SRC-LBB VRA S.B. 200 78(R)BILL ANALYSIS


Senate Research CenterS.B. 200
By: Shapiro
Health and Human Services
2/20/2003
Committee Report (Amended)


DIGEST 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

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 281F, Health and Safety Code, by adding Section
281.106, as follows: 

Sec.  281.106.  ALTERNATIVE FINANCING AND ELECTION PROCEDURES.  (a)
Provides that this section is applicable to certain hospital districts
located in counties having populations of two million or more. 

(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. 
          
SECTION 2.   Effective date:  upon passage or September 1, 2003.

LIST OF AMENDMENTS

Committee Amendment No. 1:

(1)  Amends S.B. 200 by deleting Subsection (a) of proposed Section
281.106, Health and Safety Code (SECTION 1 of the bill), and inserting a
new Subsection (a) to read as follows: 

(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. 

(2)  Amend the title of S.B. 200 to conform to the bill as amended by the
above amendment.