1-1 By: Williams, Hope (Senate Sponsor - Bernsen) H.B. No. 1111 1-2 (In the Senate - Received from the House May 6, 1999; 1-3 May 7, 1999, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 14, 1999, reported favorably, as 1-5 amended, by the following vote: Yeas 5, Nays 0; May 14, 1999, sent 1-6 to printer.) 1-7 COMMITTEE AMENDMENT NO. 1 By: Ellis 1-8 Amend H.B. No. 1111 as follows: 1-9 (1) In SECTION 1 of the bill, in proposed Subsection (f), 1-10 Section 23A, Chapter 258, Acts of the 65th Legislature, Regular 1-11 Session, 1977 (House engrossment, page 2, lines 19-22), strike "The 1-12 county should use all transferred assets in a manner that benefits 1-13 residents of the county residing in territory formerly constituting 1-14 the district." and substitute the following: 1-15 The county shall use all transferred assets to: 1-16 (1) pay the outstanding debts and obligations of the 1-17 district relating to the assets at the time of the transfer; or 1-18 (2) furnish medical and hospital care for the needy 1-19 residents of the county. 1-20 (2) In SECTION 1 of the bill, at the end of proposed 1-21 Subsection (j), Section 23A, Chapter 258, Acts of the 65th 1-22 Legislature, Regular Session, 1977 (House engrossment, page 2, 1-23 between lines 47 and 48), insert "Montgomery County shall use 1-24 unused district money received under this section to furnish 1-25 medical and hospital care for the needy residents of the county." 1-26 (3) In SECTION 1 of the bill, at the end of proposed 1-27 Subsection (e), Section 23B, Chapter 258, Acts of the 65th 1-28 Legislature, Regular Session, 1977 (House engrossment, page 3, line 1-29 18), insert the following: 1-30 The county shall use all transferred assets to: 1-31 (1) pay the outstanding debts and obligations of the 1-32 district relating to the assets at the time of the transfer; or 1-33 (2) furnish medical and hospital care for the needy 1-34 residents of the county. 1-35 A BILL TO BE ENTITLED 1-36 AN ACT 1-37 relating to the dissolution of the Montgomery County Hospital 1-38 District. 1-39 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-40 SECTION 1. Chapter 258, Acts of the 65th Legislature, 1-41 Regular Session, 1977, is amended by adding Sections 23A and 23B to 1-42 read as follows: 1-43 Sec. 23A. (a) The board of directors may order an election 1-44 on the question of dissolving the district and disposing of the 1-45 district's assets and obligations. 1-46 (b) The election shall be held on the earlier of the 1-47 following dates that occurs at least 90 days after the date on 1-48 which the election is ordered: 1-49 (1) the first Saturday in May; or 1-50 (2) the date of the general election for state and 1-51 county officers. 1-52 (c) The ballot for the election shall be printed to permit 1-53 voting for or against the proposition: "The dissolution of the 1-54 Montgomery County Hospital District." The election shall be held 1-55 in accordance with the applicable provisions of the Election Code. 1-56 (d) If a majority of the votes in the election favor 1-57 dissolution, the board of directors shall find that the district is 1-58 dissolved. If a majority of the votes in the election do not favor 1-59 dissolution, the board of directors shall continue to administer 1-60 the district and another election on the question of dissolution 1-61 may not be held before the fourth anniversary of the most recent 1-62 election to dissolve the district. 1-63 (e) If a majority of the votes in the election favor 2-1 dissolution, the board of directors shall: 2-2 (1) transfer the ambulance service and related 2-3 equipment, any vehicles, and any mobile clinics and related 2-4 equipment that belong to the district to Montgomery County not 2-5 later than the 45th day after the date on which the election is 2-6 held; and 2-7 (2) transfer the land, buildings, improvements, 2-8 equipment not described by Subdivision (1) of this subsection, and 2-9 other assets that belong to the district to Montgomery County or 2-10 administer the property, assets, and debts in accordance with 2-11 Subsections (g)-(k) of this section. 2-12 (f) The county assumes all debts and obligations of the 2-13 district relating to the ambulance service and related equipment, 2-14 any vehicles, and any mobile clinics and related equipment at the 2-15 time of the transfer. If the district also transfers the land, 2-16 buildings, improvements, equipment, and other assets to Montgomery 2-17 County under Subsection (e)(2) of this section, the county assumes 2-18 all debts and obligations of the district relating to those assets 2-19 at the time of the transfer and the district is dissolved. The 2-20 county should use all transferred assets in a manner that benefits 2-21 residents of the county residing in territory formerly constituting 2-22 the district. 2-23 (g) If the board of directors finds that the district is 2-24 dissolved but does not transfer the land, buildings, improvements, 2-25 equipment, and other assets to Montgomery County under Subsection 2-26 (e)(2) of this section, the board of directors shall continue to 2-27 control and administer that property and those assets and the 2-28 related debts of the district until all funds have been disposed of 2-29 and all district debts have been paid or settled. 2-30 (h) After the board of directors finds that the district is 2-31 dissolved, the board of directors shall: 2-32 (1) determine the debt owed by the district; and 2-33 (2) impose on the property included in the district's 2-34 tax rolls a tax that is in proportion of the debt to the property 2-35 value. 2-36 (i) The board of directors may institute a suit to enforce 2-37 payment of taxes and to foreclose liens to secure the payment of 2-38 taxes due the district. 2-39 (j) When all outstanding debts and obligations of the 2-40 district are paid, the board of directors shall order the secretary 2-41 to return the pro rata share of all unused tax money to each 2-42 district taxpayer and all unused district money from any other 2-43 source to Montgomery County. A taxpayer may request that the 2-44 taxpayer's share of surplus tax money be credited to the taxpayer's 2-45 county taxes. If a taxpayer requests the credit, the board of 2-46 directors shall direct the secretary to transmit the funds to the 2-47 county tax assessor-collector. 2-48 (k) After the district has paid all its debts and has 2-49 disposed of all its assets and funds as prescribed by this section, 2-50 the board of directors shall file a written report with the 2-51 Commissioners Court of Montgomery County setting forth a summary of 2-52 the board of directors' actions in dissolving the district. Not 2-53 later than the 10th day after it receives the report and determines 2-54 that the requirements of this section have been fulfilled, the 2-55 commissioners court shall enter an order dissolving the district. 2-56 Sec. 23B. (a) The board of directors shall order an 2-57 election on the question of dissolving the district and disposing 2-58 of the district's assets and obligations if the board of directors 2-59 receives a petition requesting an election that is signed by a 2-60 number of residents of the district equal to at least 15 percent of 2-61 the registered voters in the district. 2-62 (b) The election shall be held on the earlier of the 2-63 following dates that occurs at least 90 days after the date on 2-64 which the election is ordered: 2-65 (1) the first Saturday in May; or 2-66 (2) the date of the general election for state and 2-67 county officers. 2-68 (c) The ballot for the election shall be printed to permit 2-69 voting for or against the proposition: "The dissolution of the 3-1 Montgomery County Hospital District." The election shall be held 3-2 in accordance with the applicable provisions of the Election Code. 3-3 (d) If a majority of the votes in the election favor 3-4 dissolution, the board of directors shall find that the district is 3-5 dissolved. If a majority of the votes in the election do not favor 3-6 dissolution, the board of directors shall continue to administer 3-7 the district and another election on the question of dissolution 3-8 may not be held before the fourth anniversary of the most recent 3-9 election to dissolve the district. 3-10 (e) If a majority of the votes in the election favor 3-11 dissolution, the board of directors shall transfer the land, 3-12 buildings, improvements, equipment, and other assets that belong to 3-13 the district to Montgomery County not later than the 45th day after 3-14 the date on which the election is held. The county assumes all 3-15 debts and obligations of the district at the time of the transfer 3-16 and the district is dissolved. The county should use all 3-17 transferred assets in a manner that benefits residents of the 3-18 county residing in territory formerly constituting the district. 3-19 SECTION 2. The importance of this legislation and the 3-20 crowded condition of the calendars in both houses create an 3-21 emergency and an imperative public necessity that the 3-22 constitutional rule requiring bills to be read on three several 3-23 days in each house be suspended, and this rule is hereby suspended, 3-24 and that this Act take effect and be in force from and after its 3-25 passage, and it is so enacted. 3-26 * * * * *