By Kuempel H.B. No. 1864
77R5405 JMG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of the board of managers of
1-3 certain joint municipal and county hospitals.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 265, Health and Safety Code,
1-6 is amended by adding Sections 265.017-265.019 to read as follows:
1-7 Sec. 265.017. ISSUANCE OF REVENUE BONDS. (a) The board of
1-8 managers may issue and sell revenue bonds in the name of the
1-9 hospital to finance:
1-10 (1) the acquisition of real property, the construction
1-11 of hospital facilities, or the acquisition of equipment or supplies
1-12 necessary for the hospital to provide hospital services; or
1-13 (2) the installation of equipment necessary for the
1-14 hospital to provide hospital services.
1-15 (b) The board of managers has the powers of an issuer under
1-16 Chapter 1371, Government Code, and may enter into a credit
1-17 agreement under that chapter. A bond issued under this subchapter
1-18 is an obligation under Chapter 1371, Government Code, but is not
1-19 required to be rated as required by that chapter. In this
1-20 subsection, "credit agreement," "obligation," and "issuer" have the
1-21 meanings assigned by Section 1371.001, Government Code.
1-22 Sec. 265.0171. REPAYMENT OF BONDS. The board of managers may
1-23 provide for the payment of principal of and interest on the bonds
1-24 by pledging all or any part of the hospital's revenue derived from
2-1 the operation of the hospital or from other sources.
2-2 Sec. 265.0172. ADDITIONAL SECURITY FOR BONDS. The bonds may
2-3 be additionally secured by a deed of trust or mortgage lien on part
2-4 or all of the physical properties of the hospital and rights
2-5 appurtenant to those properties.
2-6 Sec. 265.0173. MATURITY. A bond issued under this subchapter
2-7 must mature not later than 40 years after its date.
2-8 Sec. 265.0174. BONDS NOT PAYABLE FROM TAXES. A bond issued
2-9 under this subchapter must contain the following provision: "The
2-10 holder of this obligation is not entitled to demand payment of this
2-11 obligation out of any money raised by taxation by (name of county)
2-12 or by (name of municipality) or from any other income of the county
2-13 or municipality. The board of managers of the hospital has no
2-14 taxing power."
2-15 Sec. 265.0175. SALE OF BONDS. The board of managers may sell
2-16 bonds issued under this subchapter at public or private sale in the
2-17 manner and on the terms approved by the board.
2-18 Sec. 265.0176. REFUNDING BONDS. (a) The board of managers
2-19 may refund bonds issued under this subchapter by issuing refunding
2-20 bonds under terms approved by the board.
2-21 (b) All appropriate provisions of this subchapter apply to
2-22 the refunding bonds. The refunding bonds shall be issued in the
2-23 manner provided by this subchapter for issuing other bonds.
2-24 (c) The refunding bonds may be sold and delivered in amounts
2-25 sufficient to pay the principal of and interest and any redemption
2-26 premium on the bonds to be refunded, at maturity or on any
2-27 redemption date.
3-1 (d) The refunding bonds may be issued to be exchanged for
3-2 the bonds being refunded by them. In that case, the comptroller
3-3 shall register the refunding bonds and deliver them to the holder
3-4 of the bonds being refunded as approved by the board. The exchange
3-5 may be made in one delivery or in installment deliveries.
3-6 Sec. 265.018. HOSPITAL PROPERTY. The board of managers may
3-7 acquire, hold, or dispose of property or an interest in property.
3-8 As agreed by the county and municipality, the county or
3-9 municipality may hold title to hospital property.
3-10 Sec. 265.0181. TRANSFER OF PROPERTY. On dissolution of the
3-11 board of managers, title to property held by the board shall be
3-12 transferred to the county and municipality as approved by the
3-13 board.
3-14 Sec. 265.019. USE OF EARNINGS OR ASSETS FOR PRIVATE PURPOSES
3-15 PROHIBITED. Except as reasonable compensation for services rendered
3-16 or reasonable allowance for authorized expenditures incurred on
3-17 behalf of the board of managers or the hospital, the net earnings
3-18 of the board or the hospital may not be used for the benefit of a
3-19 private officer, board member, individual, or substantial
3-20 contributor to the board of managers or the hospital. The assets
3-21 of the board or the hospital may not be distributed to, divided
3-22 among, be used for, accrue to, or benefit a private officer, board
3-23 member, individual, or substantial contributor to the board or the
3-24 hospital.
3-25 SECTION 2. This Act takes effect immediately if it receives
3-26 a vote of two-thirds of all the members elected to each house, as
3-27 provided by Section 39, Article III, Texas Constitution. If this
4-1 Act does not receive the vote necessary for immediate effect, this
4-2 Act takes effect September 1, 2001.