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.