Texas 2025 - 89th Regular

Texas Senate Bill SB2829 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9961 SRA-F
2	2	By: Parker S.B. No. 2829
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the operations of municipal hospital authorities.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 262.011(b), Health and Safety Code, is
12	12	amended to read as follows:
13	13	(b) The number of directors shall be determined at the time
14	14	the authority is created. The number may be changed by amendment of
15	15	the ordinance or ordinances creating the authority unless
16	16	prohibited by a [the] resolution [authorizing the issuance of
17	17	bonds] or [by the] trust indenture described by Section 262.012
18	18	[securing the bonds]. A [However, a] reduction in the number of
19	19	directors may not shorten the term of an incumbent director.
20	20	SECTION 2. Sections 262.012(a), (b), and (f), Health and
21	21	Safety Code, are amended to read as follows:
22	22	(a) The governing body or governing bodies shall appoint the
23	23	initial directors of the authority for terms not to exceed two years
24	24	except as otherwise provided by this section. If the authority
25	25	includes more than one municipality, each governing body shall
26	26	appoint an equal number of directors unless the governing bodies
27	27	agree otherwise.
28	28	(b) The board may prescribe in the [The] resolution
29	29	authorizing the issuance of revenue bonds or the trust indenture
30	30	securing the bonds, in an agreement securing notes of any kind
31	31	issued by the authority, or in another resolution [may prescribe]
32	32	the method of selecting [a majority of] the directors and the term
33	33	of office of those directors. Except as provided by Subsections
34	34	(c), (d), and (e), the method of selecting the directors and the
35	35	term of office of those directors prescribed by the board may not be
36	36	changed except by a subsequent resolution adopted by the board.
37	37	The[, and the] terms of directors appointed before the issuance of
38	38	the bonds are subject to the resolution or trust indenture. The
39	39	governing body or governing bodies shall appoint any [the]
40	40	remaining directors.
41	41	(f) An officer or employee of a municipality in the
42	42	authority or an employee of the authority is not eligible for
43	43	appointment as a director.
44	44	SECTION 3. Section 262.0331, Health and Safety Code, is
45	45	amended by amending Subsection (a) and adding Subsection (c) to
46	46	read as follows:
47	47	(a) If, after the sale or closing of a hospital under
48	48	Section 262.033, the authority does not own or operate a hospital,
49	49	the board may use the authority's available assets to promote
50	50	public health and general welfare initiatives that the board
51	51	determines will benefit the residents served by the authority,
52	52	including:
53	53	(1) owning, operating, or funding an:
54	54	(A) administrative office; or
55	55	(B) indigent health care clinic, medical
56	56	research facility, fitness or physical health center, medical
57	57	training or education facility, or other health care facility;
58	58	(2) providing direct or indirect financial assistance
59	59	to a nonprofit organization that:
60	60	(A) owns or operates a hospital, indigent health
61	61	care clinic, medical research facility, medical training facility,
62	62	or other health care facility; or
63	63	(B) supports an initiative promoting health
64	64	education, wellness, or disease prevention; and
65	65	(3) undertaking any other activity that the board
66	66	determines is necessary or appropriate to improve public health,
67	67	promote wellness, prevent disease, or enhance the general welfare
68	68	of the residents served by the authority.
69	69	(c) The authority may issue revenue bonds and other notes in
70	70	accordance with this chapter to undertake any initiative authorized
71	71	by this section.
72	72	SECTION 4. Section 262.039(a), Health and Safety Code, is
73	73	amended to read as follows:
74	74	(a) This section applies only to an authority that:
75	75	(1) is located in:
76	76	(A) a county with a population of 2.4 million or
77	77	more; or
78	78	(B) a municipality with a population of less than
79	79	30,000 [15,000];
80	80	(2) has assets that exceed the amount of any
81	81	outstanding bonds issued under Subchapter D; and
82	82	(3) does not operate a hospital.
83	83	SECTION 5. Section 262.041, Health and Safety Code, is
84	84	amended to read as follows:
85	85	Sec. 262.041. REVENUE BONDS. (a) The authority may issue
86	86	revenue bonds to provide funds for any of the authority's purposes,
87	87	including the purposes described by Sections 262.0331 and 262.034,
88	88	regardless of whether the authority owns or operates a hospital.
89	89	(b) Revenue bonds must be payable from, and secured by a
90	90	pledge of, revenues from:
91	91	(1) the operation of one or more hospitals and any
92	92	other revenues from the ownership or investment of [owning]
93	93	hospital property; or
94	94	(2) any initiative described by Section 262.0331 or
95	95	any facility or service described by Section 262.034.
96	96	(c) Additionally, revenue bonds may be secured by a mortgage
97	97	or deed of trust on real property owned by the authority or by a
98	98	chattel mortgage on the authority's personal property.
99	99	SECTION 6. Sections 262.034(d), (e), (f), and (g), Health
100	100	and Safety Code, are repealed.
101	101	SECTION 7. This Act takes effect September 1, 2025.