TX HB2658

Reduces the residency requirement for board director candidates from two years to one year and removes the requirement that directors be property tax paying voters, while adding a prohibition on district employees serving as directors

Eliminates the $1,000 commercial bond requirement for directors, replacing it with only the constitutional oath of office and anti-bribery statement, which must be maintained indefinitely in district records

Expands the hospital system's authorized services to explicitly include domiciliary care for sick, injured, or elderly persons, outpatient clinics, pharmacies, skilled nursing facilities, community health centers, and assisted living facilities

Grants the board authority to establish and change the district's fiscal year (previously fixed as October 1 to September 30), with restrictions preventing changes during periods when revenue bonds are outstanding or more than once in 24 months

Changes depository requirements to allow designation of any bank in Texas (rather than only Kimble County banks) for up to five years (increased from two years), requires competitive bidding for depository selection, and mandates compliance with state investment and collateral security laws