H.B. 2073 78(R)    BILL ANALYSIS


H.B. 2073
By: Hilderbran
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Texas Health and Safety Code Chapter 285 governs the operations of
hospital districts in Texas, including districts with their own enabling
legislation and districts created under the general statute found at
Health and Safety Code Chapter 286.  When a hospital district is created,
the residents of the proposed hospital district vote on whether to create
the hospital district and, in the same election, set the limit for the
maximum property tax rate, which may not exceed 75_ on each $100
valuation, the maximum set by Article IX, Section 9 of the Texas
Constitution.  However, there are currently no express statutory
provisions on whether and how a hospital district can raise the maximum
tax rate when the tax rate limit set at the election creating the district
was not set at the maximum rate allowed by the Constitution.   

In 2000, the Attorney General issued an opinion stating that a hospital
district governed by Chapter 286 of the Health and Safety Code could not
hold an election to raise the maximum tax rate because Chapter 286 did not
contain any provisions authorizing such an election.  See Tex. Atty. Gen.
Opinion. JC-0247 (2000).   HB 2073 would add Subchapter M to Chapter 285
of the Health and Safety Code, which would allow the voters of a hospital
district to petition for and vote in an election to increase the maximum
tax rate. 


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

Section 1 
Amends Chapter 285, Health and Safety Code, by adding Subchapter M, which
authorizes a hospital district's electorate to file a petition with the
governing body of the hospital district requesting an election to increase
the tax rate within the statutory cap of $0.75.  Permits residents of the
hospital district to vote on whether or not to raise the maximum tax rate
within the statutory cap.  Establishes the process by which the election
may be requested and the process by which the election is held.  
Section 2
Establishes the effective date as immediate if the bill receives
two-thirds vote of all members elected to each house as provided by
Section 39, Article III, Texas Constitution.  Otherwise September 1, 2003. 

EFFECTIVE DATE

Immediately, if the bill receives a two-thirds vote of all members elected
to each house.  Otherwise September 1, 2003.