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.