H.B. 1030 78(R)    BILL ANALYSIS

   
H.B. 1030
By: Hardcastle
County Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Act creating the Hardeman County Hospital District (district) was
passed by the 66th Legislature in 1979 and amended by the 76th Legislature
in 1999.  The district's enabling legislation requires additional updating
to conform with current laws and amendment to allow the district to use a
combination of taxes and revenues to pay for and secure bonds approved by
district voters. The district can currently use taxes or revenues to pay
for and secure bonds, but without such an amendment, the district cannot
use a combination of taxes and revenues to pay for and secure bonds issued
by the district.  Also, the district would like to validate certain
warrants previously issued, which evidence borrowings of the district.
House Bill 1030 updates the enabling legislation of the Hardeman County
Hospital District, authorizes the district to use a combination of taxes
and revenues to pay for and secure bonds approved by district voters, and
validates previously issued notes, warrants and other obligations of the
district.  


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

House Bill 1030 amends the district's enabling legislation to require that
the board invest and reserves in accordance with Chapter 2256 of the
Government Code (the Public Funds Investment Act).  The bill authorizes
the district to sponsor and create a nonprofit corporation under the Texas
Non-Profit Corporation Act and sets forth provisions regarding the use of
funds by such corporation (SECTION 1). 

The bill requires the district to conduct any bond election in accordance
with the provisions of Chapter 1251 of the Government Code and provides
that Section 41.001(a) of the Election Code, regarding uniform election
dates, does not apply to a bond election ordered by the district's board
of directors.  The bill requires the district to issue revenue bonds in
accordance with Chapter 1207 of the Government Code.  The bill updates the
references to statutory provisions regarding the maturation, execution and
interest rate of bonds issued by the district (SECTION 2). 

The bill authorizes the board to provide for the security and payment of
district bonds from taxes and/or revenues of the district.  The bill
authorizes the district to use the proceeds of bonds to pay bond expenses,
interest payments on the bonds, operation and maintenance costs of a
project or facility provided through the bonds during acquisition and
construction and for one year thereafter, costs related to the financing
of bond funds, costs related to the issuance of bonds, costs related to
the acquisition of land for a project or facility to be provided through
bonds, and construction costs for such a facility (SECTION 3). 

The bill authorizes the board to enter into a contract for construction
that requires expenditures of more than the minimum amount prescribed by
Sec. 271.024 of the Local Government Code only after competitive bidding
(SECTION 4). 

The bill validates the previous issuance by the district of notes,
warrants and other obligations evidencing borrowings of the district and
provides that such validated notes, warrants and  obligations may be
refunded by refunding bonds payable by taxes and/or revenues of the
district (SECTION 5). 


EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.