1-1     By:  Uher (Senate Sponsor - Armbrister)               H.B. No. 2875
 1-2           (In the Senate - Received from the House April 23, 2001;
 1-3     April 24, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 4, 2001, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; May 4, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the authority of Matagorda County Hospital District to
 1-9     lease property and enter into a loan agreement.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 41, Acts of the 59th Legislature, Regular
1-12     Session, 1965, is amended by adding Section 4A to read as follows:
1-13           Sec. 4A. The Board of Managers may transfer by lease to
1-14     individuals, companies, corporations, or other legal entities
1-15     District property, facilities, or equipment on terms determined by
1-16     the board to further the purposes of the District. The term of a
1-17     lease entered into under this section may not exceed 25 years from
1-18     the date the lease is entered into.
1-19           SECTION 2.  Chapter 41, Acts of the 59th Legislature, Regular
1-20     Session, 1965, is amended by adding Section 10B to read as follows:
1-21           Sec. 10B. (a)  The Board of Managers may borrow money at a
1-22     rate of interest determined to be reasonable by the board.
1-23           (b)  To secure a loan, the Board of Managers may pledge:
1-24                 (1)  the revenues of the District that are not pledged
1-25     to pay the bonded indebtedness of the District;
1-26                 (2)  tax revenue to be collected by the District during
1-27     the 12-month period following the date of the pledge that has not
1-28     been pledged to pay the principal of or interest on District bonds;
1-29                 (3)  District bonds that have been authorized but have
1-30     not been sold; or
1-31                 (4)  any other unencumbered assets of the District.
1-32           (c)  The Board of Managers may not use loan proceeds obtained
1-33     under this section for any purpose other than the operational and
1-34     capital requirements of the District.
1-35           SECTION 3.  This Act takes effect immediately if it receives
1-36     a vote of two-thirds of all the members elected to each house, as
1-37     provided by Section 39, Article III, Texas Constitution.  If this
1-38     Act does not receive the vote necessary for immediate effect, this
1-39     Act takes effect September 1, 2001.
1-40                                  * * * * *