HB5663 - Relating to the authority of the Wood County Central Hospital District of Wood County, Texas, to provide brain and memory care services to residents of the hospital district through the creation and operation of brain and memory health care services districts.

      By: Hefner (Senate Sponsor - Hughes) H.B. No. 5663          (In the Senate - Received from the House May 15, 2025;   May 16, 2025, read first time and referred to Committee on Local   Government; May 26, 2025, reported favorably by the following   vote:  Yeas 7, Nays 0; May 26, 2025, sent to printer.) Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the authority of the Wood County Central Hospital   District of Wood County, Texas, to provide brain and memory care   services to residents of the hospital district through the creation   and operation of brain and memory health care services districts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 1116, Special District   Local Laws Code, is amended by adding Section 1116.111 to read as   follows:           Sec.   1116.111.     PROVISION AND FINANCING OF BRAIN AND MEMORY   HEALTH CARE SERVICES. (a)   The district may provide brain and   memory health care services, including by contract in the manner   prescribed by Subchapter I.           (b)     The district's provision of brain and memory health care   services does not prohibit another political subdivision of this   state from providing, or taxing to provide for, brain and memory   health care services inside the boundaries of the district, as   provided by Section 13, Article IX, Texas Constitution.           (c)     Brain and memory health care services provided by the   district, or by a brain and memory health care services district   created by the board under Subchapter I, including property used to   provide those services, are a hospital project for purposes of   Chapter 223, Health and Safety Code.          SECTION 2.  Chapter 1116, Special District Local Laws Code,   is amended by adding Subchapter I to read as follows:   SUBCHAPTER I. BRAIN AND MEMORY HEALTH CARE SERVICES DISTRICT           Sec.   1116.401.     PURPOSE OF SUBCHAPTER. The purpose of this   subchapter is to authorize the Wood County Central Hospital   District of Wood County, Texas, to create a special district to   provide brain and memory health care services to residents of the   hospital district.           Sec. 1116.402.  DEFINITIONS. In this subchapter:                 (1)     "Hospital district" means the Wood County Central   Hospital District of Wood County, Texas.                 (2)     "Hospital district board" means the board of   directors of the hospital district.                 (3)     "Special district" means a brain and memory health   care services district created under this subchapter.                 (4)     "Special district board" means the board of   directors of a special district.                 (5)     "Special district director" means a member of a   special district board.           Sec.   1116.403.     CREATION OF SPECIAL DISTRICT. (a)   The   hospital district board may adopt an order creating a special   district.           (b)  The order creating the special district must:                 (1)  contain specific provisions; and                 (2)     define the boundaries of the special district to   be coextensive with the boundaries of the hospital district as   those boundaries exist on the date the order creating the special   district is adopted.           Sec.   1116.404.     SPECIAL DISTRICT BOARD; TERMS; VACANCY. (a)     The special district board consists of seven special district   directors appointed by the hospital district board.           (b)     Special district directors serve staggered two-year   terms, with three or four of the special district directors' terms,   as appropriate, expiring each year.           (c)     In making the initial appointment of special district   directors, the hospital district board shall appoint three special   district directors to serve a one-year term and four special   district directors to serve a two-year term.   All successor special   district directors serve two-year terms.           (d)     A vacancy in the office of special district director is   filled for the unexpired term in the same manner as the original   appointment.           Sec.   1116.405.     OFFICERS. (a)   The special district board   shall select from among the special district directors a president.           (b)     The special district board shall appoint a secretary,   who need not be a special district director.           (c)     An officer of the special district board serves in that   capacity for a term of one year.           (d)     The special district board shall fill a vacancy in a   special district board office for the unexpired term.           Sec.   1116.406.     QUALIFICATIONS FOR OFFICE. (a)   To be   eligible to serve as a special district director, a person must be a   resident of the hospital district.           (b)     An employee of the special district or the hospital   district may not serve as a special district director.           Sec.   1116.407.     COMPENSATION. (a)   Special district   directors and board officers serve without compensation but may be   reimbursed for actual expenses incurred in the performance of   official duties.           (b)  Expenses reimbursed under this section must be:                 (1)     reported in the minute book or other records of the   special district; and                 (2)  approved by the special district board.           Sec.   1116.408.     SPECIAL DISTRICT ADMINISTRATOR; ASSISTANT   ADMINISTRATOR. (a)   The special district board shall appoint a   qualified person as special district administrator.           (b)     The special district board may appoint assistant   administrators.           (c)     The special district administrator and any assistant   administrator serve at the will of the special district board and   are entitled to the compensation determined by the special district   board.           Sec.   1116.409.     CONTRACT WITH HOSPITAL DISTRICT. (a)   The   special district and the hospital district shall enter into a   contract under which the special district will provide brain and   memory health care services to the residents of the hospital   district.           (b)  The contract must:                 (1)  state the term of the contract;                 (2)     specify the purpose, terms, rights, and duties of   the special district, as authorized by this subchapter;                 (3)     specify the financial contributions to be made by   each party to the contract to fund the special district; and                 (4)     if applicable, specify the land, buildings,   improvements, equipment, and other assets owned by a party to the   contract that the special district will be required to manage and   operate.           (c)     Chapter 791, Government Code, does not apply to a   contract made under this subchapter.           Sec.   1116.410.     TRANSFER OF CERTAIN RESPONSIBILITIES OF   HOSPITAL DISTRICT.   After a special district is created, the   hospital district may transfer to the special district:                 (1)     management and operation of any real property,   improvements, and equipment located wholly in the hospital district   that are owned by the hospital district and used to provide brain   and memory health care services, as specified in the contract under   Section 1116.409; and                 (2)     operating funds and reserves for operating   expenses and funds that have been budgeted by the hospital district   to provide brain and memory health care services for residents of   the hospital district, as specified in the contract under Section   1116.409.           Sec.   1116.411.     POWERS OF SPECIAL DISTRICT; COLLABORATION   WITH NONPROFIT. (a)   A special district may, if necessary to   provide brain and memory health care services to the residents of   the hospital district:                 (1)     acquire and hold title to, construct, operate,   manage, and maintain real property, including improvements to real   property;                 (2)     acquire, operate, manage, and maintain equipment   and other personal property;                 (3)  enter into and perform contracts;                 (4)     appoint and employ officers, agents, and   employees;                 (5)  sue and be sued;                 (6)  seek and accept gifts, grants, and donations; and                 (7)     perform other acts necessary to accomplish the   purpose of the special district.           (b)     A special district may collaborate with a nonprofit   entity to provide health services related to brain and memory   health care to residents of the hospital district.           Sec.   1116.412.     RULES. The special district board may adopt   rules governing the operation of the special district and the   duties, functions, and responsibilities of the staff and employees   of the special district.           Sec.   1116.413.     SPECIAL DISTRICT FINANCES; PROHIBITION ON   AUTHORITY TO IMPOSE TAXES OR ISSUE BONDS.   (a)   The hospital   district shall provide funding for the operation of the special   district as specified in the contract under Section 1116.409.           (b)     The special district may not impose a tax or issue bonds   or other obligations.           Sec.   1116.414.     SPECIAL DISTRICT   BUDGET. (a) The special   district administrator shall prepare an annual budget for approval   by both the special district board and the hospital district board.           (b)     The proposed budget must contain a complete financial   statement of:                 (1)     the outstanding obligations of the special   district;                 (2)     the cash on hand in each depository account held by   the special district;                 (3)     the money received by the special district from   all sources during the previous year;                 (4)     the money available to the special district from   all sources during the year for which the budget is prepared;                 (5)     the estimated balance of each account held by the   special district at the end of the year for which the budget is   prepared;       & [Text truncated for display. Full text available on Congress.gov.]