Relating to supplemental benefits for retired firefighters and peace officers diagnosed with certain diseases or illnesses.
CriticalImmediate action required
High Cost
Effective:2025-06-20
Enforcing Agencies
Texas Department of Insurance (Division of Workers' Compensation) • Political Subdivisions (Self-enforcement/Civil Liability)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Law is enacted; administrative preparations must begin).
Compliance Deadline:January 1, 2026 (The mandate applies to any eligible employee retiring on or after this date).
Agency Rulemaking: The Commissioner of Workers' Compensation must determine the inflation adjustment to the $100,000 cap by September 1, 2025. Expect a "regulatory gray zone" regarding whether this adjustment applies immediately to the 2026 cohort.
Immediate Action Plan
Immediate: Conduct a census of all peace officers and firefighters eligible to retire in 2026 to calculate maximum exposure.
By August 2025: Consult with legal counsel to determine if your current retiree health plan meets the "comparable" standard to qualify for the exemption.
By September 1, 2025: Monitor the Texas Register for the Commissioner of Workers' Compensation's CPI adjustment to update your liability cap.
By December 2025: Update off-boarding packets to include a "Notice of Post-Retirement Rights" and diagnosis reporting procedures.
Operational Changes Required
Contracts
Collective Bargaining Agreements (CBAs): Review current agreements immediately. Ensure this statutory benefit is not duplicative of existing severance or disability clauses. You may need to draft MOUs to clarify coordination of benefits.
Insurance Carrier Agreements: Negotiate with health carriers to create a "Retiree Bridge" rider. This rider must mirror active employee coverage to satisfy the "comparable coverage" exemption, potentially avoiding the $100,000 cash payout.
Hiring/Training
HR & Benefits Staff: Train staff on the new "3-Year Monitoring Window." Personnel files can no longer be closed immediately upon retirement; they must remain active for claims processing for 36 months.
Risk Management: Staff must be trained to validate medical diagnoses under Government Code Sections 607.055 and 607.056 before authorizing payouts.
Reporting & Record-Keeping
"Snapshot" Documentation: You must document the specific terms (deductible, premium, network) of the employee's health plan on their final day of work. This is your primary defense to prove you offered "comparable coverage" if a retiree demands the cash payout.
Diagnosis Verification Forms: Create HIPAA-compliant intake forms for retirees to submit proof of diagnosis post-separation.
Fees & Costs
Contingent Liability: Finance departments must accrue for a potential $100,000 liability per retiree.
Inflation Adjustment: The $100,000 cap is tied to the Consumer Price Index (CPI). Prepare for the Commissioner to raise this cap significantly on September 1, 2025, potentially increasing exposure to ~$130,000+ per claim based on the last 10 years of inflation.
Strategic Ambiguities & Considerations
Definition of "Comparable Coverage": The statute exempts employers who provide coverage "comparable in coverage and cost" but fails to define "comparable." If premiums rise or networks shrink post-retirement, retirees may sue for the cash benefit. *Watch for TDI or DWC guidance defining acceptable variance percentages.*
Department Headcount Fluctuations: The law applies to entities with "50 or more" personnel. It is unclear if this threshold is calculated at the moment of the employee's retirement or based on the fiscal year average. Departments hovering near 50 employees face significant uncertainty.
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Firefighters dedicate their careers to serving and protecting the public, and they often face hazardous conditions that put their long-term health at risk. A working group convened by the International Agency for Research on Cancer classified the occupational exposure as a firefighter as carcinogenic to humans on the basis of sufficient evidence of cancer in humans. The bill author has informed the committee that while state law provides certain protections and benefits for active-duty firefighters, many retirees who develop cancer shortly after leaving service face significant financial and health care burdens. For example, a firefighter who suffers from cancer is presumed to have developed the cancer during the course and scope of employment for purposes of certain benefits or compensation if the firefighter is employed for five or more years and the cancer was discovered during the course of employment, but a firefighter with cancer whose employment has ended is not entitled to this presumption.
C.S.H.B. 4144 seeks to provide much-needed financial security to first responders coping with life-threatening conditions linked to their service, acknowledge the sacrifices made by these first responders, and reinforce the state's commitment to first responders' well-being beyond active duty by ensuring that retired firefighters receive critical-illness supplemental income benefits or comparable health benefit plan coverage if they are diagnosed with an applicable disease within three years of retirement.
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 rulemaking authority is expressly granted to the commissioner of workers' compensation in SECTION 1 of this bill.
ANALYSIS
C.S.H.B. 4144 amends the Government Code to require a governmental entity to provide to a firefighter or peace officer who retires from the entity a critical-illness supplemental income benefit or comparable health benefit plan coverage in accordance with the bill's provisions if the firefighter or peace officer is diagnosed with one of the following diseases or illnesses not later than the third anniversary of the date the firefighter or peace officer retires:
·cancer that originates at the stomach, colon, rectum, skin, prostate, testis, or brain;
·non-Hodgkin's lymphoma;
·multiple myeloma;
·malignant melanoma;
·renal cell carcinoma;
·acute myocardial infarction; or
·stroke.
The bill establishes the value of the supplemental income benefit as the lesser of the firefighter's or peace officer's final yearly salary or $100,000. The bill authorizes a governmental entity providing such a benefit to provide the benefit in a lump sum payment or equal payments over three consecutive months. The bill requires the commissioner of workers' compensation by rule, not later than September 1 of each year ending in a five, to adjust the prescribed maximum dollar amount of the benefit that the bill sets at $100,000 by an amount equal to the percentage increase, if any, in the consumer price index for the preceding 10 years. These provisions do not apply to a governmental entity that provides to a firefighter or peace officer who retires from the entity a health benefit plan that is comparable in coverage and cost to the retiree as the health benefit plan the entity provided to the retiree on the day before the date the retiree retired.
C.S.H.B. 4144 defines the following terms:
·"consumer price index" as the average over a calendar year of the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, published monthly by the U.S. Bureau of Labor Statistics, or its successor in function;
·"firefighter" and "peace officer" by reference to statutory provisions governing benefits relating to certain diseases or illnesses suffered by firefighters, peace officers, and certain other officers and employees; and
·"governmental entity" as a state agency or political subdivision.
C.S.H.B. 4144 applies only to a firefighter or peace officer who retires on or after January 1, 2026.
EFFECTIVE DATE
September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 4144 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 changes the entity responsible for adjusting the prescribed maximum dollar amount of the supplemental income benefit every 10 years from the commissioner of insurance, as in the introduced, to commissioner of workers' compensation.
The substitute includes a provision absent from the introduced establishing that the bill's provisions do not apply to a governmental entity that provides to a firefighter or peace officer who retires from the entity a health benefit plan that is comparable in coverage and cost to the retiree as the health benefit plan the entity provided to the retiree on the day before the date the retiree retired.
Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4144 by Turner (Relating to supplemental benefits for retired firefighters and peace officers diagnosed with certain diseases or illnesses.), As Introduced
The fiscal implications of the bill cannot be determined due to the fact that the number of qualifying retiredpeace officers and firefighters is unknown.
The bill would provide for supplemental benefits for retired firefighters and peace officers diagnosed with certain diseases or illnesses. Under the provisions of the bill, the benefit could be provided in a lump sum or three equal payments and would be the lesser of the final yearly salary or $100,000.
The fiscal implications of the bill cannot be determined because the actual number of retired peace officers and firefighters who would qualify is currently unknown.
Local Government Impact
The fiscal implications of the bill cannot be determined at this time.
Source Agencies: b > td >
327 Employees Retirement System, 405 Department of Public Safety, 407 Commission on Law Enforcement, 411 Commission on Fire Protection, 454 Department of Insurance, 696 Department of Criminal Justice, 802 Parks and Wildlife Department
LBB Staff: b > td >
JMc, RStu, CSh, KVEL
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Political subdivisions with 50 or more firefighters or peace officers face a new, strict financial liability: a mandatory supplemental benefit of up to $100,000 or continued "comparable" health coverage for retirees diagnosed with cancer, heart attack, or stroke. This mandate applies to all retirements occurring on or after January 1, 2026, requiring immediate actuarial assessment and reserve allocation to cover this three-year post-retirement risk window. Implementation Timeline Effective Date: June 20, 2025 (Law is enacted; administrative preparations must begin).
Q
Who authored HB4144?
HB4144 was authored by Texas Representative Chris Turner during the Regular Session.
Q
When was HB4144 signed into law?
HB4144 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB4144?
HB4144 is enforced by Texas Department of Insurance (Division of Workers' Compensation) and Political Subdivisions (Self-enforcement/Civil Liability).
Q
How urgent is compliance with HB4144?
The compliance urgency for HB4144 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB4144?
The cost impact of HB4144 is estimated as "high". This may vary based on industry and implementation requirements.
Q
What topics does HB4144 address?
HB4144 addresses topics including fire fighters & police, fire fighters & police--general, health, health--other diseases & medical conditions and labor.
Legislative data provided by LegiScanLast updated: November 25, 2025
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