HBA-MSH H.B. 3661 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3661
By: Craddick
County Affairs
4/8/2001
Introduced



BACKGROUND AND PURPOSE 

The Act creating the Reagan Hospital District (district) was passed by the
65th Legislature in 1977.  The district's enabling legislation requires
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 (Sec. 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.