BILL ANALYSIS
By: Naishtat
Committee Report (Substituted)
BACKGROUND AND PURPOSE
The Travis County Healthcare District (district) is beginning the process of transferring the federally-qualified health center status and the employees that perform the related functions from the City of Austin (city) to the district as part of the district’s continuing evolution and assumption of obligations from the city. Currently, city employees, including those transferring to the district, cannot have their years of service credit earned at the district or a charitable organization created by the district given proportionality in the city’s retirement system. The district does not have the authority to issue revenue anticipation notes (the Harris County Hospital District has such authority). Additionally, the district does not have clear authority to affiliate with private entities to provide healthcare on a regional basis or to make capital contributions to an entity providing healthcare on a regional basis.
C.S.H.B. 2378 will permit proportionality in the city’s retirement system for service performed at the district or a district-created charitable organization. The bill adds the Travis County Healthcare District to the list of entities having statutory authority to issue revenue anticipation notes. Additionally, the district is authorized to affiliate with a public or private entity to provide healthcare on a regional basis and to make a capital or other financial contribution to an entity providing healthcare on a regional basis. Also, the bill permits the district to hold an advance affirmative election from the taxpayers to permit the district to raise its tax rate above the rollback rate. Finally, the bill permits the district to employ physicians in its operation of the federally-qualified health centers and repeals a prohibition on the district’s assessing a sales and use tax.
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
C.S.H.B. 2378 Creates a proportionate retirement system for those City of Austin employees who will be transferred to the District or to a 501(c)(3) created by the District. Redefines “eligible countywide district.” Authorizes the District to affiliate with other entities for the regional administration and delivery of healthcare services. Permits the Healthcare District to employ health care providers. Clarifies the District’s contracting authority with other entities to ensure that the District’s operations are cost-effective and efficient. Allows the District to make a capital or other financial contribution to a regional healthcare entity. Enables the District to seek prior voter approval of a tax increase above the rollback rate. Expands an existing law to allow the District to contract with or employ physicians to work at the Federally Qualified Community Health Centers. Repeals Section 281.123 (Sales and Use Tax Prohibition), Health and Safety Code. Finally, the bill makes Section 804.203, Government Code, apply only to a person retiring on or after the Act’s effective date.
EFFECTIVE DATE
September 1, 2007
COMPARISON OF ORIGINAL TO SUBSTITUTE
C.S.H.B. 2378 permits retirement proportionality between the district, a charitable organization, or an administrative agency and all City of Austin employees. The original version permitted proportionality only between those employees transferring from the city to the district or a district-created charitable organization. The substitute adds language that requires those employees to participate in a public retirement system under Section 401(a) of the Internal Revenue Code created by the district, charitable organization, or administrative agency.
The substitute states a charitable organization created by the district is a unit of local government. The original version added Subsection (e) of Section 281.0565, Health and Safety Code, so that a charitable organization created by the district would not be a unit of local government.
The substitute makes Section 804.203, Government Code, apply only to a person retiring on or after the Act’s effective date.