
6-2 Service.
6-3 Sec. 110.012. REPORT TO CENTER FOR RURAL HEALTH INITIATIVES.
6-4 Not later than the 60th day after the last day of the fiscal year,
6-5 the Rural Health Foundation shall submit to the Center for Rural
6-6 Health Initiatives a report itemizing all income and expenditures
6-7 and describing all activities of the foundation during the
6-8 preceding fiscal year.
6-9 SECTION 2. Section 106.026, Health and Safety Code, is
6-10 amended to read as follows:
6-11 Sec. 106.026. REPORT TO LEGISLATURE. No later than January
6-12 1 of each odd-numbered year, the center shall submit a biennial
6-13 report to the legislature regarding the activities of the center,
6-14 the activities of the Rural Health Foundation, and any findings and
6-15 recommendations relating to rural issues.
6-16 SECTION 3. (a) The Center for Rural Health Initiatives
6-17 shall create the Rural Health Foundation not later than June 1,
6-18 2002.
6-19 (b) In making the initial appointments to the board of
6-20 directors of the Rural Health Foundation, the executive committee
6-21 of the Center for Rural Health Initiatives shall designate two
6-22 members for terms expiring February 1, 2003, two members for terms
6-23 expiring February 1, 2005, and one member for a term expiring
6-24 February 1, 2007.
6-25 SECTION 4. This Act takes effect September 1, 2001.