82R8250 CJC-F
By: Darby H.B. No. 1327
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a grant program to defray the cost of
constructing a new health facility in a rural county.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 403.1065(c), Government Code, is amended
to read as follows:
(c) The available earnings of the fund may be appropriated
to the Texas Department of Rural Affairs for the purposes of
Subchapter H, Chapter 487, and for the limited purposes provided by
Subchapter R, Chapter 487.
SECTION 2. Chapter 487, Government Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R. RURAL SAFETY NET HOSPITAL INFRASTRUCTURE PROGRAM
Sec. 487.801. DEFINITIONS. In this subchapter:
(1) "Nonprofit hospital" means a hospital that is:
(A) eligible for tax-exempt bond financing or
exempt from state franchise or sales taxes, ad valorem taxes, or
other state or local taxes; and
(B) organized as a nonprofit corporation or a
charitable trust under the laws of this state or any other state or
country.
(2) "Program" means the rural safety net hospital
infrastructure program established under this subchapter.
(3) "Public hospital" and "rural county" have the
meanings assigned by Section 487.301.
Sec. 487.802. POWERS AND DUTIES OF DEPARTMENT. (a) In
administering this subchapter, the department may:
(1) enter into and enforce contracts and execute and
deliver conveyances and other instruments necessary to make and
administer grants awarded under this subchapter;
(2) impose and collect reasonable fees and charges in
connection with grants made under this subchapter and provide
reasonable penalties for delinquent payment of fees or charges; and
(3) adopt rules necessary to implement the program.
(b) The department may use money appropriated to the
department under Section 403.1065 as necessary to implement this
subchapter. Expenses related to the administration of this
subchapter and other continuing expenses under this subchapter may
not be paid from money appropriated to the department under that
section.
Sec. 487.803. PROGRAM. (a) The department may use money
appropriated to the department under Section 487.806 to make a
grant to a public or nonprofit hospital located in a rural county.
(b) A grant recipient may use the money only for the
construction of new health facilities.
(c) A grant awarded under this subchapter may not exceed the
lesser of:
(1) 50 percent of the contracted cost for construction
of the new health facility; or
(2) $10 million.
(d) The department shall require a grantee to provide
matching funds equal to or greater than the amount of a grant
awarded under this subchapter.
(e) A grant applicant may not apply for a grant under this
subchapter and for a grant under Subchapter H if the purpose of the
application for a grant under Subchapter H is the construction of a
new health facility in a rural county.
Sec. 487.804. ELIGIBILITY FOR PROGRAM. (a) The department
shall adopt rules that establish eligibility criteria for receiving
a grant under this subchapter.
(b) The rules adopted under this section shall provide that
to be eligible to receive a grant under this subchapter a hospital
must:
(1) be located in a county or hospital district in
which the total taxable value of all taxable property is not more
than $750 million, as shown by the most recent certified appraisal
tax roll prepared by the appraisal district for the appropriate
county or counties;
(2) be designated as a critical access hospital under
the authority of and in compliance with 42 U.S.C. Section 1395i-4,
or as a sole community hospital, as that term is defined by 42
U.S.C. Section 1395ww(d)(5)(D)(iii);
(3) be located in a facility or facilities where a
majority of the total square footage is at least 25 years old; and
(4) provide 24-hour emergency care services.
(c) The department shall compile and maintain a list of
qualifying rural hospitals and the age of the facilities used by
those hospitals.
Sec. 487.805. GRANT RECIPIENT SELECTION. (a) The
department shall establish criteria for prioritizing applicants
for a grant under this subchapter.
(b) In establishing criteria under this section, the
department shall:
(1) give first preference to applicants located in a
county or hospital district in which the total taxable value of all
taxable property is not more than $250 million, as shown by the most
recent certified appraisal tax roll prepared by the appraisal
district for the applicable county or counties; and
(2) give second preference to applicants with the
oldest qualifying health facilities.
Sec. 487.806. RURAL SAFETY NET HOSPITAL INFRASTRUCTURE
ACCOUNT. (a) The rural safety net hospital infrastructure account
is an account in the general revenue fund that may be appropriated
only to the department for the purposes and activities authorized
by this subchapter and for reasonable administrative expenses under
this subchapter.
(b) The account consists of:
(1) all money appropriated for the purposes of this
subchapter;
(2) any gifts, grants, or donations received for the
purposes of this subchapter; and
(3) interest earned on money in the account.
(c) The account is exempt from the application of Section
403.095.
SECTION 3. (a) Not later than September 1, 2012, the Texas
Department of Rural Affairs shall compile the information and adopt
the rules and eligibility standards required by Subchapter R,
Chapter 487, Government Code, as added by this Act.
(b) The Texas Department of Rural Affairs may not award a
grant under Subchapter R, Chapter 487, Government Code, as added by
this Act, before September 1, 2013.
SECTION 4. This Act does not make an appropriation. A
provision in this Act that creates a new governmental program,
creates a new entitlement, or imposes a new duty on a governmental
entity is not mandatory during a fiscal period for which the
legislature has not made a specific appropriation to implement the
provision.
SECTION 5. This Act takes effect September 1, 2011.