HBA-NLM H.B. 1111 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1111 By: Williams County Affairs 2/17/1999 Introduced BACKGROUND AND PURPOSE Current 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 to order an election regarding the question of the district's dissolution by their own motion or upon petition by a number of residents in the district equal to five percent of the total vote received in the most recent gubernatorial election. 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) Establishes that the Montgomery County Hospital District (district) may be dissolved as provided by this section. (b) Authorizes the district's board of directors to order an election on the question of dissolving the district and disposing of the district's assets and obligations. Requires the board of directors to order an election if the board of directors receives a petition requesting an election that is signed by a number of residents of the district equal to at least 5 percent of the total vote received in the district by all the candidates for governor in the most recent gubernatorial general election. (c) Requires the election to be held by the 60th day after the date on which the election is ordered. Exempts this section from the provisions of Section 41.001(a), Election Code (Uniform Election Dates). (d) Provides that the ballot for the election is required to be printed to permit voting for or against the proposition: "The dissolution of the Montgomery County Hospital District." Requires the election be held in accordance with the applicable provisions of the Election Code. (e) Requires the board of directors to find that the district is dissolved if a majority of the votes in the election favor dissolution. Requires the board of directors to continue to administer the district if a majority of the votes in the election do not favor dissolution. Provides that another election on the question of dissolution may not be held before the first anniversary of the most recent election to dissolve the district. (f) Requires the board of directors to transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Montgomery County or another governmental entity in the district or administer the property, assets, and debts in accordance with Section 23B of this Act, if a majority of the votes in the election favor dissolution. Provides that the county or entity assumes all debts and obligations of the district if such a transfer is made. Sec. 23B. (a) Requires the board of directors to continue to control and administer the property, debts, and assets of the district until all funds have been disposed of and all districts' debts have been paid or settled, in the event that the board of directors finds that the district is dissolved but does not transfer the land, buildings, improvements, equipment, and other assets to Montgomery County or another governmental entity in the district. (b) Provides that after the board of directors finds that the district is dissolved, the board of directors 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. (c) Authorizes the board of directors to institute a suit to enforce payment of taxes and to foreclose liens to secure the payment of taxes due to the district. (d) Requires the board of directors to order the secretary to return to each district tax payer a proportionate share of all unused tax money 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 of directors to direct the secretary to transmit the funds to the county tax assessorcollector if the taxpayer requests the credit. (e) Requires the board of directors 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. SECTION 2. Emergency clause. Effective date: upon passage.