HBA-MPA S.B. 1881 76(R)BILL ANALYSIS


Office of House Bill AnalysisS.B. 1881
By: Nixon
County Affairs
5/14/1999
Committee Report (Amended)


BACKGROUND AND PURPOSE 

In 1992, the voters of Nacogdoches County adopted a one cent sales tax to
replace the ad valorem tax their hospital district received.  However, the
Nacogdoches County Hospital District now has limited funding options.  As a
result of the limitation, the hospital district does not have the cash
reserves to fund expansion.  S.B. 1881 expands the funding mechanism for
the hospital district, including the ability to borrow funds with sales tax
as collateral. 

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 Sections 7, 9, and 10, Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, as follows: 

Sec. 7.  Authorizes the board of directors of the Nacogdoches County
Hospital District (board) to issue and sell its bonds, notes, or other
obligations payable from the sales and use tax revenues of the district to
acquire land for the hospital system and to purchase or work on buildings
or equipment related to the hospital system.   

Sec. 9.  Requires the board to determine guidelines for the purchase and
acquisition of buildings and equipment to establish and maintain an
adequate hospital system and necessary hospital care.  Authorizes the board
to acquire real property, facilities, and equipment for the district, lease
to physicians or other entities for purposes determined to be interests of
district residents, and sell or otherwise dispose of real property,
facilities, or equipment. Deletes a provision that grants discretion to the
board to determine which buildings are required for an adequate hospital
system.  Deletes the authority for the Nacogdoches County Hospital District
to conduct certain leasing and purchasing arrangements.   

Sec. 10.  (a) Authorizes the board to enter into contracts for
construction, and determine certain methods for purchasing and contracting
that provide the best value to the district. 

(b) Provides that the district must employ certain considerations when
determining the best value. 

(c) Authorizes the state auditor to audit purchases of goods or services
for the district.   

(d) Authorizes the board to adopt rules and procedures for the acquisition
of goods or services.  

(e) Provides that this section prevails over any conflicting law relating
to the purchasing of goods and services.   

(f) Provides that Chapters 2151 (General Provisions) and 2254 (Professional
and Consulting Services), Government Code, do not apply to purchases of
goods and services made under this section. 
 
(g) Authorizes the board to incur obligations, including a lease or
lease-purchase agreement for real property, facilities, or equipment for
use in the hospital system payable from the pledged sales and use tax
revenues of the district.   

(h) Created from existing text.

(i) Created from existing text. Deletes a provision that authorizes all
contracts for construction or purchases involving the expenditure of more
than $10,000 to be made only after certain advertising.  Makes conforming
changes.    

(j) Created from existing text.

(k) Authorizes the district to allocate a portion of its annual sales and
use tax revenue, but not to exceed a certain percentage, to encourage
economic development in the district as described by Section 52-a,  Article
III, Texas Constitution.   

(l) Created from existing text.

SECTION 2.Emergency clause.
  Effective date: upon passage.

EXPLANATION OF AMENDMENTS

Amendment #1

(1) Amends proposed Section 10(a), Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, as follows: 

(a) Provides that the board of directors of the Nacogdoches County Hospital
District (board) has the power to prescribe method and manner and manner of
making purchases and expenditures by and for such hospital district, except
as provided by Subsection (i). Authorizes the board, in making purchases,
to determine the method of purchase that provides the best value to the
district, including certain enumerated methods. 

(2) Amends proposed Section 10(i), Chapter 431, Acts of the 60th
Legislature, Regular Session, 1967, to authorize all contracts for
construction or purchase of equipment involving the expenditure of more
than $25,000, rather than $10,000, to be made only after advertising in the
manner provided by Subchapter B (Competitive Bidding on Certain Public Work
Contracts), Chapter 271, Local Government Code.  This provision reinstates
text deleted by the bill original bill.