SRC-JXG S.B. 1595 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1595
By: Brown
Intergovernmental Relations
3/23/1999
As Filed


DIGEST 

The Act creating the Angleton-Danbury Hospital District (district) was
passed by the 60th Legislature in 1967, to provide health care services to
the district's residents. In 1991, the Act was amended. However, more
changes are needed to expand health care services, including funding and
equipping clinics and wellness centers, funds to recruit physicians, a
financing option to issue revenue bonds and borrow funds needed for the
operation of the district. S.B. 1595 would revise the Angleton-Danbury
Hospital District legislation for the continued operation and growth of the
district to provide vital health care services to its residents.  

PURPOSE

As proposed, S.B. 1595 updates legislation for expansion of health care
services in the AngletonDanbury 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 2, Chapter 120, Acts of the 60th Legislature,
Regular Session, 1967, to require the Angleton-Danbury Hospital District
(district) to provide for the establishment of a hospital or hospital
system within its boundaries to furnish health care services, rather than
medical and hospital care, to persons residing in the district. Authorizes
the hospital system to include facilities, equipment, and services to
provide for domiciliary care and treatment of sick, injured, or geriatric
patients, outpatient clinics, rural health clinics, convalescent home
facilities, assisted living or personal care facilities, physician's
offices, home health care services, durable medical equipment, long term
care, skilled nursing care, intermediate nursing care, preventive care
services, ancillary support, pharmacies, hospice care, community mental
health centers, alcohol or chemical dependency centers, or any other
facility or equipment the Angleton-Danbury Hospital District Board of
Directors (board) considers necessary or appropriate for providing health
care services. Authorizes the district to also operate or assist in the
operation of a mobile emergency medical service as part of the hospital
system. 

SECTION 2. Amends Section 4, Chapter 120, Acts of the 60th Legislature,
Regular Session, 1967, to delete text regarding taxable property; names of
the district's first board of directors; and board of directors' election.
Makes conforming changes.  

SECTION 3. Amends Section 7A, Chapter 217, Acts of the 72nd Legislature,
Regular Session, 1991, to authorize the district, subject to the approval
of the board, to provide primary care, emergency services, preventive
medical services, and other health-related services outside the district,
provided that the services serve the purpose of the district as established
by this Act. Authorizes the board to spend district funds, enter into
agreements, and take other necessary action to recruit physicians and other
persons to serve as medical staff members or employees of the district,
including certain marketing and recruitment incentives. Authorizes the
board to provide retirement benefits for employees of the district by
establishing or administering a retirement program or by participating in
the Texas County and District Retirement System or in another statewide
retirement system in which the district is eligible to participate. Makes a
conforming change.  
 
SECTION 4. Amends Section 9, Chapter 271, Acts of the 62nd Legislature,
Regular Session, 1971, to provide that the Tax Code governs the appraisal,
assessment, and collection of district taxes. Authorizes the board to
provide for the appointment of an assessor-collector of taxes as provided
by the Tax Code. Deletes text existing section regarding tax property for
the district and tax collection. 

SECTION 5. Amends Section 12, Chapter 120, Acts of the 60th Legislature,
Regular Session, 1967, to require notice of a bond election to be given by
publishing a substantial copy of the order calling the election in a
newspaper of general circulation within the area of the district in
accordance with Section 4.003(a)(1), Election Code, rather than once a week
for two consecutive weeks or at least 14 days prior to the date set for the
election. Deletes text regarding taxable property within a district.  

SECTION 6. Amends Section 12A, Chapter 216, Acts of the 72nd Legislature,
Regular Session, 1991, to require the board to have the power to issue
revenue bonds in the name and upon the faith and credit of such hospital
district for the purpose of purchasing, constructing, repairing,
renovating, or acquiring buildings, sites, or improvements and equipping
the same for hospitals and the hospital system. Requires the bonds to be
payable from and secured by a pledge of all or part of the revenues derived
from the operation of the district's hospital system. Authorizes the bonds
to be additionally secured by a mortgage or deed of trust on all or part of
district property. Requires the revenue bonds to be issued in the manner
provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and
264.049, Health and Safety Code, for the issuance of revenue bonds by
county hospital authorities. 

SECTION 7. Amends Chapter 120, Acts of the 60th Legislature, Regular
Session, 1967, by adding Section 12C, as follows: 

Sec. 12C. Authorizes the board to borrow money at a rate not to exceed the
maximum annual percentage rate allowed by law for district obligations at
the time of the loan, if the board declares that funds are not available to
meet the lawfully authorized obligations of the district and that an
emergency exists. Authorizes the board to pledge certain district revenues
or taxes to secure a loan. Requires a loan for which taxes or bonds are
pledged to mature, no later than the first anniversary of the date on which
the loan is made. Requires a loan for which district revenues are pledged
to mature, no later than the fifth anniversary of the date on which the
loan is made. Prohibits the board from spending money obtained from a loan
under this section for any purpose other than the purpose for which the
board declared an emergency. Prohibits the board from spending the loan
proceeds other than for the purpose for which the taxes were levied or the
bonds were authorized, if taxes or bonds are pledged to pay the loan. 

SECTION 8. Amends Chapter 120, Acts of the 60th Legislature, Regular
Session, 1967, by adding Section 12D, as follows: 

Sec. 12D. Authorizes the board to borrow money at a rate not to exceed the
maximum annual percentage rate allowed by law for district obligations at
the time of the loan. Authorizes the board to pledge certain district
revenues or taxes to secure a loan. Requires a loan for which taxes or
bonds are pledged to mature no later than the first anniversary of the date
on which the loan is made. Requires a loan for which district revenues are
pledged to mature, no later than the fifth anniversary of the date on which
the loan is made. 

SECTION 9. Amends Chapter 120, Acts of the 60th Legislature, Regular
Session, 1967, by adding Section 15A, as follows: 

Sec. 15A. Authorizes the district to be dissolved, only if the dissolution
is approved by a majority of the qualified voters of the district voting in
an election called and held for that purpose. Authorizes the board to order
an election on the question of dissolving the district and disposing of the
district's assets and obligations. Requires the board to order an election,
if the board receives a petition requesting an election that is signed by a
number of residents of the district equal to at least 15 percent of the
registered voters in the district. Requires the election to be held no
later than the 60th day after the date the election is ordered. Provides
that Section 41.001(a), Election Code, does not apply to an election
ordered under this section. Requires the order calling the election to
state certain information. Requires the  board to give notice of the
election by publishing a substantial copy of the election order in a
newspaper with general circulation in the district once a week for two
consecutive weeks. Requires the first publication to appear no less than 35
days before the date set for the election. Sets forth standard language for
the ballot to permit voting for or against the proposition. Requires the
board to find that the district is dissolved, if a majority of the votes in
the election favor dissolution. Requires the board to continue to
administer the district, and another election on the question of
dissolution from being held before the first anniversary of the most recent
election to dissolve the district, if a majority of the votes in the
election do not favor dissolution. Requires the board to transfer or
administer certain assets, if a majority of the votes in the election favor
dissolution. Provides that the county or entity assumes all debts and
obligations of the district at the time of the transfer, and the district
is dissolved, if the district transfers the land, buildings, improvements,
equipment, and other assets to a county or other governmental entity. Sets
forth requirements for the board, after the board finds that the district
is dissolved. Requires the board to order the secretary to return the pro
rata share of all unused tax money to each district taxpayer, when all
outstanding debts and obligations of the district are paid. Authorizes a
taxpayer to request that the taxpayer's share of surplus tax money be
credited to the taxpayer's county taxes. Requires the board to direct the
secretary to transmit the funds to the county tax assessorcollector, if a
taxpayer requests the credit. Requires the board to file a written report
with the commissioners court of Brazoria County setting forth a summary of
the board's actions in dissolving the district, after the district has paid
all its debts and has disposed of all its assets and funds as prescribed by
this section. Requires the commissioners court of Brazoria County to enter
an order dissolving the district and releasing the board of the district
from any further duty or obligation, by a certain date. Prohibits the
district from being dissolved unless the board provides for the sale or
transfer of the district's assets or liabilities to another person or
entity, notwithstanding any other provisions of this Act. Prohibits the
dissolution of the district and the sale or transfer of the district's
assets or liabilities from contravening a trust indenture or bond
resolution relating to the outstanding bonds of the district. Provides that
the dissolution and sale or transfer does not diminish or impair the rights
of a holder of an outstanding bond, warrant, or other obligation of the
district. Requires the sale or transfer of the district's assets and
liabilities to satisfy the debt and bond obligations of the district in a
manner that protects the interests of the residents of the district.
Provides that a grant from federal funds is an obligation to be repaid in
satisfaction. Prohibits the district from transferring or disposing of the
district's assets except for due compensation unless the transfer is made
to another governmental entity that serves the district and the transferred
assets are to be used for the benefit of the residents of the district. 

SECTION 10. Effective date: September 1, 1999.

SECTION 11. Emergency clause.