SRC-DPW H.B. 1889 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1889
76R678 MDR-DBy: Keffer (Brown)
Intergovernmental Relations
4/19/1999
Engrossed


DIGEST 

Currently, the Ranger Hospital District (district) is operating under the
Chapter 9 Bankruptcy Plan of Liquidation dated May 22, 1990.  The district
is approximately one year away from fulfilling the financial obligations of
the plan and the board of directors of the district has requested that the
district be dissolved.   Because the district was created by Article IX,
Section 9, Texas Constitution, legislative action is required to dissolve
the district. 

PURPOSE

As proposed, H.B. 1889 sets forth a procedure for the dissolution of the
Ranger Hospital District of Eastland County, Texas. 

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 93, Acts of the 61st Legislature, Regular
Session, 1969, by adding Sections 21A and 21B, as follows: 

Sec. 21A. Authorizes the Ranger Hospital District (district) to be
dissolved as provided by this section.  Authorizes the board of directors
of the district (board) to order an election on the question of dissolving
the district and disposing of the district's assets and obligations.
Requires the board to order an election if the board receives a petition,
signed by at least 15 percent of the registered voters of the district,
requesting the election.  Requires the election, to which Section
41.001(a), Election Code, does not apply, to be held not later than the
60th day after the order for the election.  Requires the ballot to contain
certain text and requires the election to be held in accordance with the
Election Code.  Requires the board to take action regarding the dissolution
of the district if a majority of the voters favor dissolution.  Requires
the board to continue and administer the district if a majority of voters
do not favor dissolution, and prohibits another election regarding
dissolution of the district from being held within one year of the most
recent election to dissolve the district.  Requires the board to transfer
all property and assets that belong to the district to a governmental
entity in the district which assumes all debts and obligations of the
district at the time of transfer, dissolving the district, and administer
the property, assets, and debts in accordance with Section 21B, if the
majority of voters favor dissolution. 

Sec. 21B. Requires the board to administer the property, assets, and debts
of the district until all funds have been disposed of and all debts are
settled, if the board finds that the district is dissolved but does not
transfer the property and assets.  Requires the board to determine the debt
owed by the district and impose a tax on the property included on the
district's tax rolls, after the board finds that the district is dissolved.
Authorizes the board to institute a suit to enforce payment of taxes and to
foreclose liens to secure payment of taxes due the district.  Requires the
board to order the secretary of the board (secretary) to return the pro
rata share of all unused tax money to each district taxpayer, when all
debts and obligations are paid.  Requires the board to file a written
report with the commissioners court of Eastland County setting forth the
board's actions in dissolving the district, after all debts and assets are
settled.  Requires the commissioners court to enter an order dissolving the
district not later than 10 days after receiving a report from the board and
determining that the requirements of this section have  been fulfilled. 

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