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 FOUNDATION
1-8 Sec. 110.001. CREATION OF FOUNDATION. (a) The Center for
1-9 Rural Health Initiatives shall establish the Rural Foundation as a
1-10 nonprofit corporation that complies with the Texas Non-Profit
1-11 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
1-12 Statutes), except as otherwise provided by this chapter, and
1-13 qualifies as an organization exempt from federal income tax under
1-14 Section 501(c)(3), Internal Revenue Code of 1986, as amended.
1-15 (b) The Center for Rural Health Initiatives shall ensure
1-16 that the Rural Foundation operates independently of any state
1-17 agency or political subdivision of the state.
1-18 Sec. 110.002. POWERS AND DUTIES. (a) The Rural Foundation
1-19 shall raise money from foundations, governmental entities, and
1-20 other sources to finance health programs in the rural areas of the
1-21 state.
1-22 (b) The Rural Foundation shall have the powers that are
1-23 necessary and convenient to carry out its duties.
1-24 (c) The Rural Foundation shall develop and implement
1-25 policies and procedures that clearly separate the responsibilities
2-1 and activities of the foundation from the Center for Rural Health
2-2 Initiatives.
2-3 Sec. 110.003. BOARD OF DIRECTORS. (a) The Rural Foundation
2-4 is governed by a board of five directors appointed by the executive
2-5 committee of the Center for Rural Health Initiatives from
2-6 individuals recommended by the executive director of the Center for
2-7 Rural Health Initiatives.
2-8 (b) Members of the board of directors of the Rural
2-9 Foundation serve for staggered terms of six years, with as near as
2-10 possible to one-third of the members' terms expiring February 1 of
2-11 each odd-numbered year.
2-12 (c) Appointments to the board of directors of the Rural
2-13 Foundation shall be made without regard to the race, color,
2-14 disability, sex, religion, age, or national origin of the
2-15 appointees.
2-16 (d) The board of directors of the Rural Foundation shall
2-17 ensure that the foundation remains eligible for an exemption from
2-18 federal income tax under Section 501(a), Internal Revenue Code of
2-19 1986, as amended, by being listed as an exempt organization under
2-20 Section 501(c)(3) of that code, as amended.
2-21 Sec. 110.004. RESTRICTIONS ON BOARD APPOINTMENT, MEMBERSHIP,
2-22 AND EMPLOYMENT. (a) In this section, "Texas trade association"
2-23 means a cooperative and voluntarily joined association of business
2-24 or professional competitors in this state designed to assist its
2-25 members and its industry or profession in dealing with mutual
2-26 business or professional problems and in promoting their common
3-1 interest.
3-2 (b) A person may not be a member of the board of directors
3-3 of the Rural Foundation and may not be a foundation employee
3-4 employed in a "bona fide executive, administrative, or professional
3-5 capacity," as that phrase is used for purposes of establishing an
3-6 exemption to the overtime provisions of the federal Fair Labor
3-7 Standards Act of 1938 (29 U.S.C. Section 201 et seq.), as amended,
3-8 if:
3-9 (1) the person is an officer, employee, or paid
3-10 consultant of a Texas trade association in the field of health
3-11 care; or
3-12 (2) the person's spouse is an officer, manager, or
3-13 paid consultant of a Texas trade association in the field of health
3-14 care.
3-15 (c) A person may not be a member of the board of directors
3-16 of the Rural Foundation or act as the general counsel to the board
3-17 of directors or the foundation if the person is required to
3-18 register as a lobbyist under Chapter 305, Government Code, because
3-19 of the person's activities for compensation on behalf of a
3-20 profession related to the operation of the foundation.
3-21 Sec. 110.005. REMOVAL OF BOARD MEMBER. (a) It is a ground
3-22 for removal from the board of directors of the Rural Foundation
3-23 that a member:
3-24 (1) is ineligible for membership under Section
3-25 110.004;
3-26 (2) cannot, because of illness or disability,
4-1 discharge the member's duties for a substantial part of the
4-2 member's term; or
4-3 (3) is absent from more than half of the regularly
4-4 scheduled board meetings that the member is eligible to attend
4-5 during a calendar year without an excuse approved by a majority
4-6 vote of the board of directors.
4-7 (b) The validity of an action of the board of directors of
4-8 the Rural Foundation is not affected by the fact that it is taken
4-9 when a ground for removal of a board member exists.
4-10 (c) If the executive director of the Center for Rural Health
4-11 Initiatives has knowledge that a potential ground for removal
4-12 exists, the executive director shall notify the presiding officer
4-13 of the board of directors of the Rural Foundation of the potential
4-14 ground. The presiding officer shall then notify the governor and
4-15 the attorney general that a potential ground for removal exists.
4-16 If the potential ground for removal involves the presiding officer,
4-17 the executive director shall notify the next highest ranking
4-18 officer of the board of directors, who shall then notify the
4-19 governor and the attorney general that a potential ground for
4-20 removal exists.
4-21 Sec. 110.006. VACANCY. A vacancy on the board of directors
4-22 of the Rural Foundation shall be filled for the remainder of the
4-23 unexpired term in the same manner as the original appointment.
4-24 Sec. 110.007. OFFICERS. The board of directors of the Rural
4-25 Foundation shall elect from among its members a presiding officer,
4-26 an assistant presiding officer, and other officers the board
5-1 considers necessary. The presiding officer and assistant presiding
5-2 officer serve for a period of one year and may be reelected.
5-3 Sec. 110.008. MEETINGS. The board of directors of the Rural
5-4 Foundation may meet as often as necessary, but shall meet at least
5-5 twice a year.
5-6 Sec. 110.009. TAX EXEMPTION. All income, property, and
5-7 other assets of the Rural Foundation are exempt from taxation by
5-8 the state and political subdivisions of the state.
5-9 Sec. 110.010. MEMORANDUM OF UNDERSTANDING. The Rural
5-10 Foundation and the Center for Rural Health Initiatives shall enter
5-11 into a memorandum of understanding that:
5-12 (1) requires the board of directors and staff of the
5-13 foundation to report to the executive director and executive
5-14 committee of the Center for Rural Health Initiatives;
5-15 (2) allows the Center for Rural Health Initiatives to
5-16 provide staff functions to the foundation;
5-17 (3) allows the Center for Rural Health Initiatives to
5-18 expend funds on the foundation; and
5-19 (4) outlines the financial contributions to be made to
5-20 the foundation from funds obtained from grants and other sources.
5-21 Sec. 110.011. RECORDS. (a) The Rural Foundation shall
5-22 maintain financial records and reports independently from those of
5-23 the Center for Rural Health Initiatives.
5-24 (b) The Rural Foundation shall comply with all filing
5-25 requirements of the secretary of state and the Internal Revenue
5-26 Service.
6-1 Sec. 110.012. REPORT TO CENTER FOR RURAL HEALTH INITIATIVES.
6-2 Not later than the 60th day after the last day of the fiscal year,
6-3 the Rural Foundation shall submit to the Center for Rural Health
6-4 Initiatives a report itemizing all income and expenditures and
6-5 describing all activities of the foundation during the preceding
6-6 fiscal year.
6-7 Sec. 110.013. PROHIBITED USE OF FUNDS. Funds administered
6-8 by the Rural Foundation may not be used to provide an abortion or a
6-9 referral for an abortion, unless there is a medically necessary
6-10 reason to provide the referral.
6-11 SECTION 2. Section 106.026, Health and Safety Code, is
6-12 amended to read as follows:
6-13 Sec. 106.026. REPORT TO LEGISLATURE. (a) No later than
6-14 January 1 of each odd-numbered year, the center shall submit a
6-15 biennial report to the legislature regarding the activities of the
6-16 center, the activities of the Rural Foundation, and any findings
6-17 and recommendations relating to rural issues.
6-18 (b) The center shall obtain information from each county
6-19 about indigent health care provided in the county and information
6-20 from each university, medical school, rural community, or rural
6-21 health care provider that has performed a study relating to rural
6-22 health care during the biennium. The center shall include the
6-23 information obtained under this subsection in the center's report
6-24 to the legislature.
6-25 SECTION 3. (a) The Center for Rural Health Initiatives
6-26 shall create the Rural Foundation not later than June 1, 2002.
S.B. No. 115
7-1 (b) In making the initial appointments to the board of
7-2 directors of the Rural Foundation, the executive committee of the
7-3 Center for Rural Health Initiatives shall designate two members for
7-4 terms expiring February 1, 2003, two members for terms expiring
7-5 February 1, 2005, and one member for a term expiring February 1,
7-6 2007.
7-7 SECTION 4. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 115 passed the Senate on
February 21, 2001, by a viva-voce vote; May 22, 2001, Senate
refused to concur in House amendments and requested appointment of
Conference Committee; May 24, 2001, House granted request of the
Senate; May 27, 2001, Senate adopted Conference Committee Report by
a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 115 passed the House, with
amendments, on May 16, 2001, by a non-record vote; May 24, 2001,
House granted request of the Senate for appointment of Conference
Committee; May 26, 2001, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor