H.B. No. 2118 AN ACT relating to procedures for the dissolution of the Hamlin Hospital 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 Subchapter G to read as follows: SUBCHAPTER G. DISSOLUTION Sec. 1037.301. 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 15 percent of the registered voters in the district. (d) The election must be ordered in accordance with Section 3.005, Election Code. 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. Sec. 1037.302. 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. 1037.303. 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. 1037.304. 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. 1037.305. 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. 1037.306. 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. 1037.307. 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. 1037.308. 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. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2118 was passed by the House on May 8, 2013, by the following vote: Yeas 147, Nays 0, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 2118 was passed by the Senate on May 22, 2013, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor