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HB1240

Regular Session

Relating to certain governmental operations affecting the border region.

Low
Low Cost
Effective:2025-06-20
HB1240
Relating to certain governmental operations affecting the border region.
Low Urgency
Passed with Opposition
House Vote128 - 7
YEA
95% in favor135 voting
Senate Vote23 - 8
YEA
NAY
74% in favor31 voting
15
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Department of State Health ServicesGovernor's Criminal Justice Divi...Texas Department of TransportationTHECB+1 more
Primary Author: Rep. Ryan Guillen
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: June 20, 2025. Business development teams must update grant and bid eligibility parameters immediately to capture new opportunities.
  • Agency Rulemaking: While the statute is effective immediately, agencies (TxDOT, TWDB) will likely lag in updating automated eligibility maps. Expect a "regulatory gray zone" between June and September 2025 where manual citations of Government Code Sec. 2056.002 will be required to override outdated system rejections.

Immediate Action Plan

  • 1. Update CMBL Profiles: Log into the Centralized Master Bidders List and agency-specific portals to update geographic service areas for the ten new counties immediately.
  • 2. Audit Pending Bids: Review all proposals currently in drafting stages for TxDOT or TWDB projects in the affected counties; amend the "Eligibility" sections to reference the new Border Region status.
  • 3. Contact Program Officers: For active grants in these counties, contact the agency contract manager to determine if the new designation opens access to supplemental "border" funding tranches.
  • 4. Revise Feasibility Studies: Re-evaluate shelved infrastructure projects in the ten counties that were previously deemed financially unviable; state subsidies may now alter the ROI.

Operational Changes Required

Contracts

  • Public-Private Partnerships (P3): Legal counsel must review potential infrastructure projects in the ten newly designated counties. Transportation Code Sec. 201.109 now authorizes expanded private investment (turnpikes, bridges) in these specific jurisdictions.
  • State Vendor Agreements: Review Master Service Agreements (MSAs) that contain geographic pricing tiers or "rural" vs. "border" service definitions. Vendors operating in the new counties may now trigger different reimbursement rates or service requirements.

Hiring/Training

  • Business Development: Train proposal teams to flag the ten new counties as "Border Region" eligible. Stop using "100-kilometer" distance calculations; the law has shifted to a strict county-list definition.
  • Procurement Officers: Update search filters on the Electronic State Business Daily (ESBD) to include these counties in border-specific solicitation searches.

Reporting & Record-Keeping

  • Grant Applications: For all applications submitted to the Texas Water Development Board or TxDOT after June 20, 2025, explicitly cite HB1240 and Government Code Sec. 2056.002 in the narrative to justify eligibility.
  • Fund Segregation: If awarded border-specific funds, establish separate accounting codes. You must prove that funds allocated for "border region" projects were spent exclusively within the statutory county limits, not on adjacent non-border operations.

Fees & Costs

  • No New Fees: The bill does not impose new state fees.
  • Cost Impact: Positive. This legislation potentially lowers project costs by unlocking state subsidies and grant reimbursements previously unavailable in these counties.

Strategic Ambiguities & Considerations

  • Cross-County Projects: The law does not specify how agencies should treat infrastructure projects (e.g., pipelines or roads) that span both a designated border county and a non-designated county. Until TxDOT or TWDB issues rulemaking, businesses should prepare to segregate costs and apply for funding only for the portion of the project located strictly within the designated county lines.
  • Automated System Rejection: Agency portals often use legacy "distance from border" algorithms. There is a high probability that valid applications from counties like Mason or McCulloch will be auto-rejected initially.

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
Nov 12, 2024
Passed House
Apr 30, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
TopicsCrimesCrimes--miscellaneousEnvironmentEnvironment--generalBee CountyKarnes CountyLoving CountyMason CountyMcculloch CountyMenard CountyMexicoReagan CountyUpton CountyWard CountyWilson CountyBorder
03

House Authors

Rep. Ryan GuillenRepublican · Primary Author

Senate Sponsor

Sen. Adam HinojosaRepublican · 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. Ryan Guillen

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB1240

Q

What does Texas HB1240 do?

HB1240 redefines the statutory "Texas-Mexico border region" to explicitly include Bee, Karnes, Loving, Mason, McCulloch, Menard, Reagan, Upton, Ward, and Wilson counties, effective June 20, 2025. This expansion immediately qualifies businesses and infrastructure projects within these ten counties for specific state funding streams, private investment incentives in transportation (P3s), and preferential grant eligibility previously restricted to the border zone. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).

Q

Who authored HB1240?

HB1240 was authored by Texas Representative Ryan Guillen during the Regular Session.

Q

When was HB1240 signed into law?

HB1240 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB1240?

HB1240 is enforced by Department of State Health Services, Governor's Criminal Justice Division, Texas Department of Transportation, Texas Higher Education Coordinating Board (THECB) and Texas Water Development Board.

Q

How urgent is compliance with HB1240?

The compliance urgency for HB1240 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB1240?

The cost impact of HB1240 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB1240 address?

HB1240 addresses topics including crimes, crimes--miscellaneous, environment, environment--general and bee county.

Legislative data provided by LegiScanLast updated: November 25, 2025

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