HBA-MSH H.B. 1512 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1512
By: Counts
County Affairs
3/5/2001
Introduced



BACKGROUND AND PURPOSE 

The legislation enabling the creation of the Stonewall County Hospital
District (district), enacted in 1963, has become dated in many regards.
Under current law, a short term loan to the district must 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.