By Williams, Hope                                     H.B. No. 1111
                                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 board of directors may order an election
 1-9     on the question of dissolving the district and disposing of the
1-10     district's assets and obligations.
1-11           (b)  The election shall be held on the earlier of the
1-12     following dates that occurs at least 90 days after the date on
1-13     which the election is ordered:
1-14                 (1)  the first Saturday in May; or
1-15                 (2)  the date of the general election for state and
1-16     county officers.
1-17           (c)  The ballot for the election shall be printed to permit
1-18     voting for or against the proposition:  "The dissolution of the
1-19     Montgomery County Hospital District."  The election shall be held
1-20     in accordance with the applicable provisions of the Election Code.
1-21           (d)  If a majority of the votes in the election favor
1-22     dissolution, the board of directors shall find that the district is
1-23     dissolved.  If a majority of the votes in the election do not favor
1-24     dissolution, the board of directors shall continue to administer
 2-1     the district and another election on the question of dissolution
 2-2     may not be held before the fourth anniversary of the most recent
 2-3     election to dissolve the district.
 2-4           (e)  If a majority of the votes in the election favor
 2-5     dissolution, the board of directors shall:
 2-6                 (1)  transfer the ambulance service and related
 2-7     equipment, any vehicles, and any mobile clinics and related
 2-8     equipment that belong to the district to Montgomery County not
 2-9     later than the 45th day after the date on which the election is
2-10     held; and
2-11                 (2)  transfer the land, buildings, improvements,
2-12     equipment not described by Subdivision (1) of this subsection, and
2-13     other assets that belong to the district to Montgomery County or
2-14     administer the property, assets, and debts in accordance with
2-15     Subsections (g)-(k) of this section.
2-16           (f)  The county assumes all debts and obligations of the
2-17     district relating to the ambulance service and related equipment,
2-18     any vehicles, and any mobile clinics and related equipment at the
2-19     time of the transfer.  If the district also transfers the land,
2-20     buildings, improvements, equipment, and other assets to Montgomery
2-21     County under Subsection (e)(2) of this section, the county assumes
2-22     all debts and obligations of the district relating to those assets
2-23     at the time of the transfer and the district is dissolved.  The
2-24     county should use all transferred assets in a manner that benefits
2-25     residents of the county residing in territory formerly constituting
2-26     the district.
2-27           (g)  If the board of directors finds that the district is
 3-1     dissolved but does not transfer the land, buildings, improvements,
 3-2     equipment, and other assets to Montgomery County under Subsection
 3-3     (e)(2) of this section, the board of directors shall continue to
 3-4     control and administer that property and those assets and the
 3-5     related debts of the district until all funds have been disposed of
 3-6     and all district debts have been paid or settled.
 3-7           (h)  After the board of directors finds that the district is
 3-8     dissolved, the board of directors shall:
 3-9                 (1)  determine the debt owed by the district; and
3-10                 (2)  impose on the property included in the district's
3-11     tax rolls a tax that is in proportion of the debt to the property
3-12     value.
3-13           (i)  The board of directors may institute a suit to enforce
3-14     payment of taxes and to foreclose liens to secure the payment of
3-15     taxes due the district.
3-16           (j)  When all outstanding debts and obligations of the
3-17     district are paid, the board of directors shall order the secretary
3-18     to return the pro rata share of all unused tax money to each
3-19     district taxpayer and all unused district money from any other
3-20     source to Montgomery County.  A taxpayer may request that the
3-21     taxpayer's share of surplus tax money be credited to the taxpayer's
3-22     county taxes.  If a taxpayer requests the credit, the board of
3-23     directors shall direct the secretary to transmit the funds to the
3-24     county tax assessor-collector.
3-25           (k)  After the district has paid all its debts and has
3-26     disposed of all its assets and funds as prescribed by this section,
3-27     the board of directors shall file a written report with the
 4-1     Commissioners Court of Montgomery County setting forth a summary of
 4-2     the board of directors' actions in dissolving the district.  Not
 4-3     later than the 10th day after it receives the report and determines
 4-4     that the requirements of this section have been fulfilled, the
 4-5     commissioners court shall enter an order dissolving the district.
 4-6           Sec. 23B.  (a)  The board of directors shall order an
 4-7     election on the question of dissolving the district and disposing
 4-8     of the district's assets and obligations if the board of directors
 4-9     receives a petition requesting an election that is signed by a
4-10     number of residents of the district equal to at least 15 percent of
4-11     the registered voters in the district.
4-12           (b)  The election shall be held on the earlier of the
4-13     following dates that occurs at least 90 days after the date on
4-14     which the election is ordered:
4-15                 (1)  the first Saturday in May; or
4-16                 (2)  the date of the general election for state and
4-17     county officers.
4-18           (c)  The ballot for the election shall be printed to permit
4-19     voting for or against the proposition:  "The dissolution of the
4-20     Montgomery County Hospital District."  The election shall be held
4-21     in accordance with the applicable provisions of the Election Code.
4-22           (d)  If a majority of the votes in the election favor
4-23     dissolution, the board of directors shall find that the district is
4-24     dissolved.  If a majority of the votes in the election do not favor
4-25     dissolution, the board of directors shall continue to administer
4-26     the district and another election on the question of dissolution
4-27     may not be held before the fourth anniversary of the most recent
 5-1     election to dissolve the district.
 5-2           (e)  If a majority of the votes in the election favor
 5-3     dissolution, the board of directors shall transfer the land,
 5-4     buildings, improvements, equipment, and other assets that belong to
 5-5     the district to Montgomery County not later than the 45th day after
 5-6     the date on which the election is held.  The county assumes all
 5-7     debts and obligations of the district at the time of the transfer
 5-8     and the district is dissolved.  The county should use all
 5-9     transferred assets in a manner that benefits residents of the
5-10     county residing in territory formerly constituting the district.
5-11           SECTION 2.  The importance of this legislation and the
5-12     crowded condition of the calendars in both houses create an
5-13     emergency and an imperative public necessity that the
5-14     constitutional rule requiring bills to be read on three several
5-15     days in each house be suspended, and this rule is hereby suspended,
5-16     and that this Act take effect and be in force from and after its
5-17     passage, and it is so enacted.