Relating to the procedure for the dissolution of the Cedar Creek Hospital District and the disposition of district money, the official text

H.B. No. 467

AN ACT

relating to the procedure for the dissolution of the Cedar Creek

Hospital District and the disposition of district money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 22, Chapter 22, Acts of the 63rd

Legislature, Regular Session, 1973, is amended to read as follows:

Sec. 22. Except as provided by Sections [Section] 21A(c)

and 21C(c), any election held under this Act shall be in accordance

with the Texas Election Code as it presently exists, and is

hereafter amended and any final court decision or decisions

construing such election code.

SECTION 2. Chapter 22, Acts of the 63rd Legislature,

Regular Session, 1973, is amended by adding Section 21C to read as

follows:

Sec. 21C. (a) The district may be dissolved as provided by

this section only if:

(1) the district is not providing or paying for the

provision of medical or hospital care;

(2) all positions on the board of directors of the

district are vacant;

(3) the district has no outstanding indebtedness; and

(4) the only remaining asset of the district is money.

(b) The county judges of Kaufman, Van Zandt, and Henderson

Counties may jointly agree to order an election on the question of

dissolving the district and using any remaining district money to

establish and administer the scholarship described by Subsection

(g) of this section.

(c) Section 41.001(a), Election Code, does not apply to an

election held under this section.

(d) The ballot for the election shall be printed to permit

voting for or against the proposition: "The dissolution of the

Cedar Creek Hospital District and the use of district money to

establish and administer the Andrew Gibbs Memorial Nursing

Scholarship."

(e) If a majority of the votes cast in the election do not

favor the proposition, the county judges of Kaufman, Van Zandt, and

Henderson Counties may not take any additional action under this

section.

(f) If a majority of the votes cast in the election favor the

proposition:

(1) the county judges of Kaufman, Van Zandt, and

Henderson Counties shall:

(A) find that the district is dissolved; and

(B) 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 in accordance with Subsection (g) of this section; and

(2) not later than the 10th day after the date the

commissioners courts of Kaufman, Van Zandt, and Henderson Counties

determine that the requirements of Subdivision (1) of this

subsection have been met, the commissioners courts of the counties

shall enter orders dissolving the district.

(g) The county judges of Kaufman, Van Zandt, and Henderson

Counties shall use the money transferred under Subsection (f) of

this section to jointly establish and administer the Andrew Gibbs

Memorial Nursing Scholarship. The counties shall jointly establish

an oversight committee to administer the scholarship. The

oversight committee may establish eligibility criteria and

procedures for the application and selection process, provided that

the eligibility criteria must require an individual receiving a

scholarship to:

(1) reside in the boundaries of the district, as those

boundaries existed on the date of the election described by

Subsection (b) of this section, at the time the individual is

accepted for admission to a nursing education program at an

institution of higher education in this state; and

(2) be currently enrolled in, or have been accepted

for admission to, a nursing education program described by

Subdivision (1) of this subsection.

(h) The county judges and the oversight committee

established under Subsection (g) may collaborate with an

institution of higher education, as defined by Section 61.003,

Education Code, located in the boundaries of the district as

described by Subsection (g) for the purposes of establishing and

administering the scholarship.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 467 was passed by the House on April

23, 2025, by the following vote: Yeas 146, Nays 0, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 467 was passed by the Senate on May 9,

2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor