C.S.H.B. 2764 78(R)    BILL ANALYSIS


C.S.H.B. 2764
By: Garza
County Affairs
Committee Report (Substituted)



BACKGROUND AND PURPOSE 
Small municipal hospital authorities are finding it difficult to meet the
continuous growth and demands of their service delivery area.  Currently a
municipal hospital authority established under the Health and Safety Code,
Chapter 262, Subchapter C, Section 262.0225, may borrow money from a
federally insured lending institution for any of the authority's purposes,
if the authority is created by a municipality with a population of less
than 5,000.  Therefore, by inference, those authorities that are created
by a municipality with a population greater than 5,000 may not borrow
money. 

The purpose of HB 2764 is to increase that population limit to 25,000.
During the normal course of operation, most businesses have a need to
borrow money for various reasons, regardless of the size of the town in
which they are located.  HB 2764 eliminates major operational problems for
small municipal hospital authorities.  

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: House Bill 2764 amends the Health and Safety Code by changing
Subchapter C, Section 262.0225 (a) to have this section applied only to an
authority created by a municipality with a population of less than 25,000
instead of 5,000.  

EFFECTIVE DATE
September 1, 2003

COMPARISON OF ORIGINAL TO SUBSTITUTE
CSHB 2764 differs from the original in that it changes the caption to read
as follows "relating to the authority of certain municipal hospital
authorities to borrow money."