HBA-MPA C.S.H.B. 3122 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3122
By: Chisum
County Affairs
3/29/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, the law does not make specific reference to the ability of the
Dallam-Hartley 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.  C.S.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clarifies the language of the law by changing reference to a repealed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., V.T.C.S.(Texas
Non-Profit Corporation Act), 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.  Requires that provisions
of Chapter 2253 (Public Works Performance and Payment Bonds), Government
Code, rather than Article 5160, V.T.C.S., apply to construction contracts
of the district.  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. 

 SECTION 3.Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3122 differs from the original in SECTION 2 to authorize the board
to mortgage or pledge the revenues from the property, facilities, supplies,
or equipment, rather than "and revenues therefrom" in the original, as
security for payment off the purchase price.  Makes nonsubstantive changes.