10 | 4 | | AN ACT |
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11 | 5 | | relating to certain hospital districts and to certain corporations |
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12 | 6 | | or organizations formed by those districts. |
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13 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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14 | 8 | | SECTION 1. Section 281.0518, Health and Safety Code, is |
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15 | 9 | | amended by adding Subsection (a-1) to read as follows: |
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16 | 10 | | (a-1) For purposes of Subsection (a)(3): |
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17 | 11 | | (1) a public or private entity may be a for-profit or a |
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18 | 12 | | nonprofit entity; and |
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19 | 13 | | (2) a nonprofit corporation formed by the district may |
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20 | 14 | | hold an ownership interest in a public or private entity described |
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21 | 15 | | by Subsection (a)(3). |
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22 | 16 | | SECTION 2. Section 281.0565, Health and Safety Code, is |
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23 | 17 | | amended by amending Subsections (c) and (d) and adding Subsections |
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24 | 18 | | (e) and (f) to read as follows: |
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25 | 19 | | (c) A charitable organization created by a district under |
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26 | 20 | | this section is a unit of local government only for purposes of |
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27 | 21 | | Chapter 101, Civil Practice and Remedies Code. |
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28 | 22 | | (d) A district [created in a county with a population of |
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29 | 23 | | more than 800,000 that was not included in the boundaries of a |
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30 | 24 | | hospital district before September 1, 2003,] may make a capital or |
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31 | 25 | | other financial contribution to a charitable organization created |
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32 | 26 | | by the district to provide regional administration and delivery of |
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33 | 27 | | health care services to or for the district. |
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34 | 28 | | (e) A charitable organization created by a district under |
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35 | 29 | | this section may contract, collaborate, or enter into a joint |
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36 | 30 | | venture or other agreement with a public or private entity, without |
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37 | 31 | | regard to that entity's for-profit or nonprofit status, and may |
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38 | 32 | | hold an ownership interest in such an entity. |
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39 | 33 | | (f) A charitable organization created by a district under |
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40 | 34 | | this section remains subject to the laws of this state and the |
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41 | 35 | | United States that govern charitable organizations. Nothing in |
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42 | 36 | | this section may be construed as abrogating or modifying any other |
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43 | 37 | | provision of law governing charitable organizations. |
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44 | 38 | | SECTION 3. Subchapter C, Chapter 281, Health and Safety |
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45 | 39 | | Code, is amended by adding Section 281.058 to read as follows: |
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46 | 40 | | Sec. 281.058. AUTHORITY TO FORM CAPTIVE INSURANCE OR |
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47 | 41 | | CAPTIVE MANAGEMENT COMPANY. (a) In this section, "captive |
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48 | 42 | | insurance company" and "captive management company" have the |
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49 | 43 | | meanings assigned to those terms by Section 964.001, Insurance |
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50 | 44 | | Code. |
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51 | 45 | | (b) A district, a combination of districts, or a nonprofit |
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52 | 46 | | corporation formed by a district or a combination of districts to |
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53 | 47 | | further the purposes of the district or districts, as appropriate, |
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54 | 48 | | may form a captive insurance company or a captive management |
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55 | 49 | | company in accordance with the provisions of Chapter 964, Insurance |
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56 | 50 | | Code, for the purpose of engaging in the business of insurance under |
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57 | 51 | | that chapter. |
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58 | 52 | | SECTION 4. This Act takes effect immediately if it receives |
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59 | 53 | | a vote of two-thirds of all the members elected to each house, as |
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60 | 54 | | provided by Section 39, Article III, Texas Constitution. If this |
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61 | 55 | | Act does not receive the vote necessary for immediate effect, this |
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62 | 56 | | Act takes effect September 1, 2015. |
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