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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB2014

Regular Session

Relating to the election of the board of directors of the Somervell County Hospital District.

Government Affairs & Regulatory Compliance Analysis

HB2014: Government Affairs Overview

HB2014 mandates a governance restructuring for the Somervell County Hospital District, shifting board elections to the May uniform election date and establishing a seven-member board with staggered four-year terms. This legislation primarily impacts the District’s Board of Directors, legal counsel, and election vendors, requiring a transition phase involving a "drawing of lots" to reset term limits starting in May 2026.

Rep. Helen Kerwin·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20
Enforcing Agencies

Somervell County Hospital District Board of Directors

Business Impact

Who HB2014 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-06-20). Review during normal business planning.

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Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation

Key Operational Considerations

  • 1Election Administration: Renegotiate contracts with county election administrators or third-party vendors to align services with the May uniform election date rather than November.
  • 2Vendor Ratification: Schedule long-term vendor contracts requiring Board ratification for review prior to May 2026 to avoid delays during the board reconstitution.

Estimated Cost Impact

lowMinimal cost impact anticipated.

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HB2014
Relating to the election of the board of directors of the Somervell County Hospital District.
Low Urgency
Passed with Opposition
House Vote109 - 14
YEA
89% in favor123 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
14
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Somervell County Hospital Distri...
Primary Author: Rep. Helen Kerwin
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025
  • Compliance Deadline: January 2026 (Preparation for the May 2026 election filing window).
  • Agency Rulemaking: No state-level rulemaking required. However, the District Board must adopt internal resolutions and amended bylaws prior to the May 2026 election to codify the new lot-drawing procedures.

Immediate Action Plan

  • Immediately: Draft and approve bylaw amendments referencing Chapter 1123.
  • Q3 2025: Audit D&O insurance and public official bonds to align with the new term structures.
  • Q4 2025: Finalize election vendor contracts for the May 2026 uniform election date.
  • January 2026: Publish the Notice of Deadline to File Applications for a Place on the Ballot for the May 2026 election.
  • May 2026 (Post-Election): Execute and record the "drawing of lots" to establish the permanent staggered cycle.

Operational Changes Required

Contracts

  • Election Administration: Renegotiate contracts with county election administrators or third-party vendors to align services with the May uniform election date rather than November.
  • Executive Employment: Review Hospital Administrator and CEO contracts. If renewal is contingent on Board action, align the renewal window with the new election cycle to ensure continuity during the 2026–2027 governance transition.
  • Vendor Ratification: Schedule long-term vendor contracts requiring Board ratification for review prior to May 2026 to avoid delays during the board reconstitution.

Hiring/Training

  • Board Secretary Protocol: The Board Secretary requires specific instruction on the statutory procedure for the "drawing of lots" (Section 2(b)). This is not a standard election procedure and determines which directors serve 2-year versus 3-year terms during the transition.

Reporting & Record-Keeping

  • Bylaw Amendments: Amend District bylaws immediately to cite Chapter 1123, Special District Local Laws Code as the governing statute.
  • Meeting Minutes: The minutes of the first meeting following the May 2026 election must explicitly record the results of the lot drawing. This record serves as the legal evidence for the expiration dates of the directors' terms (2028 vs. 2029).

Fees & Costs

  • Election Budgeting: Adjust the fiscal year budget to allocate election costs to the spring (May) rather than the fall.
  • Insurance Premiums: Verify Directors & Officers (D&O) liability insurance policies to ensure coverage periods automatically adjust to the staggered terms without gaps.

Strategic Ambiguities & Considerations

The legislation creates Chapter 1123 but fails to explicitly detail the procedure for filling mid-term vacancies (appointment vs. special election) under the new structure. The District must rely on default provisions in the Texas Health and Safety Code or general Special District laws.

  • Risk: If a vacancy occurs during the transition period, the lack of clarity could lead to governance challenges.
  • Mitigation: Counsel must define the vacancy-filling procedure in the bylaws *before* a vacancy occurs to prevent disputes.

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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
Jan 22, 2025
Passed House
May 16, 2025
Passed Senate
May 25, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsSomervell County Hospital DistrictSpecial Districts & AuthoritiesSpecial Districts & Authorities--hospitalSomervell CountyElectionsElections--general
03

House Authors

Rep. Helen KerwinRepublican · Primary Author
Coauthors (1)

Senate Sponsor

Sen. Brian BirdwellRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Helen Kerwin

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Related by Topic

View more Somervell County Hospital District legislation
Quick Reference

Frequently Asked Questions

Common questions about HB2014

Q

What does Texas HB2014 do?

HB2014 mandates a governance restructuring for the Somervell County Hospital District, shifting board elections to the May uniform election date and establishing a seven-member board with staggered four-year terms. This legislation primarily impacts the District’s Board of Directors, legal counsel, and election vendors, requiring a transition phase involving a "drawing of lots" to reset term limits starting in May 2026.

Q

Who authored HB2014?

HB2014 was authored by Texas Representative Helen Kerwin during the Regular Session.

Q

When was HB2014 signed into law?

HB2014 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB2014?

HB2014 is enforced by Somervell County Hospital District Board of Directors.

Q

How significant are the changes in HB2014?

The regulatory priority for HB2014 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB2014?

The cost impact of HB2014 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB2014 address?

HB2014 addresses topics including somervell county hospital district, special districts & authorities, special districts & authorities--hospital, somervell county and elections.

Q

What are the key dates for HB2014?

Key dates for HB2014: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026