HBA-MPA S.B. 1881 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1881 By: Nixon County Affairs 5/10/1999 Engrossed BACKGROUND AND PURPOSE In 1992, the voters of Nacogdoches County adopted a one cent sales tax to replace the ad valorem tax their hospital district received. However, the Nacogdoches County Hospital District now has limited funding options. As a result of the limitation, the hospital district does not have the cash reserves to fund expansion. S.B. 1881 expands the funding mechanism for the hospital district, including the ability to borrow funds with sales tax as collateral. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 7, 9, and 10, Chapter 431, Acts of the 60th Legislature, Regular Session, 1967, as follows: Sec. 7. Authorizes the board of directors of the Nacogdoches County Hospital District (board) to issue and sell its bonds, notes, or other obligations payable from the sales and use tax revenues of the district to acquire land for the hospital system and to purchase or work on buildings or equipment related to the hospital system. Sec. 9. Requires the board to determine guidelines for the purchase and acquisition of buildings and equipment to establish and maintain an adequate hospital system and necessary hospital care. Authorizes the board to acquire real property, facilities, and equipment for the district, lease to physicians or other entities for purposes determined to be interests of district residents, and sell or otherwise dispose of real property, facilities, or equipment. Deletes a provision that grants discretion to the board to determine which buildings are required for an adequate hospital system. Deletes the authority for the Nacogdoches County Hospital District to conduct certain leasing and purchasing arrangements. Sec. 10. (a) Authorizes the board to enter into contracts for construction, and determine certain methods for purchasing and contracting that provide the best value to the district. (b) Provides that the district must employ certain considerations when determining the best value. (c) Authorizes the state auditor to audit purchases of goods or services for the district. (d) Authorizes the board to adopt rules and procedures for the acquisition of goods or services. (e) Provides that this section prevails over any conflicting law relating to the purchasing of goods and services. (f) Provides that Chapters 2151 (General Provisions) and 2254 (Professional and Consulting Services), Government Code, do not apply to purchases of goods and services made under this section. (g) Authorizes the board to incur obligations, including a lease or lease-purchase agreement for real property, facilities, or equipment for use in the hospital system payable from the pledged sales and use tax revenues of the district. (h) Created from existing text. (i) Created from existing text. Deletes a provision that authorizes all contracts for construction or purchases involving the expenditure of more than $10,000 to be made only after certain advertising. Makes conforming changes. (j) Created from existing text. (k) Authorizes the district to allocate a portion of its annual sales and use tax revenue, but not to exceed a certain percentage, to encourage economic development in the district as described by Section 52-a, Article III, Texas Constitution. (l) Created from existing text. SECTION 2.Emergency clause. Effective date: upon passage.