Relating to the provision of behavioral health crisis services, including measures to fund and support the 988 Suicide and Crisis Lifeline and related services.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
Health and Human Services Commission (HHSC) • Texas Treasury Safekeeping Trust Company
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Immediate effect).
Compliance Deadline:None currently. Telecommunications providers are *not* required to collect fees at this time.
Agency Rulemaking: The Health and Human Services Commission (HHSC) and Commission on State Emergency Communications (CSEC) enter a "Study Phase" immediately. They must submit findings to the Legislature by December 1, 2026. Expect data requests regarding subscriber counts during this period.
Immediate Action Plan
1.Halt IT Projects: Cancel or pause any billing system updates designed to capture a 988 surcharge.
2.Activate Government Affairs: Assign regulatory teams to monitor HHSC/CSEC study announcements. You must participate in the stakeholder process to ensure cost-recovery provisions are included in the final report.
3.Data Prep: Telecommunications finance teams should aggregate subscriber line data to validate agency revenue models when requested.
4.Grant Monitoring: Crisis centers must monitor the Texas Register and HHSC announcements for Requests for Applications (RFA) utilizing the new Trust Fund.
Operational Changes Required
Contracts
Telecommunications Providers: No changes required. Do not amend vendor agreements or subscriber terms of service to include a 988 fee.
Crisis Centers & LMHAs: Existing contracts with the State or Local Mental Health Authorities will likely require amendment to recognize the "988 Trust Fund" as a new reimbursement source. Legal counsel should review these amendments to ensure reporting obligations match current clinical capabilities.
Hiring/Training
Crisis Centers: Operations teams should prepare for potential volume increases. While the fee is delayed, the Trust Fund can receive legislative appropriations and federal grants immediately. If funding flows, staffing for 988 call centers must align with SAMHSA clinical standards.
Reporting & Record-Keeping
Telecommunications Providers: While no tax remittance is required, you must prepare for regulatory data requests. The HHSC study requires an analysis of revenue potential. Providers should have accurate, segmented counts of consumer, business, and prepaid lines ready for submission to the agency to ensure the future fee model is based on accurate data.
Fees & Costs
Immediate Impact:$0.00. The $0.10 fee referenced in earlier legislative drafts was struck.
Future Impact: A fee is likely to be codified in the 2027 legislative session based on the study's outcome.
Strategic Ambiguities & Considerations
The law mandates a study on a "telecommunication service fee" but leaves the mechanics undefined. This creates a regulatory risk period between now and December 2026.
Cost Recovery: The statute is silent on whether carriers may retain a percentage of the future fee to cover administrative costs (as is standard with 9-1-1 fees). This must be negotiated during the study phase.
Prepaid Collection: It is currently undefined whether future fees on prepaid wireless will be collected at the Point of Sale (retail) or by the carrier.
"Other Mechanisms": Section 2(c) allows the agency to recommend funding *other* than a telecom fee. Industry stakeholders have an opportunity to propose alternative funding models.
Need Help Understanding Implementation?
Our government affairs experts can walk you through this bill's specific impact on your operations.
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.
The bill author has informed the committee that, since its launch, the 988 line has become a critical mental health resource, providing immediate life-saving support to individuals experiencing a mental health crisis. However, the bill author has further informed the committee that all five of Texas' 988 contact centers currently operate on limited federal grant funding, and as the demand for crisis services continues to grow, this funding alone is insufficient to ensure timely and effective responses for all Texans in crisis. H.B. 5342 seeks to support 988 crisis contact centers by establishing a mechanism for state investment as well as obtaining information regarding current and future needs for the program.
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 executive commissioner of the Health and Human Services Commission in SECTION 1 of this bill.
ANALYSIS
H.B. 5342 amends the Government Code to establish the 988 suicide and crisis lifeline trust fund as a trust fund to be held by the comptroller of public accounts outside the state treasury and administered by the Health and Human Services Commission (HHSC). The trust fund consists of the following:
·revenue derived from the 988 suicide and crisis lifeline fee;
·legislative appropriations of money for the purposes of behavioral health crisis services;
·available federal funding the state allocates for the purposes of the 988 Suicide & Crisis Lifeline;
·gifts, grants, and donations received by the state for the purposes of the trust fund;
·interest, dividends, and other income of the trust fund; and
·money from any other source that is deposited in or transferred to the trust fund.
The bill restricts the use of money deposited in the trust fund to do the following:
·implement, maintain, or improve the 988 Suicide & Crisis Lifeline, including personnel and technological infrastructure improvements necessary to achieve operational and clinical standards and best practices as provided by the National Suicide Prevention Lifeline;
·provide funding for crisis outreach and other services a community mental health center provides in response to the 988 Suicide & Crisis Lifeline;
·provide funding for uninsured individuals receiving crisis and stabilization services;
·provide personnel for crisis centers, mobile crisis outreach teams, and youth crisis outreach teams;
·fund data provision, reporting, participation in evaluations, and other related quality improvement activities; and
·administer, oversee, and evaluate the trust fund.
The bill prohibits the state from transferring or using trust fund assets for any purpose other than the uses provided in the bill's provisions and requires the executive commissioner of HHSC to submit an annual report to the legislature and the FCC detailing the trust fund deposits and expenditures in the preceding year.
H.B. 5342 authorizes HHSC, in collaboration with the Commission on State Emergency Communications, to impose a 988 suicide and crisis lifeline service fee to supplement any federal, state, or local funding for suicide prevention or behavioral health crisis services on each of the following:
·local exchange access line or equivalent local exchange access line, not including public telephone equipment operated by coin or by card reader;
·wireless telecommunications connection;
·Voice over Internet Protocol service connection; and
·purchase of a prepaid wireless telecommunications service by any method.
The bill requires the executive commissioner of HHSC by rule to set the fee in an amount sufficient to cover the costs of creating, operating, and maintaining the suicide prevention services provided under the bill's provisions, according to the national guidelines for crisis services. HHSC must periodically adjust the fee amount as necessary to provide for continuous operation, volume increases, and maintenance. The bill requires revenue from the fee to be deposited in the 988 suicide and crisis lifeline trust fund established under the bill's provisions and restricts the use of a fee collected only to offset costs as provided by federal law. The bill prohibits revenue from the fee from being used for expenses that are reimbursable through Medicaid, Medicare, or another insurer or governmental program, or covered because the service recipient's name and health coverage information cannot be obtained or billed.
H.B. 5342 requires the executive commissioner of HHSC to submit an annual report to the legislature and the FCC detailing the revenue generated by the fee in the preceding year. The bill requires HHSC to prepare an annual report of the usage of crisis centers and the services provided by the centers and to present the annual report to the legislature and the Substance Abuse and Mental Health Services Administration.
Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5342 by Landgraf (Relating to the provision of behavioral health crisis services, including the operation of crisis centers and mobile crisis outreach teams; authorizing a fee.), As Introduced
The fiscal implications of the bill cannot be determined because the level of the fee or potential revenue collected may change based on 988 program demand or other factors, and the potential impact of appropriations for related crisis services in the appropriations bill on the level of funding needed to support implementation of the bill.
The bill would establish the 988 Suicide and Crisis Lifeline trust fund as a trust fund held by the Comptroller of Public Accounts (CPA) outside of the state treasury and administered by the Health and Human Services Commission (HHSC). The bill would require money deposited in the trust fund to be used to implement, maintain, or improve the 988 Suicide & Crisis Lifeline, provide funding for crisis outreach and other community mental health center services provided in response to the 988 Suicide & Crisis Lifeline, and for other related and administrative activities. The bill would require HHSC, in collaboration with the Commission on State Emergency Communications (CSEC), to impose a fee on each local exchange access line, wireless telecommunications connection, Voice over Internet Protocol service connection, and purchase of a prepaid wireless telecommunications in an amount sufficient to cover the costs of creating, operating, and maintaining suicide prevention services according to the national guidelines for crisis services. Revenue from the fee shall be deposited into the 988 Suicide and Crisis Lifeline trust fund. The bill would require HHSC to provide annual reports to the Legislature, Federal Communications Commission, and the federal Substance Abuse and Mental Health Services Administration (SAMHSA).
This analysis assumes that revenue generated by the fee authorized by the bill would be deposited to the credit of the new 988 Suicide and Crisis Lifeline. This analysis also assumes that, while the requirements of the bill are expected to result in a significant negative impact to HHSC to implement, that HHSC would set the fee at an appropriate amount to offset the cost of implementation.
Based on information provided by HHSC, this analysis assumes HHSC would establish a $0.10 monthly fee to reimburse costs to administer the 988 Suicide and Crisis Lifeline and adhere to network standards set by SAMHSA and the 988 Lifeline Administrator. This analysis assumes HHSC would generate $54,000,000 in fee revenue per fiscal year to implement the provisions of the bill, including achieving a 90 percent in-state answer rate for calls, chats, and texts to the 988 Suicide and Crisis Lifeline. The revenue needed to support the activities required by the bill, and the related fee, may be subject to change based on 988 Suicide and Crisis Lifeline demand or state and federal appropriations provided by the Legislature through the General Appropriations Bill for crisis services.
Based on information provided by HHSC, this analysis assumes HHSC would require an additional 4.0 full-time-equivalents (FTEs) to implement the provisions of the bill, including: 1.0 Program Specialist V to provide quality management; 1.0 Program Specialist VII to provide financial assistance; and 2.0 Contract Specialist V to oversee related contracts and fiscal reviews. Total personnel-related costs, including salaries and travel, are estimated to total $682,209 in All Funds in fiscal year 2026 and $644,545 in All Funds in fiscal year 2027. This analysis assumes that HHSC would utilize sufficient fee revenue in the trust fund to support the FTEs. This analysis also assumes that the FTEs would be exempted from HHSC's FTE limitation as the FTEs would not be paid from appropriated funds but rather through the trust fund held outside of the state treasury. However, a rider could be added to the General Appropriations Bill to provide the FTE authority if deemed necessary or if the FTEs would be partially or fully funded through state or federal appropriations.
It is assumed that the CSEC could absorb the costs related to implementing the bill within current resources.
According to the CPA, the Texas Treasury Safekeeping Trust Company (TTSTC) would not be authorized to assess management expenses from the fund or estimate cash flow projections because the bill would not provide certain customary fund management authority to TTSTC.
Note: The bill would move funds outside the Treasury or otherwise create or establish a fund outside the Treasury. The Texas Constitution authorizes funds outside the Treasury to be expended without legislative appropriation, which may limit the Legislature's ability to make appropriation decisions concerning these funds in the future.
Local Government Impact
There may be a significant cost to local mental health authorities and local behavioral health authorities to provide related crisis services. However, this analysis assumes revenues generated by fees imposed by HHSC and deposited into the trust fund would be available to help offset costs.
Source Agencies: b > td >
304 Comptroller of Public Accounts, 477 Commission on State Emergency Communications, 529 Health and Human Services Commission
LBB Staff: b > td >
JMc, NPe, ER, SB, NV
Related Legislation
Explore more bills from this author and on related topics
HB5342 establishes the "988 Suicide and Crisis Lifeline Trust Fund" effective immediately, creating a dedicated financial vehicle for crisis services. Crucially for telecommunications members: The proposed mandatory monthly service fee was removed from the final text. Instead of an immediate surcharge, the law mandates a feasibility study to determine future funding mechanisms, delaying any billing system impacts until at least 2027.
Q
Who authored HB5342?
HB5342 was authored by Texas Representative Brooks Landgraf during the Regular Session.
Q
When was HB5342 signed into law?
HB5342 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB5342?
HB5342 is enforced by Health and Human Services Commission (HHSC) and Texas Treasury Safekeeping Trust Company.
Q
How urgent is compliance with HB5342?
The compliance urgency for HB5342 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB5342?
The cost impact of HB5342 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB5342 address?
HB5342 addresses topics including fees & other nontax revenue, fees & other nontax revenue--state, mental health & substance abuse, state finances and state finances--management & control.
Legislative data provided by LegiScanLast updated: November 25, 2025
Need Strategic Guidance on This Bill?
Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.