89th Legislature

HB 5342

Overall Vote Recommendation
No
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest

HB 5342 seeks to improve the infrastructure and delivery of behavioral health crisis services across Texas by establishing a dedicated funding mechanism and oversight framework for the 988 Suicide and Crisis Lifeline system. The bill amends Chapter 547 of the Texas Government Code (effective April 1, 2025) by adding a new Subchapter K titled "Behavioral Health Crisis Services."

At the heart of the bill is the creation of the 988 Suicide and Crisis Lifeline Trust Fund, which will be administered by the Health and Human Services Commission (HHSC) and held outside the state treasury. The fund will collect revenue from a new state-authorized 988 service fee applied to various telecommunications services, including traditional landlines, wireless connections, VoIP services, and prepaid wireless purchases. In addition to this fee, the trust fund may receive money from legislative appropriations, federal funding, donations, investment income, and other sources.

The bill clearly defines how the trust fund money may be used. Permitted uses include maintaining and improving the 988 Lifeline's operations and technological infrastructure; funding mobile and youth crisis outreach teams; supporting crisis centers and stabilization services for uninsured individuals; and conducting data reporting, quality improvement, and oversight functions. Importantly, the bill prohibits the use of the fund for services that are already reimbursable through Medicaid, Medicare, or other insurers, ensuring that the fund supports only services not otherwise covered.

HB 5342 also mandates transparency by requiring annual reports to be submitted to both the Texas Legislature and the Federal Communications Commission detailing all deposits and expenditures related to the fund. A separate annual report must outline the usage and impact of crisis centers supported by the 988 program. The bill is set to take effect on September 1, 2025, giving state agencies time to implement the new framework.

Author
Brooks Landgraf
Stan Lambert
Trey Martinez Fischer
Jolanda Jones
Suleman Lalani
Sponsor
Jose Menendez
Co-Sponsor
Cesar Blanco
Juan Hinojosa
Angela Paxton
Judith Zaffirini
Fiscal Notes

According to the Legislative Budget Board (LBB), the fiscal implications of HB 5342 are currently indeterminate due to variability in several key factors—most notably the level of the new 988 telecommunications fee, demand for 988 crisis services, and the level of future state or federal appropriations. The bill authorizes the Health and Human Services Commission (HHSC), in coordination with the Commission on State Emergency Communications (CSEC), to impose a monthly fee on multiple telecommunications connections. This fee is intended to fund the operation, maintenance, and enhancement of the 988 Suicide and Crisis Lifeline through a dedicated trust fund held outside the state treasury.

HHSC anticipates setting the fee at approximately $0.10 per month, which is projected to generate about $54 million annually. This amount would be used to fund expanded crisis response capabilities, including achieving a 90% in-state answer rate for 988 calls, texts, and chats. The revenue would also support infrastructure and workforce investments related to the lifeline’s operation. These funds are to be deposited into the newly established 988 trust fund, which is exempt from standard legislative appropriation requirements, thus raising concerns about legislative oversight over future expenditures.

Implementation of the bill would require four new full-time equivalent (FTE) positions at HHSC, with personnel costs estimated at $682,209 in FY 2026 and $644,545 in FY 2027. These costs would be funded through fee revenue and not appropriated state funds. A rider may be necessary in the General Appropriations Act to formally authorize these FTEs, especially if any portion of their funding comes from state or federal appropriations.

At the local level, there may be significant new costs for local mental and behavioral health authorities tasked with providing the expanded crisis services supported by this bill. However, these costs could be mitigated by grant funding or reimbursements made available through the 988 trust fund.

Vote Recommendation Notes

HB 5342 seeks to create a long-term funding structure for the 988 Suicide and Crisis Lifeline by establishing a state-level trust fund and authorizing a telecommunications fee to sustain and expand behavioral health crisis services. While the stated objective of improving mental health crisis response is commendable, the mechanisms used to achieve it raise significant and substantive concerns for those committed to limited government, fiscal transparency, and market-based solutions.

First, the bill authorizes the imposition of a new monthly fee on Texans through their phone services, including wireless, VoIP, and prepaid telecommunications. Though the estimated fee is modest (approximately $0.10 per line per month), the principle of creating new, issue-specific charges administered outside of the appropriations process sets a troubling precedent. Texans are already subject to numerous line-item fees, and expanding that list—even for a purpose many would find sympathetic—risks normalizing fee-funded expansion of state functions. Over time, these fees can accumulate and undermine public accountability and budget transparency.

Second, the legislation grows the size and scope of state government. It grants the Health and Human Services Commission (HHSC) new authority over a statewide mental health infrastructure, including hiring new full-time staff, overseeing program implementation, and managing a trust fund that exists outside of the state treasury. While the program would be funded by the authorized fee rather than general revenue, the bill nonetheless expands bureaucratic responsibilities and diverts public resources away from core functions. Moreover, creating a fund held outside the treasury reduces legislative oversight, circumventing the constitutional check that appropriations be authorized directly by the Legislature.

Third, although the bill is framed as a solution to current reliance on federal grant funding, it paradoxically leaves the door open to future grants, gifts, and donations—many of which may come with strings attached. Rather than weaning the program off unpredictable or politically contingent federal support, H.B. 5342 codifies it as a permissible and expected part of the funding stream. This runs counter to the goal of building a self-sustaining, state-controlled service model and could result in a creeping dependence on federal behavioral health mandates.

Additionally, there are legitimate concerns about the downstream pressure this bill may place on local mental health authorities. While the trust fund is meant to provide financial support, local entities may still bear the operational burden of scaling up services to meet growing 988 call volume, staffing needs, and infrastructure demands. In practice, this could lead to implementation gaps or unintended costs at the local level, particularly in rural or under-resourced communities.

Finally, the policy approach taken in HB 5342 sets a precedent that may invite future efforts to create additional, narrowly tailored fees to support other programs that fall outside traditional budgeting channels. Such a shift would dilute the Legislature's role in setting priorities through the General Appropriations Act and contribute to the proliferation of quasi-independent funding structures with less democratic accountability.

In sum, HB 5342 expands government authority, imposes a new statewide fee, maintains reliance on external funding streams, and diminishes fiscal oversight—all while placing long-term operational pressure on local service providers. For those concerned with limiting the size and role of government, ensuring transparency in state spending, and avoiding issue-specific fee models that grow beyond legislative control, this bill poses serious structural problems. Therefore, Texas Policy Research recommends that lawmakers vote NO on HB 5342.

  • Individual Liberty: HB 5342 supports the idea that individuals experiencing a behavioral health crisis should have access to non-coercive, voluntary help through the 988 system. From this standpoint, it can be seen as a public safety tool that respects personal autonomy by providing alternatives to law enforcement or institutionalization in moments of crisis. However, by funding this access through a state-imposed telecommunications fee and creating a centralized, government-run system, it indirectly infringes on the liberty of Texans who may not wish to pay into such a system. It also risks entangling state mental health services with federal guidelines or mandates if grant funding continues to play a role. Thus, while it may protect the liberty of those in crisis, it reduces the liberty of those compelled to fund it involuntarily.
  • Personal Responsibility: The bill assumes a public obligation to underwrite the costs of behavioral health services—including for uninsured individuals—regardless of whether they are willing or able to pay. While the 988 line may help individuals make responsible choices in moments of distress, the funding structure creates a public guarantee that may disincentivize personal preparation or private support solutions. Rather than promoting a culture of self-responsibility, it expands the collective safety net through government intervention.
  • Free Enterprise: HB 5342 introduces a new government fee on privately provided telecommunications services, thereby increasing the cost of doing business and subtly distorting the telecom market. While the fee is minor, it reflects a broader pattern of government using regulated industries as pass-through vehicles for public program funding. Additionally, by centralizing crisis response within a government-run model, the bill potentially crowds out community-based, nonprofit, or for-profit mental health initiatives that could offer more innovative or efficient alternatives to public intervention.
  • Private Property Rights: The bill does not directly affect physical property or land use rights. However, the imposition of a mandatory fee on service-based transactions raises broader philosophical concerns: when the state compels individuals or businesses to pay into a fund for services they may neither use nor support, it edges into territory where economic liberty intersects with property rights.
  • Limited Government: This is the principle most clearly compromised by HB 5342. The bill expands the scope and operational responsibilities of the Health and Human Services Commission, authorizes the creation of a state-run trust fund outside the state treasury (which limits legislative appropriations oversight), and introduces a new revenue stream via a telecommunications fee. It also allows for continued reliance on grants and donations, potentially tethering Texas further to federal behavioral health agendas. While the bill aims to address a real and growing need, it does so by growing government infrastructure, expanding state fiscal reach, and bypassing the Legislature’s normal budget authority. These choices conflict with the fundamental tenets of limited, accountable government.
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