2005 Texas Human Resources Code CHAPTER 136. TEXAS COMMUNITY HEALTH CENTER REVOLVING LOAN FUND

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.