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  H.B. No. 2557
 
 
 
 
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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2557 was passed by the House on April
  27, 2015, by the following vote:  Yeas 140, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2557 was passed by the Senate on May
  20, 2015, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor