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.