H.B. No. 3788 amends various sections of the Health and Safety Code to enhance the operations of municipal hospital authorities in Texas. Key changes include the stipulation that the number of directors for the authority can be adjusted by amending the creating ordinance, provided it does not violate the terms of the trust indenture described in Section 262.012. The bill also establishes that initial directors will serve terms not exceeding two years and clarifies that municipal employees are ineligible for director positions. Additionally, the authority is empowered to use its assets for public health initiatives, including the establishment of various health facilities and the provision of financial assistance to nonprofit organizations.

Furthermore, the bill allows authorities to issue revenue bonds for purposes beyond hospital operations, including funding health initiatives, and specifies that these bonds can be secured by various forms of property. It also modifies the criteria for authorities eligible to issue bonds, particularly focusing on population thresholds and asset requirements. Notably, certain sections of the code are repealed to streamline the authority's operations. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Health and Safety Code 262.011, Health and Safety Code 262.012, Health and Safety Code 262.0331, Health and Safety Code 262.039, Health and Safety Code 262.041, Health and Safety Code 262.034 (Health and Safety Code 262)
House Committee Report: Health and Safety Code 262.011, Health and Safety Code 262.012, Health and Safety Code 262.0331, Health and Safety Code 262.039, Health and Safety Code 262.041, Health and Safety Code 262.034 (Health and Safety Code 262)
Engrossed: Health and Safety Code 262.011, Health and Safety Code 262.012, Health and Safety Code 262.0331, Health and Safety Code 262.039, Health and Safety Code 262.041, Health and Safety Code 262.034 (Health and Safety Code 262)
Senate Committee Report: Health and Safety Code 262.011, Health and Safety Code 262.012, Health and Safety Code 262.0331, Health and Safety Code 262.039, Health and Safety Code 262.041, Health and Safety Code 262.034 (Health and Safety Code 262)
Enrolled: Health and Safety Code 262.011, Health and Safety Code 262.012, Health and Safety Code 262.0331, Health and Safety Code 262.039, Health and Safety Code 262.041, Health and Safety Code 262.034 (Health and Safety Code 262)