BILL ANALYSIS

H.B. 5664

By: Hefner

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the Wood County Central Hospital District is responsible for providing health care services within its jurisdiction, and would benefit from enhancements to its governance, financial oversight, and operational efficiency. H.B. 5664 seeks to address this issue by revising provisions relating to the administration and finances of the district.

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. 5664 amends the Special District Local Laws Code to revise provisions relating to the operation of the Wood County Central Hospital District of Wood County, Texas.

H.B. 5664 increases from six to seven the number of directors elected to the district board from the district at large unless the boundaries of the district are expanded under applicable law. The bill changes the frequency with which an independent audit of the district's books and records is required to be conducted from annually to as determined necessary by the board, but in no event less often than every three years. The bill removes the requirement for the board, not later than December 1 of each year, to file a copy of the audit with the comptroller of public accounts and the district.

H.B. 5664 establishes that the board may invest district funds only in funds or securities specified by the Public Funds Investment Act. The bill revises provisions relating to the depository of the district as follows:

· replaces the requirement for the board by resolution to designate a bank in Wood County as the district's depository with the requirement for the board by resolution to select one or more banks inside or outside the district to serve as the district's depository;

· removes a provision establishing that a designated bank serves for two years and until a successor is designated; and

· clarifies that the requirement for all district money to be deposited in the depository and secured in the manner provided for securing county funds applies to money other than the money invested in authorized funds and securities as provided by the bill.

H.B. 5664 requires the board to appoint a temporary director to serve until the date of the regular election of directors in 2026 following the bill's effective date.

EFFECTIVE DATE

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