SRC-VRA, S.B. 821 78(R)BILL ANALYSIS


Senate Research CenterS.B. 821
By: Fraser
Intergovernmental Relations
8/24/2003
Enrolled


DIGEST AND PURPOSE 

Currently, the two existing hospitals in Comanche County, DeLeon Hospital
and Comanche Community Hospital, are too small to survive in the current
health care environment.  Two years ago, administrators began an attempt
to consolidate into a new, centrally located, county hospital of
sufficient size to survive and prosper.  Following an extensive public
education campaign, Comanche County voters overwhelmingly supported the
proposal to consolidate the two districts   S.B. 821 allows the district
to access the low cost borrowed funds for construction of a new hospital
to serve the whole county by granting the district the authority to pledge
both property tax revenues and operating revenues. 

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 Subsection (a), Chapter 132, Acts of the 74th
Legislature, Regular Session, 1995, to make a nonsubstantive change and a
conforming change.    

SECTION 2.  Amends Chapter 132, Acts of the 74th Legislature, Regular
Session, 1995, by adding Sections 3.14A and 3.14B, as follows: 

Sec.  3.14A.  ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS.  (a)
Authorizes the board of directors (board), in addition to the power to
issue bonds payable solely from and secured by taxes imposed by the
Comanche County Consolidated Hospital District (district) as authorized by
Section 3.11 of this Act and the power to issue bonds payable from and
secured by revenues and other sources as authorized by Section 3.14 of
this Act, to provide for the security and payment of district bonds from a
pledge of a combination of certain taxes and revenues. 

(b)  Requires bonds, other than refunding bonds, that the board proposes
to secure wholly or partly by an ad valorem tax, to be approved at an
election held in the district in accordance with Section 3.11 of this Act. 

(c)  Authorizes bonds authorized at an election held in the district
before the effective date of the Act of the 78th Legislature, Regular
Session, 2003, that enacted this section to be payable from and secured by
taxes as authorized by the election or a pledge of a combination of ad
valorem taxes, revenues, and other sources as authorized by Subsection (a)
of this section.  

Sec.  3.14B.  USE OF CERTAIN PROCEEDS; PAYMENT OF EXPENSES.  (a)
Authorizes the district to use the proceeds of bonds described by Section
3.11, 3.14 or 3.14A of this Act to pay for certain expenditures.   
 
(b)  Provides that a "period of acquisition or construction," as that term
is used in Subsection (a) of this section, may not exceed five years.     

SECTION 3.  Effective date:  upon passage or September 1, 2003.