79S20067 HLT-F



By:  Bonnen                                                       H.B. No. 25 







A BILL TO BE ENTITLED



AN ACT



relating to the authority of the Sweeny Hospital District to borrow 

money.  

	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 Sections 7B and 7C to 

read as follows:

	Sec. 7B.  (a)  The board of directors may borrow money at a 

rate not to exceed the maximum annual percentage rate allowed by law 

for district obligations at the time the loan is made if the board 

declares that:

		(1)  money is not available to meet authorized 

obligations of the district; and

		(2)  an emergency exists.                                              

	(b)  To secure a loan, the board of directors may pledge:               

		(1)  district revenues that are not pledged to pay 

bonded indebtedness of the district;

		(2)  district taxes to be imposed in the next 12-month 

period 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 district taxes or bonds are pledged 

must mature not later than the first anniversary of the date the 

loan is made.  A loan for which district revenues are pledged must 

mature not later than the fifth anniversary of the date the loan is 

made.

	(d)  The board of directors may not spend money obtained from 

a loan under this section for any purpose other than:

		(1)  the purpose for which the board declared an 

emergency; and      

		(2)  if district taxes or bonds are pledged to pay the 

loan, the purpose for which the pledged taxes were imposed or the 

pledged bonds were authorized.

	Sec. 7C.  (a)  The board of directors may borrow money at a 

rate not to exceed the maximum annual percentage rate allowed by law 

for district obligations at the time the loan is made.

	(b)  To secure a loan, the board of directors may pledge:               

		(1)  district revenues that are not pledged to pay 

bonded indebtedness of the district;

		(2)  district taxes to be imposed in the next 12-month 

period 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 district taxes or bonds are pledged 

must mature not later than the first anniversary of the date the 

loan is made.  A loan for which district revenues are pledged must 

mature not later than the fifth anniversary of the date the loan is 

made.

	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 on the 91st day after the last day of the 

legislative session.