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.