BILL ANALYSIS

Senate Research Center                                                                                                        S.B. 264

79R245 EMT-D                                                                                                             By: Williams

                                                                                                               Intergovernmental Relations

2/17/2005

As Filed

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

Chapter 258, Acts of the 65th Legislature, Regular Session, 1977, created the Montgomery County Hospital District (district) and authorized the district to issue bonds payable from the taxes of the district and bonds payable by the district's revenue.  The enabling legislation specifies that the district must hold an election authorizing bonds payable from taxes.  However, it is unclear if an election is required to authorize revenue bonds.  As proposed, S.B. 264 provides consistency and clarifies that the district must hold an election to approve revenue bonds.

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 258, Acts of the 65th Legislature, Regular Session, 1977, by adding Section 9A, as follows:

Sec. 9A.  Authorizes the Montgomery County Hospital District to issue revenue bonds or certificates of obligation or to occur or assume any other debt only if authorized by a majority of voters in the district voting in an election health for that purpose.  Provides that this section does not apply to refunding bonds or other debt incurred solely to refinance an outstanding debt.

SECTION 2.  Effective date:  upon passage or September 1, 2005.