HBA-MSH H.B. 1864 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1864 By: Kuempel County Affairs 3/11/2001 Introduced BACKGROUND AND PURPOSE Currently, most public county hospitals operate as a part of a hospital district. The public hospitals of Guadalupe County and Medina County are run by a board of managers jointly funded by a municipality or the appropriate county and are unable to issue bonds like a hospital district. Guadalupe County is considering an expansion project to manage population growth in the area, but will be unable to finance the project through the issuance of bonds under the current system. House Bill 1864 authorizes a board of managers to issue revenue bonds in the name of a hospital. 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 1864 amends the Health and Safety Code to authorize a board of managers (board) to issue and sell revenue bonds in the name of a hospital to finance the acquisition of real property, equipment, or supplies, the construction of hospital facilities, and the installation of equipment. The board is also authorized to issue refunding bonds. The bill sets forth provisions relating to the sale, repayment, security, and maturity of bonds, as well as the use of earnings or assets for private purposes. H.B. 1864 authorizes the board to acquire, hold, or dispose of property and requires title to property head by the board to be transferred to the county and municipality on the dissolution of the board. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.