HBA-JLV, RKM H.B. 182 77(R) BILL ANALYSIS


Office of House Bill AnalysisH.B. 182
By: Turner, Bob
Ways and Means
7/17/2001
Enrolled



BACKGROUND AND PURPOSE 

In 1986, the legislature authorized the establishment of a Sutton County
Hospital District with a tax cap of 10 cents per $100 of land valuation, as
approved by the local electorate.  The board of the hospital district took
over the management of Lillian M. Hudspeth Memorial Hospital and Nursing
Home in 1987.  The hospital operated as a nonprofit institution by the
trustees of the original Hudspeth Hospital Corporation since 1951.  The
corporation had exhausted its resources and could no longer fund the
operation of the hospital.  During the same period, Sutton County was
experiencing an oil and gas boom and the 10 cents cap was sufficient to run
the hospital and nursing home.  Over the years, Sutton County taxable
values have eroded due to the depletion of its natural gas reserves.  The
legislature has since increased the hospital district's tax cap to 35 cents
per $100 of land valuation.  With the tax base continuing to diminish and
with the increasing cost of medical care, the tax cap could be reached
within the next two or three years. Increasing the tax cap to the maximum
rate allowed by law allows the hospital district to raise the rate, through
a local referendum, whenever it becomes necessary to keep the hospital
open.  House Bill 182 increases the amount of the Sutton County Hospital
District's maximum tax rate from 35 to 75 cents on each $100 of valuation
on all taxable property in 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 182 amends law to increase the amount of the Sutton County
Hospital District's maximum tax rate from 35 to 75 cents on each $100 of
valuation on all taxable property in the district for which the board is
authorized to order an election.  

EFFECTIVE DATE

June 11, 2001.