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78R9571 YDB-F
By: Chavez H.B. No. 2450
Substitute the following for H.B. No. 2450:
By: Griggs C.S.H.B. No. 2450
A BILL TO BE ENTITLED
AN ACT
relating to creating a foundation to finance health programs in the
border counties of this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
amended by adding Chapter 112 to read as follows:
CHAPTER 112. BORDER FOUNDATION
Sec. 112.001. DEFINITIONS. In this chapter:
(1) "Board of directors" means the board of directors
of the Border Foundation.
(2) "Foundation" means the Border Foundation.
Sec. 112.002. CREATION OF FOUNDATION. (a) The Office of
Border Health within the department shall establish the Border
Foundation as a nonprofit corporation that complies with the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes), except as otherwise provided by this
chapter, and qualifies as an organization exempt from federal
income tax under Section 501(c)(3), Internal Revenue Code of 1986,
as amended.
(b) The Office of Border Health shall ensure that the
foundation operates independently of any state agency or political
subdivision of this state.
Sec. 112.003. POWERS AND DUTIES. (a) The foundation shall
raise money from other foundations, governmental entities, and
other sources to finance health programs in this state in the
counties adjacent to the border with the United Mexican States.
(b) The foundation has the powers necessary and convenient
to carry out its duties.
(c) The foundation shall develop and implement policies and
procedures that clearly separate the responsibilities and
activities of the foundation from the Office of Border Health.
(d) The foundation shall cooperate with the Rural
Foundation to coordinate projects in counties that are rural and
adjacent to the border with the United Mexican States.
Sec. 112.004. BOARD OF DIRECTORS. (a) The foundation is
governed by a board of five directors appointed by the Texas Board
of Health from individuals recommended by the executive director of
the Office of Border Health.
(b) Members of the board of directors serve for staggered
terms of six years, with as near as possible to one-third of the
members' terms expiring February 1 of each odd-numbered year.
(c) Appointments to the board of directors shall be made
without regard to the race, color, disability, sex, religion, age,
or national origin of the appointees.
(d) The board of directors shall ensure that the foundation
remains eligible for an exemption from federal income tax under
Section 501(a), Internal Revenue Code of 1986, as amended, by being
listed as an exempt organization under Section 501(c)(3) of that
code, as amended.
Sec. 112.005. RESTRICTIONS ON BOARD APPOINTMENT,
MEMBERSHIP, AND EMPLOYMENT. (a) In this section, "Texas trade
association" means a cooperative and voluntarily joined
association of business or professional competitors in this state
designed to assist its members and its industry or profession in
dealing with mutual business or professional problems and in
promoting their common interest.
(b) A person may not be a member of the board of directors
and may not be a foundation employee employed in a "bona fide
executive, administrative, or professional capacity," as that
phrase is used for purposes of establishing an exemption to the
overtime provisions of the federal Fair Labor Standards Act of 1938
(29 U.S.C. Section 201 et seq.), as amended, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of health care;
or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of health care.
(c) A person may not be a member of the board of directors or
act as the general counsel to the board of directors or the
foundation if the person is required to register as a lobbyist under
Chapter 305, Government Code, because of the person's activities
for compensation on behalf of a profession related to the operation
of the foundation.
Sec. 112.006. REMOVAL OF BOARD MEMBER. (a) It is a ground
for removal from the board of directors that a member:
(1) is ineligible for membership under Section
112.005;
(2) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(3) is absent from more than half of the regularly
scheduled board meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority
vote of the board of directors.
(b) The validity of an action of the board of directors is
not affected by the fact that it is taken when a ground for removal
of a board member exists.
(c) If the executive director of the Office of Border Health
has knowledge that a potential ground for removal exists, the
executive director shall notify the presiding officer of the board
of directors of the potential ground. The presiding officer shall
then notify the governor and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the executive director shall notify
the next highest ranking officer of the board of directors, who
shall then notify the governor and the attorney general that a
potential ground for removal exists.
Sec. 112.007. VACANCY. A vacancy on the board of directors
shall be filled for the remainder of the unexpired term in the same
manner as the original appointment.
Sec. 112.008. OFFICERS. The board of directors shall elect
from among its members a presiding officer, an assistant presiding
officer, and other officers the board considers necessary. The
presiding officer and assistant presiding officer serve for a
period of one year and may be reelected.
Sec. 112.009. MEETINGS. The board of directors may meet as
often as necessary, but shall meet at least twice a year.
Sec. 112.010. TAX EXEMPTION. All income, property, and
other assets of the foundation are exempt from taxation by this
state and political subdivisions of this state.
Sec. 112.011. MEMORANDUM OF UNDERSTANDING. The foundation
and the Office of Border Health shall enter into a memorandum of
understanding that:
(1) requires the board of directors and staff of the
foundation to report to the executive director of the Office of
Border Health;
(2) allows the Office of Border Health to provide
staff functions to the foundation;
(3) allows the Office of Border Health to expend funds
on the foundation; and
(4) outlines the financial contributions to be made to
the foundation from funds obtained from grants and other sources.
Sec. 112.012. RECORDS. (a) The foundation shall maintain
financial records and reports independently from those of the
Office of Border Health.
(b) The foundation shall comply with all filing
requirements of the secretary of state and the Internal Revenue
Service.
Sec. 112.013. REPORT TO OFFICE OF BORDER HEALTH. Not later
than the 60th day after the last day of the fiscal year, the
foundation shall submit to the Office of Border Health a report
itemizing all income and expenditures and describing all activities
of the foundation during the preceding fiscal year.
SECTION 2. (a) The Office of Border Health within the Texas
Department of Health shall create the Border Foundation not later
than June 1, 2004.
(b) In making the initial appointments to the board of
directors of the Border Foundation as required by Section 112.004,
Health and Safety Code, as added by this Act, the Texas Board of
Health shall designate two members for terms expiring February 1,
2005, two members for terms expiring February 1, 2007, and one
member for a term expiring February 1, 2009.
SECTION 3. This Act takes effect September 1, 2003.