SRC-SEW H.B. 182 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 182
By: Turner, Bob (Madla)
Intergovernmental Relations
5/10/2001
Engrossed


DIGEST AND PURPOSE 

In 1983, the legislature authorized the establishment of a Sutton County
Hospital District with a tax cap of 10 cents per $100 of land valuation, as
approved by the local electorate. The board of the hospital district took
over the management of Lillian M. Hudspeth Memorial Hospital and Nursing
Home in 1987. The hospital has been operated as a nonprofit institution by
the trustees of the original Hudspeth Hospital Corporation since 1951. The
corporation had exhausted its resources and could no longer fund the
operation of the hospital. During the same period, Sutton County was
experiencing an oil and gas boom and the 10 cents cap was sufficient to run
the hospital and nursing home. Over the years, Sutton County taxable values
have eroded due to the depletion of its natural gas reserves. The
legislature has since increased the hospital district's tax cap to 35 cents
per $100 of land valuation. With the tax base continuing to diminish and
with the increasing cost of medical care, the current tax cap may be
reached within the next two or three years. Increasing the tax cap to the
maximum rate allowed by law may allow the hospital district to raise the
rate, through a local referendum, whenever it becomes necessary to do so to
keep the hospital open. H.B. 182 increases the amount of the Sutton County
Hospital District's maximum tax rate from 35 to 75 cents on each $100 of
valuation on all taxable property in the district.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.   Amends Sections 7.05(a) and (c), Chapter 1047, Acts of the
68th Legislature, Regular Session, 1983, to authorize the board of the
Sutton County Hospital District (district) to order an election on the
question of increasing the district's maximum tax rate to 75 (rather than
35) cents on each $100 of valuation on all taxable property in the
district.  Makes a conforming change.   

SECTION 2.  Effective date: upon passage.