2003 Legislation
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HOUSE BILL NO. 407 – Hospital dist, dissolution

HOUSE BILL NO. 407

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H0407..................................................by REVENUE AND TAXATION
HOSPITAL DISTRICTS - Amends and adds to existing law to provide additional
requirements in procedures for petitions for dissolution of hospital
districts; to provide procedures for dissolving a hospital district which
fails to or has ceased to function for two or more years; to provide the
effect of dissolution; to provide for known claims against the dissolved
district; and to provide for unknown claims against the dissolved district.
                                                                        
04/03    House intro - 1st rdg - to printing
04/04    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 407
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PETITIONS FOR DISSOLUTION OF HOSPITAL DISTRICTS; AMENDING  SECTION
  3        39-1325a,  IDAHO  CODE,  TO REDESIGNATE THE SECTION, TO PROVIDE ADDITIONAL
  4        REQUIREMENTS IN PROCEDURES FOR PETITIONS FOR DISSOLUTION OF HOSPITAL  DIS-
  5        TRICTS  AND TO MAKE A TECHNICAL CORRECTION; AMENDING CHAPTER 13, TITLE 39,
  6        IDAHO CODE, BY THE ADDITION OF NEW SECTIONS 39-1325B,  39-1325C,  39-1325D
  7        AND  39-1325E, IDAHO CODE, TO PROVIDE PROCEDURES FOR DISSOLVING A HOSPITAL
  8        DISTRICT WHICH FAILS OR HAS CEASED TO FUNCTION FOR TWO OR MORE  YEARS,  TO
  9        PROVIDE  EFFECT  OF  DISSOLUTION,  TO PROVIDE FOR KNOWN CLAIMS AGAINST THE
 10        DISSOLVED DISTRICT, TO PROVIDE FOR UNKNOWN CLAIMS  AGAINST  THE  DISSOLVED
 11        DISTRICT; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That Section 39-1325a, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        39-1325aA.  PETITIONS FOR DISSOLUTION OF HOSPITAL DISTRICTS. (1)  Proceed-
 16    ings for the dissolution of a hospital district may be initiated by a petition
 17    containing  the  signatures of qualified electors of the district or owners of
 18    property within the district equal in number to ten per cent percent (10%)  of
 19    the  qualified  electors  and  taxpayers  of the district, the same percentage
 20    required for the organization of the district, but not earlier than  four  (4)
 21    years after the date of its establishment.
 22        (2)  The  petition,  when  completed and verified, shall be filed with the
 23    clerk of the court of the county or counties if more than one  (1)  county  is
 24    involved.  The county commissioners shall publish notice and hold a hearing on
 25    the matter. If necessary, they shall hold an election, subject to  the  provi-
 26    sions  of  section 34-106, Idaho Code, on the matter. The hearing and election
 27    shall be held in accordance with the terms and provisions of sections  40-1803
 28    through  40-1809,  Idaho  Code. The disposition of hospital district assets on
 29    dissolution and the provision for payment of district  indebtedness  shall  be
 30    made  in accordance with the provisions of sections 63-4105 and 63-4106, Idaho
 31    Code.
 32        (3)  If the hospital district embraces territory  in  more  than  one  (1)
 33    county,  an  election  for  its dissolution shall be deemed approved only if a
 34    majority of the votes cast in each such county were cast in  the  affirmative.
 35    If,  upon  the  canvass  of ballots, it be determined that the proposition has
 36    been approved, the board of county commissioners of each  county  shall  enter
 37    its  order  to  that  effect,  subject to the provisions of sections 39-1325C,
 38    39-1325D and 39-1325E, Idaho Code, and the order shall by them be made a  mat-
 39    ter of record.
                                                                        
 40        SECTION  2.  That  Chapter  13,  Title 39, Idaho Code, be, and the same is
 41    hereby amended by the addition thereto of NEW SECTIONS, to be known and desig-
 42    nated as Sections 39-1325B, 39-1325C, 39-1325D and 39-1325E Idaho Code, and to
                                                                        
                                           2
                                                                        
  1    read as follows:
                                                                        
  2        39-1325B.  NONFUNCTIONING DISTRICT. Any hospital district which  fails  or
  3    has ceased to function for two (2) or more years may be dissolved by the board
  4    or  boards  of  county  commissioners of the county or counties in which it is
  5    located. The county commissioners may initiate such action by resolution  sub-
  6    ject  to  the  provisions  of  sections 39-1325C, 39-1325D and 39-1325E, Idaho
  7    Code.
                                                                        
  8        39-1325C.  EFFECT OF DISSOLUTION. (1) A dissolved hospital  district  con-
  9    tinues its corporate existence under the supervision of the board or boards of
 10    county  commissioners  of  the  county  or  counties  in which the district is
 11    located but may not carry on any business except that appropriate to  wind  up
 12    and liquidate its business and affairs, including:
 13        (a)  Collecting its assets;
 14        (b)  Disposing of its properties;
 15        (c)  Discharging or making provision for discharging its liabilities;
 16        (d)  Doing every other act necessary to wind up and liquidate its business
 17        and affairs; and
 18        (e)  Levying  and collecting taxes under the authority of section 39-1333,
 19        Idaho Code, for the limited purpose of  winding  up  and  liquidating  the
 20        district's business and affairs.
 21        (2)  Dissolution of a district does not:
 22        (a)  Transfer title to the district's property;
 23        (b)  Prevent commencement of a proceeding by or against the district; or
 24        (c)  Abate  or  suspend a proceeding pending by or against the district on
 25        the effective date of dissolution.
 26        (3)  Upon completion of  winding up and liquidating the  district's  busi-
 27    ness  and affairs, the commissioners shall enter a final order terminating the
 28    district.
                                                                        
 29        39-1325D.  KNOWN CLAIMS AGAINST DISSOLVED DISTRICT. (1) A  dissolved  dis-
 30    trict  may  dispose  of the known claims against it by following the procedure
 31    described in this section.
 32        (2)  The dissolved district shall notify its known claimants in writing of
 33    the dissolution at any time after its effective date. The written notice must:
 34        (a)  Describe information that must be included in a claim;
 35        (b)  Provide a mailing address where a claim may be sent;
 36        (c)  State the deadline, which may not be fewer than  one  hundred  twenty
 37        (120)  days  from  the  effective date of the written notice, by which the
 38        dissolved district must receive the claim; and
 39        (d)  State that the claim will be barred if not received by the deadline.
 40        (3)  A claim against the dissolved district is barred:
 41        (a)  If a claimant who was given written notice under  subsection  (2)  of
 42        this  section  does not deliver the claim to the dissolved district by the
 43        deadline;
 44        (b)  If a claimant whose claim was rejected by the dissolved district does
 45        not commence a proceeding to enforce the claim  within  ninety  (90)  days
 46        from the effective date of the rejection notice.
 47        (4)  For  purposes  of this section, "claim" does not include a contingent
 48    liability or a claim based on an event occurring after the effective  date  of
 49    dissolution.
                                                                        
 50        39-1325E.  UNKNOWN CLAIMS AGAINST DISSOLVED DISTRICT. (1) A dissolved dis-
 51    trict may also publish notice of its dissolution and request that persons with
                                                                        
                                           3
                                                                        
  1    claims against the district present them in accordance with the notice.
  2        (2)  The notice must:
  3        (a)  Be  published  one  (1) time in a newspaper of general circulation in
  4        the county or counties where the dissolved district is located;
  5        (b)  Describe the information that must be included in a claim and provide
  6        a mailing address where the claim may be sent; and
  7        (c)  State that a claim against the district will be barred unless a  pro-
  8        ceeding to enforce the claim is commenced within two (2) years  after  the
  9        publication of the notice.
 10        (3)  If  the dissolved district publishes a newspaper notice in accordance
 11    with subsection (2) of this section, the claim of each of the following claim-
 12    ants is barred unless the claimant commences a proceeding to enforce the claim
 13    against the dissolved district within two (2) years after the publication date
 14    of the newspaper notice:
 15        (a)  A claimant who did not receive written notice under section 39-1325D,
 16        Idaho Code;
 17        (b)  A claimant whose claim was timely sent to the dissolved district  but
 18        not acted on;
 19        (c)  A  claimant  whose claim is contingent or based on an event occurring
 20        after the effective date of dissolution.
                                                                        
 21        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 22    declared to exist, this act shall be in full force and effect on and after its
 23    passage and approval, and retroactively to January 1, 2003.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13236
The purpose of this legislation is to create additional
requirements in the process of dissolving a hospital district.
This legislation also provides the procedures for dissolving a
hospital district which has failed or has not functioned for two
or more years. This legislation also declares an emergency and
provides for retroactive application.
                          FISCAL IMPACT
There is no fiscal impact to the general fund.


Contact
Name: Rep. Mary Shepherd 
Phone: 332-1130




STATEMENT OF PURPOSE/FISCAL NOTE                       H 407