SRC-JBJ S.B. 1881 76(R)BILL ANALYSIS Senate Research CenterS.B. 1881 By: Nixon Intergovernmental Relations 7/6/1999 Enrolled DIGEST 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 will expand the funding mechanism for the hospital district, including the ability to borrow funds with sales tax as collateral. PURPOSE As enrolled, S.B. 1881 authorizes certain funding options for the Nacogdoches County Hospital District. RULEMAKING AUTHORITY Rulemaking authority is granted to the board of directors of the Nacogdoches County Hospital District in SECTION 1 (Section 10(d), Chapter 431, Acts of the 60th Legislature, Regular Session, 1967) of this bill. 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 sale and use tax revenues of the Nacogdoches County Hospital District (district) to acquire land for the hospital system and to purchase or work on buildings or equipment related to the hospital system. Makes conforming changes. Sec. 9. Sets forth guidelines for the purchase and acquisition of certain property. Authorizes the board to enter into contracts for construction, and determine certain methods that provide the best value to the district, but must employ certain considerations. Deletes text regarding to the board of directors and the district. Makes conforming changes. Sec. 10. (a) Requires the board of directors of such district to have the power to prescribe the method an manner of making purchases and expenditures by and for such hospital district, and also to be authorized to prescribe all accounting and controlling procedures, except as provided by Subsection (i). Sets forth the methods of purchase. (b) Requires the board to consider certain provisions, in determining what is the best value to the district. (c) Authorizes the state auditor to purchase 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, to the extent of any conflict. (f) Provides that Chapters 2151 and 2254, Government Code, do not apply to purchases of goods and services made under this section, except as otherwise provided by 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) Makes a conforming change. (i) Authorizes all contracts for construction or purchases of equipment involving the expenditure of more than $25,000, rather than $10,000, to be made only after advertising in the manner provided by Chapter 271B, Local Government Code. (j) Makes a conforming change. (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) Makes a conforming change. SECTION 2.Emergency clause. Effective date: upon passage.