By Williams                                           H.B. No. 1111
         76R1515 SKT-D                           
                                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 district may be dissolved as provided by
 1-9     this section.
1-10           (b)  The board of directors may order an election on the
1-11     question of dissolving the district and disposing of the district's
1-12     assets and obligations.  The board of directors shall order an
1-13     election if the board of directors receives a petition requesting
1-14     an election that is signed by a number of residents of the district
1-15     equal to at least 5 percent of the total vote received in the
1-16     district by all the candidates for governor in the most recent
1-17     gubernatorial general election.
1-18           (c)  The election shall be held not later than the 60th day
1-19     after the date on which the election is ordered.  Section
1-20     41.001(a), Election Code, does not apply to an election ordered
1-21     under this section.
1-22           (d)  The ballot for the election shall be printed to permit
1-23     voting for or against the proposition:  "The dissolution of the
1-24     Montgomery County Hospital District."  The election shall be held
 2-1     in accordance with the applicable provisions of the Election Code.
 2-2           (e)  If a majority of the votes in the election favor
 2-3     dissolution, the board of directors shall find that the district is
 2-4     dissolved.  If a majority of the votes in the election do not favor
 2-5     dissolution, the board of directors shall continue to administer
 2-6     the district and another election on the question of dissolution
 2-7     may not be held before the first anniversary of the most recent
 2-8     election to dissolve the district.
 2-9           (f)  If a majority of the votes in the election favor
2-10     dissolution, the board of directors shall transfer the land,
2-11     buildings, improvements, equipment, and other assets that belong to
2-12     the district to Montgomery County or another governmental entity in
2-13     the district or shall administer the property, assets, and debts in
2-14     accordance with Section 23B of this Act.  If the district transfers
2-15     the land, buildings, improvements, equipment, and other assets to
2-16     Montgomery County or another governmental entity, the county or
2-17     entity assumes all debts and obligations of the district at the
2-18     time of the transfer and the district is dissolved.
2-19           Sec. 23B.  (a)  If the board of directors finds that the
2-20     district is dissolved but does not transfer the land, buildings,
2-21     improvements, equipment, and other assets to Montgomery County or
2-22     another governmental entity in the district, the board of directors
2-23     shall continue to control and administer the property, debts, and
2-24     assets of the district until all funds have been disposed of and
2-25     all district debts have been paid or settled.
2-26           (b)  After the board of directors finds that the district is
2-27     dissolved, the board of directors shall:
 3-1                 (1)  determine the debt owed by the district; and
 3-2                 (2)  impose on the property included in the district's
 3-3     tax rolls a tax that is in proportion of the debt to the property
 3-4     value.
 3-5           (c)  The board of directors may institute a suit to enforce
 3-6     payment of taxes and to foreclose liens to secure the payment of
 3-7     taxes due the district.
 3-8           (d)  When all outstanding debts and obligations of the
 3-9     district are paid, the board of directors shall order the secretary
3-10     to return the pro rata share of all unused tax money to each
3-11     district taxpayer.  A taxpayer may request that the taxpayer's
3-12     share of surplus tax money be credited to the taxpayer's county
3-13     taxes.  If a taxpayer requests the credit, the board of directors
3-14     shall direct the secretary to transmit the funds to the county tax
3-15     assessor-collector.
3-16           (e)  After the district has paid all its debts and has
3-17     disposed of all its assets and funds as prescribed by this section,
3-18     the board of directors shall file a written report with the
3-19     commissioners court of Montgomery County setting forth a summary of
3-20     the board of directors' actions in dissolving the district.  Not
3-21     later than the 10th day after it receives the report and determines
3-22     that the requirements of this section have been fulfilled, the
3-23     commissioners court shall enter an order dissolving the district.
3-24           SECTION 2.  The importance of this legislation and the
3-25     crowded condition of the calendars in both houses create an
3-26     emergency and an imperative public necessity that the
3-27     constitutional rule requiring bills to be read on three several
 4-1     days in each house be suspended, and this rule is hereby suspended,
 4-2     and that this Act take effect and be in force from and after its
 4-3     passage, and it is so enacted.