AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In 1993 the hospital enabling legislation for Lynn County Hospital District was changed to allow the buying and selling of bonds. This was intended to allow the board to more easily issue general obligation bonds. However, with increasing costs of operation and reimbursement cuts, the hospital district is threatened with possible closure. This bill changes the law to allow bond elections for refunding bonds. Stakeholders and interested parties have demonstrated a desire for this legislation
As proposed, S.B. 1908 amends current law relating to bond elections for the Lynn County Hospital District.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 1054.201, Special District Local Laws Code, as follows:
(a) Creates this subsection from existing text and makes no further change to this subsection.
(b) Prohibits bonds from being issued by the hospital district except refunding bonds until authorized by a majority of the qualified property taxpaying electors. Requires that the order for the bond election specify the date of the election, the amount of bonds to be authorized, the maximum maturity of the bonds, the maximum rate of interest they are to bear, the place or places where the election is required to be held, the presiding judge and alternate judge for each voting place and provide for clerks as in the county elections. Requires that notice of any bond election, except one held under the provisions of Section 8, in which instance notice shall be given as provided in Section 3, be given as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act.
SECTION 2. Effective date: upon passage or September 1, 2015.