HBA-CMT C.S.H.B. 2477 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2477
By: Counts
County Affairs
4/12/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Garza County Hospital District has been a source of controversy for the
citizens of the county.  The hospital changed its mode of operation from a
hospital district to a health care center, which caused concern for the
citizens of Garza County because they were being taxed by a hospital
district but the hospital was not operating as a hospital.  Some of the
people in the county would like the Garza County Hospital District
dissolved.  To solve the controversy, a citizen advisory committee was
formed to make recommendations to the board of directors of the hospital
district.  The committee submitted a list of recommendations to fix the
existing problems of the hospital district.  C.S.H.B. 2477 provides a means
for the dissolution of the Garza County Hospital District  and amends
enabling legislation to meet current needs in the occurrence that the vote
to dissolve the district fails. 

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. 

ANALYSIS

C.S.H.B. 2477 amends law to relating to the Garza County Health Care
District (district).  The bill provides that a regular election of the
board of directors of the district (board) is required to be held on the
first Saturday in May, rather than April of each year.  The bill deletes
the requirement for a petition by a person desiring the person's name to be
printed on the ballot as a candidate for director and provides for an
application to be filed at least 45 days before the election.  The bill
provides that a district is authorized to require a board member and a
district administrator to execute a performance bond rather than a board
member and administrator being required to execute a bond, and sets forth
eligibility requirements for a person to be able to be considered for a
board member position (SECTION 2).   

The bill deletes provisions relating to taxes imposed by the board  and
provides that the board is authorized to annually impose a property tax in
an amount not to exceed the limit approved by the voters at the election
authorizing the levy of taxes.  The tax rate for all purposes is prohibited
from exceeding 75 cents on each $100 valuation of all taxable property in
the district.  The bill prohibits the district from imposing taxes to pay
the principal of or interest on revenue bonds.  The bill authorizes the
board to provide for the appointment of a tax assessor-collector  for the
district or contract for the assessment and collection of taxes.  The bill
sets forth provisions for the use of tax revenue (SECTION 4).   

The bill authorizes the board to issue general obligation bonds only if the
bonds are authorized by a majority of the qualified voters of the district
and sets forth provisions regarding the purposes for which such bonds may
be issued.  The district is authorized to issue revenue bonds for any
health care purpose only if the bonds are authorized by a majority of the
qualified voters of the district.  The bill  provides that the bonds are
required to be payable from and secured by a pledge on all or part of the
revenues derived from the operation of the district's health care system
and may be additionally secured by a mortgage or deed of trust.  The bonds
of a district must mature no later than the 40th anniversary of the date of
issuance and must bear a rate of interest that does not exceed the amount
provided in the interest rate provisions of the  Government Code.  The bill
deletes the provision that the board is prohibited from purchasing,
constructing, or acquiring property in excess of $25,000 without submitting
the vote to the qualified taxpaying voters of the district.  The bill
increases the amount from $1,000 to $15,000 for which the board is
prohibited from entering into a contract calling for or requiring the
expenditure or payment out of any fund or funds of the district without
first submitting a proposed contract to competitive bidding (SECTION 5). 

The bill sets forth provisions regarding the powers of the board (SECTION
7).  The bill deletes the requirement that the district file an annual
independent audit to the comptroller of public accounts and at the office
of the district no later than December 31st of each year.  The bill
provides that a proposed budget hearing is to be held after notice of the
hearing is published in a newspaper  of general circulation in the county
in accordance with the provisions relating to open meetings (SECTION 8).   

The bill authorizes the board to borrow money at a rate not to exceed the
maximum annual percentage rate allowed by law for district obligations at
the time of the loan.  The bill sets forth provisions for what the district
is authorized to pledge to a secure a loan and for time when a loan is
required to mature.  The bill sets forth provisions for the dissolution of
the district (SECTION 15) 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2477 modifies the original bill by replacing references to "health
care" district with "district."  The substitute adds criteria for a person
to be eligible to serve as a member of the board of directors (board) of
the Garza County Health Care District (district).  The substitute decreases
the time in which notice of the time and place of any meeting is required
to be given to all directors from no less than 7 days to at least 72 hours
before a meeting (SECTION 2).  The substitute removes the provision that
the term of a contract to provide administrative and other personnel for
the operation of the facilities is prohibited from exceeding 25 years from
the date on which the contract is entered  and replaces it with the
provision that such a contract is prohibited from exceeding 5 years.  The
substitute adds that the board is authorized to transfer district
facilities by lease for a term not to exceed 20 years.  The substitute
decreases the percentage of registered voter's signatures needed to request
an election for the dissolving of the district from 15 percent to 10
percent.  The substitute adds provisions relating to the dissolution of the
district.