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.