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.