S.B. 821 78(R)    BILL ANALYSIS


S.B. 821
By: Fraser
County Affairs
Committee Report (Unamended)



BACKGROUND 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
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 Section 3.14(a), Chapter 132, Acts of the 74th
Legislature, Regular Session, 1995, to make a non substantive 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.

EFFECTIVE DATE
Effective date: upon passage or September 1, 2003.