HBA-MSH H.B. 1864 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1864
By: Kuempel
County Affairs
3/11/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, most public county hospitals operate as a part of a hospital
district. The public hospitals of Guadalupe County and Medina County are
run by a board of managers jointly funded by a municipality or the
appropriate county and are unable to issue bonds like a hospital district.
Guadalupe County is considering an expansion project to manage population
growth in the area, but will be unable to finance the project through the
issuance of bonds under the current system.  House Bill 1864 authorizes a
board of managers to issue revenue bonds in the name of a hospital. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1864 amends the Health and Safety Code to authorize a board of
managers (board) to issue and sell revenue bonds in the name of a hospital
to finance the acquisition of real property, equipment, or supplies, the
construction of hospital facilities, and the installation of equipment.
The board is also authorized to issue refunding bonds.  The bill sets forth
provisions relating to the sale,  repayment, security, and maturity of
bonds, as well as the use of earnings or assets for private purposes. 

H.B. 1864 authorizes the board to acquire, hold, or dispose of property and
requires title to property head by the board to be transferred to the
county and municipality on the dissolution of the board. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.