HBA-ATS, MPA H.B. 3122 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3122 By: Chisum County Affairs 10/5/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, Texas law did not make specific reference to the ability of the DallamHartley Counties Hospital District (district) to participate in contemporary health care delivery systems, such as health maintenance organizations (HMO), preferred provider organizations (PPO), and other managed health care delivery structures. H.B. 3122 allows the district to contract with, affiliate with, or have ownership interest in these entities. This bill allows the district to create or participate in other nonprofit corporations for the purpose of delivering health care services. This bill also eliminates a specific dollar amount above which the district must seek competitive bids for construction, allows the district to pledge revenues as additional security for repayment of borrowed funds, and clarifies the language of the law by changing reference to a repealed statute. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 4, Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, by adding Subsections (d) and (e), as follows: (d) Authorizes the Dallam-Hartley Counties Hospital District (district) to contract or affiliate with, have an ownership interest in, or enter into another arrangement with a managed care system, preferred provider, health maintenance, or medical services organization, another alternative health care or delivery system, or a private hospital to jointly administer or deliver health care services. Authorizes the district to spend district funds to establish, maintain, and have an ownership interest in partnerships, corporations, or other entities involved in the delivery of health care services. (e) Authorizes the district to sponsor, create and have membership interest in a nonstock corporation under Article 1396-1.01 et seq. (Texas Non-Profit Corporation Act), V.T.C.S., and contribute funds or solicit funds for the corporation. Authorizes the corporation to use funds, other than those provided to the district, only to provide health care or other services the district is authorized to provide. Requires the board of director of the district to establish controls to ensure that the corporation uses its funds as required by this subsection. Authorizes the corporation to invest in any manner permitted to the district, including as authorized by Chapter 2256 (Public Funds Investment), Government Code. SECTION 2. Amends Section 8(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, to authorize contracts for construction involving expenditure of the amount specified in Section 271.024 (Competitive Bidding Procedure Applicable to Contract), Local Government Code, rather than $10,000, to be advertised in a specified manner. Authorizes the board to mortgage or pledge the revenues from property, facilities supplies, or equipment as security for payment of the purchase price of property. Updates a statutory reference. SECTION 3.Emergency clause. Effective date: upon passage.