HBA-ATS, NLM H.B. 1111 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1111 By: Williams County Affairs 10/5/1999 Enrolled BACKGROUND AND PURPOSE Texas law enables hospital districts established after 1989 to organize according to set guidelines and to dissolve according to standard language. The Montgomery County Hospital District was organized prior to 1989 and does not contain dissolution language. H.B. 1111 authorizes the board of directors (board) of the Montgomery County Hospital District (district) to order an election regarding the question of the district's dissolution. If a majority of the votes in the election favor dissolution, the board must find that the district is dissolved. On the other hand, if a majority of the votes in the election do not favor dissolution, the board must continue to administer the district. Another election on the question of dissolution is prohibited from being held before the fourth anniversary of the most recent election to dissolve the district. Under this bill, if a majority of the votes in the election favor dissolution, the board must transfer the ambulance service and related equipment, any vehicles, and any mobile clinics and related equipment that belong to the district to Montgomery County within 45 days after the election is held, and must transfer the land, buildings, improvements, equipment not described above, and other assets that belong to the district to Montgomery County. Montgomery County assumes all debts and obligations of the district relating to both types of transfers. After the board finds that the district is dissolved, the board is required to determine the debt owed by the district and impose a tax that is in proportion of the debt to the property value on the property included in the district's tax roll. In addition, the board is required to order the secretary to return to each district taxpayer a proportionate share of all unused tax money and to Montgomery County all unused district money from any other source after all outstanding debts and obligations of the district are paid. Montgomery County is required to use that money to furnish medical and hospital care for its needy residents. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 258, Acts of the 65th Legislature, Regular Session, 1977, by adding Sections 23A and 23B, as follows: Sec. 23A. (a) Authorizes the Montgomery County Hospital District's (district) board of directors (board) to order an election on the question of dissolving the district and disposing of the district's assets and obligations. (b) Requires the election to be held on the earlier of the first Saturday in May or the date of the general election for state and county officers, depending on which one occurs at least 90 days after the election is ordered. (c) Requires that the ballot for the election be printed to permit voting for or against the proposition: "The dissolution of the Montgomery County Hospital District." Requires the election to be held in accordance with the applicable provisions of the Election Code. (d) Requires the board to find that the district is dissolved if a majority of the votes in the election favor dissolution. Requires the board to continue to administer the district if a majority of the votes in the election do not favor dissolution. Prohibits another election on the question of dissolution from being held before the fourth anniversary of the most recent election to dissolve the district. (e) Requires the board, if a majority of the votes in the election favor dissolution, to transfer the ambulance service and related equipment, any vehicles, and any mobile clinics and related equipment that belong to the district to Montgomery County (county) within 45 days after the election is held, and to transfer the land, buildings, improvements, equipment not described above, and other assets that belong to the district to Montgomery County in accordance with Subsections (g)-(k) of Section 23A. (f) Provides that the county assumes all debts and obligations of the district relating to the ambulance service and related equipment, any vehicles, and any mobile clinics and related equipment at the time of the transfer. Provides that, if the district also transfers the land, buildings, improvements, equipment, and other assets to Montgomery County, the county assumes all debts and obligations of the district at the time of the transfer. Requires the county to use all transferred assets to pay the district's outstanding debts and obligations relating to the assets at the time of the transfer or to furnish medical and hospital care for the county's needy residents. (g) Requires the board to continue to control and administer the property, debts, and assets of the district until all funds have been disposed of and all district debts have been paid or settled, in the event that the board finds that the district is dissolved but does not transfer the land, buildings, improvements, equipment, and other assets to Montgomery County. (h) Requires the board, after it finds that the district is dissolved, to determine the debt owed by the district and impose a tax that is in proportion of the debt to the property value on the property included in the district's tax roll. (i) Authorizes the board to institute a suit to enforce payment of taxes and to foreclose liens to secure the payment of taxes due to the district. (j) Requires the board to order the secretary to return to each district taxpayer a proportionate share of all unused tax money and to Montgomery County all unused district money from any other source after all outstanding debts and obligations of the district are paid. Authorizes a taxpayer to request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. Requires the board to direct the secretary to transmit the funds to the county tax assessor-collector if the taxpayer requests the credit. Requires Montgomery County to use unused district money received under this section to furnish medical and hospital care for its needy residents. (k) Requires the board to file a written report with the Commissioners Court of Montgomery County to summarize the board of directors' actions in dissolving the district, after the district has paid all its debts and has disposed of all its assets and funds as prescribed by this section. Requires the commissioners court to enter an order dissolving the district, by the 10th day after it receives the report and determines that the requirements of this section have been fulfilled. Sec. 23B. (a) Requires the board to order an election on the question of dissolving the district and disposing of the district's assets and obligations if the board receives a petition requesting an election that is signed by a number of residents of the district equal to at least 15 percent of the registered voters in the district. (b) Requires the election to be held on the earlier of the first Saturday in May or the date of the general election for state and county officers, depending on which one occurs at least 90 days after the election is ordered. (c) Requires that the ballot for the election be printed to permit voting for or against the proposition: "The dissolution of the Montgomery County Hospital District." Requires the election to be held in accordance with the applicable provisions of the Election Code. (d) Requires the board to find that the district is dissolved if a majority of the votes in the election favor dissolution. Requires the board to continue to administer the district if a majority of the votes in the election do not favor dissolution. Prohibits another election on the question of dissolution from being held before the fourth anniversary of the most recent election to dissolve the district. (e) Requires the board, if a majority of the votes in the election favor dissolution, to transfer the land, buildings, improvements, and other assets that belong to the district to Montgomery County within 45 days after the election is held. Provides that the county assumes all debts and obligations of the district at the time of the transfer and the district is dissolved. Provides that the county should use all transferred assets in a manner that benefits residents of the county residing in territory formerly constituting the district. Requires the county to use all transferred assets to pay the district's outstanding debts and obligations relating to the assets at the time of the transfer or to furnish medical and hospital care for its needy residents. SECTION 2. Emergency clause. Effective date: upon passage.