HBA-DMD H.B. 3776 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3776 By: Luna, Vilma County Affairs 4/18/1999 Introduced BACKGROUND AND PURPOSE On January 7, 1999, the Nueces County Hospital District (district) received approximately $5.1 million as the initial payment from the tobacco litigation settlement agreement. This payment represented the district's per capita share of the $300 million payment by the tobacco defendants. Between 2000 and 2003, the tobacco defendants will make additional annual payments into a permanent trust account. Beginning in 2001, the district will be entitled to a pro rata distribution from the investment earnings of the permanent trust account. Under current law, hospital districts such as the Nueces County Hospital District are obligated to provide medical care to the indigent, however, there is little specific guidance on how their funds may be spent. H.B. 3776 authorizes the district to use funds from sources other than a tax levy, in order to fund indigent health care, public health services, and mental health and mental retardation services, and other health related purposes. 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 Chapter 281, Health and Safety Code, by adding Section 281.0518, as follows: Sec. 281.0518. USE OF CERTAIN FUNDS BY NUECES COUNTY HOSPITAL DISTRICT. Authorizes the Nueces County Hospital District, with the approval of the county commissioners court, to use funds from sources other than a tax levy, excluding funds otherwise restricted, to fund indigent health care, public health services, and mental health and mental retardation services, and other health related purposes. SECTION 2.Emergency clause. Effective date: upon passage.