82R10637 CJC-D

By: Duncan S.B. No. 1900

A BILL TO BE ENTITLED

AN ACT

relating to the ability to exclude certain territory from the Hamlin Hospital District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 1037, Special District Local Laws Code, is amended by adding Subchapter G to read as follows:

SUBCHAPTER G. CHANGE IN BOUNDARIES

Sec. 1037.301. PETITION TO EXCLUDE TERRITORY FROM DISTRICT. (a) Registered voters of a defined territory included in the district may file a petition with the board requesting that the defined territory be excluded from the district.

(b) The petition must be signed by at least 50 registered voters of the territory or a majority of those voters, whichever is fewer.

Sec. 1037.302. NOTICE OF HEARING. (a) The board by order shall set a time and place to hold a hearing on a petition to exclude a defined territory from the district.

(b) The hearing shall be held at least 30 days after the date the board issues the order.

(c) The board shall notify the governing body of the territory to be excluded of the hearing.

Sec. 1037.303. ORDER OF EXCLUSION. (a) If, after a hearing under Section 1037.302, the board and the governing body of the territory to be excluded determine that exclusion of the territory from the district would benefit the district, the board and the governing body may approve the exclusion by a resolution entered in their minutes.

(b) The board and the governing body of the territory to be excluded are not required to exclude all territory described in the petition if the board and the governing body find that excluding only a portion of the territory is necessary or desirable.

Sec. 1037.304. RATIFICATION ELECTION. (a) Exclusion of territory is final when approved by a majority of the voters at:

(1) an election held in the district; and

(2) a separate election held in the territory to be excluded.

(b) The election shall be held not earlier than the 45th day and not later than the 60th day after the date the election is ordered.

(c) The election may be called by the governing body of the territory to be excluded on its own motion.

(d) The election order must state:

(1) the nature of the election, including the proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an election held under this section.

Sec. 1037.305. NOTICE OF RATIFICATION ELECTION. (a) The governing body of the territory to be excluded shall give notice of an election under Section 1037.304 by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in:

(1) the district; and

(2) the territory proposed to be excluded from the district.

(b) The first publication of the notice must appear at least 35 days before the date of the election.

Sec. 1037.306. BALLOT. The ballot for an election under Section 1037.304 shall be printed to permit voting for or against the proposition: "Excluding (description of territory to be excluded) from the Hamlin Hospital District."

Sec. 1037.307. SATISFACTION OF PROPORTIONATE SHARE OF DEBT. The exclusion of territory under this subchapter does not diminish or impair the rights of the holders of any outstanding and unpaid bonds, warrants, or other district obligations. The district shall continue to impose taxes each year on the excluded territory at the same rate imposed on other territory in the district until the total amount of taxes collected from the excluded territory equals its pro rata share of the indebtedness of the district at the time the territory was excluded. The taxes collected under this section shall be applied only to the payment of the excluded territory's pro rata share of indebtedness. The owner of all or part of the excluded territory at any time may pay in full the owner's share of the excluded territory's pro rata share of the district's indebtedness at the time the territory was excluded.

Sec. 1037.308. EXCLUSION ORDER. After the territory to be excluded has paid its proportionate share of the district debt, the board shall enter a resolution in its minutes excluding the territory from the district and releasing the excluded territory from any further duty or obligation.

SECTION 2. This Act takes effect September 1, 2011.