All Roll Calls
Yes: 360 • No: 0
TexasHB 359489th Legislature Regular SessionHouseWALLET
Relating to the administration of a retirement health care plan for firefighters and police officers in certain municipalities.
Sponsored By: Mark Dorazio, Barbara Gervin-Hawkins, Marc LaHood, John Lujan, José Menéndez (Democratic)
Signed by Governor
City Government--Employees/OfficersFamily--Marriage RelationshipFire Fighters & Police--GeneralMilitary & VeteransRetirement Systems--MunicipalRetirement Systems--Police & FirefightersFAMILY & MEDICAL LEAVE
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
10 provisions identified: 2 benefits, 3 costs, 5 mixed.
Permanent waivers end retiree health rights
A person entitled to plan health benefits can give them up using the board’s required waiver form and process. This general waiver permanently ends the person’s right to benefits under the Act. Benefits cannot be restored under this waiver, unlike the separate conditional waiver for married fund members.
Retirees face payments and coverage loss
For retirements on or after October 1, 2025, retirees with under 360 service months and affected surviving spouses must continue contributions. Payments last until Medicare eligibility or until service reaches 360 months, whichever comes first; disability retirees face a 120-month cap. Monthly payments are due by month-end, starting the month after retirement. Late payments earn interest until paid, using the default rate in effect on the first day of the due month. That rate is the fund actuary’s assumed investment return. The board may end benefits for missed required payments.
Who qualifies for retiree health benefits
Under this municipal plan, firefighters and police officers count as retirees only if they retired after September 30, 1989. They must have retired under the pension act. The law broadens the beneficiary definition to cover retirees, spouses, and eligible dependents entitled to benefits under the full eligibility section. The plan provides only benefits specifically established by the Act.
Surviving spouses may keep remarriage coverage
The board may let a deceased retiree’s surviving spouse keep health coverage after remarrying. Continued coverage requires a board change to the plan; the law does not guarantee it. The board can make this change even if it increases the fund’s projected funding shortfall. The law’s remarriage provisions apply to remarriages on or after October 1, 2025.
Retiree families face higher health costs
The plan adds deductible and out-of-pocket limit increases from two parts of the Act rather than substituting one for another. This can raise the most beneficiaries pay for care. The board may also charge premiums for dependent-child coverage, but the law does not require those premiums. These provisions give no dollar amounts for the increases or premiums.
Married fund members get conditional waivers
When both spouses are fund members and formally married under Texas law, the first to retire can waive health benefits. The retiree must elect within 30 days after retirement and owes no related contributions while the waiver lasts. After the marriage dissolves, the retiree has 30 days to file the board’s reinstatement form and must resume monthly contributions. The first payment is due at month-end following the month the fund receives and accepts the election. Separately, current or potential fund health benefits cannot be divided as marital property.
Military service credit requires timely payments
The plan counts full service months from fund membership until retirement or employment ends. It excludes unpurchased military service, other unpurchased unpaid leave, and unpaid leave imposed by the municipality. Members can buy uncredited U.S. uniformed service by paying what they would have contributed while working for the department. The payment window is three times the service absence, capped at five years; missing it means losing that credit. When the member meets payment requirements, the municipality must pay its corresponding share.
Retirees can choose one upfront payment
For retirements on or after October 1, 2025, retirees or surviving spouses owing contributions can choose one payment instead. The amount equals the monthly contribution at retirement times the smaller of two month counts. Those counts are months to age 65 and months needed to reach 360 service months, or 120 for disability retirees. The written election must follow the board’s rules, precede payment, and cannot be reversed. Full payment is due within 30 days after retirement and is nonrefundable.
Workers can buy family leave credit
Fund members can buy service credit for an entire unpaid leave period under the federal Family and Medical Leave Act. Members must pay the contributions they would have made, in full, within 30 days after returning to work. When members choose this credit, the municipality must pay its corresponding share within 60 days after their return. Members who miss their payment deadline get no credit for the leave.
Retiree health fund gains creditor protection
The law protects retiree health fund assets from creditor seizure, forced sale, and transfer away from the fund. Creditors cannot file or establish judgment liens against those assets. Any such filing is void, helping preserve fund resources for beneficiaries.
Sponsors & Cosponsors
Sponsors
Mark Dorazio
House
Barbara Gervin-Hawkins
House
Marc LaHood
House
John Lujan
House
José Menéndez
Democratic • Senate
Cosponsors
Salman Bhojani
House
Josey Garcia
House
Roll Call Votes
Senate vote • 5/19/2025
Record vote
Yes: 31 • No: 0
Senate vote • 5/19/2025
Record vote
Yes: 31 • No: 0
House vote • 5/8/2025
Record vote
Yes: 146 • No: 0
House vote • 5/7/2025
Record vote
Yes: 129 • No: 0
House vote • Unknown
Committee vote: Pensions, Investments & Financial Services
Yes: 8 • No: 0
Senate vote • Unknown
Committee vote: Finance
Yes: 15 • No: 0
Actions Timeline
Effective on . . . . . . . . . . . . . . . (October 1, 2025)
5/29/2025HouseSigned by the Governor
5/29/2025HouseSent to the Governor
5/20/2025HouseSigned in the Senate
5/20/2025SenateSigned in the House
5/20/2025HouseReported enrolled
5/19/2025HouseSenate passage reported
5/19/2025HouseRecord vote
5/19/2025SenatePassed
5/19/2025SenateRead 3rd time
5/19/2025SenateRecord vote
5/19/2025SenateThree day rule suspended
5/19/2025SenateVote recorded in Journal
5/19/2025SenateRead 2nd time & passed to 3rd reading
5/19/2025SenateRules suspended-Regular order of business
5/19/2025SenatePlaced on intent calendar
5/16/2025SenateCommittee report printed and distributed
5/14/2025SenateRecommended for local & uncontested calendar
5/14/2025SenateReported favorably w/o amendments
5/14/2025SenateVote taken in committee
5/14/2025SenateTestimony taken in committee
5/14/2025SenateConsidered in public hearing
5/14/2025SenateScheduled for public hearing on . . .
5/14/2025SenateReferred to Finance
5/9/2025SenateRead first time
5/9/2025Senate
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
Related Bills
HB 3372, Relating to prohibiting certain personal services performed by school district administrators; providing a civil penalty.
HB 2853, Relating to student union building fees at The University of Texas at El Paso.
HB 2518, Relating to the use of installment premium payment plans on Texas Windstorm Insurance Association policies.
HB 1052, Relating to health benefit plan coverage of telemedicine, teledentistry, and telehealth appointments with an originating site or distant site located outside this state.
HB 1056, Relating to the recognition of gold and silver specie as legal tender and the establishment of a transactional currency based on gold and silver; authorizing a fee.
HB 762, Relating to severance pay for political subdivision employees and independent contractors.