BILL ANALYSIS

H.B. 467

By: Bell, Keith

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

In 1973, the Texas Legislature created the Mabank-Kemp Hospital District, which was renamed in 1977 as the Cedar Creek Hospital District. The author has informed the committee that local businessman Andrew Gibbs, longtime president of the Trinity Valley Community College Board of Trustees, was essential in establishing the district and raising funds to ensure its financial stability. In 1999, the legislature enacted legislation that created a process by which the district's board of directors could order an election on the question of dissolving the district and disposing of the district's assets and obligations. However, the author has also informed the committee that since the passage of that legislation, all of the district's board members have either resigned or passed away, and there is no process in place by which the district can be dissolved. With no current board members, no one is legally authorized to access the district's funds or order an election to dissolve the district. H.B. 467 seeks to address this issue by authorizing the county judges of Kaufman, Henderson, and Van Zandt Counties to order an election regarding the district's dissolution and, if the proposition is approved, to access the district's funds for the purpose of establishing and administering the "Andrew Gibbs Memorial Nursing Scholarship."

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 467 amends Chapter 22, Acts of the 63rd Legislature, Regular Session, 1973, to establish a procedure for the dissolution of the Cedar Creek Hospital District and the disposition of district money if dissolved. The bill authorizes the district to be dissolved as provided by the bill only if the following conditions are met:

· the district is not providing or paying for the provision of medical or hospital care;

· all positions on the district's board of directors are vacant;

· the district has no outstanding indebtedness; and

· the only remaining asset of the district is money.

The bill authorizes the county judges of Kaufman, Van Zandt, and Henderson Counties to jointly agree to order an election on the question of dissolving the district and using any remaining district money to establish and administer the Andrew Gibbs Memorial Nursing Scholarship. The bill makes Election Code provisions relating to uniform election dates inapplicable to such an election and prescribes the required ballot language.

H.B. 467 prohibits the county judges of Kaufman, Van Zandt, and Henderson Counties from taking any additional action under the bill if a majority of the votes cast in the election do not favor the proposition. However, the bill requires the county judges and commissioners courts of those counties to take the following action if a majority of the votes cast in the election do favor the proposition:

· the county judges must find that the district is dissolved and transfer the district money in equal shares to Kaufman, Van Zandt, and Henderson Counties for the purpose of establishing and administering the Andrew Gibbs Memorial Nursing Scholarship; and

· the commissioners courts must enter orders dissolving the district not later than the 10th day after the date the commissioners courts determine that the county judges' requirements have been met.

H.B. 467 requires the county judges of Kaufman, Van Zandt, and Henderson Counties to use the money transferred on dissolution of the district to jointly establish and administer the Andrew Gibbs Memorial Nursing Scholarship. The bill requires the counties to jointly establish an oversight committee to administer the scholarship and authorizes the committee to establish eligibility criteria and procedures for the application and selection process, provided that the eligibility criteria must require an individual receiving a scholarship to do the following:

· reside in the boundaries of the district, as those boundaries existed on the date of the election on the dissolution of the district, at the time the individual is accepted for admission to a nursing education program at an institution of higher education in Texas; and

· be currently enrolled in, or have been accepted for admission to, such a nursing education program.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.