SRC-JEC S.B. 1459 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1459
77R5966 JMG-DBy: Wentworth
Intergovernmental Relations
3/23/2001
As Filed


DIGEST AND PURPOSE 

Currently, the Bexar County Hospital District serves a large area.  The
University Health System in San Antonio is the only civilian level I trauma
facility for a trauma area with a population of nearly two million.  As
proposed, S.B. 1459 authorizes the hospital district to adopt a sales and
use tax, contingent on voter approval and on a limit of 2.25 percent in any
location in the district, to upgrade trauma services and improve patient
care. 

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 281, Health and Safety Code, by adding Subchapter
H, as follows: 

SUBCHAPTER H. SALES AND USE TAXATION AUTHORITY OF BEXAR COUNTY
HOSPITAL DISTRICT

Sec. 281.141.  DEFINITION.  Defines "district" as the Bexar County Hospital
District. 

Sec. 281.142.  APPLICABILITY OF OTHER LAW.  Provides that except to the
extent that a provision of this subchapter applies, Chapter 323 (County
Sales and Use Tax Act), Tax Code, applies to a tax authorized by this
subchapter, except that Sections 323.101(b) and (c) (Tax Authorized) do not
apply. 

Sec. 281.143.  TAXING AUTHORITY. (a)  Authorizes the district to adopt or
abolish a sales and use tax authorized by this subchapter at an election
held in the district. 

(b)  Prohibits the district from adopting a tax under this subchapter if as
a result of the adoption of the tax the combined rate of all sales and use
taxes imposed by the district and all other political subdivisions of this
state having territory in the district would exceed 2.25 percent in any
location in the district. 

Sec. 281.144.  TAX RATE.  Provides that the rate of the tax authorized by
this subchapter is: one-eighth of one percent; or one-quarter of one
percent. 

Sec. 281.145.  TAX EFFECTIVE DATE. (a)   Provides that the adoption or
abolition of a tax under this subchapter takes effect on the first day of
the first calendar quarter occurring after the expiration of the first
complete calendar quarter occurring after the date on which the comptroller
receives notice of the results of the election. 

(b)  Provides that if the comptroller determines that an effective date
provided by Subsection (a)  will occur before the comptroller can
reasonably take the action  required to begin collecting the tax or to
implement the abolition of the tax, the effective date may be extended by
the comptroller until the first day of the next calendar quarter. 

Sec. 281.146.  ELECTION PROCEDURE.  Provides that an election to adopt or
abolish a tax authorized by this subchapter is called by the adoption of an
order of the hospital district board.  Authorizes the board to call an
election on its own motion and requires it to call an election if a number
of qualified voters in the district equal to at least five percent of the
number of registered voters in the district petitions the board to call the
election. 

Sec. 281.147.  USE OF TAX REVENUE.  Authorizes the revenue from a tax
imposed under this subchapter to be used by the district only to fund level
I trauma operations. 
 
SECTION 2.  Amends Section 26.012(1), Tax Code, to redefine "additional
sales and use tax" to include an exception. 
 
SECTION 3.  Effective date: upon passage or September 1, 2001.