HB252

Regular Session

Relating to the payment of employment compensation by certain state agencies.

LowStandard timeline

Low Cost

Effective:2025-06-20

Enforcing Agencies

Comptroller of Public Accounts

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
Compliance Deadline: Immediate readiness required for vendors. While agency adoption is optional, payroll service providers must be capable of processing split-cycle payrolls (monthly for some, semi-monthly for others) immediately upon an agency's election.
Agency Rulemaking: The Comptroller of Public Accounts must establish the technical requirements for this transition. Expect a Fiscal Policy Instruction (FPI) shortly detailing data transmission standards for the second monthly pay run.

Immediate Action Plan

Payroll Vendors: Audit your software immediately to ensure it supports "split-cycle" configurations (dual pay frequencies within a single Employer Identification Number).
GovTech Account Managers: Contact state agency clients this week to determine if they intend to exercise this election for the upcoming fiscal quarter.
Private Sector HR: Review compensation packages for administrative staff; anticipate tighter competition for talent from state agencies like TxDOT and HHSC.
Legal Counsel: If you hold a contract for state payroll services, draft an amendment regarding increased transaction volumes and revised payment schedules.

Operational Changes Required

Contracts

Payroll & HRIS Vendors: Review Service Level Agreements (SLAs) with state agency clients immediately. If your pricing model relies on "per-run" or "per-transaction" fees, this legislation effectively doubles the processing volume for Schedule A employees. You must enforce or renegotiate volume-based pricing clauses.
Treasury Management: Vendors managing float or disbursement for state entities must amend banking agreements to account for accelerated cash outlays occurring twice monthly rather than the single end-of-month disbursement.

Hiring/Training

Private Sector HR: No internal training required. However, recruitment strategies for administrative and clerical roles (Salary Groups A12-A17) must be adjusted. The "monthly pay" stigma that previously deterred candidates from state employment has been removed.
State Vendors: Technical support staff must be trained to handle "split-cycle" inquiries, where a single agency client operates two simultaneous pay frequencies.

Reporting & Record-Keeping

State Vendors: You must document the specific "election" date chosen by each agency client to switch cycles. This is critical for defending against potential audit discrepancies regarding tax withholding timing and quarterly reporting cutoffs.

Fees & Costs

Processing Costs: For vendors, operational costs for processing, printing, and ACH transmission will increase due to higher frequency.
Cash Flow: State agencies electing this change will accelerate cash outlays, potentially impacting interest income on funds previously held until month-end.

Strategic Ambiguities & Considerations

The "Election" Window: The statute allows agencies to "elect" this change but does not specify if this must occur at the start of a fiscal year (September 1) or if it can be triggered mid-cycle. Vendors should prepare for mid-year disruptions until the Comptroller clarifies.
Scope of "Schedule A": The Fiscal Note specifically models costs for Salary Groups A12-A17, yet the bill text broadly references "Schedule A." It is unclear if agencies will apply this to entry-level (A1-A11) staff immediately.
Comptroller Technicalities: The law is contingent on agencies meeting "Comptroller requirements." These technical specifications are currently unpublished, creating a regulatory gray zone regarding software compliance standards.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsSalaries & Expenses State Agencies, Boards & Commissions State Employees

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 252

By: Walle

Delivery of Government Efficiency

Committee Report (Unamended)

BACKGROUND AND PURPOSE

State agencies often get requests from new employees transitioning from the private sector for the option to be paid more than once a month, which is common practice in the private sector. Although state law authorizes certain state agency employees to be compensated twice a month if specified conditions are met, this authorization is typically limited to employees in positions classified below salary group A12. Providing this payment flexibility could allow agencies to better recruit and retain employees who desire compensation twice per month. H.B. 252 seeks to expand the number of state employees who are eligible to be paid twice a month to include an employee of an applicable state agency who holds a position that is classified in salary group A12, A13, A14, A15, A16, or A17 under classification salary Schedule A in 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. 252 amends the Government Code to authorize any of the following state agencies to elect to pay employment compensation twice a month to an employee who holds a position that is classified in salary group A12, A13, A14, A15, A16, or A17 under classification salary Schedule A in the General Appropriations Act:

·the Health and Human Services Commission;

·the Texas Department of Transportation;

·the Texas Workforce Commission;

·the Department of Public Safety; or

·any other state agency designated by the comptroller of public accounts.

The bill requires an agency that makes such an election to satisfy the comptroller's requirements relating to the payment of compensation twice a month.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

House Authors

Rep. Armando WalleDemocrat · Primary Author

Joint Authors

Senate Sponsors

Sen. Bryan HughesRepublican · Primary Sponsor

Cosponsors (2)

Bill Text(with markup)

H.B. No. 252

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the payment of employment compensation by certain state
	agencies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 659.082, Government Code, is amended by
	adding Subsection (c) to read as follows:
	(c) A state agency listed in Subsection (a) may elect to pay
	employment compensation twice a month to an employee who holds a
	position classified under classification salary Schedule A in the
	General Appropriations Act. A state agency that elects to pay
	employment compensation twice a month under this subsection must
	satisfy the comptroller's requirements relating to the payment of
	compensation twice a month.
	SECTION 2. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 25, 2025

TO:	Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB252 by Walle (Relating to the payment of employment compensation by certain state agencies.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would authorize certain agencies to pay compensation to employees, who are classified in salary groups A12 through A17, twice a month (rather than once a month). There could be an acceleration of cash outlays for the agencies who would choose to pay the applicable employees twice a month that would affect the certification balance for the 2026-27 biennium. That amount cannot be estimated but is not expected to be significant.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 320 Texas Workforce Commission, 405 Department of Public Safety, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation

LBB Staff:

JMc, RStu, CSmi

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Frequently Asked Questions

Common questions about HB252

What does Texas HB252 do?

HB 252 immediately authorizes state agencies to transition employees classified under Salary Schedule A (administrative, support, and technical roles) from monthly to semi-monthly pay cycles. While this creates no direct payroll mandate for private employers, it imposes urgent system configuration requirements for state payroll vendors and removes a historic competitive disadvantage for state agencies in recruiting administrative talent. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).

Who authored HB252?

HB252 was authored by Texas Representative Armando Walle during the Regular Session.

When was HB252 signed into law?

HB252 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB252?

HB252 is enforced by Comptroller of Public Accounts.

How urgent is compliance with HB252?

The compliance urgency for HB252 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB252?

The cost impact of HB252 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB252 address?

HB252 addresses topics including salaries & expenses, state agencies, boards & commissions and state employees.

Legislative data provided by LegiScanLast updated: November 25, 2025

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