78R5646 KEG-D


By:  Hilderbran                                                   H.B. No. 1631



A BILL TO BE ENTITLED

AN ACT

relating to the Kimble County Hospital District.                              
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 5(f) and (g), Chapter 873, Acts of the 
62nd Legislature, Regular Session, 1971, are amended to read as 
follows:
	(f)  Each [Thereafter, each] year on the first Saturday in 
May [April], an election shall [is to] be held for the purpose of 
electing the appropriate number of directors to the board.
	(g)  A director holds office for a term of three [two] years 
and until his successor is elected and has qualified.
	SECTION 2.  Chapter 873, Acts of the 62nd Legislature, 
Regular Session, 1971, is amended by adding Section 11A to read as 
follows:
	Sec. 11A.  Revenue bonds.  The board may issue and sell 
revenue bonds in the name and on the faith and credit of the 
district to purchase, construct, acquire, repair, renovate, or 
equip buildings or improvements for district purposes.  The bonds 
shall be payable from and secured by a pledge of all or part of the 
revenues derived from the operation of the district's hospital 
system.  The bonds may be additionally secured by a mortgage or deed 
of trust on all or part of the district's property.  The revenue 
bonds shall be issued in the manner provided by Sections 264.042, 
264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety 
Code, for the issuance of revenue bonds by county hospital 
authorities.
	SECTION 3.  Chapter 873, Acts of the 62nd Legislature, 
Regular Session, 1971, is amended by adding Section 12A to read as 
follows:
	Sec. 12A.  Authority to borrow money.  (a)  The board may 
borrow money at a rate not to exceed the maximum annual percentage 
rate allowed by law for district obligations at the time of the 
loan.
	(b)  To secure a loan, the board may pledge:                            
		(1)  revenues of the district that are not pledged to 
pay the bonded indebtedness of the district;
		(2)  district taxes to be levied by the district during 
the 12-month period following the date of the pledge that are not 
pledged to pay the principal of or interest on district bonds; or
		(3)  district bonds that have been authorized but not 
sold.          
	(c)  A loan for which taxes or bonds are pledged shall mature 
not later than the first anniversary of the date on which the loan 
is made.  A loan for which district revenues are pledged shall 
mature not later than the fifth anniversary of the date on which the 
loan is made.
	SECTION 4.  (a)  The election of the board of directors of 
the Kimble County Hospital District scheduled before the effective 
date of this Act to be held in May 2004 must be held, and the 
directors elected at that election shall draw lots to determine 
which two directors shall serve three-year terms and which two 
directors shall serve two-year terms.
	(b)  The election of the board of directors scheduled before 
the effective date of this Act to be held in May 2005 must be held, 
and the directors elected at that election shall serve three-year 
terms.
	(c)  The directors elected at the elections to be held in May 
2006, May 2007, and May 2008 shall serve three-year terms.
	SECTION 5.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.