Relating to the funding of law enforcement agencies in certain counties.
ModeratePlan for compliance
Low Cost
Effective:2025-09-01
Enforcing Agencies
Criminal Justice Division of the Office of the Governor • Texas Comptroller of Public Accounts
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline: Immediate for accounting practices. Any county budget adopted for a fiscal year beginning on or after September 1, 2025, must reflect these funding protections.
Agency Rulemaking: The Texas Comptroller is not required to write proactive rules but will issue written determinations regarding funding reductions upon request by the Governor’s Criminal Justice Division. Expect a "regulatory gray zone" regarding the definition of "unspent funds" during the first budget cycle.
Immediate Action Plan
Audit Contracts: Immediately review all MOUs/MSAs with Harris County law enforcement. Confirm that terms do not allow the County to treat your payments as General Revenue offsets.
Establish Liaison: Designate a point of contact to meet with your contracted Precinct Constable or Sheriff's representative to confirm how they are segregating your funds post-September 1.
Monitor Budget Hearings: Instruct your government affairs team to monitor the Harris County budget adoption process in Fall 2025. Any proposed reduction in LE funding triggers your right to request a determination from the Governor's Office.
Risk Assessment: Assess your exposure to non-police county services. If the County hits the tax rate penalty cap, prepare for delays in permitting and infrastructure maintenance.
Operational Changes Required
Contracts
Review "Contract Deputy" Agreements: Entities contracting with the Harris County Sheriff or Constables (under Local Government Code 85.025 or 86.026) must audit their agreements.
Non-Substitution Mandate: Ensure your contract acknowledges that payments are credited directly to the specific agency's account.
Service Level Verification: Since the County cannot reduce base funding due to your contract, your payments should result in a net increase in presence. If your contract payments remain steady but service levels drop due to "budget cuts," the County is likely in violation of the new statute.
Hiring/Training
N/A for Private Entities: This bill regulates government finance. However, businesses should expect fewer delays in the deployment of officers, as the County Auditor’s ability to block "lawful" expenditures for equipment and training has been statutorily removed.
Reporting & Record-Keeping
Segregated Payment Ledgers:
Maintain precise records of all payments made for law enforcement services.
Do not rely solely on County invoices. Track your payments against the specific Constable Precinct’s operational output. If a dispute arises regarding "defunding," your payment history will be the primary evidence required by the Governor’s Office to trigger an investigation.
Fees & Costs
Tax Rate Volatility:
No Direct Fee Increase: The bill does not mandate fee hikes.
Indirect Fiscal Risk: If Harris County is found in violation (e.g., by reducing LE funding without voter approval), the County is penalized with a "No-New-Revenue" tax rate cap. This severe fiscal constraint could lead to service reductions in *other* county departments (permitting, inspections, roads) that your business relies on.
Strategic Ambiguities & Considerations
"Lawful Purpose" Spending: The law prevents the Commissioners Court from interfering with a Sheriff/Constable's spending if it is for a "lawful purpose." This removes political oversight.
*Business Risk:* If a Constable uses your contract funds to purchase controversial equipment (e.g., military-grade surveillance), the County cannot stop it. Review your contract's indemnification and allowable use clauses to protect your organization's reputation.
Unspent Funds: The ban on reallocating unspent funds is vague. It is unclear if unspent monies roll over indefinitely or if the Comptroller will define a cap. Watch for Comptroller opinions on this specific accounting treatment.
Need Help Understanding Implementation?
Our government affairs experts can walk you through this bill's specific impact on your operations.
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.
Accepting Harris County's acknowledgment of reducing certain law enforcement funding, then‑Comptroller Glenn Hegar stated in an April 2023 press release on the matter that "removing rollover budgets, refusing to allow law enforcement agencies to hire patrol officers and other staff despite budgeting for those positions, [and] claiming that planting trees and striping bike lanes is law enforcement" were all methods taken by the county to undermine the rule of law. He further stated that "[f]ully funding the police is also about making sure they have full access to those funds and the flexibility to use that money to keep communities safe and criminals off the streets." C.S.H.B. 192 seeks to address those concerns and prevent what, in that same press release, Representative Oliverson refers to as "accounting tricks [used] to try to prevent the public from gaining real visibility into county efforts to cut funding" for law enforcement and other county-led efforts to "limit the way law enforcement agencies can use the money that has supposedly been appropriated to keep residents safe."
Accordingly, C.S.H.B. 192 expands the conditions under which a county with a population of more than 3.3 million is required to hold an election for the reduction of funding or resources for certain primary law enforcement agencies and prohibits such a county from transferring money appropriated to the office of sheriff or constable to the county's general revenue fund or any other county account, prohibiting the office of sheriff or constable from spending money appropriated to the office for any lawful purpose, or prohibiting or restricting the sheriff or constable from using money appropriated to them for a lawful purpose if the county auditor or treasurer determines that the money is available to them.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 192 amends the Local Government Code to do the following with respect to a county with a population of more than 3.3 million:
·expand the conditions under which the county is required to hold an election for the reduction of funding or resources for certain primary law enforcement agencies to include a change by the county of an adopted budget that results in a budget for a fiscal year that makes an applicable reduction in funding or resources; and
·include as applicable reductions for purposes of such an election the reallocation of unspent funding that was appropriated to a law enforcement agency and the reallocation of funding previously appropriated for a specific law enforcement position to another agency.
C.S.H.B. 192 prohibits a county with a population of more than 3.3 million from doing the following:
·transferring money appropriated to the office of sheriff or constable to the county's general revenue fund or any other county account; or
·prohibiting the office of sheriff or constable from spending money appropriated to the office for any lawful purpose.
The bill prohibits such a county from prohibiting or otherwise restricting the use of appropriated money by the sheriff or constable, as applicable, for a lawful purpose, if the county auditor or county treasurer determines that the money is available to the office of the sheriff or constable, as applicable.
EFFECTIVE DATE
91st day after the last day of the legislative session.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 192 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
The substitute omits provisions from the introduced that did the following:
·authorized the sheriff and a constable, respectively, of a county with a population of more than 3.3 million to enter into a contract with a local government, a property owners' association, or an owner of land to provide law enforcement services in the sheriff's county or the constable's precinct, as applicable, as follows:
oin and near the area managed or regulated by the local government or the association or the area owned by the owner; and
oto the persons residing in or visiting such an area;
·for purposes of that authorization, defined "local government" as a county, municipality, municipal utility district, school district, junior college district, or other political subdivision of the state and "property owners' association" by reference to Property Code provisions relating to the construction and enforcement of restrictive covenants;
·prohibited the commissioners court of the sheriff's or constable's county from prohibiting or otherwise restricting the sheriff or constable, as applicable, from entering into such a contract;
·authorized the sheriff and constable, respectively, to enter into the contract and determine the contract's terms, regardless of whether the applicable commissioners court approves of the contract or the terms; and
·in relation to money received under the contract:
orequired the commissioners court to credit the money to the office of the sheriff or constable, as applicable;
oprohibited the commissioners court from crediting the money to the county's general revenue fund; and
oprohibited the commissioners court from reducing the appropriation to the office of the sheriff or constable, as applicable, by the amount of the money received because the money is considered, for purposes of a required election for the reduction of funding or resources for certain primary law enforcement agencies, as part of the office's appropriation for the county fiscal year in which the money is received.
FISCAL NOTE, 89TH LEGISLATURE 2nd CALLED SESSION 2025
August 24, 2025
TO:
Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB192 by Oliverson (Relating to the funding of, contracting with, and employment for law enforcement agencies in certain counties.), As Introduced
No fiscal implication to the State is anticipated.
Local Government Impact
There could be an impact on a Harris County Sheriff or Constable office that enters into a contract with a property owners' association or an owner of land in a subdivision to provide law enforcement services.
Source Agencies: b > td >
405 Department of Public Safety, 407 Commission on Law Enforcement
LBB Staff: b > td >
JMc, SZ, BC, CWi
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HB192 fundamentally restructures the financial relationship between Harris County and its law enforcement agencies, directly impacting Property Owners Associations (POAs), MUDs, and businesses utilizing "Contract Deputy" programs. The law mandates that private funds paid for supplemental security must be additive to the agency's budget and prohibits the County from using these payments to offset or reduce general fund obligations to the Sheriff or Constables. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Immediate for accounting practices.
Q
Who authored HB192?
HB192 was authored by Texas Representative Tom Oliverson during the 2nd Special Session.
Q
When was HB192 signed into law?
HB192 was signed into law by Governor Greg Abbott on September 17, 2025.
Q
Which agencies enforce HB192?
HB192 is enforced by Criminal Justice Division of the Office of the Governor and Texas Comptroller of Public Accounts.
Q
How urgent is compliance with HB192?
The compliance urgency for HB192 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB192?
The cost impact of HB192 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB192 address?
HB192 addresses topics including city government, city government--employees/officers, county government, county government--employees/officers and fire fighters & police.
Legislative data provided by LegiScanLast updated: November 25, 2025
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