S.B. 446 78(R)    BILL ANALYSIS


S.B. 446
By: Madla
Land & Resource Management
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Office of Rural Community Affairs (ORCA) provides grant writing and
grant compliance assistance to rural communities, hospitals, schools, or
health care providers who are attempting to find funding for a variety of
projects.  During the 77th Legislature, the Rural Foundation was created
as a non-profit foundation because some grants prohibit a governmental
entity from receiving grant money.  However, due to a drafting error it
was unclear whether the foundation could apply for and administer grants
relating only to health care entities or for other entities as the bill
intended.  The Attorney General has ruled that the foundation is currently
authorized only to work with health care grants.   

S.B. 446 would clarify that the Rural Foundation may apply for grants for
economic development programs in rural areas of the state. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.  Amends Section 110.001, Health and Safety Code, as follows:

Requires that ORCA rather than the Center for Rural Health Initiatives, to
establish the Rural Foundation.  Makes a conforming change. 

SECTION 2.  Amends Sections 110.002(a) and (c), Health and Safety Code, as
follows: 
  
Requires the Rural Foundation to raise money for community and economic
development programs in addition to the programs that it is currently
required to do so for. 

SECTION 3.  Amends Subsection 110.003(a), Health and Safety Code, to
authorize ORCA (rather than the Center for Rural Health Initiatives) to
appoint the Rural Foundation board. 

SECTION 4.  Amends Section 110.004(b), Health and Safety Code, as follows:

Prohibits a person who contracts with the Rural Foundation from being a
member of the board of directors of the foundation and may not be a
foundation employee employed in a bona fide executive, administrative, or
professional capacity (this prohibition is in addition to the group
currently prohibited from such positions).  

SECTION 5.  Amends Section 110.005(c), Health and Safety Code, to make a
conforming change. 

SECTION 6.  Amends Section 110.010, Health and Safety Code, to make
conforming changes. 
 
SECTION 7.  Amends Section 110.011(a), Health and Safety Code, to make a
conforming change. 

SECTION 8.  Amends Section 110.012, Health and Safety Code, to make
conforming changes. 

SECTION 9.  Effective date.

EFFECTIVE DATE

September 1, 2003.