HBA-MSH H.B. 1512 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1512 By: Counts County Affairs 7/18/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, the legislation enabling the creation of the Stonewall County Hospital District (district), enacted in 1963, had become dated in many regards. Under previous law, a short term loan to the district was to be repaid in one year, hampering the ability of the district to borrow money to cover the costs of operation. House Bill 1512 adjusts and updates aspects of district administration as well as lengthening to five years the repayment period for a short term loan to the 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. ANALYSIS House Bill 1512 amends law to prohibit a county, municipality, or other governmental entity from levying taxes or issuing bonds or other obligations for hospital purposes or for providing medical care for residents of the Stonewall County Hospital District (district) (SECTION 1). The bill modifies provisions regarding the election of officers and members of the board of directors of the district (board) (SECTION 2). The bill requires the board to appoint an administrator, and an assistant administrator, to supervise the work and activities of the district and direct the general affairs of the district. The bill authorizes the board to appoint employees of the district, and contract with other entities to provide health care or related services. The bill authorizes the district to acquire property, facilities and equipment, enter into operating or management contracts relating to hospital facilities, provide retirement benefits to employees, and spend district funds to recruit medical personnel. The bill authorizes the district to institute a suit to enforce the payment of taxes, provide or contract for the provision of educational programs or courses for employees and medical staff, and institute a suit to collect amounts owed by patients (SECTION 3). The bill sets forth and modifies provisions relating to the manner in which the district may impose taxes and issue bonds and for what purposes the revenue may be used (SECTIONS 4,5,6, and 11). The bill requires the district to comply with the bidding requirements of the Public Property Finance Act and sets forth limitations for incurring obligations (SECTION 7). The bill modifies provisions relating to annual audits and the manner in which the district prepares a budget, including terms of the fiscal year. The bill prohibits the spending of money for any expense not included in the annual budget or an amendment to the budget (SECTION 8). The bill modifies provisions relating to the manner in which district money is to be deposited in banks (SECTION 10). The bill sets forth provisions regarding the authority of the board to borrow money under emergency conditions. The bill sets forth provisions relating to borrowing money, including loan rates, securing loans, and loan maturation (SECTION 12). The bill sets forth provisions relating to the conditions and manner in which the district may be dissolved, including the disposal of debts, property, and equipment of the district (SECTION 12). The bill prohibits the state from becoming obligated for the support or maintenance of the district, and prohibits the legislature from making a direct appropriation for the construction, maintenance, or improvement of a district facility (SECTION 13). EFFECTIVE DATE September 1, 2001.