84R21249 CJC-F
By: Zerwas H.B. No. 2557
A BILL TO BE ENTITLED
AN ACT
relating to certain hospital districts and to certain corporations
or organizations formed by those districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 281.0518, Health and Safety Code, is
amended by adding Subsection (a-1) to read as follows:
(a-1) For purposes of Subsection (a)(3):
(1) a public or private entity may be a for-profit or a
nonprofit entity; and
(2) a nonprofit corporation formed by the district may
hold an ownership interest in a public or private entity described
by Subsection (a)(3).
SECTION 2. Section 281.0565, Health and Safety Code, is
amended by amending Subsections (c) and (d) and adding Subsections
(e) and (f) to read as follows:
(c) A charitable organization created by a district under
this section is a unit of local government only for purposes of
Chapter 101, Civil Practice and Remedies Code.
(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 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 that entity's for-profit or nonprofit status, and may
hold an ownership interest in such an entity.
(f) A charitable organization created by a district under
this section remains subject to the laws of this state and the
United States that govern charitable organizations. Nothing in
this section may be construed as abrogating or modifying any other
provision of law governing charitable organizations.
SECTION 3. Subchapter C, Chapter 281, Health and Safety
Code, is amended by adding Section 281.058 to read as follows:
Sec. 281.058. AUTHORITY TO FORM CAPTIVE INSURANCE OR
CAPTIVE MANAGEMENT COMPANY. (a) In this section, "captive
insurance company" and "captive management company" have the
meanings assigned to those terms by Section 964.001, Insurance
Code.
(b) A district, a combination of districts, or a nonprofit
corporation formed by a district or a combination of districts to
further the purposes of the district or districts, as appropriate,
may form a captive insurance company or a captive management
company in accordance with the provisions of Chapter 964, Insurance
Code, for the purpose of engaging in the business of insurance under
that chapter.
SECTION 4. 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.