SRC-DPW H.B. 3232 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3232
76R6575 KLA-DBy: Keffer (Sibley)
Intergovernmental Relations
5/3/1999
Engrossed


DIGEST 

Currently, the some aspects of the enabling legislation that created the
Eastland Memorial Hospital District do not comply with the tax code and the
Texas Election Code.  This bill would set forth guidelines for the
administration, operation, and election for dissolution of the Eastland
Memorial Hospital District. 

PURPOSE

As proposed, H.B. 3232 sets forth guidelines for the administration,
operation, and election for dissolution of the Eastland Memorial Hospital
District. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 4.04, Chapter 221, Acts of the 71st Legislature,
Regular Session, 1989, to require a notice of an election of directors of
the Eastland Memorial Hospital District (directors) to be published in a
newspaper not earlier than the 30th day or later than the 10th day before
the date of the election, rather than at least 35 days before the date of
an election of directors.  Makes conforming changes. 

SECTION 2. Amends Section 4.05, Chapter 221, Acts of the 71st Legislature,
Regular Session, 1989, to require a person who wishes to have their name
printed on a ballot as a candidate for director to file an application,
rather than have a petition signed by at least 200 registered voters of the
Eastland Memorial Hospital District (district) asking that his name be
placed on the ballot.  Deletes a provision regarding the determination of a
person's voter registration status.  Makes a conforming change. 

SECTION 3. Amends Section 4.12(d), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to authorize the board of directors of
the district (board) to require that the administrator of the district
(administrator), before assuming the administrator's, rather than his,
duties, execute a bond payable to the district, conditioned on the faithful
performance of those duties, rather than requiring the administrator to
execute the bond.  Makes conforming changes. 

SECTION 4. Amends Section 5.02, Chapter 221, Acts of the 71st Legislature,
Regular Session, 1989, to authorize the district to contract, for a maximum
term of 25 years, to provide administrative and other personnel for the
operation of the hospital facilities, and to institute a suit to enforce
the payment of taxes and to foreclose liens to secure the payment of taxes
due to the district. 

SECTION 5. Amends Section 5.06(c), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to authorize the board to lease
hospital facilities to individuals, corporations, or other legal entities. 

SECTION 6. Amends Section 5.07(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, authorizes the board to enter into
construction contracts that involve spending more than $15,000, rather than
$10,000, only after competitive bidding. 

SECTION 7. Amends Section 5.11(b), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require the district to adopt an
application procedure to determine eligibility for assistance, as  provided
by Section 61.053, Health and Safety Code, rather than Section 10.03,
Indigent Health Care and Treatment Act (Article 4438f, V.T.C.S.), not later
than the beginning of each operating year. 

SECTION 8. Amends Section 5.12(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require reimbursement from certain
public entities located outside the district for care and treatment
rendered by the district to a person of the entity as provided by Chapter
61, Health and Safety Code, rather than the Indigent Health Care and
Treatment Act (Article 4438f, V.T.C.S.). 

SECTION 9. Amends Chapter 221, Acts of the 71st Legislature, Regular
Session, 1989, by adding Section 5.16, as follows: 

Sec. 5.16. EMERGENCY LOANS. Authorizes the board to borrow money at a rate
not to exceed the current maximum annual percentage rate allowed by law for
district obligations, if the board determines that funds are not available
to meet the lawful obligations of the district and an emergency exists.
Authorizes the board to pledge certain revenues and bonds to secure a loan.
Requires a loan for which tax revenue or bonds are pledged not later than
the first anniversary of the date on which the loan was made.  Requires a
loan for which other district revenues are pledged to mature not later than
the fifth anniversary of the date on which the loan was made.  Prohibits
the board from using loan proceeds for any other purpose other than the
purpose for which the board determined the emergency existed or for a
purpose for which the taxes were levied or bonds were authorized, if tax
revenue or bonds are pledged to pay the loan.  

SECTION 10. Amends Chapter 221, Acts of the 71st Legislature, Regular
Session, 1989, by adding Section 5.17, as follows: 

Sec. 5.17. NONEMERGENCY LOANS. Makes conforming changes.

SECTION 11. Amends Section 6.09(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to prohibit the district from incurring
a debt payable from revenues of the district other than the revenue on hand
or to be on hand in the current and immediately following fiscal year,
except as provided by Sections 5.16 and 5.17.   

SECTION 12. Amends Section 7.02(a), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require the board to levy a tax at
the time general obligation bonds are issued by the district. 

SECTION 13. Amends Section 7.04(c), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require bonds to be issued in a
manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048,
and 264.049, Health and Safety Code, rather than Sections 8, 10, 11, 12,
and 13, County Hospital Authority Act (Article 4494r, V.T.C.S.). 

SECTION 14. Amends Section 9.02(b), Chapter 221, Acts of the 71st
Legislature, Regular Session, 1989, to require the directors to order an
election on the issue of dissolution of the district upon the presentation
of a petition signed by at least 15 percent, rather than 300, of registered
voters of the district.   

SECTION 15. Amends Section 9.08, Chapter 221, Acts of the 71st Legislature,
Regular Session, 1989, to require the board to transfer the district's
assets to a county or a governmental entity within which the district is
located, or administer such assets and district debts until the disposition
of all assets and settlement of all debts, if the voters of the district
elect to dissolve the district.  Provides that a county or governmental
entity that receives transferred assets assumes all debts and obligations
of the district and that the district is dissolved.  Requires the board to
determine the amount of debt owed by the district and impose a property tax
to pay the debt, if the voters of the district elect to dissolve the
district. Requires the board to order the secretary to return the pro rata
share of excess tax revenue to each district taxpayer, when all outstanding
debts and obligations are paid.  Authorizes a taxpayer to request that the
taxpayer's share of surplus tax money be credited to the taxpayer's county
tax assessment. Requires the board to direct the secretary to transfer the
requesting taxpayer's share to the county tax assessor-collector, if a
taxpayer requests the credit.  Requires the board to file a written report
with the Commissioners Court of Eastland County (commissioners court) that
summarizes the board's actions taken to dissolve the district, after all
debts have been paid and all assets have disposed.  Requires the
commissioners court to enter an order dissolving the district and releasing
the board of directors of the  district from any further duty or
obligation, not later than the 10th day after the date it receives the
report and determines that the requirements of this section have been
fulfilled.  Makes conforming changes. 

SECTION 16.Emergency clause.
  Effective date: upon passage.