83R3595 CJC-F

By: King of Taylor H.B. No. 2118

A BILL TO BE ENTITLED

AN ACT

relating to the exclusion of certain territory from the Hamlin Hospital District and to the procedures for the dissolution of the district; authorizing the imposition of a tax.

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

SECTION 1. Chapter 1037, Special District Local Laws Code, is amended by adding Subchapters G and H 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. ELECTION. (a) On receipt of a petition filed under Section 1037.301, the board shall order an election on the question of excluding the territory described in the petition from the district.

(b) Exclusion of the 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.

(c) 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.

(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. 1037.303. NOTICE OF ELECTION. (a) The board shall give notice of an election under Section 1037.302 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. 1037.304. BALLOT. The ballot for an election under Section 1037.302 shall be printed to permit voting for or against the proposition: "Excluding (description of territory to be excluded) from the Hamlin Hospital District."

Sec. 1037.305. 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. 1037.306. 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.

SUBCHAPTER H. DISSOLUTION

Sec. 1037.351. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the district voters voting in an election held for that purpose.

(b) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c) The board shall order an election if the board receives a petition requesting an election that is signed by at least 10 percent of the registered voters in the district.

(d) The order calling the election 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 ordered under this section.

Sec. 1037.352. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not later than the 35th day before the date set for the election.

Sec. 1037.353. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Hamlin Hospital District."

Sec. 1037.354. ELECTION RESULTS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor dissolution, the board shall continue to administer the district and another election on the question of dissolution may not be held before the first anniversary of the date of the most recent election to dissolve the district.

Sec. 1037.355. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in an election held under this subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Jones County or another governmental entity in Jones County;

(2) sell the assets and liabilities to another person; or

(3) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(c) If Subsections (a)(1) and (2) do not apply and the board administers the property, assets, and debts of the district under Subsection (a)(3), the district is dissolved when all money has been disposed of and all district debts have been paid or settled.

Sec. 1037.356. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(b) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(c) The district may not transfer or dispose of the district's assets except for due compensation unless:

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

Sec. 1037.357. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES. (a) After the board finds that the district is dissolved, the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value.

(b) On the payment of all outstanding debts and obligations of the district, the board shall order the secretary to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.

(c) A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. If a taxpayer requests the credit, the board shall direct the secretary to transmit the money to the county tax assessor-collector.

Sec. 1037.358. REPORT; DISSOLUTION ORDER. (a) After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Jones County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Jones County receives the report and determines that the requirements of this subchapter have been fulfilled, the commissioners court shall enter an order dissolving the district and releasing the board from any further duty or obligation.

SECTION 2. This Act takes effect September 1, 2013.