HBA-TBM H.B. 2488 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2488 By: Chisum County Affairs 3/18/2001 Introduced BACKGROUND AND PURPOSE Currently, the Donley Hospital District (district) is unable to commit more than a quarter of its revenue to construction or accept further debt through construction notes. These limitations are hindering the district in providing the best services and equipment to its medical service community. The effort to establish a long-term health facility for the elderly through renovation will require the issuance of revenue bonds which are projected to generate over $200,000 per year. Allowing the district to restructure its debt with general obligation tax revenue bonds will give it the benefit of a dramatically lower interest rate without affecting county taxes. The district is also requesting the ability to contract with the Texas Department of Human Service (DHS) to allow the district to make efficient use of its resources and for DHS to administer its operation in coordination with the medical center and hospital district. House Bill 2488 authorizes the district to issue revenue bonds for the purpose of refunding any previously issued revenue bond and to contract with DHS to lease the district's buildings and facilities. 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 2488 amends law to authorize the board of directors (board) of the Donley County Hospital District (district) to issue revenue bonds for the purpose of refunding any previously issued revenue bonds and to issue revenue bonds for the purpose of purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for the district's facilities for the district's hospital system. The district is authorized to contract with the Texas Department of Human Services to lease all or part of its buildings and facilities. All acts of the district in the issuance of notes, and all proceedings of the district authorizing the issuance, execution, and delivery of notes and other obligations of the district are validated in all respects and are valid as though the notes had been originally and duly authorized, accomplished, validated, ratified, approved, and confirmed. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.