BILL ANALYSIS


                                                        H.B. 3061
                                             By: Smithee (Bivins)
                                      Intergovernmental Relations
                                                         05-10-95
                              Senate Committee Report (Unamended)
BACKGROUND

Swisher Memorial Hospital District (district) is presently
experiencing financial difficulties which could lead to the closure
of the hospital.  The board of directors of the district desire to
borrow money before the 1995 taxes are collected.  However, the
district's enabling legislation and the current statute do not make
any provisions to allow the district to borrow the money.

PURPOSE

As proposed, H.B. 3061 authorizes the Swisher Memorial Hospital
District to issue anticipation notes and certificates of
obligation.

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 16, Acts of the 59th Legislature, Regular
Session, 1965, by adding Section 7A, as follows:

     Sec. 7A.  ANTICIPATION NOTES AND CERTIFICATES OF OBLIGATION. 
     Authorizes the board of directors of the Swisher Memorial
     Hospital District to issue anticipation notes under Article
     717w, V.T.C.S., and certificates of obligation under Chapter
     271C, Local Government Code.
     
     SECTION 2.     Emergency clause.
           Effective date: upon passage.