HB 2557

84(R) - 2015
House Judiciary & Civil Jurisprudence
House Judiciary & Civil Jurisprudence
County Affairs

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


John Zerwas

Bill Caption

Relating to certain hospital districts and to certain corporations or organizations formed by those districts.

Fiscal Notes

No fiscal implication to the State anticipated.

Local Government Impact

There could be costs to a local governmental entity that chose to establish a charitable organization. However, it is assumed that a hospital district would establish an organization only if sufficient funds were available or it would not result in a negative fiscal impact; therefore, no significant fiscal impact is anticipated.

Bill Analysis

HB 2557 would amend Health and Safety Code to permit hospital districts in a county with a population of at least 190,000 to create a charitable organization that may contract, collaborate, or enter into a joint agreement with a public or private entity.  This bill would also allow a district, a combination of districts, or a nonprofit formed by district (s) to form a captive insurance company or captive management company in accordance with the appropriate code provisions.

Vote Recommendation Notes

This bill affirms the principle of limited government.  This would lift regulation against hospital's charitable organizations from contracting with other public or private entities. This also allows hospital districts to provide for a captive insurance company, which is an alternative form of risk management.  Because HB 2557 decreases government regulation, we support this legislation.