BILL ANALYSIS
By: Deuell
Committee Report (Unamended)
BACKGROUND AND PURPOSE
S.B. 562, passed by the 60th Legislature, Regular Session, 1967, created the Greenville Hospital District (district). In Section 12 of S.B. 562, the legislature authorized the board of directors of the district to accept bids to designate a depository bank to serve as such for a term of two years after which time bids would be considered to award depository status for successive terms.
S.B. 562 has been amended several times, most notably, by H.B. 2127 of the 67th Legislature, Regular Session, 1981, which extended the boundaries of the Greenville Hospital District to the boundaries of Hunt County; the district subsequently became known as the Hunt Memorial Hospital District (HMHD)
As the expenses associated with obtaining bids and/or changing depository banks have continued to increase, the HMHD no longer feels it is cost effective to re-bid the contract every two years.
As proposed, S.B. 468 extends the interval between re-bidding so that a depository bank may serve as such for a period of five years.
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 12, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, to remove the requirement that the directors of the Hunt Hospital District designate, by resolution, a bank within the county in which the district is located as the district's treasurer. Requires the depository to serve for a period of five years, rather than two years, until a successor has been named.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date
EFFECTIVE DATE
Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2005.