By: Menendez, Castro H.B. No. 1234
A BILL TO BE ENTITLED
AN ACT
relating to granting certain hospital districts the authority to
issue certificates of obligation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading of Subchapter F, Chapter 281, Health
and Safety Code, is amended to read as follows:
SUBCHAPTER F. DISTRICT BONDS AND CERTIFICATES OF OBLIGATION
SECTION 2. Subchapter F, Chapter 281, Health and Safety
Code, is amended by adding Section 281.106 to read as follows:
Sec. 281.106. AUTHORITY TO ISSUE CERTIFICATES OF
OBLIGATION. With the approval of the commissioners court, the
board may issue certificates of obligation in accordance with
Subchapter C, Chapter 271, Local Government Code, for district
purposes as authorized by this chapter.
SECTION 3. The heading of Section 281.121, Health and
Safety Code, is amended to read as follows:
Sec. 281.121. TAXES TO PAY BONDS AND CERTIFICATES OF
OBLIGATION; TAX ASSESSMENT AND COLLECTION.
SECTION 4. Sections 281.121(a) and (c), Health and Safety
Code, are amended to read as follows:
(a) When the district issues bonds or certificates of
obligation payable from and secured by taxes under this chapter,
the commissioners court shall impose a tax for the benefit of the
district on all property subject to district taxation. The
commissioners court may impose the tax for the entire year in which
the district is created in order to finance initial district
operation and to pay bonds assumed by the district.
(c) The proceeds of the tax may be used:
(1) to pay the interest on and create a sinking fund
for bonds that may be assumed or issued by the district for hospital
purposes in accordance with this chapter;
(2) to provide for the operation and maintenance of
the hospital or hospital system; [and]
(3) if requested by the board and approved by the
commissioners court, to make further improvements and additions to
the hospital system, including acquiring necessary sites by
purchase, lease, or condemnation; and
(4) to pay for certificates of obligation issued under
Section 281.106 that are payable from and secured by taxes.
SECTION 5. Section 271.043(7), Local Government Code, is
amended to read as follows:
(7) "Issuer" means a municipality, [or] county, or
hospital district established under Chapter 281, Health and Safety
Code.
SECTION 6. This Act takes effect September 1, 2003.