SRC-AXB S.B. 356 76(R)BILL ANALYSIS


Senate Research CenterS.B. 356
By: Brown
State Affairs
6/10/1999
Enrolled


DIGEST 

The Texas Hospital Equipment Financing Council (HEFC) was created to
provide low-cost loans to hospitals in rural areas, for the purchase of
equipment by issuing bonds.  This endeavor was not successful because the
small hospitals responsible for sharing the expense of the bonds did not
have the credit qualifications required of loan applicants.  Therefore, the
legislature eliminated the HEFC's ability issue bonds, thereby effectively
eliminating the purpose for the existence of the HEFC.  This bill abolishes
the HEFC by repealing the laws that create and define the responsibilities
of the council. 

PURPOSE

As enrolled, S.B. 356 abolishes the Texas Hospital Equipment Financing
Council. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  (1)Repealer:  Chapter 224, Health and Safety Code (Hospital
Equipment Financing); and 
 (2)Repealer:  Section 151.3131, Tax Code (Texas Hospital Equipment
Financing Council). 

SECTION 2.  Effective date:  September 1, 1999.

SECTION 3.  Emergency clause.