| 1 | 1 | | By: Fraser S.B. No. 494 |
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| 2 | 2 | | (Craddick) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of certain local governmental entities to |
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| 8 | 8 | | borrow money for a public hospital. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle F, Title 4, Health and Safety Code, is |
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| 11 | 11 | | amended by adding Chapter 315 to read as follows: |
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| 12 | 12 | | CHAPTER 315. AUTHORITY TO BORROW MONEY FOR PUBLIC HOSPITALS |
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| 13 | 13 | | Sec. 315.001. DEFINITION. In this chapter, "local |
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| 14 | 14 | | governmental entity" includes: |
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| 15 | 15 | | (1) a hospital district created under general or |
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| 16 | 16 | | special law; |
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| 17 | 17 | | (2) a municipal hospital authority; |
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| 18 | 18 | | (3) a county hospital authority; |
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| 19 | 19 | | (4) a municipality; or |
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| 20 | 20 | | (5) a county. |
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| 21 | 21 | | Sec. 315.002. AUTHORITY TO BORROW MONEY FOR PUBLIC |
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| 22 | 22 | | HOSPITAL; SECURITY. (a) A local governmental entity may borrow |
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| 23 | 23 | | money for purposes of a hospital owned or operated by the entity at |
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| 24 | 24 | | a rate not to exceed the maximum annual percentage rate allowed by |
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| 25 | 25 | | the law at the time the loan is made for similar obligations of the |
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| 26 | 26 | | entity. |
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| 27 | 27 | | (b) To secure a loan under this section, a local |
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| 28 | 28 | | governmental entity may pledge: |
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| 29 | 29 | | (1) revenue from the hospital owned or operated by the |
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| 30 | 30 | | entity that is not pledged to pay the entity's bonded indebtedness; |
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| 31 | 31 | | or |
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| 32 | 32 | | (2) tax revenue to be collected by the local |
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| 33 | 33 | | governmental entity during the 12-month period following the date |
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| 34 | 34 | | of the pledge that is not pledged to pay the principal of or |
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| 35 | 35 | | interest on bonds. |
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| 36 | 36 | | (c) A loan authorized by this section must mature: |
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| 37 | 37 | | (1) not later than the first anniversary of the date |
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| 38 | 38 | | the loan is made, if taxes are pledged to repay the loan; and |
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| 39 | 39 | | (2) not later than the fifth anniversary of the date |
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| 40 | 40 | | the loan is made, if hospital revenue is pledged to repay the loan. |
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| 41 | 41 | | SECTION 2. This Act takes effect September 1, 2011. |
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