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