HBA-DMD H.B. 1889 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1889 By: Keffer County Affairs 7/30/1999 Enrolled BACKGROUND AND PURPOSE The Ranger General Hospital closed in November of 1990, and since that time the Ranger Hospital District (district) has been operating under the Chapter 9 Bankruptcy Plan of Liquidation dated May 22, 1990. Prior to the 76th Legislature, the district was approximately one year from fulfilling its financial obligations under this plan. The board of directors (board) requested that the district be dissolved, and since the district was created by a legislative act (Article IX, Section 9 of the Texas Constitution), it would take a legislative act to dissolve it. H.B. 1889 authorizes the district to be dissolved provided that at least 15 percent of the registered voters in the district sign a petition authorizing an election to determine the fate of the district. The bill requires the board of directors of the district, if the district is dissolved by the voters, to turn over all assets to Eastland County or another governmental entity, or if the board does not wish to transfer all assets to Eastland County or another governmental entity, to continue to administer the district until all of the funds have been disposed of and all debts paid. The bill also prohibits the district, if the voters do not approve the dissolution of the district, from holding another election until the first anniversary of the initial election. The bill requires the board to return the unused funds to the taxpayers once all debts for the district have been paid off. Additionally, once all debts and all unused funds have been settled, the board is required to submit a report to the commissioners court of Eastland County which is then required to enter an order dissolving the district. 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 93, Acts of the 61st Legislature, Regular Session, 1969, by adding Sections 21A and 21B, as follows: Sec. 21A. (a) Authorizes the Ranger Hospital District (district) to be dissolved as provided by this section. (b) Authorizes the board of directors of the district (board) to order an election on the question of dissolving the district and disposing of the district's assets and obligations. Requires the board to order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters in the district. (c) Requires the election to be held no later than 60 days after the election is ordered. Sets forth that Section 41.001(a) (Uniform Election Dates), Election Code, does not apply to an election ordered under this section. Section 41.001(a) requires each general or special election, except as provided by Subchapter A (Election Dates), Election Code, to be held on one of the following dates: the third Saturday in January, the first Saturday in May, the second Saturday in August, or the first Tuesday after the first Monday in November. (d) Requires the ballot for the election to be printed to permit voting for or against dissolving the district. Requires the election to be held in accordance with the applicable provisions of the Election Code. (e) Requires the board, if a majority of the votes in the election favors the dissolution, to find that the district is dissolved. Requires the board, if a majority of the votes in the election do not favor the dissolution, to continue to administer the district and another election on the question of dissolution is prohibited from being held before the first anniversary of the most recent election to dissolve the district. (f) Requires the board, if a majority of the votes in the election favors dissolution, to transfer the land, buildings, improvements, equipment, and other assets of the district to Eastland County or another governmental entity in the district or to administer the property, assets, and debts in accordance with Section 21B of this Act. Establishes that if the district transfers the land, buildings, improvements, equipment, and other assets to Eastland County or another governmental entity, the county or entity assumes all debts and obligations of the district at the time of the transfer and the district is dissolved. Sec. 21B. (a) Requires the board, if the board finds that the district is dissolved but does not transfer the land, buildings, improvements, equipment, and other assets to Eastland County or another governmental entity in the district, 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. (b) Requires the board, after the board finds that the district is dissolved, to determine the debt owed by the district and to impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value. (c) Authorizes the board to institute a suit to enforce payment of taxes and to foreclose liens to secure the payment of taxes due the district. (d) Requires the board, when all outstanding debts and obligations of the district have been paid, to order the secretary of the board (secretary) to return the pro rata share of all unused tax money to each district taxpayer. Authorizes a taxpayer to request that the taxpayer's share of surplus tax money be credited to that taxpayer's county taxes. Requires the board, if a taxpayer requests the credit, to direct the secretary to transmit the funds to the county tax assessor-collector. (e) Requires the board, after the district has paid all its debts and has disposed of all its assets and funds as prescribed by this section, to file a written report with the commissioners court of Eastland County setting forth a summary of the board's actions in dissolving the district. Requires the commissioners court, no later than 10 days after it receives the report and upon its determination that the requirements of this section have been fulfilled, to enter an order dissolving the district. SECTION 2.Emergency clause. Effective date: upon passage.