H.B. No. 781

AN ACT

relating to the Electra Hospital District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1025.051, Special District Local Laws Code, as effective April 1, 2009, is amended to conform to Section 1, Chapter 792, Acts of the 80th Legislature, Regular Session, 2007, to read as follows:

Sec. 1025.051. BOARD ELECTION; TERM. The district is governed by a board of seven directors elected at large by place for staggered three-year terms. A director's election shall be held each year on the May uniform election date prescribed by Section 41.001, Election Code. [(a) The board consists of seven directors elected from the district at large.

[(b) Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.]

SECTION 2. Subchapter D, Chapter 1025, Special District Local Laws Code, as effective April 1, 2009, is amended by adding Section 1025.161 to read as follows:

Sec. 1025.161. AUTHORITY TO BORROW MONEY; SECURITY. (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 the loan is made.

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

(1) district revenue that is not pledged to pay the district's bonded indebtedness;

(2) a district tax to be imposed by the district during the 12-month period following the date of the pledge that is not pledged to pay the principal of or interest on district bonds; or

(3) a district bond that has been authorized but not sold.

(c) A loan for which 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 revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.

SECTION 3. Subchapter E, Chapter 1025, Special District Local Laws Code, as effective April 1, 2009, is amended by adding Sections 1025.209 and 1025.210 to read as follows:

Sec. 1025.209. ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS. In addition to the authority to issue general obligation bonds and revenue bonds under this subchapter, the board may provide for the security and payment of district bonds from a pledge of a combination of ad valorem taxes as authorized by Section 1025.202 and revenue and other sources authorized by Section 1025.206.

Sec. 1025.210. USE OF BOND PROCEEDS. The district may use the proceeds of bonds issued under this subchapter to pay:

(1) any expense the board determines is reasonable and necessary to issue, sell, and deliver the bonds;

(2) interest payments on the bonds during a period of acquisition or construction of a project or facility to be provided through the bonds, not to exceed five years;

(3) costs related to the operation and maintenance of a project or facility to be provided through the bonds:

(A) during an estimated period of acquisition or construction, not to exceed five years; and

(B) for one year after the project or facility is acquired or constructed;

(4) costs related to the financing of the bond funds, including debt service reserve and contingency funds;

(5) costs related to the bond issuance;

(6) costs related to the acquisition of land or interests in land for a project or facility to be provided through the bonds; and

(7) costs of construction of a project or facility to be provided through the bonds, including the payment of related professional services and expenses.

SECTION 4. (a) The members of the board of directors of the Electra Hospital District serving on the effective date of this Act shall draw lots to determine in which place each director serves. The four directors whose terms expire in 2010 shall draw lots for Places 4, 5, 6, and 7. The three directors whose terms expire in 2011 shall draw lots for Places 1, 2, and 3.

(b) The election of the board of directors to be held in May 2010 must be held, and the directors elected for Places 4 and 5 at that election shall serve three-year terms. The directors elected for Places 6 and 7 at that election shall serve two-year terms.

(c) The directors elected at the election to be held in May 2011, May 2012, and May 2013 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, 2009.

______________________________ ______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 781 was passed by the House on May 12, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not voting.

______________________________ Chief Clerk of the House

I certify that H.B. No. 781 was passed by the Senate on May 27, 2009, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate APPROVED: _____________________

Date

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Governor