HBA-MSH H.B. 3661 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3661 By: Craddick County Affairs 7/19/2001 Enrolled BACKGROUND AND PURPOSE The Act creating the Reagan Hospital District (district) was passed by the 65th Legislature in 1977. Prior to the 77th Legislature, the district's enabling legislation required updating to conform with current laws. House Bill 3661 updates the enabling legislation of the Reagan 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 3661 amends law to provide that the Reagan Hospital District (district) is governed by a board of six directors (board) elected for staggered three-year terms, and modifies provisions relating the election and qualifications of directors (Sec. 5). The bill authorizes the board to use district funds to pay for the bond required of an administrator. The bill authorizes the board to purchase or lease property, facilities, and equipment, and perform certain actions in order to recruit physicians and other personnel. The bill authorizes the board to institute a suit to enforce payment of taxes and to collect amounts owed to the district by patients. The bill authorizes the district to sponsor and create a nonprofit corporation to provide health care or other services in the district (Sec. 6). The bill modifies provisions relating to the district budget and fiscal year (Sec. 7). The bill requires the board to have general obligation bonds authorized by an election and prohibits any tax levied to pay the bonds from exceeding $0.75 on each $100 valuation (Sec 8). The bill subjects the district to existing provisions that regulate the interest rate and administration of bonds and the administration of district taxes (Secs. 5, 7, 8, 9, 11, and 16). The bill requires the board to subject contracts for construction in excess of $15,000 to competitive bidding procedures (Sec. 11). The bill sets forth provisions relating to the dissolution of the district (Sec. 18A). The bill provides that the Act does not apply to any matter that is involved in litigation if the litigation ultimately results in the matter being held invalid or has been held invalid (SECTION 12). EFFECTIVE DATE September 1, 2001.