BILL ANALYSIS

C.S.H.B. 2176

By: Leman

County Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been noted that the Lavaca Hospital District seeks to lease certain real property adjacent to the hospital to a private developer for the construction and operation of an assisted living facility that is much needed in the community. C.S.H.B. 2176 seeks to amend the district's leasing authority to accommodate such development.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

C.S.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.

EFFECTIVE DATE

September 1, 2019.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2176 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute contains a requirement for the 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.