AN ACT
1-1 relating to the powers and duties of county hospital authorities.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subchapter C, Chapter 264, Health and Safety
1-4 Code, is amended by adding Sections 264.032, 264.033, and 264.034
1-5 to read as follows:
1-6 Sec. 264.032. EMERGENCY BORROWING. (a) If the board
1-7 declares that funds are not available to meet lawfully authorized
1-8 obligations of the authority and that an emergency exists, the
1-9 board may borrow money at a rate of interest not to exceed the
1-10 maximum annual percentage rate allowed by law for authority
1-11 obligations at the time the loan is made.
1-12 (b) To secure a loan, the board may pledge:
1-13 (1) revenues of the authority that are not pledged to
1-14 pay bonded indebtedness of the authority;
1-15 (2) authority bonds that have been authorized but not
1-16 sold; or
1-17 (3) revenues of the authority if the pledge is
1-18 subordinate to any pledge securing outstanding bonds of the
1-19 authority.
1-20 (c) A loan for which bonds are pledged must mature not later
1-21 than the first anniversary of the date on which the loan is made.
1-22 A loan for which authority revenues are pledged must mature not
1-23 later than the fifth anniversary of the date on which the loan is
2-1 made.
2-2 (d) The board may not spend money obtained from a loan under
2-3 this section for any purpose other than the purpose for which the
2-4 board declared an emergency and, if bonds are pledged to pay the
2-5 loan, for any purpose other than the purposes for which the pledged
2-6 bonds were authorized.
2-7 Sec. 264.033. TIME WARRANTS. The authority may issue time
2-8 warrants in the manner in which a commissioners court may issue
2-9 time warrants under the Bond and Warrant Law of 1931 (Article
2-10 2368a, Vernon's Texas Civil Statutes).
2-11 Sec. 264.034. FACILITIES AND SERVICES FOR THE DISABLED OR
2-12 THE ELDERLY. (a) The authority may construct, acquire, own,
2-13 operate, enlarge, improve, furnish, equip, or provide the following
2-14 facilities and services to care for the disabled or the elderly:
2-15 (1) a nursing home or similar long-term care facility;
2-16 (2) elderly housing;
2-17 (3) assisted living services;
2-18 (4) home health care;
2-19 (5) personal care;
2-20 (6) special care;
2-21 (7) continuing care; or
2-22 (8) durable medical equipment.
2-23 (b) The authority may lease or enter into an operations or
2-24 management agreement to care for the disabled or the elderly under
2-25 Subsection (a).
3-1 (c) The authority may sell, transfer, otherwise convey, or
3-2 close all or part of a facility described by Subsection (a) and
3-3 discontinue a service described by Subsection (a).
3-4 (d) The authority may issue revenue bonds, notes, and time
3-5 warrants as provided by this chapter to acquire, construct, or
3-6 improve a facility described by Subsection (a).
3-7 (e) For purposes of Chapter 223, a facility or service
3-8 described by Subsection (a) is a hospital project.
3-9 SECTION 2. Section 264.030, Health and Safety Code, is
3-10 amended to read as follows:
3-11 Sec. 264.030. SALE OF PROPERTY; GENERAL PROVISIONS.
3-12 (a) The board may sell, through sealed bids or at a public
3-13 auction, real property acquired by gift or purchase that the board
3-14 determines is not needed for hospital purposes if the sale does not
3-15 violate:
3-16 (1) a trust indenture or bond resolution relating to
3-17 outstanding bonds of the authority; or
3-18 (2) an agreement between the authority and a nonprofit
3-19 corporation under Chapter 223.
3-20 (b) If the board conducts the sale by sealed bids, the board
3-21 must provide notice of the sale under Section 272.001, Local
3-22 Government Code.
3-23 (c) If the board conducts the sale by public auction, the
3-24 board must publish a notice of the sale once a week for three
3-25 consecutive weeks in a newspaper of general circulation in the
4-1 county. The notice must include a description of the property and
4-2 the date, time, and place of the auction. The first notice must be
4-3 published not later than the 21st day before the date of the
4-4 auction.
4-5 (d) This section does not affect the authority's powers
4-6 under Chapter 223.
4-7 (e) This section does not apply to the sale or closing of a
4-8 hospital as provided in Section 264.031.
4-9 SECTION 3. This Act takes effect September 1, 1997.
4-10 SECTION 4. The importance of this legislation and the
4-11 crowded condition of the calendars in both houses create an
4-12 emergency and an imperative public necessity that the
4-13 constitutional rule requiring bills to be read on three several
4-14 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 17 passed the Senate on
May 5, 1997, by a viva-voce vote; and that the Senate concurred in
House amendment on May 31, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 17 passed the House, with
amendment, on May 27, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor