HEALTH & SAFETY CODE
CHAPTER 110. RURAL FOUNDATION
§ 110.001. CREATION OF FOUNDATION. (a) The Office of
Rural Community Affairs shall establish the Rural Foundation as a
nonprofit corporation that complies with the Texas Non-Profit
Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
Statutes), except as otherwise provided by this chapter, and
qualifies as an organization exempt from federal income tax under
Section 501(c)(3), Internal Revenue Code of 1986, as amended.
(b) The Office of Rural Community Affairs shall ensure that
the Rural Foundation operates independently of any state agency or
political subdivision of the state.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 1, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 9, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1276, § 9.006(h), eff. Sept. 1, 2003.
§ 110.002. POWERS AND DUTIES. (a) The Rural
Foundation shall raise money from foundations, governmental
entities, and other sources to finance health, community, and
economic development programs in the rural areas of the state.
(b) The Rural Foundation shall have the powers that are
necessary and convenient to carry out its duties.
(c) The Rural Foundation shall develop and implement
policies and procedures that clearly separate the responsibilities
and activities of the foundation from the Office of Rural Community
Affairs.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 2, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 10, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1276, § 9.006(i), eff. Sept. 1, 2003.
§ 110.003. BOARD OF DIRECTORS. (a) The Rural
Foundation is governed by a board of five directors appointed by the
executive committee of the Office of Rural Community Affairs from
individuals recommended by the executive director of the Office of
Rural Community Affairs.
(b) Members of the board of directors of the Rural
Foundation serve for staggered terms of six years, with as near as
possible to one-third of the members' terms expiring February 1 of
each odd-numbered year.
(c) Appointments to the board of directors of the Rural
Foundation shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the
appointees.
(d) The board of directors of the Rural Foundation shall
ensure that the foundation remains eligible for an exemption from
federal income tax under Section 501(a), Internal Revenue Code of
1986, as amended, by being listed as an exempt organization under
Section 501(c)(3) of that code, as amended.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 3, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 11, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1276, § 9.006(j), eff. Sept. 1, 2003.
§ 110.004. RESTRICTIONS ON BOARD APPOINTMENT,
MEMBERSHIP, AND EMPLOYMENT. (a) In this section, "Texas trade
association" means a cooperative and voluntarily joined
association of business or professional competitors in this state
designed to assist its members and its industry or profession in
dealing with mutual business or professional problems and in
promoting their common interest.
(b) A person may not be a member of the board of directors of
the Rural Foundation and may not be a foundation employee employed
in a "bona fide executive, administrative, or professional
capacity," as that phrase is used for purposes of establishing an
exemption to the overtime provisions of the federal Fair Labor
Standards Act of 1938 (29 U.S.C. Section 201 et seq.), as amended,
if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association that is in the field of
health care or that contracts with the foundation; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association that is in the field of
health care or that contracts with the foundation.
(c) A person may not be a member of the board of directors of
the Rural Foundation or act as the general counsel to the board of
directors or the foundation if the person is required to register as
a lobbyist under Chapter 305, Government Code, because of the
person's activities for compensation on behalf of a profession
related to the operation of the foundation.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 4, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 12, eff. Sept. 1, 2003.
§ 110.005. REMOVAL OF BOARD MEMBER. (a) It is a ground
for removal from the board of directors of the Rural Foundation that
a member:
(1) is ineligible for membership under Section
110.004;
(2) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(3) is absent from more than half of the regularly
scheduled board meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the board of directors.
(b) The validity of an action of the board of directors of
the Rural Foundation is not affected by the fact that it is taken
when a ground for removal of a board member exists.
(c) If the executive director of the Office of Rural
Community Affairs has knowledge that a potential ground for removal
exists, the executive director shall notify the presiding officer
of the board of directors of the Rural Foundation of the potential
ground. The presiding officer shall then notify the governor and
the attorney general that a potential ground for removal exists. If
the potential ground for removal involves the presiding officer,
the executive director shall notify the next highest ranking
officer of the board of directors, who shall then notify the
governor and the attorney general that a potential ground for
removal exists.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 5, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 13, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1276, § 9.006(k), eff. Sept. 1, 2003.
§ 110.006. VACANCY. A vacancy on the board of directors
of the Rural Foundation shall be filled for the remainder of the
unexpired term in the same manner as the original appointment.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
§ 110.007. OFFICERS. The board of directors of the
Rural Foundation shall elect from among its members a presiding
officer, an assistant presiding officer, and other officers the
board considers necessary. The presiding officer and assistant
presiding officer serve for a period of one year and may be
reelected.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
§ 110.008. MEETINGS. The board of directors of the
Rural Foundation may meet as often as necessary, but shall meet at
least twice a year.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
§ 110.009. TAX EXEMPTION. All income, property, and
other assets of the Rural Foundation are exempt from taxation by the
state and political subdivisions of the state.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
§ 110.010. MEMORANDUM OF UNDERSTANDING. The Rural
Foundation and the Office of Rural Community Affairs shall enter
into a memorandum of understanding that:
(1) requires the board of directors and staff of the
foundation to report to the executive director and executive
committee of the Office of Rural Community Affairs;
(2) allows the Office of Rural Community Affairs to
provide staff functions to the foundation;
(3) allows the Office of Rural Community Affairs to
expend funds on the foundation; and
(4) outlines the financial contributions to be made to
the foundation from funds obtained from grants and other sources.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 6, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 14, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1276, § 9.006(l), eff. Sept. 1, 2003.
§ 110.011. RECORDS. (a) The Rural Foundation shall
maintain financial records and reports independently from those of
the Office of Rural Community Affairs.
(b) The Rural Foundation shall comply with all filing
requirements of the secretary of state and the Internal Revenue
Service.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 7, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 15, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1276, § 9.006(m), eff. Sept. 1, 2003.
§ 110.012. REPORT TO OFFICE OF RURAL COMMUNITY
AFFAIRS. Not later than the 60th day after the last day of the
fiscal year, the Rural Foundation shall submit to the Office of
Rural Community Affairs a report itemizing all income and
expenditures and describing all activities of the foundation during
the preceding fiscal year.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 65, § 8, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., ch. 609, § 16, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1276, § 9.006(n), eff. Sept. 1, 2003.
§ 110.013. PROHIBITED USE OF FUNDS. Funds administered
by the Rural Foundation may not be used to provide an abortion or a
referral for an abortion, unless there is a medically necessary
reason to provide the referral.
Added by Acts 2001, 77th Leg., ch. 1221, § 1, eff. Sept. 1, 2001.
