Bill > HB3788

This bill makes several modifications to Texas law regarding municipal hospital authorities. The bill allows hospital authorities to adjust the number of directors more flexibly, with the caveat that reducing the number of directors cannot shorten an incumbent director's term. It expands the ways directors can be selected and appointed, particularly for authorities involving multiple municipalities, and clarifies that authority employees cannot serve as directors. The bill also broadens the permitted uses of authority assets when an authority no longer owns or operates a hospital, allowing them to fund initiatives like fitness centers, medical training facilities, and health education programs. Additionally, the bill enables these authorities to issue revenue bonds for these new purposes, even if they do not currently operate a hospital. The bill increases the population threshold for certain provisions from 15,000 to 30,000 for municipalities and allows authorities to secure revenue bonds through various means, including mortgages on real or personal property. The changes are designed to provide municipal hospital authorities with more operational flexibility and opportunities to support public health beyond traditional hospital management. The bill is set to take effect on September 1, 2025.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3788