H.B. No. 878
 
 
 
 
AN ACT
  relating to the Sweeny Hospital District.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 4, Chapter 135, Acts of the 58th
  Legislature, Regular Session, 1963, is amended to read as follows:
         Sec. 4.  The management and control of the [each hospital]
  district [created pursuant to the provisions of this Act] is hereby
  vested in the board of directors of the district who shall serve
  without compensation but may be reimbursed for actual expenses
  incurred in the performance of their official duties upon the
  approval of such expenses by the entire board of directors.
         SECTION 2.  Chapter 135, Acts of the 58th Legislature,
  Regular Session, 1963, is amended by adding Sections 6A and 6B to
  read as follows:
         Sec. 6A.  In addition to the authority to issue general
  obligation bonds and revenue bonds under this Act, 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 6(a)
  of this Act and revenue and other sources as authorized by Section
  6(e) of this Act.
         Sec. 6B.  The district may use the proceeds of bonds issued
  under this Act 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 3.  Chapter 135, Acts of the 58th Legislature,
  Regular Session, 1963, is amended by adding Section 7B to read as
  follows:
         Sec. 7B.  (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 4.  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. 878 was passed by the House on May 5,
  2009, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 878 was passed by the Senate on May
  26, 2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor