BILL ANALYSIS

 

 

                                                                                                                                            S.B. 1236

                                                                                                                                        By: Zaffirini

                                                                                                           Border & International Affairs

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Existing statutory authority for the Starr County Hospital District is restrictive and outdated, and does not provide for the necessary authority for the district to prepare for future development.

 

As proposed, S.B. 1236 updates the statutory authority of the Starr County Hospital District to prepare for future development. This bill authorizes the district to adopt certain requirements regarding the length of residency for trustees, to create or sponsor a nonprofit corporation, to issue revenue bonds and bonds payable from a combination of taxes and revenues, and to establish procedures for the dissolution of the district.

 

RULEMAKING AUTHORITY

 

It is the opinion of the committee that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

S.B. 1236 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to establish residency requirements for trustees, allows the trustees’ bonds to be paid from district funds, removes outdated language, and clarifies the election of trustees.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.