HBA-TBM H.B. 2488 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2488
By: Chisum
County Affairs
7/19/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, the Donley County Hospital District
(district) was unable to commit more than a quarter of its revenue to
construction or accept further debt through construction notes.  These
limitations were hindering the district in providing the best services and
equipment to its medical service community. The effort to establish a
long-term health facility for the elderly through renovation would require
the issuance of revenue bonds which are projected to generate over $200,000
per year.  Allowing the district to restructure its debt with general
obligation tax revenue bonds would give it the benefit of a dramatically
lower interest rate without affecting county taxes.   

The district was also requesting the ability to contract with the Texas
Department of Human Service (DHS) to allow the district to make efficient
use of its resources and for DHS to administer its operation in
coordination with the medical center and hospital district.  House Bill
2488 authorizes the district to issue revenue bonds for the purpose of
refunding any previously issued revenue bond and to contract with DHS to
lease the district's buildings and facilities.   

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 2488 amends law to authorize the board of directors of the
Donley County Hospital District (district) to issue revenue bonds for the
purpose of refunding any previously issued revenue bonds and to issue
revenue bonds for the purpose of purchasing, constructing, acquiring,
repairing, equipping, or renovating buildings and improvements for the
district's facilities for the district's hospital system.  The district is
authorized to contract with the Texas Department of Human Services to lease
all or part of its buildings and facilities.  All acts of the district in
the issuance of notes, and all proceedings of the district authorizing the
issuance, execution, and delivery of notes and other obligations of the
district are validated in all respects and are valid as though the notes
had been originally and duly authorized, accomplished, validated, ratified,
approved, and confirmed.   

EFFECTIVE DATE

June 16, 2001.