BWH S.B. 17 75(R)BILL ANALYSIS


COUNTY AFFAIRS
S.B. 17
By: Fraser (Place)
5-19-97
Committee Report (Unamended)


BACKGROUND 

Currently, public hospitals in Texas are governed by and operated under a
number of distinct authorizing acts under the Health and Safety Code.
County hospitals are governed by the County Hospital Authority Act,
Chapter 264, Health and Safety Code.  There are concerns that county
hospitals are struggling to operate within the rapidly changing and
increasingly competitive health care market.  This bill authorizes county
hospitals to borrow money in a certain manner.  

PURPOSE

As proposed, S.B. 17 establishes certain powers and duties for county
hospitals. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 264, Health and Safety Code, by adding Section
264.032, as follows: 

Sec.  264.032.  EMERGENCY BORROWING.  Authorizes the board of directors of
a county hospital authority (board) to borrow money at a rate of interest
not to exceed the maximum annual percentage rate allowed by law for
authority obligations at the time the loan is made under certain
conditions.  Authorizes the board to secure a loan by pledging certain
items.  Requires a loan for which bonds are pledged to mature not later
than a certain date.  Requires the loan for which authority revenues are
pledged to mature not later than a certain date.  Prohibits the board from
spending money obtained from a loan for any purposes other than the
intended purposes and for any purpose for which the pledged bonds were
authorized. 

SECTION 2. Amends Section 264.030, Health and Safety Code, to provide that
this section does not apply to the sale or closing of a hospital as
provided in Section 264.031, Health and Safety Code. 

SECTION 3. Effective date:  September 1, 1997.
 
SECTION 4. Emergency clause.