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Texas House Bill HB5663

Texas 2025 - 89th Regular

Texas House Bill HB5663 Compare Versions

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11 89R19493 MPF-F
22 By: Hefner H.B. No. 5663
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the authority of the Wood County Central Hospital
1010 District of Wood County, Texas, to provide brain and memory care
1111 services to residents of the hospital district through the creation
1212 and operation of brain and memory health care services districts.
1313 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1414 SECTION 1. Subchapter C, Chapter 1116, Special District
1515 Local Laws Code, is amended by adding Section 1116.111 to read as
1616 follows:
1717 Sec. 1116.111. PROVISION AND FINANCING OF BRAIN AND MEMORY
1818 HEALTH CARE SERVICES. (a) The district may provide brain and
1919 memory health care services, including by contract in the manner
2020 prescribed by Subchapter I.
2121 (b) The district's provision of brain and memory health care
2222 services does not prohibit another political subdivision of this
2323 state from providing, or taxing to provide for, brain and memory
2424 health care services inside the boundaries of the district, as
2525 provided by Section 13, Article IX, Texas Constitution.
2626 (c) Brain and memory health care services provided by the
2727 district, or by a brain and memory health care services district
2828 created by the board under Subchapter I, including property used to
2929 provide those services, are a hospital project for purposes of
3030 Chapter 223, Health and Safety Code.
3131 SECTION 2. Chapter 1116, Special District Local Laws Code,
3232 is amended by adding Subchapter I to read as follows:
3333 SUBCHAPTER I. BRAIN AND MEMORY HEALTH CARE SERVICES DISTRICT
3434 Sec. 1116.401. PURPOSE OF SUBCHAPTER. The purpose of this
3535 subchapter is to authorize the Wood County Central Hospital
3636 District of Wood County, Texas, to create a special district to
3737 provide brain and memory health care services to residents of the
3838 hospital district.
3939 Sec. 1116.402. DEFINITIONS. In this subchapter:
4040 (1) "Hospital district" means the Wood County Central
4141 Hospital District of Wood County, Texas.
4242 (2) "Hospital district board" means the board of
4343 directors of the hospital district.
4444 (3) "Special district" means a brain and memory health
4545 care services district created under this subchapter.
4646 (4) "Special district board" means the board of
4747 directors of a special district.
4848 (5) "Special district director" means a member of a
4949 special district board.
5050 Sec. 1116.403. CREATION OF SPECIAL DISTRICT. (a) The
5151 hospital district board may adopt an order creating a special
5252 district.
5353 (b) The order creating the special district must:
5454 (1) contain specific provisions; and
5555 (2) define the boundaries of the special district to
5656 be coextensive with the boundaries of the hospital district as
5757 those boundaries exist on the date the order creating the special
5858 district is adopted.
5959 Sec. 1116.404. SPECIAL DISTRICT BOARD; TERMS; VACANCY. (a)
6060 The special district board consists of seven special district
6161 directors appointed by the hospital district board.
6262 (b) Special district directors serve staggered two-year
6363 terms, with three or four of the special district directors' terms,
6464 as appropriate, expiring each year.
6565 (c) In making the initial appointment of special district
6666 directors, the hospital district board shall appoint three special
6767 district directors to serve a one-year term and four special
6868 district directors to serve a two-year term. All successor special
6969 district directors serve two-year terms.
7070 (d) A vacancy in the office of special district director is
7171 filled for the unexpired term in the same manner as the original
7272 appointment.
7373 Sec. 1116.405. OFFICERS. (a) The special district board
7474 shall select from among the special district directors a president.
7575 (b) The special district board shall appoint a secretary,
7676 who need not be a special district director.
7777 (c) An officer of the special district board serves in that
7878 capacity for a term of one year.
7979 (d) The special district board shall fill a vacancy in a
8080 special district board office for the unexpired term.
8181 Sec. 1116.406. QUALIFICATIONS FOR OFFICE. (a) To be
8282 eligible to serve as a special district director, a person must be a
8383 resident of the hospital district.
8484 (b) An employee of the special district or the hospital
8585 district may not serve as a special district director.
8686 Sec. 1116.407. COMPENSATION. (a) Special district
8787 directors and board officers serve without compensation but may be
8888 reimbursed for actual expenses incurred in the performance of
8989 official duties.
9090 (b) Expenses reimbursed under this section must be:
9191 (1) reported in the minute book or other records of the
9292 special district; and
9393 (2) approved by the special district board.
9494 Sec. 1116.408. SPECIAL DISTRICT ADMINISTRATOR; ASSISTANT
9595 ADMINISTRATOR. (a) The special district board shall appoint a
9696 qualified person as special district administrator.
9797 (b) The special district board may appoint assistant
9898 administrators.
9999 (c) The special district administrator and any assistant
100100 administrator serve at the will of the special district board and
101101 are entitled to the compensation determined by the special district
102102 board.
103103 Sec. 1116.409. CONTRACT WITH HOSPITAL DISTRICT. (a) The
104104 special district and the hospital district shall enter into a
105105 contract under which the special district will provide brain and
106106 memory health care services to the residents of the hospital
107107 district.
108108 (b) The contract must:
109109 (1) state the term of the contract;
110110 (2) specify the purpose, terms, rights, and duties of
111111 the special district, as authorized by this subchapter;
112112 (3) specify the financial contributions to be made by
113113 each party to the contract to fund the special district; and
114114 (4) if applicable, specify the land, buildings,
115115 improvements, equipment, and other assets owned by a party to the
116116 contract that the special district will be required to manage and
117117 operate.
118118 (c) Chapter 791, Government Code, does not apply to a
119119 contract made under this subchapter.
120120 Sec. 1116.410. TRANSFER OF CERTAIN RESPONSIBILITIES OF
121121 HOSPITAL DISTRICT. After a special district is created, the
122122 hospital district may transfer to the special district:
123123 (1) management and operation of any real property,
124124 improvements, and equipment located wholly in the hospital district
125125 that are owned by the hospital district and used to provide brain
126126 and memory health care services, as specified in the contract under
127127 Section 1116.409; and
128128 (2) operating funds and reserves for operating
129129 expenses and funds that have been budgeted by the hospital district
130130 to provide brain and memory health care services for residents of
131131 the hospital district, as specified in the contract under Section
132132 1116.409.
133133 Sec. 1116.411. POWERS OF SPECIAL DISTRICT; COLLABORATION
134134 WITH NONPROFIT. (a) A special district may, if necessary to
135135 provide brain and memory health care services to the residents of
136136 the hospital district:
137137 (1) acquire and hold title to, construct, operate,
138138 manage, and maintain real property, including improvements to real
139139 property;
140140 (2) acquire, operate, manage, and maintain equipment
141141 and other personal property;
142142 (3) enter into and perform contracts;
143143 (4) appoint and employ officers, agents, and
144144 employees;
145145 (5) sue and be sued;
146146 (6) seek and accept gifts, grants, and donations; and
147147 (7) perform other acts necessary to accomplish the
148148 purpose of the special district.
149149 (b) A special district may collaborate with a nonprofit
150150 entity to provide health services related to brain and memory
151151 health care to residents of the hospital district.
152152 Sec. 1116.412. RULES. The special district board may adopt
153153 rules governing the operation of the special district and the
154154 duties, functions, and responsibilities of the staff and employees
155155 of the special district.
156156 Sec. 1116.413. SPECIAL DISTRICT FINANCES; PROHIBITION ON
157157 AUTHORITY TO IMPOSE TAXES OR ISSUE BONDS. (a) The hospital
158158 district shall provide funding for the operation of the special
159159 district as specified in the contract under Section 1116.409.
160160 (b) The special district may not impose a tax or issue bonds
161161 or other obligations.
162162 Sec. 1116.414. SPECIAL DISTRICT BUDGET. (a) The special
163163 district administrator shall prepare an annual budget for approval
164164 by both the special district board and the hospital district board.
165165 (b) The proposed budget must contain a complete financial
166166 statement of:
167167 (1) the outstanding obligations of the special
168168 district;
169169 (2) the cash on hand in each depository account held by
170170 the special district;
171171 (3) the money received by the special district from
172172 all sources during the previous year;
173173 (4) the money available to the special district from
174174 all sources during the year for which the budget is prepared;
175175 (5) the estimated balance of each account held by the
176176 special district at the end of the year for which the budget is
177177 prepared;
178178 (6) the estimated revenue available to cover the
179179 proposed budget; and
180180 (7) the proposed expenditures and disbursements and
181181 the estimated receipts and collections for the year following the
182182 year for which the budget is prepared.
183183 (c) The special district board shall provide in each annual
184184 budget for the payment of all operation and maintenance expenses of
185185 the special district.
186186 Sec. 1116.415. NOTICE; HEARING; APPROVAL OF BUDGET. (a)
187187 The special district board shall hold a public hearing on the
188188 proposed annual budget.
189189 (b) At least 10 days before the date of the hearing, the
190190 special district board shall publish notice of the hearing in a
191191 newspaper of general circulation in the hospital district.
192192 (c) Any resident of the hospital district may be present and
193193 participate at the hearing.
194194 (d) At the conclusion of the hearing, the special district
195195 board shall approve the budget proposed by the special district
196196 administrator or approve a version of that budget with any
197197 modifications the board determines are in the best interest of the
198198 residents of the hospital district and consistent with this
199199 subchapter. The special district board shall submit the approved
200200 budget to the hospital district board for final approval.
201201 (e) The budget is effective only after approval by the
202202 special district board and the hospital district board.
203203 Sec. 1116.416. AMENDMENTS TO BUDGET. The budget may be
204204 amended as necessary if the amendment is approved by the special
205205 district board and the hospital district board.
206206 Sec. 1116.417. RESTRICTION ON EXPENDITURES. Money of the
207207 special district may be spent only for an expense included in the
208208 budget or in an amendment to the budget.
209209 Sec. 1116.418. FISCAL YEAR. The special district operates
210210 according to a fiscal year that begins on October 1 and ends on
211211 September 30. The special district board may change the fiscal
212212 year.
213213 Sec. 1116.419. AUDIT. The special district board shall
214214 have an independent audit made of the financial condition of the
215215 special district for each fiscal year.
216216 Sec. 1116.420. INSPECTION OF AUDIT AND SPECIAL DISTRICT
217217 RECORDS. The audit and other special district records shall be open
218218 to inspection at the principal office of the hospital district.
219219 Sec. 1116.421. FINANCIAL REPORT. As soon as practicable
220220 after the close of each fiscal year of the special district, the
221221 special district administrator shall prepare for the special
222222 district board:
223223 (1) a complete sworn statement of all special district
224224 money; and
225225 (2) a complete account of all disbursements of special
226226 district money.
227227 Sec. 1116.422. DISSOLUTION OF SPECIAL DISTRICT. The
228228 hospital district board may by order dissolve the special district.
229229 Sec. 1116.423. ADMINISTRATION OF PROPERTY, DEBTS, AND
230230 ASSETS AFTER DISSOLUTION. (a) After dissolution of a special
231231 district under Section 1116.422, the special district board shall
232232 continue to control and administer any property, debts, and assets
233233 of the special district only until all funds have been disposed of
234234 and all special district debts have been transferred as provided by
235235 this section or paid or settled.
236236 (b) If the special district board determines that the
237237 property and assets of the special district are insufficient to pay
238238 the debts of the special district, the special district board shall
239239 transfer the remaining debts to the hospital district.
240240 (c) If after complying with Subsection (b) the special
241241 district board determines that unused funds remain, the special
242242 district board shall transfer the unused funds to the hospital
243243 district.
244244 Sec. 1116.424. ACCOUNTING AFTER DISSOLUTION. After the
245245 special district has transferred or paid all the debts of the
246246 special district and has disposed of all assets and funds as
247247 prescribed by Section 1116.423, the special district board shall
248248 provide an accounting to the hospital district. The accounting
249249 must show the manner in which the assets and debts of the special
250250 district were distributed.
251251 SECTION 3. This Act takes effect September 1, 2025.