By Williams                                           H.B. No. 3610

         75R14882 CLG-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the dissolution of the Montgomery County Hospital

 1-3     District.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 258, Acts of the 65th Legislature,

 1-6     Regular Session, 1977, is amended by adding Sections 23A and 23B to

 1-7     read as follows:

 1-8           Sec. 23A.  (a)  The district may be dissolved as provided by

 1-9     this section.

1-10           (b)  The board of directors may order an election on the

1-11     question of dissolving the district and disposing of the district's

1-12     assets and obligations.  The board of directors shall order an

1-13     election if the board of directors receives a petition requesting

1-14     an election that is signed by a number of residents of the district

1-15     equal to  at least 15 percent of the registered voters in the

1-16     district.

1-17           (c)  The election shall be held not later than the 60th day

1-18     after the date on which the election is ordered.  Section

1-19     41.001(a), Election Code, does not apply to an election ordered

1-20     under this section.

1-21           (d)  The ballot for the election shall be printed to permit

1-22     voting for or against the proposition:  "The dissolution of the

1-23     Montgomery County Hospital District."  The election shall be held

1-24     in accordance with the applicable provisions of the Election Code.

 2-1           (e)  If a majority of the votes in the election favor

 2-2     dissolution, the board of directors shall find that the district is

 2-3     dissolved.  If a majority of the votes in the election do not favor

 2-4     dissolution, the board of directors shall continue to administer

 2-5     the district and another election on the question of dissolution

 2-6     may not be held before the first anniversary of the most recent

 2-7     election to dissolve the district.

 2-8           (f)  If a majority of the votes in the election favor

 2-9     dissolution, the board of directors shall transfer the land,

2-10     buildings, improvements, equipment, and other assets that belong to

2-11     the district to Montgomery County or another governmental entity in

2-12     the district or shall administer the property, assets, and debts in

2-13     accordance with Section 23B of this Act.  If the district transfers

2-14     the land, buildings, improvements, equipment, and other assets to

2-15     Montgomery County or another governmental entity, the county or

2-16     entity assumes all debts and obligations of the district at the

2-17     time of the transfer and the district is dissolved.

2-18           Sec. 23B.  (a)  If the board of directors finds that the

2-19     district is dissolved but does not transfer the land, buildings,

2-20     improvements, equipment, and other assets to Montgomery County or

2-21     another governmental entity in the district, the board of directors

2-22     shall continue to control and administer the property, debts, and

2-23     assets of the district until all funds have been disposed of and

2-24     all district debts have been paid or settled.

2-25           (b)  After the board of directors finds that the district is

2-26     dissolved, the board of directors shall:

2-27                 (1)  determine the debt owed by the district; and

 3-1                 (2)  impose on the property included in the district's

 3-2     tax rolls a tax that is in proportion of the debt to the property

 3-3     value.

 3-4           (c)  The board of directors may institute a suit to enforce

 3-5     payment of taxes and to foreclose liens to secure the payment of

 3-6     taxes due the district.

 3-7           (d)  When all outstanding debts and obligations of the

 3-8     district are paid, the board of directors shall order the secretary

 3-9     to return the pro rata share of all unused tax money to each

3-10     district taxpayer.  A taxpayer may request that the taxpayer's

3-11     share of surplus tax money be credited to the taxpayer's county

3-12     taxes.  If a taxpayer requests the credit, the board of directors

3-13     shall direct the secretary to transmit the funds to the county tax

3-14     assessor-collector.

3-15           (e)  After the district has paid all its debts and has

3-16     disposed of all its assets and funds as prescribed by this section,

3-17     the board of directors shall file a written report with the

3-18     commissioners court of Montgomery County setting forth a summary of

3-19     the board of directors' actions in dissolving the district.  Not

3-20     later than the 10th day after it receives the report and determines

3-21     that the requirements of this section have been fulfilled, the

3-22     commissioners court shall enter an order dissolving the district.

3-23           SECTION 2.  The importance of this legislation and the

3-24     crowded condition of the calendars in both houses create an

3-25     emergency and an imperative public necessity that the

3-26     constitutional rule requiring bills to be read on three several

3-27     days in each house be suspended, and this rule is hereby suspended,

 4-1     and that this Act take effect and be in force from and after its

 4-2     passage, and it is so enacted.