HBA-CMT H.B. 2658 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2658
By: Counts
County Affairs
3/18/2001
Introduced



BACKGROUND AND PURPOSE 

At a specially called meeting of the Knox County Hospital District Board of
Directors, a resolution was adopted to request the legislature to add
borrowing authority to the enabling legislation of the Knox County Hospital
District (district).  The board may need the authority to borrow money on a
short term basis to pay the operating expenses of the district and to meet
the other lawfully authorized obligations of the district. House Bill 2658
authorizes the district to borrow money for short term financing of day to
day operations of 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 2658 amends law to authorize the Knox County Hospital District
Board of Directors (board) to borrow money at a rate of interest determined
to be appropriate by the board.  To secure a loan, the board may pledge the
revenues of the Knox County Hospital District (district) that are not
pledged to pay the bonded indebtedness of the district or property acquired
with the loan proceeds that is not pledged to pay the bonded indebtedness
of the district.  A loan authorized by this bill is required to reach
maturity by the fifth anniversary of the date on which the loan was made. 

EFFECTIVE DATE

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