Senate Bill sb1352

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    Florida Senate - 2001        (NP)                      SB 1352

    By Senator Mitchell





    4-607-01                                                See HB

  1                      A bill to be entitled

  2         An act relating to Citrus County; amending

  3         chapter 99-442, Laws of Florida, the charter of

  4         the Citrus County Hospital Board; reducing the

  5         time a member may hold office on the board;

  6         revising borrowing authority of the board;

  7         revising provisions relating to indebtedness of

  8         the board; revising a provision relating to

  9         outstanding bonds payable from ad valorem

10         taxes; repealing an obsolete provision;

11         providing an effective date.

12  

13  Be It Enacted by the Legislature of the State of Florida:

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15         Section 1.  Paragraph (b) of section 3 of chapter

16  99-442, Laws of Florida, is amended to read:

17         Section 3.

18         (b)  The trustees of said board shall elect from its

19  members a chair, a vice chair, and a secretary-treasurer who

20  shall each hold office for a period of one (1) year two (2)

21  years.  Each trustee shall execute a bond in the penal sum of

22  five thousand dollars ($5,000) with two (2) good and

23  sufficient sureties of a surety company authorized under the

24  laws of the state to become surety, payable to the Citrus

25  County Hospital Board, conditioned upon the faithful

26  performance of the duties of the officer, which bonds shall be

27  approved by the remaining trustees of the board and which

28  shall be filed with the Board of County Commissioners of

29  Citrus County.  The premiums on said bonds shall be paid by

30  the hospital board.

31  

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    Florida Senate - 2001        (NP)                      SB 1352
    4-607-01                                                See HB




  1         Section 2.  Section 14 of chapter 99-442, Laws of

  2  Florida, is amended to read:

  3         Section 14.  In addition to all other implied and

  4  express powers contained herein, the board shall have the

  5  express authority to borrow money, with or without issuing

  6  notes therefor, for the purpose or purposes of constructing,

  7  maintaining, repairing, altering, expanding, equipping,

  8  leasing, and operating county hospitals, medical nursing

  9  homes, convalescent homes, medical care facilities, clinics,

10  and all other types of allied medical care units.  The board's

11  authority to borrow money, with or without issuing notes,

12  shall be subject to the conditions of this act, applying to

13  the board's right to issue revenue certificates.  However, the

14  board shall not be required to have any type of validation

15  suit or court approval to borrow money when the amount of the

16  loan or loans does not exceed an amount equal to two times the

17  annual hospital tax, assuming said tax is based upon the

18  yearly millage of three (3) mills, and the term of the loan

19  does not exceed five (5) years.

20         Section 3.  Section 16 of chapter 99-442, Laws of

21  Florida, is amended to read:

22         Section 16.  (a)  Said bonds, federal or state hospital

23  loans, notes, or revenue certificates shall mature within

24  thirty (30) twenty (20) years from the year in which they are

25  issued or made, and shall be payable in such years and amounts

26  as shall be approved by the board mature in equal amounts each

27  year including the interest.  The aggregate amount of all

28  bonds, revenue certificates, and federal or state hospital

29  loans issued and outstanding at any one time shall not exceed

30  an amount equal to five (5) times the annual hospital tax at

31  the date of issue, assuming said tax is based upon the yearly

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    Florida Senate - 2001        (NP)                      SB 1352
    4-607-01                                                See HB




  1  millage of three (3) mills.  Said bonds and interest thereon

  2  shall be payable solely from a millage not to exceed one and

  3  one half (1  1/2 ) mills per year. Said millage is included in

  4  the maximum millage of three (3) mills per year. The loans,

  5  notes and revenue certificates, together with the interest,

  6  shall be payable from the gross receipts of the hospital

  7  and/or medical nursing home. 

  8         (b)  The full faith and credit of Citrus County shall

  9  be pledged for the payment of the bonds and interest, but the

10  full faith and credit of Citrus County shall not be pledged

11  for the payment of the loans, notes, or revenue certificates

12  and interest unless voted upon and approved by the voters of

13  said county.

14         (c)  Whenever this board shall pass a resolution

15  approving the issuance of said bonds, the board of county

16  commissioners shall immediately thereafter pass a resolution

17  approving the bond issue and calling an election and, subject

18  to said election, permitting the repayment of the bonds out of

19  the annual levy of three (3) mills per year. The bonds or

20  revenue certificates shall not be issued until after the same

21  have been approved in a validation suit.

22         (d)  Said loans, notes, bonds, or revenue certificates

23  shall not bear interest in excess of six percent (6%) per year

24  and such lesser amounts that may be available in the open

25  market.  The interest rate may be increased as provided in

26  subsection (h).

27         (b)(e)  The board shall determine the form of the

28  loans, notes, bonds, and revenue certificates, including any

29  interest coupons to be attached thereto, and the manner of

30  executing it, shall fix the denomination or denominations

31  thereof and the place or places of payment of principal and

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    Florida Senate - 2001        (NP)                      SB 1352
    4-607-01                                                See HB




  1  interest which may be at any bank or trust company within or

  2  without the state.  In case an officer whose signature or a

  3  facsimile of whose signature shall appear on any loan, note,

  4  bond, or revenue certificate or coupon shall cease to be such

  5  officer before the delivery thereof, such signature or

  6  facsimile shall nevertheless be valid and sufficient for all

  7  purposes the same as if the officer had remained in office

  8  until such delivery. All loan agreements, notes, bonds, and

  9  revenue certificates issued hereunder shall have and are

10  hereby declared to have all the qualities and incidents of

11  negotiable instruments under the negotiable instruments law of

12  the state.

13         (c)  Whenever the board shall pass a resolution

14  approving the issuance of the bonds, the Board of County

15  Commissioners shall immediately thereafter pass a resolution

16  approving the bond issue and calling an election and, subject

17  to that election, permitting the repayment of the bonds out of

18  an annual levy not to exceed one and one-half (1 1/2) mills

19  per year. This millage is included in the maximum millage of

20  three (3) mills per year. Subject to such limitations, the

21  bonds shall be payable from the full faith and credit of

22  Citrus County.

23         (d)  The loans, notes, and revenue certificates,

24  together with the interest, shall be payable from gross or net

25  receipts of the hospital board or any portion thereof.

26         (e)  These loans, notes, bonds, or revenue certificates

27  shall not bear interest in excess of the maximum rate

28  permitted by the laws of the State of Florida.

29         (f)  The board may sell bonds, loans, notes, or revenue

30  certificates in such manner, either at public or private sale,

31  and for such price as it may determine to be for the best

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    Florida Senate - 2001        (NP)                      SB 1352
    4-607-01                                                See HB




  1  interest of the hospital board, but no such sale shall be made

  2  at a price so low as to require the payment of interest on the

  3  money received therefor of more than six percent (6%) per

  4  annum. The interest rate may be increased as provided in

  5  subsection (h).

  6         (g)  The board of county commissioners during any

  7  period that bonds payable from ad valorem taxation are

  8  outstanding said period shall, in addition to the maximum of

  9  one and one-half one half (1 1/2) mills) levy above authorized

10  for the repayment of the bonds and interest, levy annually the

11  remainder of the hospital tax in the amount up to one and

12  one-half one half (1 1/2) mills on the dollar for the purpose

13  of maintaining and operating the county hospitals, medical

14  nursing homes, and convalescent homes. 

15         (h)  In the event the maturity date of the debt is more

16  than two (2) years after the date the debt is created, the

17  maximum interest rate that can be applied to said debt or debt

18  paper obligation shall not exceed six percent (6%) or one

19  percent (1%) less than the "prime interest rate," as

20  established by the Chase Manhattan Bank, National Association,

21  whichever is the higher, on the date the agreement to create

22  the debt is executed by the board and the lender.  This shall

23  apply only to debts created or incurred subsequent to the

24  effective date of this amendment.  The term debt paper

25  obligation shall include notes, bonds, and revenue bonds and

26  certificates.

27         Section 4.  Section 17 of chapter 99-442, Laws of

28  Florida, is amended to read:

29         Section 17.  The total amount of outstanding bonds

30  indebtedness of said hospital payable from ad valorem taxation

31  at any one time shall not exceed an amount equal to six (6)

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    Florida Senate - 2001        (NP)                      SB 1352
    4-607-01                                                See HB




  1  times the annual hospital tax, assuming said tax is based upon

  2  the yearly millage of three mills.

  3         Section 5.  Section 18 of chapter 99-442, Laws of

  4  Florida, is repealed.

  5         Section 6.  This act shall take effect upon becoming a

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