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HB467

Regular Session

Relating to the procedure for the dissolution of the Cedar Creek Hospital District and the disposition of district money.

Low
Low Cost
Effective:2025-05-24
Enforcing Agencies

Commissioners Courts (Kaufman, Van Zandt, Henderson) • County Judges (Kaufman, Van Zandt, Henderson) • Scholarship Oversight Committee

HB467
Relating to the procedure for the dissolution of the Cedar Creek Hospital District and the disposition of district money.
Low Urgency
Unanimous Passage
House Vote146 - 0
YEA
100% in favor146 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Low
Effective
2025-05-24
Enforcing Agencies
Commissioners CourtsCounty JudgesScholarship Oversight Committee
Primary Author: Rep. Keith Bell
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: May 24, 2025 (Immediate effect).
  • Compliance Deadline: The dissolution order must be entered by Commissioners Courts not later than the 10th day after election results confirm the district's dissolution.
  • Agency Rulemaking: The "Joint Oversight Committee" (comprised of the three counties) must draft eligibility and disbursement rules immediately following a successful election. There is no statutory deadline for these rules, creating a potential delay in fund availability.

Immediate Action Plan

  • County Legal Counsel: Immediately draft a template ILA for the Joint Oversight Committee to prevent administrative gridlock post-election.
  • County Judges: Schedule the joint meeting required to order the special election; ensure ballot language matches the strict statutory requirement in Section 2(d).
  • Healthcare Executives: Contact the County Judges' offices to advocate for industry representation on the Oversight Committee to ensure scholarship criteria match current clinical needs.
  • Finance Directors: Audit any remaining Cedar Creek Hospital District accounts to ensure zero outstanding debt exists, as debt is a statutory bar to dissolution.

Operational Changes Required

Contracts

  • Interlocal Agreements (ILAs): Kaufman, Van Zandt, and Henderson Counties must draft and execute ILAs to govern the formation, composition, and authority of the Joint Oversight Committee.
  • Educational MOUs: The Oversight Committee will require Memorandums of Understanding with Higher Education institutions to facilitate direct tuition disbursements or student verification processes.

Hiring/Training

  • Workforce Pipeline: Local healthcare providers should anticipate a new, localized funding stream for nursing candidates. HR Directors in the tri-county area should align recruitment strategies with the scholarship's residency requirements.

Reporting & Record-Keeping

  • Dissolution Orders: County Clerks must record the specific order dissolving the district within the 10-day statutory window.
  • Residency Verification: The Oversight Committee must establish a verification protocol to prove scholarship applicants reside within the *historical* boundaries of the dissolved district, requiring access to archived district maps.

Fees & Costs

  • Election Costs: The three counties must budget for the administration of the special election.
  • Asset Transfer: Finance departments must segregate Cedar Creek Hospital District assets and prepare for an equal three-way split upon dissolution.

Strategic Ambiguities & Considerations

The legislation mandates the creation of a "Joint Oversight Committee" but fails to define:

  • 1. Committee Composition: The text does not specify the number of appointees per county or the required qualifications of committee members.
  • 2. Fund Custody: It is unclear whether the counties will hold the funds in trust or if the Committee will operate as a separate fiscal entity.
  • 3. "Administering" the Scholarship: The law does not define if funds must be paid to the school or the student, leaving this to the discretion of the new Committee.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Nov 12, 2024
Passed House
Apr 23, 2025
Passed Senate
May 9, 2025
Signed
May 24, 2025
TopicsHospitalsSpecial Districts & AuthoritiesSpecial Districts & Authorities--hospitalCedar Creek Hospital District
03

House Authors

Rep. Keith BellRepublican · Primary Author

Senate Sponsor

Sen. Robert NicholsRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about HB467

Q

What does Texas HB467 do?

HB467 mandates the dissolution of the Cedar Creek Hospital District via a special election, redirecting its residual assets to the newly created Andrew Gibbs Memorial Nursing Scholarship. This legislation strictly impacts Kaufman, Van Zandt, and Henderson Counties, requiring these local governments to execute Interlocal Agreements to manage the liquidation of assets and the administration of new workforce development funds. Implementation Timeline Effective Date: May 24, 2025 (Immediate effect).

Q

Who authored HB467?

HB467 was authored by Texas Representative Keith Bell during the Regular Session.

Q

When was HB467 signed into law?

HB467 was signed into law by Governor Greg Abbott on May 24, 2025.

Q

Which agencies enforce HB467?

HB467 is enforced by Commissioners Courts (Kaufman, Van Zandt, Henderson), County Judges (Kaufman, Van Zandt, Henderson) and Scholarship Oversight Committee.

Q

How urgent is compliance with HB467?

The compliance urgency for HB467 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB467?

The cost impact of HB467 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB467 address?

HB467 addresses topics including hospitals, special districts & authorities, special districts & authorities--hospital and cedar creek hospital district.

Legislative data provided by LegiScanLast updated: November 25, 2025

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