HBA-SEP S.B. 944 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 944
By: Van de Putte
Ways & Means
5/4/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, hospital districts are partially funded by ad valorem taxes to
help offset the rising cost of providing health care to needy and indigent
populations.  Texas law permits participation by hospital districts in tax
abatement agreements.  One effect of this participation is to delay the
receipt of ad valorem tax revenue by hospital districts.  Senate Bill 944
prohibits Bexar, El Paso, Harris, and Nueces County Hospital Districts from
entering into a contract or agreement to participate in a tax abatement
agreement. 

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 944 amends the Health and Safety Code to prohibit the Bexar, El
Paso, Harris, and Nueces County Hospital Districts (district) from entering
into a contract or agreement to participate in a tax abatement agreement
(agreement).  The bill also prohibits an agreement entered into before
September 1, 2001 from being amended on or after that date to increase the
amount of the district's tax abatement or the time during which the
district may participate in the agreement. 

EFFECTIVE DATE

September 1, 2001.