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Signed Into Law
Signed May 29, 2025Effective 2025-09-01
SB1214

Regular Session

Relating to the operations and administration of the Concho County Hospital District.

Government Affairs & Regulatory Compliance Analysis

SB1214: Government Affairs Overview

SB1214 fundamentally alters how the Concho County Hospital District awards construction contracts, shifting from strict low-bid requirements to "best value" procurement under Government Code Chapter 2269. Additionally, the law imposes a strict conflict-of-interest prohibition barring district employees from serving on the Board of Directors.

Sen. Charles Perry·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Enforcing Agencies

Concho County Hospital District Board of Directors

Business Impact

Who SB1214 Affects

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

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). 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

  • 1Bonding: Contracts must strictly adhere to Government Code Chapter 2253. You must secure payment bonds for contracts over $25,000 and performance bonds for contracts over $100,000.
  • 2Board Governance: The Board must elect a Vice President (a newly required officer position).

Estimated Cost Impact

lowMinimal cost impact anticipated.

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SB1214
Low
Relating to the operations and administration of the Concho County Hospital District.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Concho County Hospital District ...
Primary Author: Sen. Charles Perry
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: Immediate upon effective date for all new procurement solicitations and employment contracts. Election changes apply to the first election ordered on or after September 1, 2025.
  • Agency Rulemaking: No state-level rulemaking required. The District Board must amend local bylaws and purchasing policies to define new internal thresholds following the repeal of the $2,000 advertising requirement.

Immediate Action Plan

  • Immediate: Update the District’s procurement manual to reference Government Code Chapter 2269 and remove the $2,000 advertising trigger.
  • By September 1, 2025: Audit the District Administrator’s contract for "at-will" compliance.
  • Next Board Meeting: Amend bylaws to include the office of Vice President and remove requirements for director bonds.
  • Next Election Cycle: Update candidate application packets to remove petition forms and include the "non-employee" eligibility check.

Operational Changes Required

Contracts

  • Construction & Public Works: Vendors must stop expecting simple "lowest responsible bidder" awards. The District is now authorized to use Design-Build, Construction Manager-at-Risk (CMAR), and Competitive Sealed Proposals. Bid teams must adjust proposals to address qualifications, schedule, and past performance.
  • Bonding: Contracts must strictly adhere to Government Code Chapter 2253. You must secure payment bonds for contracts over $25,000 and performance bonds for contracts over $100,000.
  • Administrator Employment: The District Administrator is statutorily defined as serving "at the will of the board." Review and amend any existing employment agreements to remove "for cause" termination clauses that conflict with this statutory status.

Hiring/Training

  • Board Governance: The Board must elect a Vice President (a newly required officer position).
  • Candidate Eligibility: District employees are now disqualified from serving as directors. HR and Legal must communicate this restriction to staff prior to the next filing window.
  • Grandfathering: Current directors who are employees may finish their terms, but are ineligible for re-election.

Reporting & Record-Keeping

  • Election Filing: The Board Secretary must reject candidate petitions. The requirement for a petition signed by 10 voters is repealed. Candidates must file a standard Application for Place on the Ballot under Election Code Chapter 144.
  • Insurance: The statutory requirement for individual director bonds is repealed. Risk Managers must verify that the District’s Directors and Officers (D&O) liability policy provides adequate coverage in the absence of these bonds.

Fees & Costs

  • Procurement Costs: Vendors may see increased costs associated with preparing detailed proposals for CMAR or Design-Build solicitations compared to simple sealed bids.
  • Fiscal Impact: No direct state or local fiscal impact is anticipated, though administrative efficiency may improve.

Strategic Ambiguities & Considerations

  • Procurement Thresholds: The law repeals the specific requirement to advertise contracts over $2,000 but does not explicitly replace it with a specific dollar figure, deferring instead to general Government Code. Vendors must monitor the District’s updated purchasing policy to determine the new threshold (likely $50,000) for formal competitive bidding.
  • Assistant Administrator Role: Statutory references to the "Assistant Administrator" have been removed. While the position is not banned, it lacks statutory definition. The Board must define the scope and authority of this role via internal job descriptions to avoid authority 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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 11, 2025
Passed Senate
Apr 16, 2025
Passed House
May 16, 2025
Signed
May 29, 2025
Effective
Sep 1, 2025
TopicsConcho County Hospital DistrictConcho CountyElectionsElections--generalSpecial Districts & AuthoritiesSpecial Districts & Authorities--hospital
03

Senate Authors

Sen. Charles PerryRepublican · Primary Author

House Sponsor

Rep. Drew DarbyRepublican · 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 Sen. Charles Perry

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Related by Topic

View more Concho County Hospital District legislation
Quick Reference

Frequently Asked Questions

Common questions about SB1214

Q

What does Texas SB1214 do?

SB1214 fundamentally alters how the Concho County Hospital District awards construction contracts, shifting from strict low-bid requirements to "best value" procurement under Government Code Chapter 2269. Additionally, the law imposes a strict conflict-of-interest prohibition barring district employees from serving on the Board of Directors.

Q

Who authored SB1214?

SB1214 was authored by Texas Senator Charles Perry during the Regular Session.

Q

When was SB1214 signed into law?

SB1214 was signed into law by Governor Greg Abbott on May 29, 2025.

Q

Which agencies enforce SB1214?

SB1214 is enforced by Concho County Hospital District Board of Directors.

Q

How significant are the changes in SB1214?

The regulatory priority for SB1214 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1214?

The cost impact of SB1214 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1214 address?

SB1214 addresses topics including concho county hospital district, concho county, elections, elections--general and special districts & authorities.

Q

What are the key dates for SB1214?

Key dates for SB1214: Effective date is 2025-09-01. 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