78R2582 MCK-D
By: Madla S.B. No. 446
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Rural Foundation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 110.001, Health and Safety Code, as
added by Chapter 1221, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
Sec. 110.001. CREATION OF FOUNDATION. (a) The Office of
Rural Community Affairs [Center for Rural Health Initiatives] shall
establish the Rural 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 Rural Community Affairs [Center for Rural
Health Initiatives] shall ensure that the Rural Foundation operates
independently of any state agency or political subdivision of the
state.
SECTION 2. Sections 110.002(a) and (c), Health and Safety
Code, as added by Chapter 1221, Acts of the 77th Legislature,
Regular Session, 2001, are amended to read as follows:
(a) The Rural Foundation shall raise money from
foundations, governmental entities, and other sources to finance
health and economic development programs in the rural areas of the
state.
(c) The Rural Foundation shall develop and implement
policies and procedures that clearly separate the responsibilities
and activities of the foundation from the Office of Rural Community
Affairs [Center for Rural Health Initiatives].
SECTION 3. Section 110.003(a), Health and Safety Code, as
added by Chapter 1221, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
(a) The Rural Foundation is governed by a board of five
directors appointed by the executive committee of the Office of
Rural Community Affairs [Center for Rural Health Initiatives] from
individuals recommended by the executive director of the Office of
Rural Community Affairs [Center for Rural Health Initiatives].
SECTION 4. Section 110.004(b), Health and Safety Code, as
added by Chapter 1221, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
(b) A person may not be a member of the board of directors of
the Rural 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 that is in the field of
health care or that contracts with the foundation; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association that is in the field of
health care or that contracts with the foundation.
SECTION 5. Section 110.005(c), Health and Safety Code, as
added by Chapter 1221, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
(c) If the executive director of the Office of Rural
Community Affairs [Center for Rural Health Initiatives] has
knowledge that a potential ground for removal exists, the executive
director shall notify the presiding officer of the board of
directors of the Rural 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.
SECTION 6. Section 110.010, Health and Safety Code, as
added by Chapter 1221, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
Sec. 110.010. MEMORANDUM OF UNDERSTANDING. The Rural
Foundation and the Office of Rural Community Affairs [Center for
Rural Health Initiatives] 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 Rural Community Affairs [Center for
Rural Health Initiatives];
(2) allows the Office of Rural Community Affairs
[Center for Rural Health Initiatives] to provide staff functions to
the foundation;
(3) allows the Office of Rural Community Affairs
[Center for Rural Health Initiatives] 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.
SECTION 7. Section 110.011(a), Health and Safety Code, as
added by Chapter 1221, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
(a) The Rural Foundation shall maintain financial records
and reports independently from those of the Office of Rural
Community Affairs [Center for Rural Health Initiatives].
SECTION 8. Section 110.012, Health and Safety Code, as
added by Chapter 1221, Acts of the 77th Legislature, Regular
Session, 2001, is amended to read as follows:
Sec. 110.012. REPORT TO OFFICE OF RURAL COMMUNITY
AFFAIRS [CENTER FOR RURAL HEALTH INITIATIVES]. Not later than the
60th day after the last day of the fiscal year, the Rural Foundation
shall submit to the Office of Rural Community Affairs [Center for
Rural Health Initiatives] a report itemizing all income and
expenditures and describing all activities of the foundation during
the preceding fiscal year.
SECTION 9. This Act takes effect September 1, 2003.