SRC-DPW H.B. 1111 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1111
By: Walker (Bernsen)
Intergovernmental Relations
5/10/1999
Engrossed


DIGEST 

Currently, Texas law enables hospital districts established after 1989 to
organize according to set guidelines and to dissolve according to standard
language.  The Montgomery County Hospital District was organized prior to
1989 and does not contain dissolution language.  This bill would establish
procedures for the dissolution of the Montgomery County Hospital District. 

PURPOSE

As proposed, H.B. 1111 establishes procedures for the dissolution of the
Montgomery County Hospital District. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 258, Acts of the 65th Legislature, Regular
Session, 1977, by adding Sections 23A and 23B, as follows: 

Sec. 23A. Authorizes the Montgomery County Hospital District's (district)
board of directors (board) to order an election on the question of
dissolving the district and disposing of its assets and obligations.  Sets
forth the required schedule for the election and the required format of the
ballot.  Requires  the election to be held in accordance with the
applicable provisions of the Election Code.  Requires the board to: find
that the district is dissolved; transfer the ambulance service and all real
property that belongs to Montgomery County (county) not later than the 45th
day after the election is held; and administer the property, assets, and
debts in accordance with Subsections (g) - (k), if a majority of votes in
the election favor dissolution.  Requires the board to continue to
administer the district if a majority does not favor dissolution, and
prohibits another election to be held before the fourth anniversary of the
most recent election to dissolve the district.  Provides that the county
assumes all debts and obligations of the district after accepting
transferred ambulance service and related equipment, and other real
property transferred under Subsection (e)(2).  Provides that the county
should use the transferred assets in a manner that benefits residents of
the county residing in the territory formerly constituting the district.
Requires the board to continue to administer and control all property and
assets not transferred and the related debts until all funds have been
disposed of and all district debts have been paid or settled.  Requires the
board to determine the debt owed by the district and impose a property tax
that is in proportion to the debt owed, after the board finds that the
district is dissolved.  Authorizes the district to institute a suit to
enforce payment of taxes and to foreclose liens to secure the payment of
taxes due the district.  Sets forth procedures for the disposition of
unused tax money that remains after all outstanding debts and obligations
of the district are paid.  Requires the board to file a written report with
the Commissioners Court of Montgomery County (commissioners court)
summarizing the board's actions taken in dissolving the district, after the
district has paid all of its debts and transferred all its assets and
obligations.  Requires the commissioners court to enter an order dissolving
the district within 10 days of receiving the written report and determining
that all requirements have been fulfilled. 

Sec. 23B. Requires the board to order an election on the question of
dissolving the district if the board receives a petition requesting such an
election and it is signed by 15 percent of the registered voters of the
district.  Sets forth the required schedule for such an election and the
required format of the ballot.  Requires the board to find that the
district is dissolved if a majority of the votes in the election favor
dissolution.  Makes conforming changes.   

SECTION 2.Emergency clause.
  Effective date: upon passage.