Office of House Bill AnalysisH.B. 2488
By: Chisum
County Affairs


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

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.   


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. 


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.   


On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.