HBA-MPM H.B. 2875 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2875
By: Uher
County Affairs
3/18/2001
Introduced



BACKGROUND 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.  House Bill 2875 authorizes the
board of managers of the district to lease district property and to enter
into a loan agreement. 

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

House Bill 2875 amends law to authorize the board of managers (board) of
the Matagorda County Hospital District (district) 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 district.  The bill specifies that a term of a
lease entered into may not exceed 25 years from the date it is entered
into.   

The bill authorizes the board to borrow money at a rate of interest
determined by the board to be reasonable.  To secure a loan, the bill
authorizes the board to pledge: 

_revenues of the district that are not pledged to pay the bonded
indebtedness of the district; 

_tax revenue collected by the district during the 12-month period following
the date of the pledge; 

_district bonds that have been authorized but have not been sold; or

_any other unencumbered assets of the district.

The bill prohibits the board from using loan proceeds for any purpose other
than for the operation and capital requirements of the district. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.