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 shall use all transferred assets to:
2-25                 (1)  pay the outstanding debts and obligations of the
2-26     district relating to the assets at the time of the transfer; or
2-27                 (2)  furnish medical and hospital care for the needy
 3-1     residents of the county.
 3-2           (g)  If the board of directors finds that the district is
 3-3     dissolved but does not transfer the land, buildings, improvements,
 3-4     equipment, and other assets to Montgomery County under Subsection
 3-5     (e)(2) of this section, the board of directors shall continue to
 3-6     control and administer that property and those assets and the
 3-7     related debts of the district until all funds have been disposed of
 3-8     and all district debts have been paid or settled.
 3-9           (h)  After the board of directors finds that the district is
3-10     dissolved, the board of directors shall:
3-11                 (1)  determine the debt owed by the district; and
3-12                 (2)  impose on the property included in the district's
3-13     tax rolls a tax that is in proportion of the debt to the property
3-14     value.
3-15           (i)  The board of directors may institute a suit to enforce
3-16     payment of taxes and to foreclose liens to secure the payment of
3-17     taxes due the district.
3-18           (j)  When all outstanding debts and obligations of the
3-19     district are paid, the board of directors shall order the secretary
3-20     to return the pro rata share of all unused tax money to each
3-21     district taxpayer and all unused district money from any other
3-22     source to Montgomery County.  A taxpayer may request that the
3-23     taxpayer's share of surplus tax money be credited to the taxpayer's
3-24     county taxes.  If a taxpayer requests the credit, the board of
3-25     directors shall direct the secretary to transmit the funds to the
3-26     county tax assessor-collector.  Montgomery County shall use unused
3-27     district money received under this section to furnish medical and
 4-1     hospital care for the needy residents of the county.
 4-2           (k)  After the district has paid all its debts and has
 4-3     disposed of all its assets and funds as prescribed by this section,
 4-4     the board of directors shall file a written report with the
 4-5     Commissioners Court of Montgomery County setting forth a summary of
 4-6     the board of directors' actions in dissolving the district.  Not
 4-7     later than the 10th day after it receives the report and determines
 4-8     that the requirements of this section have been fulfilled, the
 4-9     commissioners court shall enter an order dissolving the district.
4-10           Sec. 23B.  (a)  The board of directors shall order an
4-11     election on the question of dissolving the district and disposing
4-12     of the district's assets and obligations if the board of directors
4-13     receives a petition requesting an election that is signed by a
4-14     number of residents of the district equal to at least 15 percent of
4-15     the registered voters in the district.
4-16           (b)  The election shall be held on the earlier of the
4-17     following dates that occurs at least 90 days after the date on
4-18     which the election is ordered:
4-19                 (1)  the first Saturday in May; or
4-20                 (2)  the date of the general election for state and
4-21     county officers.
4-22           (c)  The ballot for the election shall be printed to permit
4-23     voting for or against the proposition:  "The dissolution of the
4-24     Montgomery County Hospital District."  The election shall be held
4-25     in accordance with the applicable provisions of the Election Code.
4-26           (d)  If a majority of the votes in the election favor
4-27     dissolution, the board of directors shall find that the district is
 5-1     dissolved.  If a majority of the votes in the election do not favor
 5-2     dissolution, the board of directors shall continue to administer
 5-3     the district and another election on the question of dissolution
 5-4     may not be held before the fourth anniversary of the most recent
 5-5     election to dissolve the district.
 5-6           (e)  If a majority of the votes in the election favor
 5-7     dissolution, the board of directors shall transfer the land,
 5-8     buildings, improvements, equipment, and other assets that belong to
 5-9     the district to Montgomery County not later than the 45th day after
5-10     the date on which the election is held.  The county assumes all
5-11     debts and obligations of the district at the time of the transfer
5-12     and the district is dissolved.  The county should use all
5-13     transferred assets in a manner that benefits residents of the
5-14     county residing in territory formerly constituting the district.
5-15     The county shall use all transferred assets to:
5-16                 (1)  pay the outstanding debts and obligations of the
5-17     district relating to the assets at the time of the transfer; or
5-18                 (2)  furnish medical and hospital care for the needy
5-19     residents of the county.
5-20           SECTION 2.  The importance of this legislation and the
5-21     crowded condition of the calendars in both houses create an
5-22     emergency and an imperative public necessity that the
5-23     constitutional rule requiring bills to be read on three several
5-24     days in each house be suspended, and this rule is hereby suspended,
5-25     and that this Act take effect and be in force from and after its
5-26     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1111 was passed by the House on May
         5, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1111 on May 26, 1999, by the
         following vote:  Yeas 144, Nays 0, 2 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1111 was passed by the Senate, with
         amendments, on May 24, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor