By: Zerwas H.B. No. 2557
A BILL TO BE ENTITLED
AN ACT
relating to the status of a charitable organization formed by a
hospital district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that districts have
benefitted from the support provided by charitable organizations
created under this section through the development of innovative
technologies and intellectual property, novel public health
studies, patient care techniques, and other means of financial,
administrative or operational support. The legislature intends
that charitable organizations created under this section will
further develop resources for health care services by collaborating
with or entering into joint ventures or other agreements with
private entities including for-profit entities. The legislature
recognizes that the knowhow, resources, support, technologies and
intellectual property created, licensed, or serviced pursuant to
these collaborations, joint ventures, or agreements between
charitable organizations created under this section and private
entities, including for-profit entities, are integral to the
sustainability districts and their mission to provide for the
health and general welfare of the citizens of this state. The
legislature acknowledges that the means and measures authorized by
this section are in the public interest and serve a public purpose
in promoting the health and general welfare of the people of this
state.
SECTION 2. Section 281.0565, Health and Safety Code, is
amended to read as follows:
Sec. 281.0565. CHARITABLE ORGANIZATIONS. (a) DEFINITION.
In this section, "charitable organization" means an organization
that is exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986 by being listed as an exempt
organization in Section 501(c)(3) or 501(c)(4) of the code.
(b) A district may create a charitable organization to
facilitate the management of a district health care program by
providing or arranging health care services, developing resources
for health care services, or providing ancillary support services
for the district. A charitable organization created by a district
under this section may contract, collaborate, or enter into a joint
venture or other agreement with a public or private entity, without
regard to such entity's for-profit, nonprofit, or not-for-profit
status, including holding an ownership interest in such entity.
(c) A charitable organization created by a district under
this section is a unit of local government for purposes of Chapter
101, Civil Practice and Remedies Code. A charitable organization
created by a district under this section is not a political
corporation or political subdivision merely because of its
characterization hereby as a unit of local government.
(d) A district [ created in a county with a population of
more than 800,000 that was not included in the boundaries of a
hospital district before September 1, 2003,] may make a capital or
other financial contribution to a charitable organization created
by the district to provide regional administration and delivery of
health care services to or for the district.
(e) A district may, on its own behalf or in partnership or
combination with any other district or districts, create a
charitable organization to organize, operate, manage, or
administer a captive insurance company, captive management
company, or an affiliated company under Chapter 964 of the Texas
Insurance Code.
SECTION 2. Section 281.0518(a)(3), Health and Safety Code,
is amended to read as follows:
(3) contract, collaborate, or enter into a joint
venture or other agreement with a public or private entity without
regard to such entity's for-profit, nonprofit, or not-for-profit
status, including holding an ownership interest in such entity to
engage in an activity authorized under Subdivision (1) or (2).
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.