SRC-JBJ S.B. 1881 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1881
76R13024 KLA-DBy: Nixon
Intergovernmental Relations
4/27/1999
As Filed


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 would expand the funding mechanism
for the hospital district, including the ability to borrow funds with sales
tax as collateral. 

PURPOSE

As proposed, 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, to authorize 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 district to acquire land for the hospital system and to
purchase or work on buildings or equipment related to the hospital system.
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. Authorizes the state auditor to
purchase goods or services for  the district.  Authorizes the board to
adopt rules and procedures for the acquisition of goods or services.
Provides that this section prevails over any conflicting law relating to
the purchasing of goods and services.  Provides that Chapters 2151 and
2254, Government Code, do not apply to purchases of goods and services made
under this section.  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.  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.  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.  Deletes a provision that authorizes all contract
for construction or purchases involving the expenditure of more than
$10,000 to be made only after certain advertising.  Makes conforming
changes.   

SECTION 2.Emergency clause.
  Effective date: upon passage.