By: Craddick (Senate Sponsor - Fraser) H.B. No. 831
(In the Senate - Received from the House March 31, 2011;
May 4, 2011, read first time and referred to Committee on
Intergovernmental Relations; May 19, 2011, reported favorably by
the following vote: Yeas 5, Nays 0; May 19, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain local governmental entities to
borrow money for a public hospital.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Health and Safety Code, is
amended by adding Chapter 315 to read as follows:
CHAPTER 315. AUTHORITY TO BORROW MONEY FOR PUBLIC HOSPITALS
Sec. 315.001. DEFINITION. In this chapter, "local
governmental entity" includes:
(1) a hospital district created under general or
special law;
(2) a municipal hospital authority;
(3) a county hospital authority;
(4) a municipality; or
(5) a county.
Sec. 315.002. AUTHORITY TO BORROW MONEY FOR PUBLIC
HOSPITAL; SECURITY. (a) A local governmental entity may borrow
money for purposes of a hospital owned or operated by the entity at
a rate not to exceed the maximum annual percentage rate allowed by
the law at the time the loan is made for similar obligations of the
entity.
(b) To secure a loan under this section, a local
governmental entity may pledge:
(1) revenue from the hospital owned or operated by the
entity that is not pledged to pay the entity's bonded indebtedness;
or
(2) tax revenue to be collected by the local
governmental entity during the 12-month period following the date
of the pledge that is not pledged to pay the principal of or
interest on bonds.
(c) A loan authorized by this section must mature:
(1) not later than the first anniversary of the date
the loan is made, if taxes are pledged to repay the loan; and
(2) not later than the fifth anniversary of the date
the loan is made, if hospital revenue is pledged to repay the loan.
SECTION 2. This Act takes effect September 1, 2011.
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