HBA-MPM H.B. 2875 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2875 By: Uher County Affairs 667/3/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, existing law did not allow the Matagorda County Hospital District (district) to lease property or to borrow money for the purposes of operating and maintaining the district. House Bill 2875 authorizes the board of managers of the district to lease district property and to enter into a loan agreement. 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 2875 amends law to authorize the board of managers (board) of the Matagorda County Hospital District (district) to transfer by lease to individuals, companies, corporations, or other legal entities district property, facilities, or equipment on terms determined by the board to further the purposes of the district. The bill specifies that a term of a lease entered into may not exceed 25 years from the date it is entered into. The bill authorizes the board to borrow money at a rate of interest determined by the board to be reasonable. To secure a loan, the bill authorizes the board to pledge: _revenues of the district that are not pledged to pay the bonded indebtedness of the district; _tax revenue collected by the district during the 12-month period following the date of the pledge; _district bonds that have been authorized but have not been sold; or _any other unencumbered assets of the district. The bill prohibits the board from using loan proceeds for any purpose other than for the operation and capital requirements of the district. EFFECTIVE DATE June 16, 2001.