By Uher                                               H.B. No. 2875
         77R9138 JMG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of Matagorda County Hospital District to
 1-3     lease property and enter into a loan agreement.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 41, Acts of the 59th Legislature, Regular
 1-6     Session, 1965, is amended by adding Section 4A to read as follows:
 1-7           Sec. 4A. The Board of Managers may transfer by lease to
 1-8     individuals, companies, corporations, or other legal entities
 1-9     District property, facilities, or equipment on terms determined by
1-10     the board to further the purposes of the District. The term of a
1-11     lease entered into under this section may not exceed 25 years from
1-12     the date the lease is entered into.
1-13           SECTION 2.  Chapter 41, Acts of the 59th Legislature, Regular
1-14     Session, 1965, is amended by adding Section 10B to read as follows:
1-15           Sec. 10B. (a)  The Board of Managers may borrow money at a
1-16     rate of interest determined to be reasonable by the board.
1-17           (b)  To secure a loan, the Board of Managers may pledge:
1-18                 (1)  the revenues of the District that are not pledged
1-19     to pay the bonded indebtedness of the District;
1-20                 (2)  tax revenue to be collected by the District during
1-21     the 12-month period following the date of the pledge that has not
1-22     been pledged to pay the principal of or interest on District bonds;
1-23                 (3)  District bonds that have been authorized but have
1-24     not been sold; or
 2-1                 (4)  any other unencumbered assets of the District.
 2-2           (c)  The Board of Managers may not use loan proceeds obtained
 2-3     under this section for any purpose other than the operational and
 2-4     capital requirements of the District.
 2-5           SECTION 3.  This Act takes effect immediately if it receives
 2-6     a vote of two-thirds of all the members elected to each house, as
 2-7     provided by Section 39, Article III, Texas Constitution.  If this
 2-8     Act does not receive the vote necessary for immediate effect, this
 2-9     Act takes effect September 1, 2001.