82R4419 CJC-F
	By: Chisum	H.B. No. 1417

	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.