HBA-DMD H.B. 3232 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3232
By: Keffer
County Affairs
9/15/1999
Enrolled



BACKGROUND AND PURPOSE 

In 1989, the 71st Legislature created the Eastland Memorial Hospital
District (district) and that Act has not been amended since its adoption.
Prior to the 76th Legislature, some aspects of the enabling legislation did
not comply with the tax code and Texas Election Code. H.B. 3232 authorizes
the district to enter into a contract to provide administrative and other
personnel for a term of 25 years or less and to institute a suit to enforce
the payment of taxes and to foreclose liens to secure the payment of taxes
due to the district. This bill authorizes the board of directors to obtain
a loan to meet the lawful obligations of the district in times of an
emergency or nonemergency. This bill also provides for the transfer of
district assets if the voters in the district vote to dissolve the hospital
district. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4.04, Chapter 221, Acts of the 71st Legislature,
Regular Session, 1989, to prohibit the required notice of an election of
directors of the board (directors) from being published earlier than 30
days or later than 10 days before the election, rather than requiring
notice to be published at least 35 days before the election. Makes
conforming changes. 

SECTION 2.  Amends Section 4.05, Chapter 221, Acts of the 71st Legislature,
Regular Session, 1989, to provide that a person who wishes to have his name
printed on the ballot as a candidate must file an application with the
secretary of the board of directors no later than 31 days before the
election. Deletes language relating to a petition that must be signed by
200 registered voters of the district asking that the person's name be
placed on the ballot and the provision that the determination of whether
the person's name will be placed on the ballot is required to be based on
the most recent official lists of registered voters.  Makes conforming
changes. 

SECTION 3.  Amends Section 4.12(d), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to authorize the board of directors
(board) to require the hospital administrator, rather than requiring the
administrator, to execute a bond payable to the hospital district in the
amount of not less than $5,000, before the administrator may assume the
administrator's duties. Makes conforming and nonsubstantive changes. 

SECTION 4.  Amends Section 5.02, Chapter 221, Acts of the 71st Legislature,
Regular Session, 1989, to include in a list of the Eastland Memorial
Hospital District's (district) duties upon being created, the authorization
of the district to enter into a contract for a term of 25 years or less in
order to provide administrative and other personnel for the operation of
hospital facilities, and to institute a suit to enforce the payment of
taxes and to foreclose liens to secure the payment of taxes due to the
district.  

SECTION 5.  Amends Section 5.06(c), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to specify that the board is authorized
to lease hospital facilities on behalf of the district to individuals,
corporations, or other legal entities.  
 
SECTION 6.  Amends Section 5.07(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to authorize the board to enter into
construction contracts only after competitive bidding as provided by
Subchapter B (Competitive Bidding on Certain Public Works Contracts),
Chapter 271 (Purchasing and Contracting Authority of Municipalities), Local
Government Code, for spending more than $15,000, rather than $10,000.  

SECTION 7.  Amends Section 5.11(b), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require the district, no later than
the beginning of each operating year, to adopt an application procedure in
order to determine eligibility for assistance, as provided by Section
61.053 (Application Procedure), Health and Safety Code, rather than Section
10.03, Article 4438f, V.T.C.S. (Indigent Health Care and Treatment Act),
which has been repealed.  

SECTION 8.  Amends Section 5.12(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to make a conforming change.  

SECTION 9.  Amends Chapter 221, Acts of the 71st Legislature, Regular
Session, 1989, by adding Section 5.16, as follows: 

Sec. 5.16.  EMERGENCY LOANS. (a) Authorizes the board, if the board
determines that funds are not available to meet the lawful obligations of
the district and that an emergency exists, to borrow money at a rate of
interest not to exceed the maximum annual percentage rate allowed by law
for district obligations at the time of the loan.  

(b) Sets forth revenues and bonds which the board is authorized to pledge
in order to secure a loan. 

(c) Requires a loan for which tax revenue or bonds are pledged to mature no
later than the first anniversary of the date on which the loan was made.
Requires a loan for which other district revenues are pledged to mature no
later than the fifth anniversary of the date on which the loan was made.  

(d) Prohibits the board from using loan proceeds obtained under this
section for any purpose other than the purpose for which the board
determined an emergency existed. Prohibits the board, if tax revenue or
bonds are pledged to pay the loan, from using the loan proceeds for a
purpose other than the purpose for which the taxes were levied or the bonds
were authorized.  

SECTION 10.  Amends Chapter 221, Acts of the 71st Legislature, Regular
Session, 1989, by adding Section 5.17, as follows: 

Sec. 5.17.  NONEMERGENCY LOANS. (a) Authorizes the board to borrow money at
a rate of interest not to exceed the maximum annual percentage rate allowed
by law for district obligations at the time of the loan.  

(b) Specifies revenues and bonds which the board is authorized to pledge in
order to secure a loan. 
 
(c) Requires a loan for which tax revenue or bonds are pledged to mature no
later than the first anniversary of the date on which the loan was made.
Requires a loan for which other district revenues are pledged to mature no
later than the fifth anniversary of the date on which the loan was made.  

SECTION 11.  Amends Section 6.09(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to include Sections 5.16 and 5.17 of
this Act as exceptions to the district's prohibition from incurring a debt
payable from revenues of the district other than the revenues on hand or to
be on hand in the current and immediately following fiscal year of the
district.  

SECTION 12.  Amends Section 7.02(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require the board to levy a tax at
the time general obligation bonds are issued by the district.  Makes a
conforming change. 

SECTION 13.  Amends Section 7.04(c), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to provide that the bonds must be
issued in the manner provided by Sections 264.042 (Form and Procedure),
264.043 (Terms), 264.046 (Junior Lien Bonds; Parity Bonds), 264.047 (Bond
Proceeds; Investment of Funds), 264.048 (Refunding Bonds), and 264.049
(Approval and Registration of Bonds), Health and Safety Code, rather than
Sections 8, 10, 11, 12, and 13, Article 4494r, V.T.C.S. (County Hospital
Authority Act), which have been repealed, for issuance of revenue bonds by
county hospital authorities.  

SECTION 14.  Amends Section 9.02(b), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require the directors, upon being
presented a petition for a dissolution election signed by at least 15
percent of the registered voters, rather than 300 registered voters, of the
territory of the district according to the most recent official list of
registered voters, to order an election to be held on the question of
dissolution of the district and the transfer of its assets.  

SECTION 15.  Amends Section 9.08, Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, as follows: 

Sec. 9.08.  TRANSFER OF ASSETS.  Sets forth required actions for the board,
if a majority of votes in the election favor the dissolution of the
district. Redesignates existing Subsections (a) and (b) to Subsections (h)
and (i), respectively. 

SECTION 16.Emergency clause.
  Effective date: upon passage.