BILL ANALYSIS Senate Research Center H.B. 2607 89R8005 SRA-F By: Wharton (Schwertner) Local Government 5/7/2025 Engrossed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Walker County Hospital District (WCHD) was established following voter approval four years after the Texas Legislature passed its enabling legislation, S.B. 1020 (62R). The district's boundaries align with those of Walker County, and it bears the responsibility for providing hospital care to the county's residents. Under its current enabling act, the district can lease its hospital buildings and facilities for terms up to 40 years. However, the district also owns undeveloped land not expressly covered under this leasing authority, limiting its ability to form long-term partnerships for new medical facilities. In recent years, numerous other Texas hospital districts have either secured this authority or amended their enabling acts to allow the long-term leasing of both developed and undeveloped property. This expanded leasing authority is intended to support critical projects, such as a proposed partnership for a new doctors' clinic, helping to improve healthcare access and economic growth in Walker County. Additionally, while the district's board of managers currently operates under four-year staggered terms as provided by Section 285.081 of the Health and Safety Code, this practice is not explicitly reflected in the district's enabling act, creating a potential gap in governance clarity. H.B. 2607 codifies four-year staggered terms for the Walker County Hospital District's board of managers and extends the maximum lease term for district property from 40 to 80 years to facilitate long-term development projects. H.B. 2607 amends current law relating to the terms of the members of the board of hospital managers and leasing authority of the Walker County Hospital District. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1111.051(b), Special District Local Laws Code, as follows: (b) Provides that members of the board of hospital managers of the Walker County Hospital District of Walker County, Texas (board; district) serve staggered four-year terms with the terms of two or three managers expiring each even-numbered year as appropriate. Deletes existing text providing that, unless four-year terms are established under Section 285.081 (Optional Four-Year Terms), Health and Safety Code, managers serve staggered two-year terms with the terms of two or three managers expiring each year as appropriate. SECTION 2. Amends Section 1111.108(a), Special District Local Laws Code, as follows: (a) Authorizes the district through the board to lease all or part of the district's property, including the buildings and facilities comprising the hospital system, to any person on terms considered to be in the district's best interest. Prohibits the term of the lease from exceeding 80, rather than 40, years. SECTION 3. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center H.B. 2607
89R8005 SRA-F By: Wharton (Schwertner)
Local Government
5/7/2025
Engrossed
Senate Research Center
H.B. 2607
89R8005 SRA-F
By: Wharton (Schwertner)
Local Government
5/7/2025
Engrossed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Walker County Hospital District (WCHD) was established following voter approval four years after the Texas Legislature passed its enabling legislation, S.B. 1020 (62R). The district's boundaries align with those of Walker County, and it bears the responsibility for providing hospital care to the county's residents.
Under its current enabling act, the district can lease its hospital buildings and facilities for terms up to 40 years. However, the district also owns undeveloped land not expressly covered under this leasing authority, limiting its ability to form long-term partnerships for new medical facilities. In recent years, numerous other Texas hospital districts have either secured this authority or amended their enabling acts to allow the long-term leasing of both developed and undeveloped property. This expanded leasing authority is intended to support critical projects, such as a proposed partnership for a new doctors' clinic, helping to improve healthcare access and economic growth in Walker County.
Additionally, while the district's board of managers currently operates under four-year staggered terms as provided by Section 285.081 of the Health and Safety Code, this practice is not explicitly reflected in the district's enabling act, creating a potential gap in governance clarity. H.B. 2607 codifies four-year staggered terms for the Walker County Hospital District's board of managers and extends the maximum lease term for district property from 40 to 80 years to facilitate long-term development projects.
H.B. 2607 amends current law relating to the terms of the members of the board of hospital managers and leasing authority of the Walker County Hospital District.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 1111.051(b), Special District Local Laws Code, as follows:
(b) Provides that members of the board of hospital managers of the Walker County Hospital District of Walker County, Texas (board; district) serve staggered four-year terms with the terms of two or three managers expiring each even-numbered year as appropriate. Deletes existing text providing that, unless four-year terms are established under Section 285.081 (Optional Four-Year Terms), Health and Safety Code, managers serve staggered two-year terms with the terms of two or three managers expiring each year as appropriate.
SECTION 2. Amends Section 1111.108(a), Special District Local Laws Code, as follows:
(a) Authorizes the district through the board to lease all or part of the district's property, including the buildings and facilities comprising the hospital system, to any person on terms considered to be in the district's best interest. Prohibits the term of the lease from exceeding 80, rather than 40, years.
SECTION 3. Effective date: upon passage or September 1, 2025.