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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB4486

Regular Session

Relating to directing payment, after approval, of certain miscellaneous claims and judgments against the state out of funds designated by this Act; making appropriations.

Government Affairs & Regulatory Compliance Analysis

HB4486: Government Affairs Overview

HB4486 authorizes the release of funds to pay specific outstanding debts, voided warrants (expired checks), and legal settlements owed by the State of Texas to named entities. While the state has appropriated the money, payment is not automatic; affected businesses must actively substantiate their claims with the Comptroller and the originating agency by June 20, 2027, or permanently forfeit these funds.

Rep. Greg Bonnen·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20
Enforcing Agencies

Administrators of designated special funds (e.g., TxDOT for Highway Fund) • Comptroller of Public Accounts • Office of the Attorney General

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HB4486
Relating to directing payment, after approval, of certain miscellaneous claims and judgments against the state out of funds designated by this Act; ma...
Low Urgency
Heavily Contested
House Vote118 - 23
YEA
NAY
84% in favor141 voting
Senate Vote30 - 1
YEA
97% in favor31 voting
24
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Administrators of designated spe...Comptroller of Public AccountsOffice of the Attorney General
Primary Author: Rep. Greg Bonnen
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate).
  • Compliance Deadline: June 20, 2027. This is a strict statute of limitations. Any claim not fully verified and approved by the Comptroller by this date is legally extinguished.
  • Agency Rulemaking: No formal rulemaking is required. However, the Comptroller and individual agencies (e.g., TxDOT, HHSC) will apply internal verification standards immediately. Expect a 3-6 month processing lag for claim approval.

Immediate Action Plan

  • 1. Scan the Bill Text: Immediately review the full text of HB4486 to see if your entity, a subsidiary, or an acquired company is explicitly named.
  • 2. Audit Voided Warrants: Direct Accounting to identify any uncashed state checks or outstanding tax refunds from 2021–2024. If found, contact the Comptroller to determine if you are a "Confidential Payee."
  • 3. Assemble Evidentiary Packets: Locate original contracts, invoices, and proof of performance for the specific line items identified.
  • 4. File Immediately: Submit claims to the administrator of the specific fund (the agency) and the Comptroller. Do not wait for the 2027 deadline; dispute resolution can take months.
  • 5. Switch to EFT: Update your vendor profiles with the Texas Comptroller to ensure all future payments are direct deposit, eliminating the risk of voided warrants.

Operational Changes Required

Contracts

  • Settlement Agreements: Law firms and plaintiffs involved in state litigation (specifically Meta and Google settlements) must ensure all Outside Counsel Contract (OCC) reporting is current with the Legislative Budget Board. Payment is contingent on Chapter 2254 Government Code compliance.
  • Vendor Master Service Agreements (MSAs): Review current state contracts. Amend payment terms to require Electronic Funds Transfer (EFT) rather than physical warrants. This legislation exists largely because physical checks were mailed, lost, or expired. Eliminating paper checks prevents future forfeiture risks.

Hiring/Training

  • Finance & Legal Coordination: This is a specialized Accounts Receivable recovery project. Assign a specific finance lead to work with General Counsel. Standard billing clerks will not have the authority to sign the required legal certifications regarding debt validity and non-fraud.

Reporting & Record-Keeping

  • The "Claims Packet": You must generate a specific evidentiary packet for the Comptroller. This requires:
  • Original Invoices: Re-prints are often rejected; locate original billing records.
  • Proof of Delivery: Shipping manifests or service logs proving performance.
  • Chain of Custody: If the entity named in the bill has been acquired (e.g., Jordan Health Services), you must provide legal documentation (merger agreements) proving your current entity holds the right to the debt.
  • Verification Statement: A sworn statement certifying the debt remains unpaid and is not fraudulent.

Fees & Costs

  • Cost Impact: Positive (Revenue Recovery). There are no filing fees, but there are internal administrative costs to locate aged records.
  • Forfeiture Risk: The "cost" of inaction is 100% of the claim value.

Strategic Ambiguities & Considerations

  • "Confidential Payee" Identification: The bill appropriates millions in tax refunds to "Confidential Payee." The law does not proactively notify you if you are on this list.
  • *Risk:* If you have a voided tax refund warrant >$1,000 from the last 4 years, you must assume you are a payee and proactively contact the Comptroller’s Revenue Accounting Division.
  • Agency Record Retention: The law requires the agency (e.g., TxDOT) to "substantiate" the claim.
  • *Risk:* State agencies often purge records after standard retention periods. If the agency cannot find their copy of the record, they may refuse to validate your claim.
  • *Strategy:* Your documentation must be exhaustive enough to force the agency's acknowledgement without them needing to rely on their own archives.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 12, 2025
Passed House
May 8, 2025
Passed Senate
May 26, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsState FinancesState Finances--appropriationsState Finances--budgetState Finances--management & ControlSuits Against the State
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House Authors

Rep. Greg BonnenRepublican · Primary Author

Senate Sponsor

Sen. Joan HuffmanRepublican · Primary Sponsor

Bill Text(with markup)

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View bill text in multiple formats on Texas Legislature website

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Quick Reference

Frequently Asked Questions

Common questions about HB4486

Q

What does Texas HB4486 do?

HB4486 authorizes the release of funds to pay specific outstanding debts, voided warrants (expired checks), and legal settlements owed by the State of Texas to named entities. While the state has appropriated the money, payment is not automatic; affected businesses must actively substantiate their claims with the Comptroller and the originating agency by June 20, 2027, or permanently forfeit these funds.

Q

Who authored HB4486?

HB4486 was authored by Texas Representative Greg Bonnen during the Regular Session.

Q

When was HB4486 signed into law?

HB4486 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB4486?

HB4486 is enforced by Administrators of designated special funds (e.g., TxDOT for Highway Fund), Comptroller of Public Accounts and Office of the Attorney General.

Q

How significant are the changes in HB4486?

The regulatory priority for HB4486 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB4486?

The cost impact of HB4486 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB4486 address?

HB4486 addresses topics including state finances, state finances--appropriations, state finances--budget, state finances--management & control and suits against the state.

Q

What are the key dates for HB4486?

Key dates for HB4486: Effective date is 2025-06-20. 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