BILL ANALYSIS

H.B. 1416

By: Chisum

County Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The aging population in the service area of the Childress County Hospital District is rapidly expanding and long-term care facilities for the aging and disabled in the area are closing.  Private enterprise has abandoned the area and the district has chosen to provide the necessary services.  To deliver quality services, the district needs to construct and renovate facilities using general obligation bonds.  However, current statutes do not permit the district to issue bonds. H.B. 1416 attempts to remedy the situation by allowing the district to open a long-term care facility for the elderly or disabled and to issue bonds to finance the facility.

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. 1416 amends the Special District Local Laws Code to authorize the Childress County Hospital District to purchase, construct, acquire, repair, renovate, equip, or administer certain types of specified facilities or services for the care of persons who are elderly or disabled and to purchase, acquire, repair, or equip durable medical equipment to provide services to those persons.

H.B. 1416 authorizes the board of directors of the district, for such a facility or service, to  lease or enter into an operating or management agreement relating to all or part of a facility or service that is owned by the district; close, transfer, sell, or otherwise convey all or part of a facility; and discontinue all or part of a service. The bill authorizes the board to issue general obligation bonds, revenue bonds, and other notes to acquire, construct, or improve a facility for the care of elderly or disabled persons or to implement the delivery of a service for the care of those persons. The bill provides that a facility or service, for the purposes of the bill's provisions, is a hospital project under the Hospital Project Financing Act, notwithstanding the definitions applicable to that act.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.