BILL ANALYSIS



H.B. 3194
By: Place
4-19-95
Committee Report (Unamended)


BACKGROUND

Currently, Comanche County is served by two hospital districts, the
DeLeon Hospital District and the Comanche County Hospital District.
There is a need to consolidate these two districts into one
district to be called the Leon Valley Hospital District. A single
county wide district would provide a means to improve the quality
of care and to achieve a more efficient and economical delivery of
services by allowing for the elimination of unnecessary
duplication. The assets, bonds, obligations and indebtedness of the
two prior districts would be consolidated and the new district
would have authority to tax at a rate not to exceed twenty-five
cents per hundred dollar valuation. The current rate for the DeLeon
Hospital District is seventy-five cents per hundred dollar
valuation, and the rate for the Comanche County Hospital District
is thirty cents per hundred  dollar valuation.

PURPOSE

If enacted, HB 3194, with voter approval, will provide for the
dissolution of the Comanche County Hospital District and the DeLeon
Hospital District and create a single county wide district called
the Leon Valley Hospital 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

ARTICLE 1. Section 1.01, changes to the DeLeon Hospital district.
Chapter 202, Acts of the 63rd Legislature, Regular Session, 1973,
is amended by adding new Sec. 21A that upon the conditions stated
and the dissolution of the Comanche County Hospital District, (a)
the DeLeon Hospital District is dissolved by (b) the board of
directors calling an election on the dissolution. All assets and
obligations are transferred and assumed by the new Leon Valley
Hospital District. Subsection (c)(1) allows for the calling for an
election on the issue if the board so orders, under Sec. 21A of
this bill. Subsection (c)(2) requires a petition signed by at least
50 voters in the DeLeon Hospital District. Subsection (d) requires
notification of such election to the Comanche County Hospital
District. Subsection (e) outlines the date for the election and the
laws applicable. Subsection (f) describes the ballot, and (g)
requires the election to be held in accordance with the provisions
in the Election Code. Subsection (h) dissolves the DeLeon Hospital
District if, (1)&(2), the majority of the voters of the DeLeon and
Comanche County Hospital Districts vote in favor of the
proposition. Subsection (i) requires the continuation of the DeLeon
Hospital District if the voters do not approve the consolidation
and transfer. If dissolved, (j) the board of directors shall
transfer the assets and obligations of the Deleon District to the
Leon Valley Hospital District. The board of directors (k) may not
order another election until the one year anniversary of the first
election.

ARTICLE 2. Section 2.01, outlines the exact same procedure for the
dissolution of the Comanche County Hospital District.

Section 2.02. Upon dissolution of the two previous districts, any
reference to them means the Leon Valley Hospital District.

ARTICLE 3. Section 3.01, creation of the Leon Valley Hospital
District, is in accord with the Texas Constitution Section 9,
Article IX.

Section 3.02, delineates the boundaries of the new hospital
district.

Section 3.03, names the temporary directors of the Leon Valley
Hospital District, vacancies to be filled by the Comanche County
Commissioner's Court.

Section 3.04, provides for the election of directors of the
hospital district.

Section 3.05, after initial election of directors, elections are to
be held the first Saturday in May to elect directors for two year
terms.

Section 3.06, qualifications of the directors.

Section 3.07, the new district is to assume all assets and
liabilities.

Section 3.08, outlines the board makeup, requirements for voting,
and compensation.

Section 3.09, outlines the responsibilities of the board.

Section 3.10, outlines the fiscal year and budget of the hospital
district.

Section 3.11, power and authority of the board.

Section 3.12, relating to the refunding of bonds for the district.

Section 3.13, requirements for bonds issued by the district.

Section 3.14, outlines the issuance of bonds, in accordance with
the procedures and requirements for the issuance of revenue bonds
by a county hospital district as directed by Chapter 264, Health
and Safety Code.

Section 3.15, gives the board authority over facilities, equipment,
property, construction and banking.

Section 3.16, outlines taxation authority.

Section 3.17, bonds issued and indebtedness assumed are legal and
sufficient security.

Section 3.18, right and power of eminent domain.

Section 3.19, initial tax is for the entire year in which the
district is established.

Section 3.20, requires the hospital district to supply health care
without charge to anyone living in the district, policies to be
established relating to indigent care.

Section 3.21, allows for the acceptance of gifts, donations, and
endowments to operate the hospital district.

Section 3.22, allows for the borrowing of money in the event that
funds are not available to cover the district's expenses.

Section 3.23, other political subdivisions cannot levy taxes for
hospital purposes.

Section 3.24, support and maintenance of the hospital may not
become a charge against the state.

Section 3.25, the district serves an essential public function,
profits are exempt from taxation by the state.

Section 3.26, posting notice has been met.

Section 3.27, emergency clause.

SUMMARY OF COMMITTEE ACTION

HB 3194 was considered by the County Affairs Committee in a public
hearing on 4/19/95. Representative Place opened and closed. HB 3194
was reported favorably with the recommendation that it do pass and
be printed and be sent to the Committee on Local and Consent
Calendars, by the record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.