HBA-MSH, EDN H.B. 170 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 170 By: Christian County Affairs 2/19/2001 Introduced BACKGROUND AND PURPOSE Under current law, the Nacogdoches County Hospital District (district) is governed by a board of seven directors that serve staggered two-year terms. Three-year terms will improve the stability and continuity of the district by reducing election-related demands on directors. Also, the district is currently not authorized to create a charitable organization or a nonprofit corporation that provides or arranges for various health care services for the district. Such measures have been implemented in other hospital districts in the state. House Bill 170 sets forth guidelines regarding the election and terms of directors and authorizes the creation of a charitable organization and a nonprofit corporation. 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. ANALYSIS House Bill 170 amends provisions relating to the powers and duties of the Nacogdoches County Hospital District (district). The bill provides that directors of the district serve staggered three-year terms, rather than two-year terms. The bill sets forth provisions regarding notice of the regular election of directors and the application procedure for a person's name to be printed on the ballot as a candidate for director. The bill prohibits the district from employing a person who is related to a director within the second degree by consanguinity or affinity during that director's term of office and requires that a district employee who is related to a person elected as a director within the second degree by consanguinity or affinity resign from employment when that director takes office. The bill requires a district employee who is related to a current director within the second degree by consanguinity or affinity to immediately resign from employment. The bill provides that the application procedure to determine eligibility for indigent health care must be adopted not later than the beginning of each operating year and must comply with the Indigent Health Care and Treatment Act. The bill authorizes the board of directors to create a charitable organization to provide or arrange for hospital and health care services, develop resources for hospital and health care services, and provide ancillary support services for the district. The bill further authorizes the board of directors to sponsor and create a nonprofit corporation under the Texas Non-Profit Corporation Act and to contribute funds to or solicit funds for the corporation. The corporation is authorized to use funds, other than funds paid by the corporation to the district, only to provide health care or other services the district is authorized to provide. The bill requires the board of directors to establish adequate controls to ensure that the corporation uses its funds as mandated. It authorizes the corporation to invest corporation funds in any manner in which the district is authorized to invest funds, including investing funds as authorized by the Public Funds Investment Act. EFFECTIVE DATE September 1, 2001.