HBA-MSH C.S.H.B. 3132 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3132 By: King, Phil County Affairs 4/8/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE The Gainesville and Muenster hospital districts are both located in Cooke County. Due to the proximity of the districts, they are not eligible for federal funding as regional providers of health services. The dissolution of both districts and the creation of a single district in Cooke County would enable the new district to receive federal funds and better serve the health care needs of the residents of Cooke County. C.S.H.B. 3132 provides for the submission to each district's voters propositions dissolving the Gainesville and Muenster hospital districts and creating the Cooke County Hospital District, and sets forth the powers and duties of the Cooke County Hospital District. 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 C.S.H.B. 3132 amends law to provide for the dissolution of the Gainesville and Muenster hospital districts (districts) upon approval by the voters of the districts and, if approved, the creation of the Cooke County Hospital District (district) (SECTIONS 1.01, 1.02, 2.01-2.03, 3.01, and 3.02). The bill provides for the transition from the districts to the Cooke County Hospital District, including the transfer of title to all land, buildings, improvement, and equipment, and the assumption of all indebtedness of the districts (SECTIONS 3.07). The bill requires the district to assume full responsibility for the operation of all hospital facilities and for the furnishing to medical and hospital care for the district's needy residents (SECTION 3.24). The bill provides that the district is governed by a board of nine directors (board) who serve without compensation, names nine temporary directors, and sets forth provisions relating to the election and qualifications of directors (SECTIONS 3.03-3.06). The bill authorizes the board to issue bonds payable from taxes levied by the district upon the approval by the qualified voters of the district (SECTIONS 3.11-3.14). The bill sets forth the specific powers and duties of the board (SECTIONS 3.09). The bill authorizes the district to create and sponsor a nonprofit corporation to provide healthcare (SECTION 3.16). The bill provides that the district has the power of eminent domain (SECTION 3.19). The bill authorizes the district to levy taxes for the entire year in which the district is established as a result of the initial election on the creation of the district (SECTION 3.20). The bill requires the district to provide without charge to a district resident the medical care that the resident or relative of the resident who is legally responsible for the resident's support cannot pay (SECTION 3.21). The bill authorizes the board to accept donations and borrow money in an emergency (SECTION 3.22, 3.23). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3132 differs from the original by requiring that the petitions requesting an election on the dissolution of the Gainesville and Muenster hospital districts, creation of the Gainesville district and transfer of assets are signed by at least 15 percent of the registered voters in the respective hospital districts rather than 50 registered voters in the districts (SECTIONS 1.02 and 2.03). The substitute prohibits the board of the Muenster Hospital District from holding an election on the question of dissolution and creation before the first anniversary of the most recent election held on the matter (SECTION 2.03). The substitute provides that if a resident of the Cooke County Hospital District (district) prevails in an action brought against the district for the district's alleged failure to provide the required health care services in the city of Muenster, the resident is entitled to recover reasonable attorney's fees from the district (SECTION 3.15).