By: Chavez H.B. No. 3297
A BILL TO BE ENTITLED
AN ACT
relating to the Office of Rural and Border Affairs
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading of Chapter 487, Government Code, is
amended to read as follows:
CHAPTER 487. OFFICE OF RURAL AND BORDER COMMUNITY AFFAIRS
SECTION 2. Section 487.001 is amended to read as follows:
Sec. 487.001. Definitions.
(1) "Executive committee" means the executive
committee of the Office of Rural and Border Community Affairs.
(2) "Office" means the Office of Rural and Border
Community Affairs.
SECTION 3. Section 487.002, Government Code, is amended to
read as follows:
Sec. 487.002 SUNSET PROVISION. The Office of Rural and
Border Community Affairs is subject to Chapter 325 (Texas Sunset
Act). Unless continued in existence as provided by that chapter,
the office is abolished and this chapter expires September 1, 2007.
SECTION 4. Section 487.021 (c) is amended to read as
follows:
(c) The governor, the lieutenant governor, and the speaker
of the house of representatives shall each appoint at least two
members who possess a strong understanding of and commitment to
rural or border interests based on the individual's personal
history, including residency, occupation, and business or civic
activities.
SECTION 5. Section 487.051, Government Code is amended to
read as follows:
487.051. Powers and Duties. The office shall:
(1) develop a rural and border policy for the state in
consultation with local leaders representing all facets of rural
and border community life, academic and industry experts, and state
elected and appointed officials with interests in rural and border
communities;
(2) work with other state agencies and officials to
improve the results and the cost-effectiveness of state programs
affecting rural and border communities through coordination of
efforts;
(3) develop programs to improve the leadership
capacity of rural and border community leaders;
(4) monitor developments that have a substantial
effect on rural and border Texas communities, especially actions of
state government, and compile an annual report describing and
evaluating the condition of rural communities;
(5) administer the federal community development
block grant nonentitlement program;
(6) administer programs supporting rural health care
as provided by Subchapters D-H;
(7) perform research to determine the most beneficial
and cost-effective ways to improve the welfare of rural and border
communities;
(8) ensure that the office qualifies as the state's
office of rural health for the purpose of receiving grants from the
Office of Rural Health Policy of the United States Department of
Health and Human Services under 42 U.S.C. Section 254r; and
(9) manage the state's Medicare rural hospital
flexibility program under 42 U.S.C. Section 1395i-4.
SECTION 6. Section 487.054, Government Code, is amended to
read as follows:
487.054. Annual Meeting on Rural and Border Issues (a) At
least once each year, the following agency heads shall meet to
discuss rural and border issues:
(1) the commissioner of agriculture;
(2) the executive director of the Public Utility
Commission of Texas;
(3) the director of the Texas Agricultural Extension
Service;
(4) the presiding officer of the Telecommunications
Infrastructure Fund Board;
(5) the executive director of the Texas Department of
Housing and Community Affairs;
(6) the commissioner of health;
(7) the executive administrator of the Texas Water
Development Board;
(8) the executive director of the Parks and Wildlife
Department;
(9) the commissioner of human services;
(10) the commissioner of higher education;
(11) the comptroller; and
(12) the executive director of the Texas Department of
Transportation.
(b) The executive committee shall call the annual meeting.
The executive committee shall set the time and date of the meeting
after consulting with the agency heads listed in Subsection (a).
SECTION 7. Section 487.056, Government Code, is amended to
read as follows:
487.056. Report to Legislature. Not later than January 1 of
each odd-numbered year, the office shall submit a biennial report
to the legislature regarding the activities of the office and any
findings and recommendations relating to rural and border issues.
SECTION 8. 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. CREATION OF FOUNDATION. (a) The Office of
Border Health under the Texas Department of Health 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 Border
Foundation operates independently of any state agency or political
subdivision of the state.
Sec. 112.002. POWERS AND DUTIES. (a) The Border Foundation
shall raise money from foundations, governmental entities, and
other sources to finance health programs in the Texas counties that
make-up the Texas-Mexico Border.
(b) The Border Foundation shall have the powers that are
necessary and convenient to carry out its duties.
(c) The Border 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 Border Foundation shall cooperate with the Rural
Foundation to coordinate projects in counties that are both rural
and on the Texas-Mexico Border.
Sec. 112.003. BOARD OF DIRECTORS. (a) The Border
Foundation is governed by a board of five directors appointed by the
executive committee of the Office of Border Health from individuals
recommended by the executive director of the Office of Border
Health.
(b) Members of the board of directors of the Border
Foundation 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 of the Border
Foundation shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the
appointees.
(d) The board of directors of the Border Foundation 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. 112.004. 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 own interest.
(b) A person may not be a member of the board of directors of
the Border Foundation 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 of
the Border Foundation 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. 112.005. REMOVAL OF A BOARD MEMBER. (a) It is a ground
for removal from the board of directors of the Border Foundation
that a member:
(1) is ineligible for membership under Section
112.004;
(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 of
the Border Foundation 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 Border Foundation 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. 112.006. VACANCY. A vacancy on the board of directors
of the Border Foundation shall be filled for the remainder of the
unexpired term in the same manner as the original appointment.
Sec. 112.007. OFFICERS. The board of directors of the
Border Foundation 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. 112.008. MEETINGS. The board of directors of the
Border Foundation may meet as often as necessary, but shall meet at
least twice a year.
Sec. 112.009. TAX EXEMPTION. All income, property, and
other assets of the Border Foundation are exempt from taxation by
the state and political subdivisions of the state.
Sec. 112.010. MEMORANDUM OF UNDERSTANDING. The Border
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 and executive
committee 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. 112.011. RECORDS (a) The Border Foundation shall
maintain financial records and reports independently from those of
the Office of Border Health.
(b) The Border Foundation shall comply with all filing
requirements of the secretary of state and the Internal Revenue
Service.
Sec. 112.012. REPORT TO OFFICE OF BORDER Health. Not later
than the 60th day after the last day of the fiscal year, the Border
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 9. (a) The Office of Border 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, the executive committee of the
Office of Border 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 10. This Act takes effect September 1, 2003.