By: Kuempel (Senate Sponsor - Wentworth) H.B. No. 2952
(In the Senate - Received from the House May 7, 2003;
May 9, 2003, read first time and referred to Committee on
Administration; May 16, 2003, reported favorably by the following
vote: Yeas 7, Nays 0; May 16, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a joint county and municipal hospital
to borrow money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 265, Health and Safety
Code, is amended by adding Sections 265.0177-265.0179 to read as
follows:
Sec. 265.0177. AUTHORITY TO BORROW MONEY. (a) After
approval by resolution of the commissioners court of the county and
the governing body of the municipality that appointed the board,
the board of managers may, on behalf of the hospital, borrow money
from a federally insured lending institution for a purpose
described by Section 265.0179. The board may execute a loan
agreement or promissory note as evidence of the obligation to repay
the loan.
(b) The board of managers may borrow money in an amount it
considers advisable, subject to a rate of interest, security, and
other terms it considers advisable. The loan shall mature not later
than the 30th anniversary of the date on which the loan is made.
(c) Before entering into a loan under this section, the
board of managers must determine that there will be sufficient
money available from revenues generated by the hospital to pay the
loan when the loan becomes due.
(d) The commissioners court of the county and the governing
body of the municipality that appointed the board of managers must
approve the terms of a loan agreement by written resolution.
(e) Chapter 1202, Government Code, does not apply to a
promissory note or any other instrument evidencing a loan under
this section.
Sec. 265.0178. PLEDGE OF SECURITY. (a) A loan under
Section 265.0177 may be:
(1) payable from and secured by a pledge of all or part
of the revenues, income, or resources of the hospital that are not
pledged to pay a bonded indebtedness of the hospital; or
(2) secured by a deed of trust or other security
interest in any property of the hospital that is not pledged to pay
a bonded indebtedness of the hospital.
(b) The holder of a loan obligation under Section 265.0177
is not entitled to demand payment of the principal and interest on
the loan from any money or property of the hospital other than the
money or property specifically pledged to secure payment of the
loan.
Sec. 265.0179. PERMISSIBLE USES OF LOAN PROCEEDS. The
proceeds from a loan under Section 265.0177 may be used to pay costs
related to the acquisition, construction, rehabilitation, and
equipping of a hospital facility, including costs related to the
acquisition of real property and any other improvement considered
necessary and appropriate by the board of managers.
SECTION 2. 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.
* * * * *