HBA-DMD C.S.H.B. 3776 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3776 By: Luna, Vilma County Affairs 4/26/1999 Committee Report (Substituted) 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. C.S.H.B. 3776 authorizes the district to use funds from certain sources to fund indigent health care, public health services, mental health and mental retardation services, other health related purposes, emergency medical services, and health services provided to persons confined in jail facilities. 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 THE NUECES COUNTY HOSPITAL DISTRICT. Authorizes the board of the Nueces County Hospital District (board), with the approval of the county commissioners court, to use funds from sources other than a tax levy to fund health care services, including public health services, mental health and mental retardation services, emergency medical services, health services provided to persons confined in jail facilities, and for other health related purposes. Authorizes the board to use the funds available to the district from any source to fund indigent health care. SECTION 2.Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE This substitute differs from the original bill in SECTION 1 by redesignating proposed Section 281.0518, Health and Safety Code, of the original bill to proposed Section 281.094, Health and Safety Code, in the substitute. This substitute also makes a nonsubstantive addition to the title of the proposed section. This substitute gives authority to the board of the Nueces County Hospital District, rather than to the Nueces County Hospital District, to use funds to provide specified medical services. This substitute also removes the provision excluding funds otherwise restricted from funds used by the board to provide specified medical services. This substitute includes emergency medical services and health services provided to persons confined in jail facilities among other services that the board is authorized to fund. This substitute adds proposed Subsection (b) to authorize the board to use the funds available to the district from any source to fund indigent health care.