HBA-CMT S.B. 1073 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1073 By: Sibley County Affairs 4/22/2001 Engrossed BACKGROUND AND PURPOSE Currently, the Palo Pinto County Hospital District is administered through a 1965 law that has been amended only once. Senate Bill 1073 updates current law, removes conflicts with state law, and adds language regarding the duties of the board of directors and the dissolution of the 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 Senate Bill 1073 amends law to prohibit a person from being appointed or elected to the elective positions on the board of directors (board) of the Palo Pinto County Hospital District (district) unless the person is a resident of the district and a qualified voter rather than the owner of land subject to taxation and at least 18 years of age. The bill increases the amount of the required bond that is to be executed by a board member (director) before taking office from $1,000 to $5,000. The bill sets forth provisions for the filling of a vacant position in the elective positions of directors. The bill requires a regular election for the election of the appropriate number of successor directors to be held on the first Saturday in May rather than April, and requires the election to be ordered by the board in accordance with the applicable provisions of the Election Code. The bill modifies provisions relating to the notice of an election of directors. The bill requires any person desiring the person's name to be printed on the ballot as a candidate for elective director to file an application rather than a signed petition with the secretary of the board in accordance with provisions for a candidate for office of political subdivision other than county or city (SECTION 1). The bill removes provisions regarding the required property tax that is levied by the board. The bill adds provisions specifying that the Tax Code governs the appraisal, assessment, and collection of district taxes, and the board is authorized to provide for the appointment of a tax assessor-collector for the district or contract for the assessment and collection of taxes as provided by the Tax Code (SECTION 2). The bill requires the board to have the power and authority to issue and sell, general obligation bonds authorized by an election for the acquisition of sites to be used for district purposes. The bill removes provisions pertaining to the election that is to be called on the issue of executing and issuing bonds by the district and provides that such an election shall be conducted in accordance with provisions in the Government Code regarding bond elections. The bill removes the provision that the bonds of the district are authorized to be made optional for redemption prior to their maturity date at the discretion of the board. The bill requires refunding bonds to be issued in accordance with provisions regarding refunding bonds in the Government Code, and removes authorization for bonds to be made optional for redemption prior to the maturity date and provisions regarding the interest date of the bonds. The bill authorizes the district to issue and sell revenue bonds in the name and on the faith and credit of the district to purchase, construct, acquire, repair, renovate, or equip buildings or improvements for district purposes. The bonds are required to be payable from and secured by pledge of all or part of the revenues derived from the operation of the district's hospital system. The bonds are authorized to be additionally secured by a mortgage or deed of trust on all or part of the district's property. The revenue bonds are required to be issued in the manner provided by the Health and Safety Code (SECTION 3). The bill authorizes the board to borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time of the loan, and sets forth provisions for what can be pledged by the board to secure a loan. The bill provides that a loan for which taxes or bonds are pledged shall mature not later than the first anniversary of the date on which the loan is made and a loan for which district revenues are pledged shall mature not later than the fifth anniversary of the date on which the loan is made (SECTION 4). The bill sets forth the powers and duties of the board. The bill authorizes the board to appoint a qualified person to be the administrator of the district and may in its own discretion appoint an assistant to the administrator. The bill authorizes the district to sponsor and create a nonprofit corporation under the Texas Non-Profit Corporation Act and authorizes the district to contribute funds to or solicit funds for the corporation (SECTION 5). The bill sets forth provisions regarding the fiscal year, annual audit, and the budget of the district (SECTION 6). The bill sets forth provisions for the dissolution of the district (SECTION 11). EFFECTIVE DATE September 1, 2001.