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Signed Into Law
Signed May 24, 2025Effective 2025-09-01
SB499

Regular Session

Relating to the selection by the board of directors of the West Coke County Hospital District of a depository bank for the district.

Government Affairs & Regulatory Compliance Analysis

SB499: Government Affairs Overview

SB499 eliminates the statutory requirement that the West Coke County Hospital District (WCCHD) select a depository bank physically located within the district's boundaries. This legislation immediately expands the eligible vendor pool, allowing regional financial institutions across West Texas to bid on and secure the District’s banking and treasury management contracts.

Sen. Kevin Sparks·Senate Bill·Regular Session

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

West Coke County Hospital District Board of Directors

Business Impact

Who SB499 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

  • 1Depository Agreements: Existing contracts with incumbent local banks are subject to non-renewal or termination upon expiration.
  • 2Business Development: Regional banks must update government banking prospect lists to include WCCHD.
  • 3Treasury Sales: Commercial officers must be trained to pitch digital-first treasury solutions to the District, emphasizing how technology mitigates the lack of a local physical branch.

Estimated Cost Impact

lowMinimal cost impact anticipated.

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SB499
Low
Relating to the selection by the board of directors of the West Coke County Hospital District of a depository bank for the district.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
West Coke County Hospital Distri...
Primary Author: Sen. Kevin Sparks
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. Financial institutions wishing to bid must be prepared for the District's next Request for Applications (RFA) or Request for Proposals (RFP) cycle following this date.
  • Agency Rulemaking: Local Only. The State will not issue rules; however, the WCCHD Board of Directors must update internal procurement policies to reflect broader eligibility criteria prior to issuing new solicitations.

Immediate Action Plan

  • Identify Contract Expiration: Submit a Public Information Act (PIA) request to WCCHD immediately to determine the expiration date of the current depository contract.
  • Update Collateral Pools: Ensure your institution has sufficient eligible securities to collateralize the District’s funds under the Public Funds Collateral Act before bidding.
  • Prepare Digital Pitch: Develop a specific presentation for the WCCHD Board demonstrating how remote deposit capture and wire services replace the need for daily branch visits.
  • Monitor Board Agendas: Assign staff to monitor WCCHD Board meeting notices starting June 2025 for discussions regarding depository selection criteria.

Operational Changes Required

Contracts

  • Depository Agreements: Existing contracts with incumbent local banks are subject to non-renewal or termination upon expiration.
  • Service Level Agreements (SLAs): New contracts with non-local institutions must incorporate specific SLAs regarding digital banking uptime, remote deposit capture limits, and courier services for cash handling, as physical branch reliance is removed.

Hiring/Training

  • Business Development: Regional banks must update government banking prospect lists to include WCCHD.
  • Treasury Sales: Commercial officers must be trained to pitch digital-first treasury solutions to the District, emphasizing how technology mitigates the lack of a local physical branch.

Reporting & Record-Keeping

  • Bid Documentation: Non-local banks must document "best value" propositions in their proposals—specifically interest rates and fee structures—to overcome potential local political preference.
  • Collateralization: Selected depositories must maintain and report collateralization of public funds in excess of FDIC limits, strictly adhering to Texas Government Code Chapter 2257 (Public Funds Collateral Act).

Fees & Costs

  • No Statutory Fees: The bill imposes no new state fees.
  • Operational Costs: Non-local banks may incur costs related to courier services or implementing specialized remote treasury hardware for the District.

Strategic Ambiguities & Considerations

The "Local Preference" Policy Gap:

While SB499 *permits* the Board to select a non-local bank, it does not *prohibit* the Board from prioritizing local economic ties. The statute does not define how the Board must weigh "convenience" vs. "cost."

  • Risk: The Board may retain an unwritten preference for local institutions.
  • Mitigation: Non-local bidders must demonstrate significant cost savings or superior yield on deposits to compel the Board to switch vendors.

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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 22, 2024
Passed Senate
Mar 20, 2025
Passed House
May 10, 2025
Signed
May 24, 2025
Effective
Sep 1, 2025
TopicsWest Coke County Hospital DistrictSpecial Districts & AuthoritiesSpecial Districts & Authorities--hospital
03

Senate Authors

Sen. Kevin SparksRepublican · Primary Author
Coauthors (1)

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. Kevin Sparks

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Related by Topic

View more West Coke County Hospital District legislation
Quick Reference

Frequently Asked Questions

Common questions about SB499

Q

What does Texas SB499 do?

SB499 eliminates the statutory requirement that the West Coke County Hospital District (WCCHD) select a depository bank physically located within the district's boundaries. This legislation immediately expands the eligible vendor pool, allowing regional financial institutions across West Texas to bid on and secure the District’s banking and treasury management contracts.

Q

Who authored SB499?

SB499 was authored by Texas Senator Kevin Sparks during the Regular Session.

Q

When was SB499 signed into law?

SB499 was signed into law by Governor Greg Abbott on May 24, 2025.

Q

Which agencies enforce SB499?

SB499 is enforced by West Coke County Hospital District Board of Directors.

Q

How significant are the changes in SB499?

The regulatory priority for SB499 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB499?

The cost impact of SB499 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB499 address?

SB499 addresses topics including west coke county hospital district, special districts & authorities and special districts & authorities--hospital.

Q

What are the key dates for SB499?

Key dates for SB499: 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