| 1 | 1 | | By: Patrick S.B. No. 233 |
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| 2 | 2 | | (Fletcher) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the use of funds of certain municipal hospital |
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| 8 | 8 | | authorities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter C, Chapter 262, Health and Safety |
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| 11 | 11 | | Code, is amended by adding Sections 262.0331 and 262.039 to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | Sec. 262.0331. EXPENDITURE OF FUNDS FOR PUBLIC HEALTH |
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| 14 | 14 | | INITIATIVES AFTER SALE OR CLOSING OF HOSPITAL. (a) If, after the |
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| 15 | 15 | | sale or closing of a hospital under Section 262.033, the authority |
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| 16 | 16 | | does not own or operate a hospital, the board may use the |
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| 17 | 17 | | authority's available assets to promote public health and general |
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| 18 | 18 | | welfare initiatives that the board determines will benefit the |
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| 19 | 19 | | residents served by the authority, including: |
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| 20 | 20 | | (1) owning, operating, or funding an indigent health |
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| 21 | 21 | | care clinic, medical research facility, medical training facility, |
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| 22 | 22 | | or other health care facility; |
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| 23 | 23 | | (2) providing direct or indirect financial assistance |
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| 24 | 24 | | to a nonprofit organization that: |
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| 25 | 25 | | (A) owns or operates a hospital, indigent health |
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| 26 | 26 | | care clinic, medical research facility, medical training facility, |
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| 27 | 27 | | or other health care facility; or |
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| 28 | 28 | | (B) supports an initiative promoting health |
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| 29 | 29 | | education, wellness, or disease prevention; and |
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| 30 | 30 | | (3) undertaking any other activity that the board |
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| 31 | 31 | | determines is necessary or appropriate to improve public health, |
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| 32 | 32 | | promote wellness, prevent disease, or enhance the general welfare |
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| 33 | 33 | | of the residents served by the authority. |
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| 34 | 34 | | (b) The board may not make an expenditure under Subsection |
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| 35 | 35 | | (a) unless: |
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| 36 | 36 | | (1) the board makes appropriate provisions for the |
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| 37 | 37 | | satisfaction of any outstanding bonds, debt obligations, or other |
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| 38 | 38 | | liabilities of the authority; |
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| 39 | 39 | | (2) the predominant purpose of the expenditure is to |
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| 40 | 40 | | promote the public health and general welfare of the residents |
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| 41 | 41 | | served by the authority; and |
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| 42 | 42 | | (3) the board establishes sufficient controls to |
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| 43 | 43 | | ensure that the expenditure promotes the public health and general |
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| 44 | 44 | | welfare of the residents served by the authority. |
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| 45 | 45 | | Sec. 262.039. INVESTMENT OF AUTHORITY FUNDS. (a) This |
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| 46 | 46 | | section applies only to an authority that: |
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| 47 | 47 | | (1) is located in a county of 3.3 million or more; |
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| 48 | 48 | | (2) has no outstanding bonds issued under Subchapter |
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| 49 | 49 | | D; and |
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| 50 | 50 | | (3) does not own or operate a hospital. |
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| 51 | 51 | | (b) Notwithstanding any other law, an authority may invest |
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| 52 | 52 | | authority funds: |
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| 53 | 53 | | (1) as provided by Chapter 2256, Government Code; and |
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| 54 | 54 | | (2) in any investment a trustee is authorized to make |
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| 55 | 55 | | under Subtitle B, Title 9, Property Code. |
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| 56 | 56 | | SECTION 2. This Act takes effect September 1, 2013. |
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