By: Guillen (Senate Sponsor - Zaffirini) H.B. No. 4704

(In the Senate - Received from the House May 18, 2009; May 19, 2009, read first time and referred to Committee on Intergovernmental Relations; May 23, 2009, reported favorably by the following vote: Yeas 5, Nays 0; May 23, 2009, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to the Starr County Hospital District.

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

SECTION 1. Chapter 118, Acts of the 63rd Legislature, Regular Session, 1973, is amended by adding Section 5B to read as follows:

Sec. 5B. (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 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, 2009.

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