BILL ANALYSIS

Senate Research Center	H.B. 2176
86R21498 SRA-D	By: Leman (Kolkhorst)
	Intergovernmental Relations
	5/11/2019
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 2176 amends the Special District Local Laws Code to increase from 25 years to 50 years the maximum term for a lease of the Lavaca Hospital District's buildings and facilities and to extend the leasing authority of the district's board of directors to include the leasing of district land. The bill requires a lease of the district's land to a private entity to include a provision that requires the lessee to indemnify the district for and exempt the district from any liability resulting from an act or omission of the lessee.

H.B. 2176 amends current law relating to the authority of the Lavaca Hospital District to lease district property.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1051.107, Special District Local Laws Code, by amending Subsection (b) and adding Subsection (b-1), as follows:

(b) Authorizes the board of directors of the Lavaca Hospital District (board) to lease all or part of the district's land, buildings, and facilities, rather than and other facilities, on terms considered to be in the best interest of the district's inhabitants. Prohibits the term of the lease from exceeding 50 years, rather than 25 years.

(b-1) Requires a lease of the district's land to a private entity under Subsection (b) to include a provision that requires the lessee to indemnify the district for and exempt the district from any liability resulting from an act or omission of the lessee.

SECTION 2. Makes application of Section 1051.107(b-1), Special District Local Laws Code, as added by this Act, prospective.

SECTION 3. Effective date: September 1, 2019.