By:  Galloway                                         S.B. No. 1957

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     District.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 258, Acts of the 65th Legislature,

 1-5     Regular Session, 1977, is amended by adding Sections 23A and 23B to

 1-6     read as follows:

 1-7           Sec. 23A.  (a)  The district may be dissolved as provided by

 1-8     this section.

 1-9           (b)  The board of directors may order an election on the

1-10     question of dissolving the district and disposing of the district's

1-11     assets and obligations.  The board of directors shall order an

1-12     election if the board of directors receives a petition requesting

1-13     an election that is signed by a number of residents of the district

1-14     equal to at least 15 percent of the registered voters in the

1-15     district.

1-16           (c)  The election shall be held not later than the 60th day

1-17     after the date on which the election is ordered.  Section

1-18     41.001(a), Election Code, does not apply to an election ordered

1-19     under this section.

1-20           (d)  The ballot for the election shall be printed to permit

1-21     voting for or against the proposition:  "The dissolution of the

 2-1     Montgomery County Hospital District."  The election shall be held

 2-2     in accordance with the applicable provisions of the Election Code.

 2-3           (e)  If a majority of the votes in the election favor

 2-4     dissolution, the board of directors shall find that the district is

 2-5     dissolved.  If a majority of the votes in the election do not favor

 2-6     dissolution, the board of directors shall continue to administer

 2-7     the district and another election on the question of dissolution

 2-8     may not be held before the first anniversary of the most recent

 2-9     election to dissolve the district.

2-10           (f)  If a majority of the votes in the election favor

2-11     dissolution, the board of directors shall transfer the land,

2-12     buildings, improvements, equipment, and other assets that belong to

2-13     the district to Montgomery County or another governmental entity in

2-14     the district or shall administer the property, assets, and debts in

2-15     accordance with Section 23B of this Act.  If the district transfers

2-16     the land, buildings, improvements, equipment, and other assets to

2-17     Montgomery County or another governmental entity, the county or

2-18     entity assumes all debts and obligations of the district at the

2-19     time of the transfer and the district is dissolved.

2-20           Sec. 23B.  (a)  If the board of directors finds that the

2-21     district is dissolved but does not transfer the land, buildings,

2-22     improvements, equipment, and other assets to Montgomery County or

2-23     another governmental entity in the district, the board of directors

2-24     shall continue to control and administer the property, debts, and

2-25     assets of the district until all funds have been disposed of and

 3-1     all district debts have been paid or settled.

 3-2           (b)  After the board of directors finds that the district is

 3-3     dissolved, the board of directors shall:

 3-4                 (1)  determine the debt owed by the district; and

 3-5                 (2)  impose on the property included in the district's

 3-6     tax rolls a tax that is in proportion of the debt to the property

 3-7     value.

 3-8           (c)  The board of directors may institute a suit to enforce

 3-9     payment of taxes and to foreclose liens to secure the payment of

3-10     taxes due the district.

3-11           (d)  When all outstanding debts and obligations of the

3-12     district are paid, the board of directors shall order the secretary

3-13     to return the pro rata share of all unused tax money to each

3-14     district taxpayer.  A taxpayer may request that the taxpayer's

3-15     share of surplus tax money be credited to the taxpayer's county

3-16     taxes.  If a taxpayer requests the credit, the board of directors

3-17     shall direct the secretary to transmit the funds to the county tax

3-18     assessor-collector.

3-19           (e)  After the district has paid all its debts and has

3-20     disposed of all its assets and funds as prescribed by this section,

3-21     the board of directors shall file a written report with the

3-22     commissioners court of Montgomery County setting forth a summary of

3-23     the board of directors' actions in dissolving the district.  Not

3-24     later than the 10th day after it receives the report and determine

3-25     that the requirements of this section have been fulfilled, the

 4-1     commissioners court shall enter an order dissolving the district.

 4-2           SECTION 2.  The importance of this legislation and the

 4-3     crowded condition of the calendars in both houses create an

 4-4     emergency and an imperative public necessity that the

 4-5     constitutional rule requiring bills to be read on three several

 4-6     days in each house be suspended, and this rule is hereby suspended

 4-7     and that this Act take effect and be in force from and after its

 4-8     passage, and it is so enacted.