By:  Bonnen                                                       H.B. No. 99 



A BILL TO BE ENTITLED

AN ACT

relating to the powers and duties of the Sweeny Hospital District.            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 135, Acts of the 58th Legislature, 
Regular Session, 1963, is amended by adding Section 7B to read as 
follows:
	Sec. 7B.  (a)  If the board of directors declares that funds 
are not available to meet the lawfully authorized obligations of 
the district and that an emergency exists, the district 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 district may pledge:                         
		(1)  the 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.
	(d)  The district may not spend money obtained from a loan 
under this section for any purpose other than the purpose for which 
the board declared an emergency.  If taxes or bonds are pledged to 
pay the loan, the district may not spend the loan proceeds other 
than for the purpose for which the taxes were levied or the bonds 
were authorized.
	SECTION 2.  Chapter 135, Acts of the 58th Legislature, 
Regular Session, 1963, is amended by adding Section 7B to read as 
follows:
	Sec. 7C.  (a)  The district 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 district may pledge:                         
		(1)  the 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 3.  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, 2005.