HBA-NLM C.S.H.B. 1111 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1111
By: Williams
County Affairs
4/25/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law enables hospital districts established after 1989 to organize
according to set guidelines and to dissolve according to standard language.
The Montgomery County Hospital District was organized prior to 1989 and
does not contain dissolution language.  C.S.H.B. 1111 authorizes the board
of directors (board) of the Montgomery County Hospital District (district)
to order an election regarding the question of the district's dissolution.
If a majority of the votes in the election favor dissolution, the board
must find that the district is dissolved.  On the other hand, if a majority
of the votes in the election do not favor dissolution, the board  must
continue to administer the district. Another election on the question of
dissolution is prohibited from being held before the fourth anniversary of
the most recent election to dissolve the district. 

Under this bill, if a majority of the votes in the election favor
dissolution, the board must transfer the ambulance service and related
equipment, any vehicles, and any mobile clinics and related equipment that
belong to the district to Montgomery County within 45 days after the
election is held, and must transfer the land, buildings, improvements,
equipment not described above, and other assets that belong to the district
to Montgomery County.  Montgomery County assumes all debts and obligations
of the district relating to both types of transfers. After  the board finds
that the district is dissolved, the board is required to determine the debt
owed by the district and impose a tax that is in proportion of the debt to
the property value on the property included in the district's tax roll. In
addition, the board is required to order the secretary to return to each
district taxpayer a proportionate share of all unused tax money and to
Montgomery County all unused district money from any other source after all
outstanding debts and obligations of the district are paid. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 258, Acts of the 65th Legislature, Regular
Session, 1977, by adding Sections 23A and 23B, as follows: 

Sec. 23A.  (a) Authorizes the Montgomery County Hospital District's
(district) board of directors (board) to order an election on the question
of dissolving the district and disposing of the district's assets and
obligations. 

(b) Requires the election to be held on the earlier of the first Saturday
in May or the date of the general election for state and county officers,
depending on which one occurs at least 90 days after the election is
ordered. 

(c) Requires that the ballot for the election be printed to permit voting
for or against the proposition: "The dissolution of the Montgomery County
Hospital District."  Requires the election to be held in accordance with
the applicable provisions of the Election Code.   

(d)  Requires the board to find that the district is dissolved if a
majority of the votes in the election favor dissolution.  Requires the
board to continue to administer the district if a  majority of the votes in
the election do not favor dissolution.  Prohibits another election on the
question of dissolution from being held before the fourth anniversary of
the most recent election to dissolve the district. 

(e) Requires the board, if a majority of the votes in the election favor
dissolution, to transfer the ambulance service and related equipment, any
vehicles, and any mobile clinics and related equipment that belong to the
district to Montgomery County (county) within 45 days after the election is
held, and to transfer the land, buildings, improvements, equipment not
described above, and other assets that belong to the district to Montgomery
County in accordance with Subsections (g)-(k) of Section 23A.   

(f) Provides that the county assumes all debts and obligations of the
district relating to the ambulance service and related equipment, any
vehicles, and any mobile clinics and related equipment at the time of the
transfer.  Provides that,  if the district also transfers the land,
buildings, improvements, equipment, and other assets to Montgomery County,
the county assumes all debts and obligations of the district  at the time
of the transfer.  Provides that the county should use all transferred
assets in a manner that benefits residents of the county residing in
territory formerly constituting the district. 

(g) Requires the board to continue to control and administer the property,
debts, and assets of the district until all funds have been disposed of and
all district debts have been paid or settled, in the event that the board
finds that the district is dissolved but does not transfer the land,
buildings, improvements, equipment, and other assets to Montgomery County. 

(h) Requires the board,  after it finds that the district is dissolved, to
determine the debt owed by the district and impose a tax that is in
proportion of the debt to the property value on the property included in
the district's tax roll. 

(i) Authorizes the board to institute a suit to enforce payment of taxes
and to foreclose liens to secure the payment of taxes due to the district. 

(j) Requires the board to order the secretary to return to each district
taxpayer a proportionate share of all unused tax money and to Montgomery
County all unused district money from any other source after all
outstanding debts and obligations of the district are paid.  Authorizes a
taxpayer to request that the taxpayer's share of surplus tax money be
credited to the taxpayer's county taxes.  Requires the board to direct the
secretary to transmit the funds to the county tax assessor-collector if the
taxpayer requests the credit. 

(k) Requires the board to file a written report with the commissioners
court of Montgomery County to summarize the board of directors' actions in
dissolving the district, after the district has paid all its debts and has
disposed of all its assets and funds as prescribed by this section.
Requires the commissioners court to enter an order dissolving the district,
by the 10th day after it receives the report and determines that the
requirements of this section have been fulfilled. 

Sec. 23B. (a) Requires the board to order an election on the question of
dissolving the district and disposing of the district's assets and
obligations if the board receives a petition requesting an election that is
signed by a number of residents of the district equal to at least 15
percent of the registered voters in the district.  

(b) Requires the election to be held on the earlier of the first Saturday
in May or the date of the general election for state and county officers,
depending on which one occurs at least 90 days after the election is
ordered. 

(c)  Requires that the ballot for the election be printed to permit voting
for or against the proposition: "The dissolution of the Montgomery County
Hospital District."  Requires the election to be held in accordance with
the applicable provisions of the Election Code.   
 
(d) Requires the board to find that the district is dissolved if a majority
of the votes in the election favor dissolution.  Requires the board to
continue to administer the district if a majority of the votes in the
election do not favor dissolution.  Prohibits another election on the
question of dissolution from being held before the fourth anniversary of
the most recent election to dissolve the district. 

(e) Requires the board, if a majority of the votes in the election favor
dissolution, to transfer the land, buildings, improvements, and other
assets that belong to the district to Montgomery County within 45 days
after the election is held.  Provides that the county assumes all debts and
obligations of the district at the time of the transfer and the district is
dissolved.  Provides that the county should use all transferred assets in a
manner that benefits residents of the county residing in territory formerly
constituting the district. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.
 
COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1111 differs from the original bill in SECTION 1 by removing the
text of proposed Section 23A(a) of the original and by redesignating the
first sentence of proposed Section 23A(b) of the original as Section 23A(a)
of the substitute.  Thus, Section 23A(a) of the substitute authorizes the
district's board of directors to order an election on the question of
dissolving the district and disposing of the district's assets and
obligations.  Section 23A(a) of the original established that the
Montgomery County Hospital District may be dissolved as provided by this
section.  The substitute differs from the original by removing a provision
in proposed Section 23(b) of the original that would have required the
board of directors to order an election if the board of directors receives
a petition requesting an election that is signed by a number of residents
of the district equal to at least 5 percent of the total vote received in
the district by all the candidates for governor in the most recent
gubernatorial general election. 

The substitute differs from the original by redesignating proposed Section
23A(c) of the original as 
Section 23A(b) and by requiring the election to be held on the earlier of
the first Saturday in May or the date of the general election for state and
county officers, depending on which one occurs at least 90 days after the
election is ordered, rather than requiring the election to be held by the
60th day after the date on which the election is ordered.  The substitute
also removes the provision that would have exempted proposed Section 23A
from the provisions of Section 41.001(a) (Uniform Election Dates), Election
Code. 

The substitute differs from the original by redesignating proposed Section
23A(d) of the original as 
Section 23A(c).

The substitute differs from the original by redesignating proposed Section
23A(e) of the original as 
Section 23A(d) and by prohibiting another election on the question of
dissolution from being held before the fourth, rather than the first,
anniversary of the most recent election to dissolve the district. 

In proposed Section 23A(e) of the substitute, the substitute requires the
board, if a majority of the votes in the election favor dissolution, to
transfer the ambulance service and related equipment, any vehicles, and any
mobile clinics and related equipment that belong to the district to
Montgomery County within 45 days after the election is held, and to
transfer the land, buildings, improvements, equipment not described above,
and other assets that belong to the district to Montgomery County in
accordance with proposed Subsections (g)-(k) of proposed Section 23A.
Under the original bill, proposed Section 23A(f) solely required the board,
if a majority of the votes in the election favor dissolution, to transfer
the land, buildings, improvements, equipment, and other assets that belong
to the district to Montgomery County or another governmental entity in the
district or administer the property, assets, and debts in accordance with
proposed Section 23B. 

The substitute differs from the original in proposed Section 23A(f) by
adding the provision that the county assumes all debts and obligations of
the district relating to the ambulance service and related  equipment, any
vehicles, and any mobile clinics and related equipment at the time of the
transfer. The substitute also removes another governmental entity from the
list of entities to which the district transfers the land, buildings,
improvements, equipment, and other assets. The substitute also adds the
provision that the county should use all transferred assets in a manner
that benefits residents of the county residing in territory formerly
constituting the district.  The substitute makes conforming changes. 

The substitute differs from the original by redesignating proposed Section
23B(a) of the original as 
Section 23A(g) and by requiring the board of directors to continue to
control and administer the property, debts, and assets of the district
until all funds have been disposed of and all district debts have been paid
or settled, in the event that the board of directors finds that the
district is dissolved but does not transfer the land, buildings,
improvements, equipment, and other assets to Montgomery County, rather than
to Montgomery County or another governmental entity in the district.  The
substitute also makes a conforming change and nonsubstantive changes. 

The substitute differs from the original by redesignating proposed Sections
23B(b), (c), and (e) of the original as Sections 23A(h), (i), and (k),
respectively. 

The substitute differs from the original by redesignating proposed Section
23B(d) of the original as 
Section 23A(j) and by adding the requirement that all unused district money
from any other source must be returned to Montgomery County. 

In new Section 23B(a), the substitute requires the board to order an
election on the question of dissolving the district and disposing of the
district's assets and obligations if the board receives a petition
requesting an election that is signed by a number of residents of the
district equal to at least 15 percent of the registered voters in the
district. 

In new Section 23B(b), the substitute requires the election to be held on
the earlier of the first Saturday in May or the date of the general
election for state and county officers, depending on which one occurs at
least 90 days after the election is ordered. 

In new Section 23B(c), the substitute requires that the ballot for the
election be printed to permit voting for or against the proposition: "The
dissolution of the Montgomery County Hospital District," and requires the
election to be held in accordance with the applicable provisions of the
Election Code.   

In new Section 23B(d), the substitute: requires the board to find that the
district is dissolved if a majority of the votes in the election favor
dissolution; requires the board to continue to administer the district if a
majority of the votes in the election do not favor dissolution; and
prohibits another election on the question of dissolution from being held
before the fourth anniversary of the most recent election to dissolve the
district. 

In new Section 23B(e), the substitute: requires the board, if a majority of
the votes in the election favor dissolution, to transfer the land,
buildings, improvements, and other assets that belong to the district to
Montgomery County within 45 days after the election is held; provides that
the county assumes all debts and obligations of the district at the time of
the transfer and the district is dissolved; and provides that the county
should use all transferred assets in a manner that benefits residents of
the county residing in territory formerly constituting the district.