78R3556 YDB-F

By:  Gallegos                                                     S.B. No. 1028



A BILL TO BE ENTITLED

AN ACT

relating to a community health center revolving loan program.                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Chapter 136, Human Resources 
Code, is amended to read as follows:

CHAPTER 136.  TEXAS COMMUNITY HEALTH CENTER

REVOLVING LOAN PROGRAM [FUND]
	SECTION 2.  Section 136.002(3), Human Resources Code, is 
amended to read as follows:
		(3)  "Development corporation" means a nonprofit 
corporation that:          
			(A)  provides revolving loan funds to community 
health centers;            
			(B)  accepts gifts and grants;                                               
			(C)  seeks funding from various government and 
private sources;  [and]
			(D)  associates with a broad-based organization 
serving community health centers; and
			(E)  is certified by the United States Department 
of Treasury as a Community Development Financial Institution.
	SECTION 3.  Section 136.004, Human Resources Code, is 
amended to read as follows:
	Sec. 136.004.  DEVELOPMENT CORPORATION.  The commission 
shall [contract with and] award a grant [money] to a development 
corporation to carry out the purposes of this chapter.
	SECTION 4.  Section 136.005(a), Human Resources Code, is 
amended to read as follows:
	(a)  Before awarding a grant to [contracting with] a 
development corporation, the commission shall require the 
development corporation to establish an investment committee to 
approve loan requests of community health centers.
	SECTION 5.  Section 136.006, Human Resources Code, is 
amended by amending Subsections (d) and (e) and adding Subsection 
(f) to read as follows:
	(d)  The development corporation may make a loan under the 
program through a partnership or joint investment with one or more 
other lenders [financial institutions] or federal or state 
programs.
	(e)  Payments on community health center loans shall be made 
to the development corporation.  The development corporation shall 
use the loan payment money received from community health centers 
to make new loans and cover the expenses of making and servicing 
loans under [as provided by] this chapter.
	(f)  The development corporation may make a loan to fund a 
joint project of two or more community health centers.
	SECTION 6.  Sections 136.009(a) and (b), Human Resources 
Code, are amended to read as follows:
	(a)  The commission shall adopt rules necessary to 
administer this chapter and to ensure a grant made under this 
chapter is used for the purposes intended by the legislature[, 
including rules that require:
		[(1)  the commission to review the lending and 
servicing practices of a development corporation to ensure the 
practices conform to generally accepted accounting principles;
		[(2)  an eligible community health center to enter into 
an agreement with the development corporation that states the terms 
of the loan made to the center;
		[(3)  the development corporation to provide to the 
commission semiannual reports giving details of the status of each 
loan made under the program;
		[(4)  the development corporation to require annual 
audits of community health centers receiving loans under the 
program;  and
		[(5)  the commission to provide oversight of the 
development corporation as necessary to qualify the development 
corporation for loan guarantees from federal and state programs].
	(b)  Under rules adopted by the commission, the development 
corporation may: 
		(1)  make grants to eligible community health centers 
from money other than money [that is received from the fund and that 
was] derived from a legislative appropriation;  or
		(2)  seek funds from state or federal agencies or 
private sources to supplement and complement the funds received 
under the grant [program].
	SECTION 7.  Sections 136.002(4), 136.003, and 136.007, Human 
Resources Code, are repealed.
	SECTION 8.  The Health and Human Services Commission shall 
adopt rules to administer Chapter 136, Human Resources Code, as 
amended by this Act, not later than December 1, 2003.
	SECTION 9.  This Act takes effect September 1, 2003.