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.