HBA-JLV, SEP S.B. 944 77(R)BILL ANALYSIS Office of House Bill AnalysisS.B. 944 By: Van de Putte Ways & Means 5/16/2001 Committee Report (Amended) BACKGROUND AND PURPOSE Currently, hospital districts are partially funded by ad valorem taxes to help offset the rising cost of providing health care to needy and indigent populations. Texas law permits participation by hospital districts in tax abatement agreements. One effect of this participation is to delay the receipt of ad valorem tax revenue by hospital districts. Senate Bill 944 prohibits Bexar, El Paso, Harris, and Nueces County Hospital Districts from entering into a contract or agreement to participate in a tax abatement 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 Senate Bill 944 amends the Health and Safety Code to prohibit the Bexar, El Paso, Harris, and Nueces County Hospital Districts (district) from entering into a contract or agreement to participate in a tax abatement agreement (agreement). The bill also prohibits an agreement entered into before September 1, 2001 from being amended on or after that date to increase the amount of the district's tax abatement or the time during which the district may participate in the agreement. EFFECTIVE DATE September 1, 2001. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 removes the Harris County Hospital District from the definition of "district" so that the Harris County Hospital District is not subject to the provisions of the bill.