2005 Texas Health & Safety Code CHAPTER 110. RURAL FOUNDATION

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.