HBA-NLM H.B. 2616 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2616 By: Counts County Affairs 4/3/1999 Introduced BACKGROUND AND PURPOSE The Garza County Hospital District no longer has a hospital in operation. Since the closing of the hospital, there has been concern that citizens are being taxed for services no longer provided and some question the need for the continuation of the district. However, the district's enabling legislation does not include provisions for the dissolution of the district. H.B. 2616 updates existing provisions of the enabling legislation for the district. In addition, this bill includes provisions for the dissolution of the district. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to require this Act to be operative so as to authorize the creation , establishment, maintenance, and operation of a health care district, rather than hospital district, within the State of Texas, to be known as the Garza County Health Care District. Makes a conforming change. SECTION 2. Amends Section 3(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to require an election of directors to be held on the first Saturday in May, rather than in April. SECTION 3. Amends Section 4, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make a conforming change. SECTION 4. Amends Section 5, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make a conforming change. SECTION 5. Amends Section 6, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to delete the text of existing Subsection (c), relating to the prohibition of the board of directors' power and authority to purchase, construct, and acquire certain property. Makes conforming changes. SECTION 6. Amends Section 7, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to delete text requiring a tax increases election to be held in the same manner as the election for the creation of the district. Makes a conforming change. SECTION 7. Amends Section 8(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make conforming and nonsubstantive changes. SECTION 8. Amends Section 9(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to delete text requiring an audit to be filed with the comptroller of public accounts of the State of Texas and makes a conforming change. SECTION 9. Amends Section 10, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make a conforming change. SECTION 10. Amends Section 11, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to require the health care district to be subject to inspection by any duly authorized representative of the Texas Department of Health, rather than the State Board of Health or any State Board of Charities or (Public Welfare) that now exists or that may be hereafter created. Makes conforming changes. SECTION 11. Amends Section 12, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make conforming changes. SECTION 12. Amends Section 13, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make conforming changes. SECTION 13. Amends Section 14, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make conforming changes. SECTION 14. Amends Section 16, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, to make a conforming change. SECTION 15. Amends Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, by adding Section 16A, as follows: Sec. 16A. (a) Authorizes the district to be dissolved and its assets and liabilities sold or transferred to another entity or person only if the dissolution and sale or transfer are approved by a majority of the qualified voters of the district voting in an election called and held for that purpose. (b) Authorizes the board to order an election on the question of dissolving the district and disposing of the district's assets and liabilities. (c) Requires the board of directors to order an election on the question of dissolving the district and disposing of the district's assets and liabilities if the board receives a petition requesting an election on the issue that is signed by at least 300 of the registered voters of the district, according to the most recent official list of registered voters. Requires the election to be called not later than the 60th day after the date the petition is presented to the district. (d) Sets forth the required contents of the order calling the election. (e) Requires the board to give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the district once a week for two consecutive weeks. Provides that the first publication must appear at least 35 days before the date set for the election. (f) Requires the election to be held not less than 45 days nor more than 60 days after the date on which the election is ordered. Provides that Section 41.001(a) (relating to the required dates for elections to be held), Election Code, does not apply to an election ordered under this Act. (g) Requires the ballot for the election to be printed to permit voting for or against the proposition, in the manner provided by this subsection. (h) Requires the board to canvass the returns of the election. Authorizes the board to issue an order declaring the district dissolved and requires the board to proceed with the sale or transfer of its assets and liabilities according to the plan proposed on the ballot, if the board finds that the election results are favorable to the proposition to dissolve the district and transfer or sell its assets and liabilities. Requires the board to continue to administer the district and prohibits another dissolution election from being held before the first anniversary of the date of the most recent election at which voters disapproved the proposition, if the board finds that the election results are not favorable to the proposition to dissolve the district. (i) Prohibits the district from being dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another entity or person, notwithstanding any other provision of this Act. (j) Prohibits the dissolution of the district and the sale or transfer of the district's assets and liabilities from contravening a trust indenture or bond resolution relating to the outstanding bonds of the district, or from diminishing or impairing the rights of a holder of any outstanding bond, warrant, or other obligation of the district. (k) Provides that the sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of the residents of the district, including the residents' collective property rights in the district's assets. Provides that a grant from federal funds is an obligation that must be repaid in full. Authorizes the district to transfer or sell the district's assets only for due compensation, unless the transfer or sale is made to another governmental agency serving the district and using the transferred or purchased assets for the benefit of the residents formerly in the district. SECTION 16. Effective date: September 1, 1999. SECTION 17. Emergency clause.