BILL ANALYSIS H.B. 1651 By: Chisum (Bivins) Intergovernmental Relations 05-17-95 Senate Committee Report (Amended) BACKGROUND The Lipscomb Hospital Board voted in 1994 to disband and become a part of the Higgins Hospital District. Lipscomb already uses the Higgins Hospital District's ambulance and EMT services. Lipscomb Hospital District only manages some assets and no longer has any facilities, because Lipscomb uses the Higgins District resources. PURPOSE As proposed, H.B. 1651 sets forth provisions relating to the expansion of the Higgins Hospital District of Lipscomb County to include the territory included in the Lipscomb Hospital District of Lipscomb County; names the new expanded district. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 667, Acts of the 64th Legislature, 1975, by adding Section 16A, as follows: Sec. 16A. (a) Authorizes the Lipscomb Hospital District of Lipscomb County (Lipsomb district) to be dissolved as provided by this section. (b) Authorizes the board of directors of Lipscomb Hospital District of Lipscomb County (Lipscomb board) to order an election on the question of the dissolution of Lipscomb district, addition of the territory within Lipscomb district to Higgins Hospital District of Lipscomb County (Higgins district), transfer of assets and obligations of Lipscomb district to Higgins district, and assumption of a proportionate share of Higgins district's outstanding debts. Requires the Lipscomb board to order an election if the board of the Higgins Hospital District (Higgins board) orders an election or if the Lipscomb board receives a petition requesting a dissolution and expansion election signed by at least 25 registered voters in Lipscomb district. (c) Requires the Lipscomb board to notify the Higgins board of the election order. (d) Requires the election to be held in accordance with the applicable provisions of the Election Code, except as provided by Subsection (e) of this section. (e) Requires the election to be held not less than 45 or more than 60 days after the date on which the election is ordered and to be held on the same date that the separate election in the Higgins district is held. Requires the Lipscomb board to cooperate with the Higgins board in setting the date of the elections. Provides that Section 41.001(a), Election Code, does not apply to an election ordered under this section. (f) Sets forth the required language for the ballot for the election. (g) Provides that the Lipscomb district is dissolved if a majority of the voters in the Lipscomb district favor the proposition and if the voters of the Higgins district favor the expansion. (h) Provides that the Lipscomb district is not dissolved and the Lipscomb board shall continue to administer the Lipscomb district if a majority of the voters in either Lipscomb or Higgins district do not favor the proposition on which they voted. (i) Requires the Lipscomb board to transfer the land, buildings, improvements, and other assets and obligations of the Lipscomb district to the Higgins district, if the Lipscomb district is dissolved under this section. (j) Prohibits the Lipscomb board from ordering another election on the question of dissolution before the first anniversary of the date of the most recent election at which voters of either Lipscomb or Higgins district disapproved the proposition on which they voted. SECTION 2. Amends Section 1, Chapter 666, Act of the 64th Legislature, 1975, as follows: Sec. 1. Authorizes the creation, establishment, maintenance, operation, and financing of the Higgins district unless expansion of the Lipscomb district is authorized under Sections 4A, 4B, and 4C of this Act. SECTION 3. Amends Chapter 666, Acts of the 64th Legislature, 1975, by adding Section 1A, as follows: Sec. 1A. (a) Provides that the name of the Lipscomb district is changed to the Higgins-Lipscomb Hospital District if the Lipscomb district is expanded under Section 4A of this Act. (b) Provides that a reference in this Act or in any law to the Higgins district means the Higgins-Lipscomb Hospital District (expanded district). SECTION 4. Amends Chapter 666, Acts of the 64th Legislature, 1975, by adding Sections 4A, 4B, and 4C, as follows: Sec. 4A. (a) Authorizes the expanded district to be expanded to include the territory within the boundaries of the Lipscomb district. Requires the Higgins board to order an election if a separate dissolution and expansion election is ordered by the board of the Lipscomb district under Section 16A, Chapter 667, Acts of the 64th Legislature, 1975; or the Higgins board receives a petition requesting an expansion election signed by 25 registered voters in the Lipscomb district. (c) Requires the Higgins board to notify the Lipscomb board of the election order. (d) Requires the election to be held in accordance with the applicable provisions of the Election Code, except as provided by Subsection (f) of this section. (e) Prohibits the board of directors from ordering another election on the question of expansion before the first anniversary of the date of the most recent election at which voters of either Lipscomb or Higgins district disapproved the proposition on which they voted. (f) Requires the election to be held not less than 45 or more than 60 days after the date on which the election is ordered and to be held on the same date that the separate election in the Lipscomb district is held. Requires the Higgins board to cooperate with the Lipscomb board in setting the date of the elections. Provides that Section 41.001(a), Election Code, does not apply to an election ordered under this section. (g) Sets forth the required language for the ballot for the election. (h) Provides that the expanded district is expanded to include the territory within the boundaries of the Lipscomb district and a temporary board shall be appointed under Section 4B of this Act if a majority of the voters in the Lipscomb district favor the proposition and if the voters of Lipscomb district favor the dissolution of the Lipscomb district, addition of the territory, transfer of existing Lipscomb district's assets and obligations, and assumption of proportionate share of the outstanding obligations of the Higgins district by the territory within the boundaries of the Lipscomb district. (i) Provides that the Lipscomb district is not expanded if a majority of the voters in either the Lipscomb or Higgins district do not favor the proposition on which they voted. Sec. 4B. (a) Requires the governing body of Lipscomb County to appoint three persons to serve as temporary directors and the governing body of the municipality of Higgins to appoint three persons to serve as temporary directors of the expanded district. Provides that the terms of the directors serving preceding the appointment expire when the temporary directors qualify for office. (b) Requires a vacancy on the temporary board to be filled in the same manner as the original appointment. (c) Requires the temporary board to serve as the directors of the district until elected directors take office. Sec. 4C. (a) Requires directors to be elected at an election to be held on May 1, 1997, if the district is expanded under Section 4A of this Act. (b) Authorizes the temporary board to postpone the election date for one year or until a subsequent uniform election date if the temporary board determines that there is not sufficient time to comply with the requirements of law. (c) Requires members of the board of directors to be elected at large on a single ballot at the initial election of the board following expansion of the district, with the six candidates receiving the highest number of votes being elected as a director. Requires two or more person who tie for the sixth-highest vote to draw lots to determine which person is elected. (d) Requires the directors elected at the initial election of directors following expansion of the district to draw lots to determine which three directors shall serve one-year terms and which three directors shall serve two-year terms. (e) Requires an election to be held each year on the first Saturday in May or on the uniform election date prescribed by the temporary board, and the appropriate number of successor directors to be elected for two-year terms, after the initial election of directors following expansion. Requires two or more persons who tie for the third-highest vote to draw lots to determine which person is elected. (f) Provides that the term of a member of the board begins on the first day of June following the member's election. SECTION 5. Effective date: September 1, 1995. SECTION 6. Emergency clause.