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

Local nursing scholarships from hospital district funds

The law lets county judges jointly call a vote to dissolve the Cedar Creek Hospital District. The district must no longer provide or pay for medical or hospital care. Every board seat must be vacant, no debt may remain, and cash must be its only asset. A majority of votes cast must support dissolution and using the money for nursing scholarships. After approval, the judges must declare dissolution and split the remaining cash equally among Kaufman, Van Zandt, and Henderson Counties. Dissolution orders are due within 10 days after the commissioners courts find the required steps complete. The money is reserved solely for establishing and running the Andrew Gibbs Memorial Nursing Scholarship. Applicants must have lived within the district's election-day boundaries when accepted into a qualifying nursing program. They must also be accepted into or enrolled in that program at an eligible Texas college or university. A joint oversight committee administers the scholarship and may set further eligibility, application, and selection rules. The committee and county judges may work with an eligible college or university within the district. The law sets no funding total or award size and creates no new taxes or state funding. Its effective-date rule is immediate effect with two-thirds approval in each legislative house; otherwise, September 1, 2025.