Bill Text: TX HB831 | 2011-2012 | 82nd Legislature | Comm Sub
Bill Title: Relating to the authority of certain local governmental entities to borrow money for a public hospital.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2011-05-25 - Removed from local & uncontested calendar [HB831 Detail]
Download: Texas-2011-HB831-Comm_Sub.html
| 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.) | ||
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| 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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