HBA-MSH H.B. 3132 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3132
By: King, Phil
County Affairs
7/26/2001
Enrolled



BACKGROUND AND PURPOSE 

The Gainesville and Muenster hospital districts are both located in Cooke
County.    Due to the proximity of the districts, they were not eligible
for federal funding as regional providers of health services.  The
dissolution of both districts and the creation of a single district in
Cooke County enables the new district to receive federal funds and better
serve the health care needs of the residents of Cooke County.  House Bill
3132 provides for the submission to each district's voters propositions
dissolving the Gainesville and Muenster hospital districts and creating the
Cooke County Hospital District, and sets forth the powers and duties of the
Cooke County Hospital 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 3132 amends law to provide for the dissolution of the
Gainesville and Muenster hospital districts (districts) upon approval by
the voters of the districts and, if approved, the creation of the Cooke
County Hospital District (district) (SECTIONS 1.01, 1.02, 2.01-2.03, 3.01,
and 3.02).  The bill provides for the transition from the districts to the
Cooke County Hospital District, including the transfer of title to all
land, buildings, improvement, and equipment, and the assumption of all
indebtedness of the districts (SECTIONS 3.07).  The bill requires the
district to assume full responsibility for the operation of all hospital
facilities and for the furnishing to medical and hospital care for the
district's needy residents (SECTION 3.24).  The bill provides that the
district is governed by a board of nine directors (board) who serve without
compensation, names nine temporary directors, and sets forth provisions
relating to the election and qualifications of directors (SECTIONS
3.03-3.06).  The bill  authorizes the board to issue bonds payable from
taxes levied by the district upon the approval by the qualified voters of
the district (SECTIONS 3.11-3.14).  The bill sets forth the specific powers
and duties of the board (SECTIONS 3.09).  The bill authorizes the district
to create and sponsor a nonprofit corporation to provide healthcare
(SECTION 3.16).  The bill provides that the district has the power of
eminent domain (SECTION 3.19).  The bill authorizes the district to levy
taxes for the entire year in which the district is established as a result
of the initial election on the creation of the district (SECTION 3.20).
The bill requires the district to provide without charge to a district
resident the medical care that the resident or relative of the resident who
is legally responsible for the resident's support cannot pay (SECTION
3.21).  The bill authorizes the board to accept donations and borrow money
in an emergency (SECTION 3.22, 3.23). 

EFFECTIVE DATE

May 28, 2001.