BILL ANALYSIS

H.B. 3626

By: Chisum

County Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

When North Wheeler County Hospital was founded the nature of the community they were operating in was much different than it is today. Many things have changed over the years, requiring the hospital to change the way it operates. The board of directors currently operates under the same regulations as the school districts for raising funding for the hospital, but with the changes and controversy in school funding over the past years this is no longer a viable option. Also, the board of directors needs the ability to dissolve the hospital district if necessary, an option that is currently not available to the board. This bill allows the North Wheeler County Hospital District to operate in a manner that is not outdated and ineffective.

H.B. 3626 modifies provisions for elections and for the fiscal year and auditing and adds provisions for bond issuance and 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. 3626 amends Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, to remove provisions relating to the election to approve creation of the North Wheeler County Hospital District. The bill sets forth the composition, terms, and eligibility requirements of the board of directors of the hospital district.

H.B. 3626 amends Section 6, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, to establish that the district operates on a fiscal year established by the board of directors that may not be changed if revenue bonds are outstanding or more than once in a 24-month period, rather than operating on a fiscal year commencing on October 1st of each year and ending on September 30th of the succeeding year. The bill requires the board, rather than the district, to cause an audit to be made of the financial condition of the district.

H.B. 3626 amends Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, to set forth the requirements for the issuance of revenue bonds, and for the additional means of securing repayment of those bonds. The bill sets forth the authorized uses of bond proceeds.  The bill sets forth the procedure for dissolving the district.

H.B. 3626 requires the election of three directors of the North Wheeler County Hospital District scheduled before the effective date of this bill to be held in May 2010 to be held, and two directors to be elected from Precinct 2 and one director from the district at large.  The bill requires the directors elected at the election to serve two-year terms. The bill requires the election of two directors of the district scheduled before the effective date of the bill to be held in May 2011 to be held, and two directors to be elected from Precinct 1. The bill requires the directors elected at the election to serve two-year terms.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.