S.B. 200 78(R)    BILL ANALYSIS


S.B. 200
By: Shapiro
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, a countywide hospital district is required by the Texas
Constitution to provide all medical and hospital services to the needy
inhabitants of the county. Such districts have two primary sources of
revenue, a tax levy that was approved by the voters when the district was
created, and operating revenues.  S.B. 200 would allow a hospital district
as an alternative financing method, to pledge hospital system revenues and
tax revenues to the payment of combination tax and revenue bonds and other
obligations if the pledge is approved at an election held for that
purpose. 

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 BY SECTION ANALYSIS
SECTION 1. Amends Chapter 281F, Health and Safety Code, by adding Section
281.106, as follows: 
Sec. 281.106. ALTERNATIVE FINANCING AND ELECTION PROCEDURES. (a) This
section is applicable to any hospital district that was created pursuant
to the authority 
granted by Section 4, Article IX, Texas Constitution, is operating under
this chapter, and has 
previously held an election at which the voters approved the levy and
assessment of an ad valorem tax at a rate not greater than 75 cents per
$100 of assessed valuation of taxable property within the district. 
(b) Authorizes the commissioners court to call, order, and hold an
election, and submit the 
proposition and ballot prescribed in Subsections (c) and (d), in the
district's name, if the 
district's board of managers makes certain findings and requests that the
commissioners 
court call and hold an election under the alternative procedures
authorized by this section. 
(c) Requires the official proposition submitted to the voters at an
election held under this 
section to read in a particular form.
(d) Requires the ballot to be arranged in a manner permitting the voters
to vote for or 
against a particular summary of the proposition.
(e) Requires the election order to include a general description of the
district's proposed 
financing and improvement plans, estimates of the costs and revenues that
will be received 
from the operation of proposed improvements, and other information deemed
appropriate 
to inform the voters of the details of the proposed improvements to the
district's hospital 
system and the financing plans.
(f) Requires an election conducted pursuant to this section to be
conducted in accordance 
with the procedures provided in Section 281.102 (Bond Election).
(g) Authorizes the commissioners court to issue and execute certain bonds
and other 
obligations if a majority of the votes received at the election favor the
proposition. 
Authorizes the commissioners court, by order and if requested by the board
of managers 
to extend or confirm the pledge to previously issued bonds and other
obligations of the district. 
(h) Requires bonds and other short-term or long-term obligations secured
in the manner 
authorized by this section to be payable from and secured by certain
revenues of the 
district's hospital system. Requires the district, through the
commissioners court, to 
annually levy, assess, and collect ad valorem taxes on taxable property in
the district within 
 certain guidelines.
(i) Authorizes each district utilizing the alternative procedures
permitted by this section to 
enter into, execute, and deliver any of the credit agreements permitted by
Chapter 1371 
(Obligations for Certain Public Improvements), Government Code, and to
secure them by 
certain methods.
(j) Provides for the allocation of certain taxes to be applied as a
payment on current debt 
in calculating the current debt rate under the applicable tax rate
rollback provisions of 
Chapter 26 (Assessment), Tax Code.
(k) Provides that the procedures authorized by this section are
alternative to the 
provisions of Chapter 284 (Special Provisions Relating to Hospital
District Bonds) and 
other sections of this chapter and cumulative of and in addition to any
powers granted to 
any district under those or any other laws.

EFFECTIVE DATE

Upon passage or September 1, 2003.