Print Friendly HOUSE BILL NO. 407 – Hospital dist, dissolution
HOUSE BILL NO. 407
View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating
text to be removed.
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
|||| 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 39-1325 aA. 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
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
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
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
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
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
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
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
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.
There is no fiscal impact to the general fund.
Name: Rep. Mary Shepherd
STATEMENT OF PURPOSE/FISCAL NOTE H 407