By: Patrick S.B. No. 233
(Fletcher)
A BILL TO BE ENTITLED
AN ACT
relating to the use of funds of certain municipal hospital
authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 262, Health and Safety
Code, is amended by adding Sections 262.0331 and 262.039 to read as
follows:
Sec. 262.0331. EXPENDITURE OF FUNDS FOR PUBLIC HEALTH
INITIATIVES AFTER SALE OR CLOSING OF HOSPITAL. (a) If, after the
sale or closing of a hospital under Section 262.033, the authority
does not own or operate a hospital, the board may use the
authority's available assets to promote public health and general
welfare initiatives that the board determines will benefit the
residents served by the authority, including:
(1) owning, operating, or funding an indigent health
care clinic, medical research facility, medical training facility,
or other health care facility;
(2) providing direct or indirect financial assistance
to a nonprofit organization that:
(A) owns or operates a hospital, indigent health
care clinic, medical research facility, medical training facility,
or other health care facility; or
(B) supports an initiative promoting health
education, wellness, or disease prevention; and
(3) undertaking any other activity that the board
determines is necessary or appropriate to improve public health,
promote wellness, prevent disease, or enhance the general welfare
of the residents served by the authority.
(b) The board may not make an expenditure under Subsection
(a) unless:
(1) the board makes appropriate provisions for the
satisfaction of any outstanding bonds, debt obligations, or other
liabilities of the authority;
(2) the predominant purpose of the expenditure is to
promote the public health and general welfare of the residents
served by the authority; and
(3) the board establishes sufficient controls to
ensure that the expenditure promotes the public health and general
welfare of the residents served by the authority.
Sec. 262.039. INVESTMENT OF AUTHORITY FUNDS. (a) This
section applies only to an authority that:
(1) is located in a county of 3.3 million or more;
(2) has no outstanding bonds issued under Subchapter
D; and
(3) does not own or operate a hospital.
(b) Notwithstanding any other law, an authority may invest
authority funds:
(1) as provided by Chapter 2256, Government Code; and
(2) in any investment a trustee is authorized to make
under Subtitle B, Title 9, Property Code.
SECTION 2. This Act takes effect September 1, 2013.