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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a grant program to defray the cost of |
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constructing a new health facility in a rural county. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 403.1065(c), Government Code, is amended |
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to read as follows: |
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(c) The available earnings of the fund may be appropriated |
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to the Texas Department of Rural Affairs for the purposes of |
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Subchapter H, Chapter 487, and for the limited purposes provided by |
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Subchapter R, Chapter 487. |
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SECTION 2. Chapter 487, Government Code, is amended by |
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adding Subchapter R to read as follows: |
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SUBCHAPTER R. RURAL SAFETY NET HOSPITAL INFRASTRUCTURE PROGRAM |
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Sec. 487.801. DEFINITIONS. In this subchapter: |
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(1) "Nonprofit hospital" means a hospital that is: |
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(A) eligible for tax-exempt bond financing or |
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exempt from state franchise or sales taxes, ad valorem taxes, or |
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other state or local taxes; and |
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(B) organized as a nonprofit corporation or a |
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charitable trust under the laws of this state or any other state or |
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country. |
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(2) "Program" means the rural safety net hospital |
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infrastructure program established under this subchapter. |
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(3) "Public hospital" and "rural county" have the |
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meanings assigned by Section 487.301. |
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Sec. 487.802. POWERS AND DUTIES OF DEPARTMENT. (a) In |
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administering this subchapter, the department may: |
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(1) enter into and enforce contracts and execute and |
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deliver conveyances and other instruments necessary to make and |
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administer grants awarded under this subchapter; |
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(2) impose and collect reasonable fees and charges in |
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connection with grants made under this subchapter and provide |
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reasonable penalties for delinquent payment of fees or charges; and |
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(3) adopt rules necessary to implement the program. |
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(b) The department may use money appropriated to the |
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department under Section 403.1065 as necessary to implement this |
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subchapter. Expenses related to the administration of this |
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subchapter and other continuing expenses under this subchapter may |
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not be paid from money appropriated to the department under that |
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section. |
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Sec. 487.803. PROGRAM. (a) The department may use money |
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appropriated to the department under Section 487.806 to make a |
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grant to a public or nonprofit hospital located in a rural county. |
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(b) A grant recipient may use the money only for the |
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construction of new health facilities. |
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(c) A grant awarded under this subchapter may not exceed the |
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lesser of: |
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(1) 50 percent of the contracted cost for construction |
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of the new health facility; or |
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(2) $10 million. |
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(d) The department shall require a grantee to provide |
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matching funds equal to or greater than the amount of a grant |
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awarded under this subchapter. |
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(e) A grant applicant may not apply for a grant under this |
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subchapter and for a grant under Subchapter H if the purpose of the |
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application for a grant under Subchapter H is the construction of a |
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new health facility in a rural county. |
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Sec. 487.804. ELIGIBILITY FOR PROGRAM. (a) The department |
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shall adopt rules that establish eligibility criteria for receiving |
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a grant under this subchapter. |
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(b) The rules adopted under this section shall provide that |
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to be eligible to receive a grant under this subchapter a hospital |
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must: |
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(1) be located in a county or hospital district in |
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which the total taxable value of all taxable property is not more |
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than $750 million, as shown by the most recent certified appraisal |
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tax roll prepared by the appraisal district for the appropriate |
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county or counties; |
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(2) be designated as a critical access hospital under |
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the authority of and in compliance with 42 U.S.C. Section 1395i-4, |
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or as a sole community hospital, as that term is defined by 42 |
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U.S.C. Section 1395ww(d)(5)(D)(iii); |
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(3) be located in a facility or facilities where a |
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majority of the total square footage is at least 25 years old; and |
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(4) provide 24-hour emergency care services. |
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(c) The department shall compile and maintain a list of |
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qualifying rural hospitals and the age of the facilities used by |
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those hospitals. |
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Sec. 487.805. GRANT RECIPIENT SELECTION. (a) The |
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department shall establish criteria for prioritizing applicants |
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for a grant under this subchapter. |
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(b) In establishing criteria under this section, the |
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department shall: |
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(1) give first preference to applicants located in a |
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county or hospital district in which the total taxable value of all |
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taxable property is not more than $250 million, as shown by the most |
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recent certified appraisal tax roll prepared by the appraisal |
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district for the applicable county or counties; and |
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(2) give second preference to applicants with the |
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oldest qualifying health facilities. |
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Sec. 487.806. RURAL SAFETY NET HOSPITAL INFRASTRUCTURE |
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ACCOUNT. (a) The rural safety net hospital infrastructure account |
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is an account in the general revenue fund that may be appropriated |
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only to the department for the purposes and activities authorized |
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by this subchapter and for reasonable administrative expenses under |
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this subchapter. |
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(b) The account consists of: |
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(1) all money appropriated for the purposes of this |
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subchapter; |
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(2) any gifts, grants, or donations received for the |
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purposes of this subchapter; and |
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(3) interest earned on money in the account. |
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(c) The account is exempt from the application of Section |
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403.095. |
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SECTION 3. (a) Not later than September 1, 2012, the Texas |
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Department of Rural Affairs shall compile the information and adopt |
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the rules and eligibility standards required by Subchapter R, |
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Chapter 487, Government Code, as added by this Act. |
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(b) The Texas Department of Rural Affairs may not award a |
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grant under Subchapter R, Chapter 487, Government Code, as added by |
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this Act, before September 1, 2013. |
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SECTION 4. This Act does not make an appropriation. A |
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provision in this Act that creates a new governmental program, |
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creates a new entitlement, or imposes a new duty on a governmental |
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entity is not mandatory during a fiscal period for which the |
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legislature has not made a specific appropriation to implement the |
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provision. |
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SECTION 5. This Act takes effect September 1, 2011. |