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HB114

Regular Session

Relating to the transfer of functions relating to certain veteran mental health programs and plans to the Texas Veterans Commission.

Moderate
Medium Cost
Effective:2025-06-20
Enforcing Agencies

Texas Veterans Commission

HB114
Relating to the transfer of functions relating to certain veteran mental health programs and plans to the Texas Veterans Commission.
Moderate Urgency
Unanimous Passage
House Vote144 - 0
YEA
100% in favor144 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Medium
Effective
2025-06-20
Enforcing Agencies
Texas Veterans Commission
Primary Author: Rep. Philip Cortez
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 effect due to supermajority vote).
  • Compliance Deadline: While legal authority transfers immediately, the fiscal and operational transition (billing/invoicing) aligns with the state fiscal year beginning September 1, 2025. Grant applicants must demonstrate compliance with new matching fund protocols immediately for any applications submitted after June 20, 2025.
  • Agency Rulemaking: TVC is required to adopt rules implementing the Matching Grant Program and Mental Health Program prior to the next grant cycle. There is currently a regulatory gap until TVC publishes these specific standards in the *Texas Register*.

Immediate Action Plan

  • Register: Ensure your organization is registered in the TVC grant portal immediately; do not wait for the next RFA.
  • Segregate Funds: Create specific ledger codes for "Non-State Matching Funds" to ensure you can pass a TVC audit during the application phase.
  • Archive: Download all historical grant data and communications from HHSC portals before September 1, 2025.
  • Notify: Inform your finance department to update vendor IDs for the Texas Veterans Commission to prevent payment delays in FY2026.
  • Review: Audit current subcontracts and prepare amendments to replace "HHSC" with "TVC" regarding compliance standards.

Operational Changes Required

Contracts

Existing contracts with HHSC for veteran mental health services are legally transferred to TVC via statutory novation (Sec. 4.02).

  • Action: You do not need to sign a new contract immediately, but you must anticipate a Notice of Assignment or contract amendment.
  • Subcontracts: Prime contractors must amend subcontracts to reference TVC standards rather than HHSC protocols to ensure flow-down compliance.

Hiring/Training

  • Peer Specialists: The law mandates TVC "solicit and ensure" specialized training for peer service coordinators and peers.
  • Requirement: If you employ peer specialists, verify their certifications align with forthcoming TVC rules. HHSC-approved training may not automatically satisfy TVC's new "technical assistance" standards.

Reporting & Record-Keeping

  • Invoicing: Effective September 1, 2025, update accounts receivable to bill TVC, not HHSC. Invoices sent to HHSC after this date will be rejected.
  • Matching Funds Audit: You must maintain auditable ledgers proving non-state matching funds at the time of grant application.
  • 25% Match: Counties < 100,000 population.
  • 50% Match: Counties 100,000 – 249,999.
  • 100% Match: Counties > 250,000.
  • Data Migration: Download and archive all historical performance reports from HHSC portals immediately; do not rely on inter-agency data transfer.

Fees & Costs

  • Cost Impact: Medium. While there are no new filing fees, the strict codification of matching fund percentages (up to 100% for large counties) requires immediate capital segregation.
  • Insurance: Notify professional liability carriers of the change in oversight agency; this is a material fact for policies covering government contracting.

Strategic Ambiguities & Considerations

  • The "Harmonization" Clause: The bill includes a requirement to harmonize with S.B. 897. If S.B. 897 contains conflicting matching fund percentages, legal counsel must determine which statute prevails for the Q3/Q4 2025 grant cycle.
  • Scope of "Intervention": TVC has broad discretion to define "mental health intervention" and "peer-to-peer counseling." TVC may adopt a narrower definition than HHSC, potentially rendering previously reimbursable support activities ineligible. Watch the *Texas Register* closely for these definitions.

Need Help Understanding Implementation?

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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
Mar 13, 2025
Passed House
Apr 29, 2025
Passed Senate
May 21, 2025
Signed
Jun 20, 2025
TopicsMental Health & Substance AbuseMilitary & VeteransState Agencies, Boards & CommissionsState FinancesState Finances--management & ControlSuicideCoordinating Council For Veterans Services, TexasHealth & Human Services CommissionHealth & Human Services, U.s. Department ofVeterans Commission, TexasHealthHealth--ruralWomenStaff Development & Training
03

House Authors

Rep. Philip CortezDemocrat · Primary Author
Joint Authors
Coauthors (1)

Senate Sponsors

Sen. Judith ZaffiriniDemocrat · Primary Sponsor
Cosponsors (3)

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. Philip Cortez

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB114

Q

What does Texas HB114 do?

HB114 mandates the immediate transfer of jurisdiction for veteran mental health programs and the Texas Veterans + Family Alliance (TVFA) grant program from the Health and Human Services Commission (HHSC) to the Texas Veterans Commission (TVC). This shifts regulatory oversight, grant compliance, and reporting requirements for all nonprofits, local governments, and mental health providers currently contracting with the state for veteran services. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).

Q

Who authored HB114?

HB114 was authored by Texas Representative Philip Cortez during the Regular Session.

Q

When was HB114 signed into law?

HB114 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB114?

HB114 is enforced by Texas Veterans Commission.

Q

How urgent is compliance with HB114?

The compliance urgency for HB114 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB114?

The cost impact of HB114 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB114 address?

HB114 addresses topics including mental health & substance abuse, military & veterans, state agencies, boards & commissions, state finances and state finances--management & control.

Legislative data provided by LegiScanLast updated: November 25, 2025

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