HBA-DMD, MPA H.B. 3463 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3463
By: Alexander
County Affairs
7/30/1999
Enrolled




BACKGROUND AND PURPOSE 

The Cedar Creek Hospital District, originally known as the Mabank-Kemp
Hospital District, was established in 1973 by the 63rd Legislature.  Prior
to the 76th Legislature, no medical facilities of any kind, such as
doctor's offices, emergency centers, or hospitals, existed as part of the
district. H.B. 3463 provides a process for the board of directors of the
hospital district to call for a vote by the residents of the district to
dissolve the district. 

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 22, Acts of the 63rd Legislature, Regular
Session, 1973, by adding Sections 21A and 21B, as follows: 

Sec. 21A. (a) Authorizes the Cedar Creek Hospital District (district) to be
dissolved as provided by this section. 

(b) Authorizes the board of directors of the district (board) to order an
election on the question of dissolving the district and disposing of the
district's assets and obligations. Requires the board to order an election
if the board receives a petition requesting an election signed by at least
15 percent of the registered voters in the district. 

(c) Requires the election to be held not later than 60 days after the date
the election is ordered.  Provides that Section 41.001(a) (Uniform Election
Dates), Election Code, does not apply to an election ordered under this
section. 

(d) Requires the ballot to permit voting for or against the proposition:
"the dissolution of the Cedar Creek Hospital District."  Requires the
election to be held in accordance with the applicable provisions of the
Election Code. 

(e) Requires the board to find that the district is dissolved if a majority
of voters favor dissolution, and to continue to administer the district if
a majority of the voters do not favor dissolution.  Prohibits another
election on the question of dissolution from being held before the first
anniversary of the most recent election to dissolve the district. 

(f) Requires the board to transfer the land, buildings, improvements,
equipment, and other assets (assets) to Kaufman, Van Zandt, or Henderson
counties or another governmental entity in the district (entities); or
administer the property, assets, and debts in accordance with Section 21B
of this Act. 

(g) Provides that, if the district transfers the assets to one of the
entities, the entity assumes all debts and obligations of the district at
the time of the transfer, and the district is dissolved. 
 
Sec. 21B.  (a) 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 and settled, if the board
finds that the district is dissolved but does not transfer the assets to an
entity. 

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

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

(d) Requires the board to order the secretary  of the board to return the
pro rata share of all unused tax or other money to each district taxpayer.
Authorizes taxpayers to request that their share of the surplus tax or
other money be credited to their county taxes. Requires the board to direct
the secretary to transmit the funds to the county tax assessorcollector, if
the taxpayer requests the credit. 

(e) Requires the board to file a written report with the commissioners
court in Kaufman, Van Zandt, and Henderson counties (counties) setting
forth a summary of the board's actions in dissolving the district, after
all its debts have been paid and all assets and funds have been disposed
of. 

(f) Requires the commissioners courts of the counties to enter orders
dissolving the district no later than the 10th day after they receive the
report and determine the requirements of the section have been fulfilled. 

SECTION 2.  Amends Section 22, Chapter 22, Acts of the 63rd Legislature,
Regular Session, 1973, to make a conforming change. 

SECTION 3.Emergency clause.
  Effective date: upon passage.