HUMAN RESOURCES CODE
CHAPTER 136. TEXAS COMMUNITY HEALTH CENTER REVOLVING LOAN FUND
§ 136.001. PURPOSE. The legislature finds that:
(1) community health centers play a significant role
in the delivery of medical care and related services to the
residents of this state who cannot afford health insurance;
(2) community health centers are a cost-effective way
to provide primary and preventive health care to populations
lacking quality health care by reducing hospitalizations and the
inappropriate use of emergency rooms;
(3) the financing sources available for the capital
needs of community health centers, such as buildings and equipment,
are inadequate; and
(4) increasing community health centers' access to
capital would benefit residents of this state in poor and
underserved communities and foreign-born residents who are
uninsured, by providing greater access to primary care and
preventive health services and by targeting the common health
problems of these residents.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.002. DEFINITIONS. In this chapter:
(1) "Community health center" means a nonprofit
corporation in this state that:
(A) provides required primary health services,
including:
(i) basic health services;
(ii) referrals to providers of medical
services;
(iii) patient case management services;
(iv) outreach; and
(v) patient education; and
(B) has a governing board that:
(i) is composed of individuals, a majority
of whom are being served by the community health centers; and
(ii) represents the individuals being
served by the community health center.
(2) "Commission" means the Health and Human Services
Commission.
(3) "Development corporation" means a nonprofit
corporation that:
(A) provides revolving loan funds to community
health centers;
(B) accepts gifts and grants;
(C) seeks funding from various government and
private sources; and
(D) associates with a broad-based organization
serving community health centers.
(4) "Fund" means the community health center revolving
loan fund established by this chapter.
(5) "Program" means the loan program authorized by
this chapter.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.003. TRUST FUND. (a) The community health
center revolving loan fund is a trust fund outside the state
treasury held by a financial institution and administered by the
commission as trustee on behalf of community health centers in this
state.
(b) The fund is composed of:
(1) money appropriated to the fund by the legislature;
(2) gifts or grants received from public or private
sources; and
(3) income from other money in the fund.
(c) The commission may accept on behalf of the fund gifts
and grants for the use and benefit of the program.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.004. DEVELOPMENT CORPORATION. The commission
shall contract with and award money to a development corporation to
carry out the purposes of this chapter.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.005. INVESTMENT COMMITTEE. (a) Before
contracting with a development corporation, the commission shall
require the development corporation to establish an investment
committee to approve loan requests of community health centers.
(b) The investment committee must consist of seven members
as follows:
(1) at least two members with lending experience;
(2) at least two members who receive health care
services from a community health center; and
(3) at least one member who represents the Texas
Association of Community Health Centers, Inc.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.006. LOANS TO COMMUNITY HEALTH CENTERS. (a) The
development corporation may make a loan to a community health
center only with the approval of the investment committee.
(b) The development corporation shall use at least 60
percent of the money received under the program for loans to
community health centers in existence for at least one year before
the loan date.
(c) A loan made by the development corporation may be
subordinated debt.
(d) The development corporation may make a loan under the
program through a partnership or joint investment with one or more
financial institutions or federal or state programs.
(e) Payments on community health center loans shall be made
to the development corporation. The development corporation shall
use the loan payment money received from community health centers
to make new loans as provided by this chapter.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.007. SELF-FUNDING. The commission shall develop
the fund program as a revolving loan fund that will become
self-funding over the life of the program.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.008. INCOME FROM LOAN. All income received on a
loan made with money received under the program is the property of
the development corporation. Income received on a loan includes
the payment of interest by a borrower and the administrative fees
assessed by the development corporation.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
§ 136.009. RULES. (a) The commission shall adopt
rules to administer this chapter, including rules that require:
(1) the commission to review the lending and servicing
practices of a development corporation to ensure the practices
conform to generally accepted accounting principles;
(2) an eligible community health center to enter into
an agreement with the development corporation that states the terms
of the loan made to the center;
(3) the development corporation to provide to the
commission semiannual reports giving details of the status of each
loan made under the program;
(4) the development corporation to require annual
audits of community health centers receiving loans under the
program; and
(5) the commission to provide oversight of the
development corporation as necessary to qualify the development
corporation for loan guarantees from federal and state programs.
(b) Under rules adopted by the commission, the development
corporation may:
(1) make grants to eligible community health centers
from money other than money that is received from the fund and that
was derived from a legislative appropriation; or
(2) seek funds from state or federal agencies or
private sources to supplement and complement the funds received
under the program.
(c) The commission may adopt other rules as necessary to
accomplish the purposes of this chapter.
Added by Acts 2001, 77th Leg., ch. 878, § 1, eff. Sept. 1, 2001.
