SRC-SEW H.B. 2875 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2875
77R9138 JMG-DBy: Uher (Armbrister)
Intergovernmental Relations
4/26/2001
Engrossed


DIGEST AND PURPOSE 

Current law does not allow the Matagorda County Hospital District
(district) to lease property or to borrow money for the purposes of
operating and maintaining the district. H.B.2875 authorizes the board of
managers of the district to lease district property and to enter into a
loan agreement.  

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 41, Acts of the 59th Legislature, Regular
Session, 1965, by adding Section 4A, as follows: 
 
Sec. 4A.  Requires the board of managers to transfer by lease to
individuals, companies, corporations, or other legal entities district
property, facilities, or equipment on terms determined by the board to
further the purposes of the Matagorda County Hospital District (district).
Prohibits the term of a lease entered into under this section from
exceeding 25 years from the date the lease is entered into. 

SECTION 2.  Amends Chapter 41, Acts of the 59th Legislature, Regular
Session, 1965, by adding Section 10B, as follows: 
 
Sec. 10B.  Authorizes the board of managers to borrow money at a rate of
interest determined to be reasonable by the board.  Authorizes the board of
managers to pledge certain revenues in order to secure a loan.  Prohibits
the board of managers from using loan proceeds obtained under this section
for any purpose other than the operational and capital requirements of the
district. 

SECTION 3.  Effective date: upon passage or September 1, 2001.