BILL ANALYSIS


                                                         H.B. 338
                                             By: Counts (Sponsor)
                                      Intergovernmental Relations
                                                          4-20-95
                              Senate Committee Report (Unamended)
BACKGROUND

The original charter establishing the Stamford Hospital District
gave general guidelines for the board of directors of the district
to borrow money for maintenance support.  After the banking crisis
in the late 1980s, federal regulations were tightened regarding all
lending activity at banks.  The bank's legal advisors say that the
authority of the board needs to be specific, not generalized.  The
language of the original district charter does not address the
problem of short term financing required by the hospital until such
time as tax moneys are available.

PURPOSE

As proposed, H.B. 338 authorizes the board of directors of the
Stamford Hospital District to borrow certain money to pay the
operating expenses and meet the other lawfully authorized
obligations of the district.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

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

     Sec. 17a.  Authorizes the board of directors (board) of the
     Stamford Hospital District (district) to borrow money from a
     federally insured lending institution and make other financial
     arrangements to pay the operating expenses and to meet the
     other lawfully authorized obligations of the district. 
     Authorizes the board to borrow money in the amount it
     considers advisable subject to a rate of interest and other
     terms and conditions it considers advisable.  Authorizes the
     board, in order to secure a loan, to pledge revenues of the
     district or property acquired with the borrowed money that are
     not pledged to pay a bonded indebtedness of the district. 
     Requires the loan, if district revenues are pledged to pay the
     loan, to mature not later than the fifth anniversary of the
     date on which the loan was made.
     
     SECTION 2.     Emergency clause.
           Effective date: upon passage.