BILL ANALYSIS



H.B. 338
By: Counts
February 23, 1995
Committee Report (Unamended)


BACKGROUND

The original charter establishing the Stamford Hospital District
gave general guidelines for the  board to borrow money for
maintenance support.  In the past boards operated under this
charter borrowing money for short term needs with little or no
problem.  After the banking crisis in the late 1980's, federal
regulations came down hard on all lending activity at banks.  The
banks legal advisors say that the authority of the board need to be
specific, not generalized.  The language in the original charter in
the 59th Legislature gave detailed information on issuing bonds and
methods of repayment of bonds, for the purpose of the purchase,
construction, acquisition, repair or renovation of buildings and
improvements and equipping same for hospital purposes, and for any
and all such purposes.   This does not address the problem of short
term financing needed by the hospital until such time as tax moneys
are available.


PURPOSE

This bill provides the Board of Directors for the Stamford Hospital
District the authority to borrow money from a federally insured
lending institution for the purpose of short time financing for
operation until tax funds become available.


RULEMAKING AUTHORITY

It is the opinion of this committee that this bill does not grant
additional rulemaking authority to a state officer, institution, or
agency.


SECTION BY SECTION ANALYSIS


     SECTION  1.   Chapter  108, Acts of the 59th Legislature,
Regular Session, 1965, is     amended by adding Section 17a to read
as follows:

     Sec.  17a.  Authorizes the Board of Directors to borrow money
on behalf of the Hospital District from a federally insured lending 
institution to be used to meet lawfully authorized obligations of
the District.  Lines 12-14 set the amount to be borrowed as the
amount the Board of Directors considers advisable subject to rate
of interest and terms the Board considers advisable.  Lines 15-17
address collateral to be pledged for borrowed money.  Lines 17-19
place a time limit of five years on loans when revenue of the
District are pledged to pay the loan.

     SECTION 2.  Emergency Clause

SUMMARY OF COMMITTEE ACTION

Pursuant to public notice posted on February 16, 1995, the
Committee on County Affairs met in a public hearing on February 22,
1995 to consider HB 338. The chair laid out HB 338 and recognized
Representative Counts to explain the bill. Representative Counts
explained the bill and closed. There was no testimony on the bill.
The motion that HB 338 be favorably reported to the full house with
the recommendation that it do pass and be placed on the Local and
Consent Calendar prevailed by the following vote: 8 Ayes, 0 Nays,
0 Present-not-voting, 1 Absent.