1-1 By: Fraser S.B. No. 17 1-2 (In the Senate - Filed April 11, 1997; April 14, 1997, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; May 1, 1997, reported favorably by the following vote: 1-5 Yeas 11, Nays 0; May 1, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the powers and duties of county hospital authorities. 1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Subchapter C, Chapter 264, Health and Safety 1-11 Code, is amended by adding Section 264.032 to read as follows: 1-12 Sec. 264.032. EMERGENCY BORROWING. (a) If the board 1-13 declares that funds are not available to meet lawfully authorized 1-14 obligations of the authority and that an emergency exists, the 1-15 board may borrow money at a rate of interest not to exceed the 1-16 maximum annual percentage rate allowed by law for authority 1-17 obligations at the time the loan is made. 1-18 (b) To secure a loan, the board may pledge: 1-19 (1) revenues of the authority that are not pledged to 1-20 pay bonded indebtedness of the authority; or 1-21 (2) authority bonds that have been authorized but not 1-22 sold. 1-23 (c) A loan for which bonds are pledged must mature not later 1-24 than the first anniversary of the date on which the loan is made. 1-25 A loan for which authority revenues are pledged must mature not 1-26 later than the fifth anniversary of the date on which the loan is 1-27 made. 1-28 (d) The board may not spend money obtained from a loan under 1-29 this section for any purpose other than the purpose for which the 1-30 board declared an emergency and, if bonds are pledged to pay the 1-31 loan, for any purpose other than the purposes for which the pledged 1-32 bonds were authorized. 1-33 SECTION 2. Section 264.030, Health and Safety Code, is 1-34 amended to read as follows: 1-35 Sec. 264.030. SALE OF PROPERTY; GENERAL PROVISIONS. 1-36 (a) The board may sell, through sealed bids or at a public 1-37 auction, real property acquired by gift or purchase that the board 1-38 determines is not needed for hospital purposes if the sale does not 1-39 violate: 1-40 (1) a trust indenture or bond resolution relating to 1-41 outstanding bonds of the authority; or 1-42 (2) an agreement between the authority and a nonprofit 1-43 corporation under Chapter 223. 1-44 (b) If the board conducts the sale by sealed bids, the board 1-45 must provide notice of the sale under Section 272.001, Local 1-46 Government Code. 1-47 (c) If the board conducts the sale by public auction, the 1-48 board must publish a notice of the sale once a week for three 1-49 consecutive weeks in a newspaper of general circulation in the 1-50 county. The notice must include a description of the property and 1-51 the date, time, and place of the auction. The first notice must be 1-52 published not later than the 21st day before the date of the 1-53 auction. 1-54 (d) This section does not affect the authority's powers 1-55 under Chapter 223. 1-56 (e) This section does not apply to the sale or closing of a 1-57 hospital as provided in Section 264.031. 1-58 SECTION 3. This Act takes effect September 1, 1997. 1-59 SECTION 4. The importance of this legislation and the 1-60 crowded condition of the calendars in both houses create an 1-61 emergency and an imperative public necessity that the 1-62 constitutional rule requiring bills to be read on three several 1-63 days in each house be suspended, and this rule is hereby suspended.