BILL ANALYSIS

 

 

                                                                                                                                           H.B. 2619

                                                                                                                                          By: Guillen

                                                                                                                                    County Affairs

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

The Act creating the Starr County Hospital District (district) was passed by the 63rd Legislature in 1973 and was amended in 1977 and 1995.  The district's enabling legislation requires updating to conform with current laws. 

 

H.B. 2619 amends the district's powers by allowing it to adopt certain requirements regarding length of residency for trustees, have authorization to create or sponsor a nonprofit corporation, and have authorization to issue revenue bonds and bonds payable from a combination of taxes and revenues. The bill also amends its enabling legislation to put procedures in place for any dissolution of the district.

 

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

 

H.B. 2619 amends the enabling legislation to establish residency requirements for trustees, allows the trustees’ bonds to be paid from district funds, removes outdated language, and clarifies the date of the election of trustees. The bill also authorizes the trustees to order the election and publish notice, removes the requirement that the board select all employees of the district, and limits the setting of the fiscal year.

 

The bill authorizes the district to create and sponsor a nonprofit corporation and to contribute money to or solicit money for the corporation, and establishes how the money can be used.

 

The bill clarifies the provisions regarding the issuance of general obligation bonds and updates references to other statutes. 

 

The bill authorizes the district to issue and use revenue bonds to purchase, construct, acquire, repair, renovate or equip buildings or improvements for district purposes.

 

The bill amends the enabling legislation to clarify that the Tax Code governs the appraisal, assessment, and collection of District taxes. It also adds procedures for the dissolution of the district.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2007.