SRC-TJG H.B. 1094 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1094
By: Capelo (Nelson)
Administration
5/16/2003
Engrossed


DIGEST AND PURPOSE 

H.B. 1094 Authorizes the Texas Department of Health (TDH) to make certain
grants to establish new or expand existing facilities that can qualify as
federally qualified health centers and creates a revolving loan program
for community health centers. 

RULEMAKING AUTHORITY

Rulemaking authority is transferred from the Health and Human Services
Commission to the Texas Board of Health in SECTION 2 (Section 112.007,
Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 31, Health and Safety Code, by adding Section
31.017, as follows: 

Sec. 31.017.  FEDERALLY QUALIFIED HEALTH CENTERS.  (a) Authorizes the
Texas Department of Health (TDH) to make certain grants to establish new
or expand existing facilities that can qualify as federally qualified
health centers, as defined by 42 U.S.C. Section 1396d(1)(2)(B), in this
state, including certain specifying grants. 

(b) Provides that this section expires September 1, 2009.

SECTION 2.  Transfers Chapter 136, Human Resources Code, to Subtitle E,
Title 2, Health and Safety Code, renumbers it as Chapter 112, Health and
Safety Code, and amends it as follows: 

CHAPTER 112.  New heading: TEXAS COMMUNITY HEALTH CENTER REVOLVING LOAN
PROGRAM 

Sec. 112.001.  Redesignated from Section 136.001.  Provides for certain
legislative findings.  

Sec. 112.002.  Redesignated from Section 136.002.  Deletes existing
definitions of "commission" and "fund."  Redesignates existing
Subdivisions (3) and (5) as (2) and (3). 

Deletes existing Section 136.003 titled TRUST FUND.

Sec. 112.003.  Redesignated from Section 136.004.  Requires TDH, rather
than the Health and Human Services Commission, to award a grant, rather
than to contract with and award money, to a development corporation to
carry out the purposes of this chapter. 

Sec. 112.004.  Redesignated from Section 136.005.

(a) Requires TDH, before awarding a grant to a development corporation, to
establish an investment committee to approve loan requests of community
health centers.  Makes conforming changes. 

(b) and (c) No changes to these subsections.

 Sec. 112.005.  Redesignated from Section 136.006.

(d) Authorizes the development corporation to make a loan under the
program through a partnership or joint investment with one or more other
lenders, rather than financial institutions, or federal or state programs. 

(e) Requires the development corporation to use the loan payment money
received from community health centers to make new loans and cover the
expenses of making and servicing loans under this chapter, rather than as
provided by this chapter. 

(f) Authorizes the development corporation to make a loan to fund a joint
project of two or more community health centers. 

Deletes existing Section 136.007, relating to self-funding.

Sec. 112.006.  Redesignated from Section 136.008.

Sec. 112.007.  Redesignated from Section 136.009.

(a) Requires the Texas Board of Health (board), rather than the Health and
Human Services Commission, to adopt rules necessary to administer this
chapter and to ensure a grant made under this chapter is used for the
purposes intended by the legislature.  Deletes existing text relating to
the commission adopting rules which require certain entities to take
certain actions.  Makes a conforming change. 

(b)-(c) Make conforming changes.

SECTION 3.  Requires the board to adopt rules necessary for TDH to
administer Chapter 112, Health and Safety Code, as transferred and amended
by this Act, not later than December 1, 2003. 

SECTION 4.  Effective date: September 1, 2003.