Relating to the compensation and benefits for certain peace officers commissioned by the state fire marshal.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
Texas Department of Insurance • State Fire Marshal's Office • State Auditor's Office
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025 (Start of State Fiscal Biennium).
Compliance Deadline:March 1, 2026 (Standard deadline for maintenance tax payments covering the 2025 tax year/2026 fiscal requirements).
Agency Rulemaking: The State Auditor’s Office must reclassify specific job titles by September 1, 2025. TDI will calculate and publish the adjusted maintenance tax rates in December 2025.
Immediate Action Plan
1.Alert Finance/Tax Departments: Forward this analysis to your CFO and Tax Director immediately.
2.Adjust FY 2026 Accruals: Flag the TDI Maintenance Tax line item for an upward adjustment in the 2026 budget planning cycle.
3.Monitor Rate Publication: Watch for the official TDI Maintenance Tax rate announcement in December 2025 to confirm the final percentage increase.
Operational Changes Required
Contracts
None. This is a statutory tax assessment levied on the carrier. It does not trigger change-in-law provisions in vendor contracts or policyholder agreements.
Hiring/Training
None. This legislation strictly governs state agency personnel (State Fire Marshal investigators). It imposes no new hiring or training mandates on private sector employers.
Reporting & Record-Keeping
None. No new filings are required. The tax increase will be reflected automatically in the annual maintenance tax invoice generated by the Comptroller/TDI.
Fees & Costs
Variable Maintenance Tax Increase.
The law adds ~$1.03 million annually to the TDI Operating Account (Fund 36).
Mechanism: Fund 36 is "self-leveling." TDI is required to set maintenance tax rates at a level sufficient to cover appropriations.
Impact: Carriers writing Property & Casualty, Life, Accident, Health, and Title insurance will see this cost amortized into their 2026 maintenance tax rate.
Strategic Ambiguities & Considerations
The "Self-Leveling" Denominator.
While the cost increase ($1.03M) is fixed, the tax *rate* applied to carriers depends on the total statewide gross premium volume.
Risk: If statewide premium volume stagnates or decreases in 2025, the maintenance tax *rate percentage* will increase disproportionately to cover this new fixed cost.
Scope of "Investigator": The State Auditor’s Office has discretion to determine exactly which job descriptions qualify as "investigators" for Schedule C pay. A broad interpretation during the classification audit could push the cost impact higher than the estimated $1.03 million.
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The state fire marshal's office (SFMO) within the Texas Department of Insurance commissions peace officers to act as fire and arson investigators and to perform other law enforcement duties. While these investigators are required to be certified as peace officers by the Texas Commission on Law Enforcement, they are currently compensated under Salary Schedule B, creating a pay disparity between them and other law enforcement officers classified under Salary Schedule C. The bill author has informed the committee that this consistent undercompensation has led to recruitment and retention challenges within the SFMO and that a salary schedule adjustment is necessary to both address these staffing shortages and ensure equitable compensation for SFMO investigators. H.B. 2467 seeks to resolve this issue by reclassifying the salary schedule of SFMO investigators and requiring the commissioner of insurance to ensure that peace officers commissioned as fire and arson investigators are compensated according to Salary Schedule C, as prescribed by the General Appropriations Act.
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
H.B. 2467 amends the Government Code to require the commissioner of insurance to ensure that a peace officer commissioned by the state fire marshal is compensated according to Schedule C of the position classification salary schedule prescribed by the General Appropriations Act.
H.B. 2467 includes a commissioned law enforcement officer of the state fire marshal among the individuals considered a state employee for purposes of hazardous duty pay.
H.B. 2467 makes a peace officer commissioned by the state fire marshal eligible for the special injury leave for certain peace officers, applicable to an injury that occurs on or after the bill's effective date.
H.B. 2467 directs the classification officer in the office of the state auditor to classify the position of commissioned peace officer employed as an investigator by the state fire marshal's office as a Schedule C position under the state position classification plan. The change made by the classification officer applies beginning with the 2026-2027 state fiscal biennium.
Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2467 by VanDeaver (Relating to the compensation and benefits for certain peace officers commissioned by the state fire marshal.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2467, As Introduced: an impact of $0 through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
$0
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from Dept Ins Operating Acct 36
Probable Revenue Gain/(Loss) from Dept Ins Operating Acct 36
2026
($1,034,281)
$1,034,281
2027
($1,034,281)
$1,034,281
2028
($1,057,201)
$1,057,201
2029
($1,096,976)
$1,096,976
2030
($1,203,489)
$1,203,489
Fiscal Analysis
The bill would amend the Texas Government Code to require the Department of Insurance (TDI) to compensate peace officers employed by the State Fire Marshal's Office (SFMO) according to Schedule C of the position classification salary schedule in the General Appropriations Act and directs the State Auditor's Office to classify the position of commissioned peace officer employed as an investigator by the State Fire Marshal's Office as a Schedule C position under the position classification plan maintained by the Government Code.
The bill would take effect September 1, 2025.
Methodology
Based upon analysis provided by the Texas Department of Insurance (TDI), the agency would require additional resources to cover the payroll-related expenses associated with implementing the provisions of the bill. This estimate assumes that under the new Schedule C classification, peace officers employed by SFMO would receive a pay increase totaling $887,446 in fiscal year 2026, $887,446 in fiscal year 2027, $908,203 in fiscal year 2028, $942,086 in fiscal year 2029, and $1,032,821 in fiscal year 2030. As a result of additional payroll-related spending, there would be additional costs related to retirement benefits and social security of $146,835 in fiscal year 2026, $146,835 in fiscal year 2027, $148,998 in fiscal year 2028, $154,890 in fiscal year 2029, and $170,668 in fiscal year 2030.
This estimate assumes that any appropriations made to implement the bill would be from the TDI Operating Account Fund 36. Due to the self-leveling nature of the TDI operating account, any additional appropriations made from the account would be considered in the annual adjustment of the maintenance tax rates. Therefore, the overall revenue into the TDI operating account will be equal to the expenses.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
327 Employees Retirement System, 454 Department of Insurance
LBB Staff: b > td >
JMc, RStu, GDZ, BFa, NV
Related Legislation
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HB2467 mandates a salary reclassification for State Fire Marshal peace officers to "Schedule C," increasing state expenditures by approximately $1. 03 million annually beginning Fiscal Year 2026. Because these funds are drawn from the Texas Department of Insurance (TDI) Operating Account (Fund 36), insurance carriers must anticipate a corresponding increase in their maintenance tax assessments to cover this pass-through cost.
Q
Who authored HB2467?
HB2467 was authored by Texas Representative Gary Vandeaver during the Regular Session.
Q
When was HB2467 signed into law?
HB2467 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB2467?
HB2467 is enforced by Texas Department of Insurance, State Fire Marshal's Office and State Auditor's Office.
Q
How urgent is compliance with HB2467?
The compliance urgency for HB2467 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB2467?
The cost impact of HB2467 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB2467 address?
HB2467 addresses topics including fire fighters & police, fire fighters & police--general, salaries & expenses, fire marshal and peace officers.
Legislative data provided by LegiScanLast updated: November 25, 2025
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