By: Fraser S.B. No. 17 A BILL TO BE ENTITLED 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 Section 264.032 to read as follows: 1-5 Sec. 264.032. EMERGENCY BORROWING. (a) If the board 1-6 declares that funds are not available to meet lawfully authorized 1-7 obligations of the authority and that an emergency exists, the 1-8 board may borrow money at a rate of interest not to exceed the 1-9 maximum annual percentage rate allowed by law for authority 1-10 obligations at the time the loan is made. 1-11 (b) To secure a loan, the board may pledge: 1-12 (1) revenues of the authority that are not pledged to 1-13 pay bonded indebtedness of the authority; or 1-14 (2) authority bonds that have been authorized but not 1-15 sold. 1-16 (c) A loan for which bonds are pledged must mature not later 1-17 than the first anniversary of the date on which the loan is made. 1-18 A loan for which authority revenues are pledged must mature not 1-19 later than the fifth anniversary of the date on which the loan is 1-20 made. 1-21 (d) The board may not spend money obtained from a loan under 1-22 this section for any purpose other than the purpose for which the 1-23 board declared an emergency and, if bonds are pledged to pay the 2-1 loan, for any purpose other than the purposes for which the pledged 2-2 bonds were authorized. 2-3 SECTION 2. Section 264.030, Health and Safety Code, is 2-4 amended to read as follows: 2-5 Sec. 264.030. SALE OF PROPERTY; GENERAL PROVISIONS. 2-6 (a) The board may sell, through sealed bids or at a public 2-7 auction, real property acquired by gift or purchase that the board 2-8 determines is not needed for hospital purposes if the sale does not 2-9 violate: 2-10 (1) a trust indenture or bond resolution relating to 2-11 outstanding bonds of the authority; or 2-12 (2) an agreement between the authority and a nonprofit 2-13 corporation under Chapter 223. 2-14 (b) If the board conducts the sale by sealed bids, the board 2-15 must provide notice of the sale under Section 272.001, Local 2-16 Government Code. 2-17 (c) If the board conducts the sale by public auction, the 2-18 board must publish a notice of the sale once a week for three 2-19 consecutive weeks in a newspaper of general circulation in the 2-20 county. The notice must include a description of the property and 2-21 the date, time, and place of the auction. The first notice must be 2-22 published not later than the 21st day before the date of the 2-23 auction. 2-24 (d) This section does not affect the authority's powers 2-25 under Chapter 223. 3-1 (e) This section does not apply to the sale or closing of a 3-2 hospital as provided in Section 264.031. 3-3 SECTION 3. This Act takes effect September 1, 1997. 3-4 SECTION 4. The importance of this legislation and the 3-5 crowded condition of the calendars in both houses create an 3-6 emergency and an imperative public necessity that the 3-7 constitutional rule requiring bills to be read on three several 3-8 days in each house be suspended, and this rule is hereby suspended.