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Signed Into Law
Signed May 28, 2025Effective 2025-05-28
HB913

Regular Session

Relating to certain state hospital names and the management of state hospitals.

Government Affairs & Regulatory Compliance Analysis

HB913: Government Affairs Overview

HB913 statutorily dissolves the "North Texas State Hospital" entity, legally separating it into two distinct facilities: Vernon State Hospital and Wichita Falls State Hospital, effective immediately. This legislation mandates that the Health and Human Services Commission (HHSC) employ a dedicated superintendent for each state hospital, ending consolidated management structures and requiring vendors, contractors, and legal counsel to treat these campuses as separate legal entities for billing and liability purposes.

Rep. James Frank·House Bill·Regular Session

Low
Low Cost
Effective:2025-05-28
Business Impact

Who HB913 Affects

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

Regulatory Priority: low

Standard regulatory changes (effective 2025-05-28). Review during normal business planning.

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Healthcare

Affected business types:

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

Key Operational Considerations

  • 1Staff Onboarding: Update orientation materials for agency staff or locum tenens to reflect the specific reporting structure of the individual campus, rather than a regional administration.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB913
Relating to certain state hospital names and the management of state hospitals.
Low Urgency
Passed with Opposition
House Vote127 - 4
YEA
97% in favor131 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
4
Total Opposition Votes
Cost Impact
Low
Effective
2025-05-28
Enforcing Agencies
DSHSHHSC
Primary Author: Rep. James Frank
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: May 28, 2025 (Immediate effect due to supermajority vote).
  • Compliance Deadline: Immediate. All billing, legal filings, and insurance certificates submitted after May 28 must utilize the new facility names to ensure processing.
  • Agency Rulemaking: The HHSC Executive Commissioner is required to adopt rules governing the employment and qualifications of the separate superintendents. While the structural split is immediate, the specific regulatory scope of these new leadership roles will be defined over the coming 3-6 months.

Immediate Action Plan

  • 1. Stop Billing "North Texas": Instruct finance teams to halt all invoices to the defunct entity immediately.
  • 2. Split Vendor Profiles: Create distinct customer entries for Vernon State Hospital and Wichita Falls State Hospital in your billing software.
  • 3. Audit Contracts: Pull all active agreements with state hospitals and draft simple amendments to update the legal entity name.
  • 4. Update COIs: Request updated Certificates of Insurance from your broker for any staff or equipment located on these campuses.

Operational Changes Required

Contracts

  • Master Services Agreements (MSAs): Review all active contracts held in the name of "North Texas State Hospital." These agreements must be assigned or amended to reflect the specific facility (Vernon or Wichita Falls) receiving services.
  • Insurance: Contact your broker immediately. Certificates of Insurance (COIs) naming "North Texas State Hospital" as an Additional Insured are now defective. Issue new COIs naming the specific facility to avoid breach of contract.

Hiring/Training

  • Executive Leadership: Recruitment firms must note that the law prohibits a single superintendent from managing multiple campuses. This creates immediate vacancies for distinct superintendent roles at Vernon and Wichita Falls.
  • Staff Onboarding: Update orientation materials for agency staff or locum tenens to reflect the specific reporting structure of the individual campus, rather than a regional administration.

Reporting & Record-Keeping

  • Accounts Receivable: Update your ERP and Vendor Master Files immediately. Invoices directed to "North Texas State Hospital" will likely be rejected by state finance systems. Create separate client profiles for Vernon State Hospital and Wichita Falls State Hospital.
  • Legal Filings: Attorneys handling competency restoration or civil commitments must update document templates. Court orders remanding a patient to "North Texas State Hospital" are now technically inaccurate and may face administrative delays at admission.

Fees & Costs

  • Administrative Costs: Expect minor internal costs associated with updating billing systems and re-issuing contracts.
  • No New State Fees: The bill does not impose new statutory fees on vendors.

Strategic Ambiguities & Considerations

  • Shared Services: While the law mandates separate superintendents and distinct names, it does not explicitly prohibit shared back-office functions (HR, Payroll, IT). Watch for HHSC internal policies to clarify if you can submit a consolidated invoice for both facilities or if they must be treated as completely walled-off entities.
  • Legacy Liability: The law does not specify the chain of liability for incidents occurring under the "North Texas" banner prior to May 28, 2025. When filing notice of claims for pre-enactment incidents, serve notice to *both* the specific facility and the general HHSC legal division to prevent dismissal based on entity confusion.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Nov 12, 2024
Passed House
Apr 25, 2025
Passed Senate
May 14, 2025
Signed
May 28, 2025
Effective
May 28, 2025
TopicsMental Health & Substance AbuseWeaponsHospitalsHealth & Human Services Commission
03

House Authors

Rep. James FrankRepublican · Primary Author

Senate Sponsor

Sen. Brent HagenbuchRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. James Frank

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Related by Topic

View more Mental Health & Substance Abuse legislation
Quick Reference

Frequently Asked Questions

Common questions about HB913

Q

What does Texas HB913 do?

HB913 statutorily dissolves the "North Texas State Hospital" entity, legally separating it into two distinct facilities: Vernon State Hospital and Wichita Falls State Hospital, effective immediately. This legislation mandates that the Health and Human Services Commission (HHSC) employ a dedicated superintendent for each state hospital, ending consolidated management structures and requiring vendors, contractors, and legal counsel to treat these campuses as separate legal entities for billing and liability purposes.

Q

Who authored HB913?

HB913 was authored by Texas Representative James Frank during the Regular Session.

Q

When was HB913 signed into law?

HB913 was signed into law by Governor Greg Abbott on May 28, 2025.

Q

Which agencies enforce HB913?

HB913 is enforced by Department of State Health Services (DSHS) and Health and Human Services Commission (HHSC).

Q

How significant are the changes in HB913?

The regulatory priority for HB913 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB913?

The cost impact of HB913 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB913 address?

HB913 addresses topics including mental health & substance abuse, weapons, hospitals and health & human services commission.

Q

What are the key dates for HB913?

Key dates for HB913: Effective date is 2025-05-28. Rulemaking: Executive Commissioner must adopt rules requiring each state hospital to employ an individual superintendent, specifically impacting the split management structure of the former North Texas State Hospital. (Unspecified (Standard rulemaking timeline)). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB913?

HB913 primarily affects healthcare providers and medical facilities. 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