By Madla S.B. No. 115
77R153 MCK-D
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 foundation operates independently of any state agency or
1-18 political subdivision of the state.
1-19 Sec. 110.002. POWERS AND DUTIES. (a) The foundation shall
1-20 raise money from foundations, governmental entities, and other
1-21 sources to finance health programs in the rural areas of the state.
1-22 (b) The foundation shall have the powers that are necessary
1-23 and convenient to carry out its duties.
1-24 Sec. 110.003. BOARD OF DIRECTORS. (a) The foundation is
2-1 governed by a board of five directors appointed by the executive
2-2 committee of the Center for Rural Health Initiatives from
2-3 individuals recommended by the executive director of the Center for
2-4 Rural Health Initiatives.
2-5 (b) Members of the board of directors serve for staggered
2-6 terms of six years, with as near as possible to one-third of the
2-7 members' terms expiring February 1 of each odd-numbered year.
2-8 (c) Appointments to the board of directors shall be made
2-9 without regard to the race, color, disability, sex, religion, age,
2-10 or national origin of the appointees.
2-11 (d) The board of directors shall ensure that the foundation
2-12 remains eligible for an exemption from federal income tax under
2-13 Section 501(a), Internal Revenue Code of 1986, as amended, by being
2-14 listed as an exempt organization under Section 501(c)(3) of that
2-15 code, as amended.
2-16 Sec. 110.004. RESTRICTIONS ON BOARD APPOINTMENT, MEMBERSHIP,
2-17 AND EMPLOYMENT. (a) In this section, "Texas trade association"
2-18 means a cooperative and voluntarily joined association of business
2-19 or professional competitors in this state designed to assist its
2-20 members and its industry or profession in dealing with mutual
2-21 business or professional problems and in promoting their common
2-22 interest.
2-23 (b) A person may not be a member of the board of directors
2-24 and may not be a foundation employee employed in a "bona fide
2-25 executive, administrative, or professional capacity," as that
2-26 phrase is used for purposes of establishing an exemption to the
2-27 overtime provisions of the federal Fair Labor Standards Act of 1938
3-1 (29 U.S.C. Section 201 et seq.), as amended, if:
3-2 (1) the person is an officer, employee, or paid
3-3 consultant of a Texas trade association in the field of health
3-4 care; or
3-5 (2) the person's spouse is an officer, manager, or
3-6 paid consultant of a Texas trade association in the field of health
3-7 care.
3-8 (c) A person may not be a member of the board of directors
3-9 or act as the general counsel to the board of directors or the
3-10 foundation if the person is required to register as a lobbyist
3-11 under Chapter 305, Government Code, because of the person's
3-12 activities for compensation on behalf of a profession related to
3-13 the operation of the foundation.
3-14 Sec. 110.005. REMOVAL OF BOARD MEMBER. (a) It is a ground
3-15 for removal from the board of directors that a member:
3-16 (1) is ineligible for membership under Section
3-17 110.004;
3-18 (2) cannot, because of illness or disability,
3-19 discharge the member's duties for a substantial part of the
3-20 member's term; or
3-21 (3) is absent from more than half of the regularly
3-22 scheduled board meetings that the member is eligible to attend
3-23 during a calendar year without an excuse approved by a majority
3-24 vote of the board of directors.
3-25 (b) The validity of an action of the board of directors is
3-26 not affected by the fact that it is taken when a ground for removal
3-27 of a board member exists.
4-1 (c) If the executive director of the Center for Rural Health
4-2 Initiatives has knowledge that a potential ground for removal
4-3 exists, the executive director shall notify the presiding officer
4-4 of the board of directors of the potential ground. The presiding
4-5 officer shall then notify the governor and the attorney general
4-6 that a potential ground for removal exists. If the potential
4-7 ground for removal involves the presiding officer, the executive
4-8 director shall notify the next highest ranking officer of the board
4-9 of directors, who shall then notify the governor and the attorney
4-10 general that a potential ground for removal exists.
4-11 Sec. 110.006. VACANCY. A vacancy on the board of directors
4-12 shall be filled for the remainder of the unexpired term in the same
4-13 manner as the original appointment.
4-14 Sec. 110.007. OFFICERS. The board of directors shall elect
4-15 from among its members a presiding officer, an assistant presiding
4-16 officer, and other officers the board considers necessary. The
4-17 presiding officer and assistant presiding officer serve for a
4-18 period of one year and may be reelected.
4-19 Sec. 110.008. MEETINGS. The board of directors may meet as
4-20 often as necessary, but shall meet at least twice a year.
4-21 Sec. 110.009. TAX EXEMPTION. All income, property, and other
4-22 assets of the foundation are exempt from taxation by the state and
4-23 political subdivisions of the state.
4-24 Sec. 110.010. MEMORANDUM OF UNDERSTANDING. The foundation
4-25 and the Center for Rural Health Initiatives shall enter into a
4-26 memorandum of understanding that:
4-27 (1) requires the board of directors and staff of the
5-1 foundation to report to the executive director and executive
5-2 committee of the Center for Rural Health Initiatives;
5-3 (2) allows the Center for Rural Health Initiatives to
5-4 provide staff functions to the foundation;
5-5 (3) allows the Center for Rural Health Initiatives to
5-6 expend funds on the foundation; and
5-7 (4) outlines the financial contributions to be made to
5-8 the foundation from funds obtained from grants and other sources.
5-9 Sec. 110.011. RECORDS. (a) The foundation shall maintain
5-10 financial records and reports independently from those of the
5-11 Center for Rural Health Initiatives.
5-12 (b) The foundation shall comply with all filing requirements
5-13 of the secretary of state and the Internal Revenue Service.
5-14 SECTION 2. (a) The Center for Rural Health Initiatives
5-15 shall create the Rural Health Foundation not later than June 1,
5-16 2002.
5-17 (b) In making the initial appointments to the board of
5-18 directors of the Rural Health Foundation, the executive committee
5-19 of the Center for Rural Health Initiatives shall designate two
5-20 members for terms expiring February 1, 2003, two members for terms
5-21 expiring February 1, 2005, and one member for a term expiring
5-22 February 1, 2007.
5-23 SECTION 3. This Act takes effect September 1, 2001.