SRC-MWN H.B. 2658 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2658
77R9033 JMG-DBy: Counts (Haywood)
Intergovernmental Relations
5/8/2001
Engrossed


DIGEST AND PURPOSE 

At a specially called meeting of the Knox County Hospital District
(district) board of directors, a resolution was adopted to request the
legislature to add borrowing authority to the enabling legislation of the
district. The board may need the authority to borrow money on a short-term
basis to pay the operating expenses of the district and to meet the other
lawfully authorized obligations of the district. H.B. 2658 authorizes the
district to borrow money for short-term financing of day-to-day operations
of 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 Chapter 241, Acts of the 60th Legislature, Regular
Session, 1967, by adding Section 6A, as follows: 

Sec. 6A. (a) Authorizes the board of directors to borrow money at a rate of
interest determined to be appropriate by the board of directors. 

  (b) Authorizes the board, in order to secure a loan, to pledge certain
items 

(c) Requires a loan authorized by this section to mature not later than the
fifth anniversary of the date on which the loan was made. 

SECTION 2. Effective date: upon passage or September 1, 2001.