By:  Fraser                                             S.B. No. 17

         97S0949/1                           

                                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.  Chapter 264, Health and Safety Code, is amended

 1-4     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.