HB 5663

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
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
(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
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
Sec. 1116.403.  CREATION OF SPECIAL DISTRICT.  (a)  The
hospital district board may adopt an order creating a special
(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
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
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
(b)  Expenses reimbursed under this section must be:
(1)  reported in the minute book or other records of the
(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
(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
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
(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
(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
(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
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
(1)  acquire and hold title to, construct, operate,
manage, and maintain real property, including improvements to real
(2)  acquire, operate, manage, and maintain equipment
(3)  enter into and perform contracts;
(4)  appoint and employ officers, agents, and
(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
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
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
(1)  the outstanding obligations of the special
(2)  the cash on hand in each depository account held by
(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
(6)  the estimated revenue available to cover the
(7)  the proposed expenditures and disbursements and
the estimated receipts and collections for the year following the
year for which the budget is prepared.
(c)  The special district board shall provide in each annual
budget for the payment of all operation and maintenance expenses of
Sec. 1116.415.  NOTICE; HEARING; APPROVAL OF BUDGET.  (a)
The special district board shall hold a public hearing on the
(b)  At least 10 days before the date of the hearing, the
special district board shall publish notice of the hearing in a
newspaper of general circulation in the hospital district.
(c)  Any resident of the hospital district may be present and
(d)  At the conclusion of the hearing, the special district
board shall approve the budget proposed by the special district
administrator or approve a version of that budget with any
modifications the board determines are in the best interest of the
residents of the hospital district and consistent with this
subchapter.  The special district board shall submit the approved
budget to the hospital district board for final approval.
(e)  The budget is effective only after approval by the
special district board and the hospital district board.
Sec. 1116.416.  AMENDMENTS TO BUDGET.  The budget may be
amended as necessary if the amendment is approved by the special
district board and the hospital district board.
Sec. 1116.417.  RESTRICTION ON EXPENDITURES.  Money of the
special district may be spent only for an expense included in the
budget or in an amendment to the budget.
Sec. 1116.418.  FISCAL YEAR.  The special district operates
according to a fiscal year that begins on October 1 and ends on
September 30.  The special district board may change the fiscal
Sec. 1116.419.  AUDIT.  The special district board shall
have an independent audit made of the financial condition of the
special district for each fiscal year.
Sec. 1116.420.  INSPECTION OF AUDIT AND SPECIAL DISTRICT
RECORDS.  The audit and other special district records shall be open
to inspection at the principal office of the hospital district.
Sec. 1116.421.  FINANCIAL REPORT.  As soon as practicable
after the close of each fiscal year of the special district, the
special district administrator shall prepare for the special
(1)  a complete sworn statement of all special district
(2)  a complete account of all disbursements of special
Sec. 1116.422.  DISSOLUTION OF SPECIAL DISTRICT.  The
hospital district board may by order dissolve the special district.
Sec. 1116.423.  ADMINISTRATION OF PROPERTY, DEBTS, AND
ASSETS AFTER DISSOLUTION.  (a)  After dissolution of a special
district under Section 1116.422, the special district board shall
continue to control and administer any property, debts, and assets
of the special district only until all funds have been disposed of
and all special district debts have been transferred as provided by
this section or paid or settled.
(b)  If the special district board determines that the
property and assets of the special district are insufficient to pay
the debts of the special district, the special district board shall
transfer the remaining debts to the hospital district.
(c)  If after complying with Subsection (b) the special
district board determines that unused funds remain, the special
district board shall transfer the unused funds to the hospital
Sec. 1116.424.  ACCOUNTING AFTER DISSOLUTION.  After the
special district has transferred or paid all the debts of the
special district and has disposed of all assets and funds as
prescribed by Section 1116.423, the special district board shall
provide an accounting to the hospital district.  The accounting
must show the manner in which the assets and debts of the special
SECTION 3.  This Act takes effect September 1, 2025.