84R8842 MEW-F By: Clardy H.B. No. 3332 A BILL TO BE ENTITLED AN ACT relating to the authority of certain public hospitals to construct certain facilities and to provide certain services. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 223.002(4), Health and Safety Code, is amended to read as follows: (4) "Hospital project" means existing or future real, personal, or mixed property, or an interest in that property, [other than a nursing home licensed or required to be licensed under the authority of this state,] the financing, refinancing, acquiring, providing, constructing, enlarging, remodeling, renovating, improving, furnishing, or equipping of which is found by the governing body of an issuer to be necessary for medical care, research, training, or teaching in this state. A hospital project may include one or more of the following properties if found by the governing body of an issuer to be necessary or convenient for the project: (A) land, a building, equipment, machinery, furniture, a facility, or an improvement; (B) a structure suitable for use as: (i) a hospital, clinic, health facility, extended care facility, outpatient facility, rehabilitation or recreation facility, pharmacy, medical laboratory, dental laboratory, physicians' office building, or laundry or administrative facility or building related to a health facility or system; (ii) a multiunit housing facility for medical staff, nurses, interns, other employees of a health facility or system, patients of a health facility, or relatives of patients admitted for treatment or care in a health facility; (iii) a support facility related to a hospital project such as an office building, parking lot or building, or maintenance, safety, or utility facility, and related equipment; [or] (iv) a medical or dental research facility, medical or dental training facility, or another facility used in the education or training of health care personnel; or (v) a nursing facility, assisted living facility, or multiunit senior housing facility; (C) property or material used in the landscaping, equipping, or furnishing of a hospital project and other similar items necessary or convenient for the operation of a hospital project; and (D) any other structure, facility, or equipment related or essential to the operation of a health facility or system. SECTION 2. Section 223.011(b), Health and Safety Code, is amended to read as follows: (b) A hospital project may [must] be located anywhere in this state if the location of the project is consistent with the purpose of the hospital project and the project serves a legitimate public purpose of the issuer [and within or partially within the issuer's boundaries, except that a hospital project of a municipality may be located: [(1) outside the municipality's limits if it is within the municipality's extraterritorial jurisdiction; or [(2) in another municipality if the governing body of the other municipality consents to the former municipality's provision of the project]. SECTION 3. Section 285.101, Health and Safety Code, is amended by amending Subsections (a) and (b) and adding Subsection (b-1) to read as follows: (a) This subchapter applies only to a hospital, hospital district, or authority created and operated under Article IX, Texas Constitution, under a special law, or under this title [that is located in: [(1) a county with a population of 35,000 or less; [(2) those portions of extended municipalities that the federal census bureau has determined to be rural; or [(3) an area that is not delineated as an urbanized area by the federal census bureau]. (b) A hospital, hospital district, or authority covered by this subchapter may: (1) construct, acquire, own, operate, enlarge, improve, furnish, or equip one or more of the following types of facilities or services for the care of persons who are [the] elderly or persons with a disability [disabled]: (A) a nursing facility [home] or similar long-term care facility; (B) elderly housing; (C) assisted living; (D) home health; (E) personal care; (F) special care; (G) continuing care; or (H) durable medical equipment; (2) lease or enter into an operations or management agreement relating to all or part of a facility or service described in Subdivision (1) that is owned by the hospital, hospital district, or authority; (3) close, transfer, sell, or otherwise convey all or part of a facility and discontinue services; and (4) issue [revenue] bonds and other notes or obligations to acquire, construct, or improve a facility for the care of persons who are [the] elderly or persons with a disability [disabled] or to implement the delivery of a service for the care of persons who are [the] elderly or persons with a disability [disabled]. (b-1) A facility or service under Subsection (b) may be located or offered, as applicable, in any location that the governing body of the hospital, hospital district, or authority considers to be in the best interest of the hospital, hospital district, or authority. SECTION 4. The following sections of the Health and Safety Code are repealed: (1) Section 262.034; and (2) Section 285.101(d). SECTION 5. This Act takes effect September 1, 2015.