C.S.H.B. 3297 78(R)    BILL ANALYSIS


C.S.H.B. 3297
By: Chavez
Border and International Affairs
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Office of Rural Community Affairs (ORCA) was created to coordinate the
state's efforts in rural areas. ORCA is responsible for the states colonia
initiatives. The Rural Health Foundation operated under ORCA is set up to
raise funding for rural health initiatives. Similar to rural areas across
the state, the 43 counties designated as the Texas Mexico Border Region
(37 of which are rural) are medically underserved  and shares many other
common problems. Since the passage of NAFTA, there has been much funding
earmarked by the Federal Government for the border. The border region, is
felt by many, to need an organization similar to ORCA to coordinate
projects in the region. An organization that could coordinate rural and
border programs might benefit both parts of the state. 

C.S.H.B. 3297 changes the name of the Office of Rural Community Affairs to
the Office of Rural and Border Community Affairs.  C.S.H.B. 3297  also
establishes the Border Foundation, a non-profit corporation charged with
raising money from foundations, governmental entities, and other sources
to finance health programs in the counties along the Texas-Mexico Border.  


RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

ANALYSIS

SECTIONS 1. C.S.H.B. 3297 amends  the name of the Office of Rural
Community Affairs to the Office of Rural and Border Community Affairs.  

SECTIONS 2- 9, 11 - 16. These sections make conforming changes
necessitated by the name change in SECTION 1. 

SECTION 10. C.S.H.B. 3297 amends the Health and Safety Code to require the
Office of Border Health (office) under the Texas Department of Health to
establish the Border Foundation (foundation) as a nonprofit corporation
that qualifies as an organization exempt from federal income tax under
Section 501(C)(3), Internal Revenue Code of 1986, as amended. The bill
sets forth the powers and the duties of the foundation. The bill provides
for the appointment, membership, and duties of a five-member board of
directors of the foundation.  The bill exempts property, income, and all
other assets of the foundation from taxation by state and political
subdivisions of the state. 

C.S.H.B. 3297 requires the office and the foundation to enter into a
memorandum of understanding that requires the directors and staff of the
foundation to report to the executive director and executive committee of
the office, that allows the office to provide staff functions to and
expend funds on the foundation, and that outlines the financial
contributions to be made to the foundation from funds obtained from grants
and other sources. 

C.S.H.B. 3297 also provides for the maintenance of financial records and
reports of the foundation. The bill requires the foundation to submit to
the office a report itemizing all income and expenditures and describing
all activities of the foundation during the preceding fiscal year, no
later than the 60th day after the last day of the fiscal year. 

 SECTION 17. C.S.H.B. 3297  requires the office to create the foundation
not later than June 1, 200,4 and provides a schedule and guidelines for
initial appointments to the board of directors.  

SECTION  18. Effective Date.


EFFECTIVE DATE

September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute amends the original by making additional conforming changes
as result of changing the name of Office of Rural Community Affairs to the
Office of Rural and Border Community Affairs.