Bill Text: TX SB558 | 2011-2012 | 82nd Legislature | Comm Sub

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Bill Title: Relating to the Swisher Memorial Hospital District.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2011-06-17 - Effective immediately [SB558 Detail]

Download: Texas-2011-SB558-Comm_Sub.html

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By: Duncan S.B. No. 558
(Chisum)

A BILL TO BE ENTITLED
AN ACT
relating to the Swisher Memorial Hospital District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4, Chapter 16, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
Sec. 4. DISTRICT MANAGEMENT. The [Within ten (10) days
after such election is held the Commissioners Court of said County
shall convene and canvass the returns thereof and in the event such
election results favorably to the proposition specified in Section
3 hereof, such] District shall be governed by a Board of Directors
to consist of five (5) members. Each such Director must at the time
of his election or appointment be a registered voter of the District
[hereunder own property subject to taxation within the district]
and be more than twenty-one (21) years of age. One Director shall
represent the County at large, and each of the four (4) remaining
Directors shall represent a Commissioner's precinct of the County,
and each Director must reside in the area he represents. Directors
shall be entitled to compensation at a rate to be determined by the
Board, provided that in no event shall the rate of compensation
exceed Ten Dollars ($10) for each meeting of the Board of Directors.
Five [Upon creation of the District as above provided, the
Commissioners Court shall appoint five persons as Directors to
serve until the first Saturday in April of the year succeeding the
year of the District's creation, at which time five (5)] Directors
shall be elected. The three (3) Directors receiving the highest
vote at such election shall serve for two (2) years, and the other
two Directors shall serve for one (1) year. Thereafter, all
Directors shall serve for a period of two years and until their
successors have been duly elected or appointed and qualified. [All
qualified electors residing in Swisher County, Texas, and in the
Swisher Memorial Hospital District shall be eligible to vote for
all Directors. Each member of the Board of Directors shall qualify
for his office by executing the Constitutional oath of office to be
filed in the office of the District.] The Board of Directors shall
organize by electing one of their number as President, one as Vice
President, and one as Secretary. A [Any three members of the Board
shall constitute a quorum and a] concurrence of three Directors is
[shall be] sufficient in all matters pertaining to the business of
the District. The Board shall require the keeping of a true account
of all their meetings and proceedings and shall preserve all
contracts, records, notices, duplicate vouchers, duplicate
receipts and all accounts and records of the District at its
principal office where same shall be open to public inspection at
all reasonable times. All vacancies in the office of Director shall
be filled for the unexpired term by appointment by the remainder of
the Board, however in event the number of Directors shall be reduced
at any one time to less than three (3) for any reason, the remaining
Directors shall immediately call a special election to fill said
vacancies and upon failure to do so such vacancies may be filled by
appointment of the County Judge of Swisher County. The regular
election of Directors shall be held on the uniform election date in
May of [first Saturday in April in] each year and notice of such
election shall be published in accordance with Section 4.003,
Election Code [a newspaper of general circulation in Swisher County
one time at least ten (10) days prior to the date of election]. Any
person desiring to have the person's [his] name printed on the
ballot as a candidate for director shall file with the Secretary of
the Board of Directors an application in accordance with Chapter
144, Election Code [a petition signed by not less than twenty-five
(25) qualified voters to such effect, at least twenty-five (25)
days prior to the election].
SECTION 2. Chapter 16, Acts of the 59th Legislature,
Regular Session, 1965, is amended by adding Sections 5A, 7B, 7C, and
7D to read as follows:
Sec. 5A. AUTHORITY TO BORROW MONEY; SECURITY. (a) The
Board of Directors 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) District taxes to be imposed by the District
during the 12-month period following the date of the pledge that are
not pledged to pay the principal of or interest on District bonds;
or
(3) District bonds that have 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.
Sec. 7B. REVENUE BONDS. (a) The Board of Directors may
issue revenue bonds to:
(1) purchase, construct, acquire, repair, or renovate
buildings or improvements;
(2) equip buildings or improvements for hospital
purposes; or
(3) acquire real property for hospital purposes.
(b) Revenue bonds must be payable from and secured by a
pledge of all or part of the revenue derived from the operation of
the District's hospital system. Revenue bonds may be additionally
secured by a mortgage or deed of trust on all or part of District
property. Revenue bonds must be issued in the manner provided by
Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
Health and Safety Code, for issuance of revenue bonds by a county
hospital authority.
Sec. 7C. ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS.
In addition to the authority to issue general obligation bonds and
revenue bonds under this Act, the Board of Directors may provide for
the security and payment of District bonds from a pledge of a
combination of ad valorem taxes as authorized by Section 7 of this
Act and revenue and other sources as authorized by Section 7B of
this Act.
Sec. 7D. USE OF BOND PROCEEDS. The District may use the
proceeds of bonds issued under this Act to pay:
(1) any expense the Board determines is reasonable and
necessary to issue, sell, and deliver the bonds;
(2) interest payments on the bonds during a period of
acquisition or construction of a project or facility to be provided
through the bonds, not to exceed five years;
(3) costs related to the operation and maintenance of
a project or facility to be provided through the bonds:
(A) during an estimated period of acquisition or
construction, not to exceed five years; and
(B) for one year after the project or facility is
acquired or constructed;
(4) costs related to the financing of the bond funds,
including debt service reserve and contingency funds;
(5) costs related to the bond issuance;
(6) costs related to the acquisition of land or
interests in land for a project or facility to be provided through
the bonds; and
(7) construction costs of a project or facility to be
provided through the bonds, including the payment of related
professional services and expenses.
SECTION 3. 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, 2011.