JD Key Consulting Logo
Signed Into Law
Signed June 22, 2025Effective 2025-06-22
HB500

Regular Session

Relating to making supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.

Government Affairs & Regulatory Compliance Analysis

HB500: Government Affairs Overview

HB500 is an immediately effective supplemental appropriations act that injects over $10 billion into state infrastructure and regulatory modernization, triggering immediate procurement opportunities and compliance shifts. While primarily fiscal, the law mandates the deployment of new mandatory reporting portals for the oil and gas sector, freezes licensure fees for specific trades, and initiates the transfer of lottery regulation to the Texas Department of Licensing and Regulation (TDLR).

Rep. Greg Bonnen·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-22
Enforcing Agencies

Board of Plumbing Examiners • Comptroller of Public Accounts • Department of Licensing and Regulation • Funeral Services Commission • Railroad Commission of Texas

Business Impact

Who HB500 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-06-22). Review during normal business planning.

🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

Need Government Relations Support?

JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.

Need Help Navigating This Legislation?

JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.

HB500
Relating to making supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations...
Low Urgency
Heavily Contested
House Vote122 - 22
YEA
NAY
85% in favor144 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
22
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-22
Enforcing Agencies
Board of Plumbing ExaminersComptroller of Public AccountsDepartment of Licensing and Regu...Funeral Services Commission+1 more
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 22, 2025 (Immediate).
  • Compliance Deadline:
  • Fee Freezes: Immediate (apply to current licensure cycles).
  • DPS Invoicing: Immediate (upon next billing cycle).
  • O&G Reporting: Contingent on Railroad Commission (RRC) system launch (estimated 6-12 months).
  • Agency Rulemaking:
  • Railroad Commission: Must define data schemas for the "Produced Water" and "Authorized Pit" systems.
  • Comptroller: Must adopt rules regarding Business Court judicial salaries and benefits immediately to operationalize the new courts.

Immediate Action Plan

  • IT/Security Officers: Verify TxRAMP certification status immediately; non-compliance will disqualify your firm from Article 10 funding.
  • Finance Departments: Update accounts payable workflows for DPS contracts to align with the new invoice tracking system.
  • O&G Compliance: Audit internal data regarding injection wells and pits; prepare for a mandatory data migration to RRC’s new portal.
  • Legal Counsel: Review all contracts with the Texas Lottery Commission for assignment risks during the TDLR transition.
  • Business Development: Monitor the Electronic State Business Daily (ESBD) immediately for construction and IT RFPs released under this funding.

Operational Changes Required

Contracts

  • IT Vendors: The law explicitly funds TxRAMP (Texas Risk and Authorization Management Program) compliance. State agencies will enforce stricter cybersecurity liability clauses and certification requirements for contract renewals or new awards under Article 10.
  • Lottery/Bingo Vendors: Review "Change of Control" and "Assignment" clauses. The funding transfer to TDLR (Section 8.03) may trigger contract assignment provisions; ensure your agreements remain valid under the new regulator.
  • Construction (Surety): General contractors bidding on the $1B+ in vertical construction (prisons/hospitals) must verify bonding capacity immediately, as the surge in state projects will strain market surety availability.

Hiring/Training

  • Oil & Gas Data Teams: Operators must prepare technical staff for migration to two new RRC cloud-based systems: the *Produced Water and Injection Data Reporting System* and the *Oil and Gas Authorized Pit Registration System*. Current internal data formats must be audited for compatibility.
  • Healthcare Administrators: Facilities applying for mental health expansion grants must train staff on strict "forensic capacity" record-keeping to ensure bed usage complies with grant stipulations (Section 2.04).

Reporting & Record-Keeping

  • DPS Vendors: The Department of Public Safety is funded to implement a new accounts payable invoice tracking system (Section 10.47). Finance departments must update invoicing protocols to match DPS’s new digital submission requirements to avoid payment delays.
  • Vocational Rehabilitation: Vendors working with the Texas Workforce Commission must maintain records compliant with federal maintenance-of-effort standards to ensure the state successfully draws down federal matching funds (Section 7.05).

Fees & Costs

  • Fee Freeze (Plumbers & Funeral Directors): The Funeral Services Commission and Board of Plumbing Examiners are statutorily prohibited from increasing fees or taxes to offset their new real estate/relocation appropriations through August 31, 2027. Lock in current fee rates for budget forecasting.

Strategic Ambiguities & Considerations

  • Semiconductor & Space Grants: The bill appropriates hundreds of millions to the "Texas Semiconductor Innovation Consortium" and "Space Exploration" funds without defining specific project eligibility. Businesses must monitor the Governor’s Office for the release of application guidance and scoring criteria.
  • Business Court Operations: While funding is allocated, the operational framework (staffing, docketing procedures) relies on forthcoming Comptroller rules. This creates a "gray zone" regarding when these courts will actually accept filings.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

Schedule a Consultation

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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 14, 2025
Passed House
Apr 11, 2025
Passed Senate
May 27, 2025
Signed
Jun 22, 2025
Effective
Jun 22, 2025
TopicsState FinancesState Finances--appropriationsGovernorRetirement SystemsRetirement Systems--police & FirefightersLamar UniversityTexas A&m Engineering Extension ServiceTexas A&m Forest ServiceTexas A&m University At GalvestonTexas A&m University SystemTexas State UniversityTexas Tech University Health Sciences Center At El PasoUniversity of Texas At AustinUniversity of Texas Health Science Center At TylerAdministrative Hearings, State Office ofBlind & Visually Impaired, Texas School For theBond Review BoardComptroller of Public AccountsCourt Administration, Office ofCriminal Justice, Texas Department ofEducation Agency, TexasEmergency Management CouncilEmergency Management, Texas Division ofEmployees Retirement System of TexasEnvironmental Quality, Texas Commission OnEthics Commission, TexasFacilities Commission, TexasFamily & Protective Services, Department ofFire Protection, Texas Commission OnGeneral Land OfficeHealth & Human Services CommissionHigher Education Coordinating Board, TexasHistorical Commission, TexasIndigent Defense Commission, TexasInformation Resources, Department ofInjured Employee Counsel, Office ofInsurance, Texas Department ofJail Standards, Commission OnJuvenile Justice Department, TexasLottery Commission, TexasMotor Vehicles, Texas Department ofParks & Wildlife DepartmentPermanent School Fund Corporation, TexasPharmacy, Texas State Board ofPublic Safety, Department ofPublic Utility CommissionRailroad CommissionRisk Management, State Office ofState Health Services, Department ofState Library & Archives Commission, TexasState Pension Review BoardState Preservation BoardTransportation, Texas Department ofWater Development Board, TexasWorkforce Commission, TexasAgriculture, Department ofAlcoholic Beverage Commission, TexasAnimal Health Commission, TexasDeaf, Texas School For theInspector General For Texas Juvenile Justice DepartmentLicensing & Regulation, Texas Department ofMilitary Department, TexasOmbudsman, Office of IndependentOmbudsman, Office of Independent-- TjjdPlumbing Examiners, Texas State Board ofRacing Commission, TexasSemiconductor Innovation Consortium, TexasTexas Civil Commitment OfficeTexas Judicial CouncilGulf Coast Protection DistrictTexas Tech University Health Sciences CenterRetirement Systems--teachersTexas Tech UniversityCancer Prevention & Research Institute of TexasChiropractic Examiners, Texas Board ofExecutive Council of Physical Therapy & Occupational Therapy ExaminersFuneral Service Commission, TexasJudicial Conduct, State Commission OnPublic Finance Authority, TexasSecretary of StateSecurities Board, StateVeterinary Medical Examiners, State Board ofUniversity of Texas Medical Branch At GalvestonWest Texas A&m University
03

House Authors

Rep. Greg BonnenRepublican · Primary Author

Senate Sponsors

Sen. Joan HuffmanRepublican · Primary Sponsor
Cosponsors (2)

Bill Text(with markup)

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Greg Bonnen

View all bills by Rep. Greg Bonnen

Related by Topic

View more State Finances legislation
Quick Reference

Frequently Asked Questions

Common questions about HB500

Q

What does Texas HB500 do?

HB500 is an immediately effective supplemental appropriations act that injects over $10 billion into state infrastructure and regulatory modernization, triggering immediate procurement opportunities and compliance shifts. While primarily fiscal, the law mandates the deployment of new mandatory reporting portals for the oil and gas sector, freezes licensure fees for specific trades, and initiates the transfer of lottery regulation to the Texas Department of Licensing and Regulation (TDLR).

Q

Who authored HB500?

HB500 was authored by Texas Representative Greg Bonnen during the Regular Session.

Q

When was HB500 signed into law?

HB500 was signed into law by Governor Greg Abbott on June 22, 2025.

Q

Which agencies enforce HB500?

HB500 is enforced by Board of Plumbing Examiners, Comptroller of Public Accounts, Department of Licensing and Regulation, Funeral Services Commission and Railroad Commission of Texas.

Q

How significant are the changes in HB500?

The regulatory priority for HB500 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB500?

The cost impact of HB500 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB500 address?

HB500 addresses topics including state finances, state finances--appropriations, governor, retirement systems and retirement systems--police & firefighters.

Q

What are the key dates for HB500?

Key dates for HB500: Effective date is 2025-06-22. Rulemaking: Adopt rules to administer salary supplements and benefits for the newly created Business Court judges (Section 4.02). (As necessary). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB500?

HB500 primarily affects healthcare providers and medical facilities, insurance companies and financial institutions, transportation and logistics companies. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

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