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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Rural Foundation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 110, Health and Safety Code, is |
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transferred to Chapter 487, Government Code, is redesignated as |
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Subchapter P, Chapter 487, Government Code, and is amended to read |
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as follows: |
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SUBCHAPTER P. TEXAS [CHAPTER 110.] RURAL FOUNDATION |
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Sec. 487.701 [110.001]. CREATION OF FOUNDATION. (a) The |
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Office of Rural Community Affairs shall establish the Texas Rural |
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Foundation as a nonprofit corporation that complies with the Texas |
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Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's |
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Texas Civil Statutes), except as otherwise provided by this |
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chapter, and qualifies as an organization exempt from federal |
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income tax under Section 501(c)(3), Internal Revenue Code of 1986, |
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as amended. |
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(b) The Office of Rural Community Affairs shall ensure that |
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the Texas Rural Foundation operates independently of any state |
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agency or political subdivision of the state. |
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Sec. 487.702 [110.002]. POWERS AND DUTIES. (a) The Texas |
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Rural Foundation shall raise money from foundations, governmental |
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entities, and other sources to finance health, community, and |
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economic development programs in the rural areas of the state. |
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(b) The Texas Rural Foundation shall have the powers that |
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are necessary and convenient to carry out its duties. |
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(c) The Texas Rural Foundation shall develop and implement |
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policies and procedures that clearly separate the responsibilities |
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and activities of the foundation from the Office of Rural Community |
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Affairs. |
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Sec. 487.703 [110.003]. BOARD OF DIRECTORS. (a) The Texas |
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Rural Foundation is governed by a board of an odd number of at least |
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nine and not more than 15 [five] directors appointed by the |
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executive committee of the Office of Rural Community Affairs [from
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individuals recommended by the executive director of the Office of
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Rural Community Affairs]. |
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(b) Members of the board of directors of the Texas Rural |
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Foundation serve for staggered terms of six years, with as near as |
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possible to one-third of the members' terms expiring February 1 of |
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each odd-numbered year. |
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(c) Appointments to the board of directors of the Texas |
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Rural Foundation shall be made without regard to the race, color, |
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disability, sex, religion, age, or national origin of the |
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appointees. |
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(d) The board of directors of the Texas Rural Foundation |
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shall ensure that the foundation remains eligible for an exemption |
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from federal income tax under Section 501(a), Internal Revenue Code |
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of 1986, as amended, by being listed as an exempt organization under |
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Section 501(c)(3) of that code, as amended. |
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Sec. 487.704 [110.004]. RESTRICTIONS ON BOARD APPOINTMENT, |
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MEMBERSHIP, AND EMPLOYMENT. (a) In this section, "Texas trade |
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association" means a cooperative and voluntarily joined |
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association of business or professional competitors in this state |
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designed to assist its members and its industry or profession in |
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dealing with mutual business or professional problems and in |
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promoting their common interest. |
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(b) A person may not be a member of the board of directors of |
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the Texas Rural Foundation and may not be a foundation employee |
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employed in a "bona fide executive, administrative, or professional |
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capacity," as that phrase is used for purposes of establishing an |
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exemption to the overtime provisions of the federal Fair Labor |
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Standards Act of 1938 (29 U.S.C. Section 201 et seq.), as amended, |
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if: |
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(1) the person is an officer, employee, or paid |
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consultant of a Texas trade association that is in the field of |
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health care or that contracts with the foundation; or |
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(2) the person's spouse is an officer, manager, or paid |
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consultant of a Texas trade association that is in the field of |
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health care or that contracts with the foundation. |
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(c) A person may not be a member of the board of directors of |
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the Texas Rural Foundation or act as the general counsel to the |
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board of directors or the foundation if the person is required to |
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register as a lobbyist under Chapter 305, Government Code, because |
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of the person's activities for compensation on behalf of a |
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profession related to the operation of the foundation. |
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Sec. 487.705 [110.005]. REMOVAL OF BOARD MEMBER. (a) It |
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is a ground for removal from the board of directors of the Texas |
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Rural Foundation that a member: |
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(1) is ineligible for membership under Section |
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110.004; |
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(2) cannot, because of illness or disability, |
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discharge the member's duties for a substantial part of the member's |
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term; or |
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(3) is absent from more than half of the regularly |
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scheduled board meetings that the member is eligible to attend |
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during a calendar year without an excuse approved by a majority vote |
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of the board of directors. |
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(b) The validity of an action of the board of directors of |
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the Texas Rural Foundation is not affected by the fact that it is |
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taken when a ground for removal of a board member exists. |
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(c) If the executive director of the Office of Rural |
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Community Affairs has knowledge that a potential ground for removal |
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exists, the executive director shall notify the presiding officer |
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of the board of directors of the Texas Rural Foundation of the |
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potential ground. The presiding officer shall then notify the |
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governor and the attorney general that a potential ground for |
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removal exists. If the potential ground for removal involves the |
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presiding officer, the executive director shall notify the next |
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highest ranking officer of the board of directors, who shall then |
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notify the governor and the attorney general that a potential |
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ground for removal exists. |
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Sec. 487.706 [110.006]. VACANCY. A vacancy on the board of |
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directors of the Texas Rural Foundation shall be filled for the |
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remainder of the unexpired term in the same manner as the original |
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appointment. |
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Sec. 487.707 [110.007]. OFFICERS. The board of directors |
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of the Texas Rural Foundation shall elect from among its members a |
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presiding officer, an assistant presiding officer, and other |
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officers the board considers necessary. The presiding officer and |
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assistant presiding officer serve for a period of one year and may |
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be reelected. |
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Sec. 487.708 [110.008]. MEETINGS. The board of directors |
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of the Texas Rural Foundation may meet as often as necessary, but |
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shall meet at least twice a year. |
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Sec. 487.709 [110.009]. TAX EXEMPTION. All income, |
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property, and other assets of the Texas Rural Foundation are exempt |
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from taxation by the state and political subdivisions of the state. |
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Sec. 487.710 [110.010]. MEMORANDUM OF UNDERSTANDING. The |
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Texas Rural Foundation and the Office of Rural Community Affairs |
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shall enter into a memorandum of understanding that: |
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(1) requires the board of directors and staff of the |
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foundation to report to the executive director and executive |
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committee of the Office of Rural Community Affairs; |
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(2) allows the Office of Rural Community Affairs to |
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provide staff functions to the foundation; |
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(3) allows the Office of Rural Community Affairs to |
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expend funds on the foundation; and |
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(4) outlines the financial contributions to be made to |
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the foundation from funds obtained from grants and other sources. |
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Sec. 487.711 [110.011]. RECORDS. (a) The Texas Rural |
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Foundation shall maintain financial records and reports |
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independently from those of the Office of Rural Community Affairs. |
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(b) The Texas Rural Foundation shall comply with all filing |
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requirements of the secretary of state and the Internal Revenue |
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Service. |
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Sec. 487.712 [110.012]. REPORT TO OFFICE OF RURAL COMMUNITY |
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AFFAIRS. Not later than the 60th day after the last day of the |
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fiscal year, the Texas Rural Foundation shall submit to the Office |
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of Rural Community Affairs a report itemizing all income and |
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expenditures and describing all activities of the foundation during |
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the preceding fiscal year. |
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Sec. 487.713 [110.013]. PROHIBITED USE OF FUNDS. Funds |
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administered by the Texas Rural Foundation may not be used to |
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provide an abortion or a referral for an abortion, unless there is a |
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medically necessary reason to provide the referral. |
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SECTION 2. Subsection (a), Section 487.056, Government |
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Code, is amended to read as follows: |
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(a) Not later than January 1 of each odd-numbered year, the |
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office shall submit a biennial report to the legislature regarding |
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the activities of the office, the activities of the Texas Rural |
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Foundation, and any findings and recommendations relating to rural |
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issues. |
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SECTION 3. (a) The name of the Rural Foundation is changed |
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to the Texas Rural Foundation. |
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(b) Any reference in law to the Rural Foundation means the |
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Texas Rural Foundation. |
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SECTION 4. As soon as practicable after the effective date |
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of this Act, the executive committee of the Office of Rural |
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Community Affairs shall appoint the additional members of the board |
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of directors of the Texas Rural Foundation as provided by Section |
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487.703, Government Code, as added by this Act. In making the |
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appointments, the executive committee shall assign the lengths of |
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the terms of the additional members to meet the staggered six-year |
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term requirement under Subsection (b), Section 487.703, Government |
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Code, as added by this Act. |
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SECTION 5. This Act takes effect September 1, 2007. |