Texas House Bill HB 2054

Texas 2025 - 89th Regular

• Filed: 1/23/25

Caption

Relating to the Rural Volunteer Fire Department Assistance Program and authorizing an increase in the assessment on certain insurers that fund the program.

Summary

HB 2054 would change how the Rural Volunteer Fire Department Assistance Program is funded and how a portion of those funds are distributed. The bill removes the current statutory cap that limits the annual insurer assessment to the lesser of the appropriated amount or $30 million, allowing the comptroller to assess insurers for whatever amount is needed each fiscal year to match the appropriation from the volunteer fire department assistance fund, as determined by the commissioner. The bill also directs that at least 10 percent of annual appropriations from the fund be reserved for volunteer fire departments in areas identified as high risk for large wildfires. If those designated departments do not request the full reserved amount in a given year, any unused balance could be redirected to other eligible volunteer fire department assistance requests under the same program. The bill would take effect September 1, 2025.

Impact

HB 2054 would amend the Insurance Code and Government Code provisions governing the volunteer fire department assistance fund and the Rural Volunteer Fire Department Assistance Program. Its practical effect would be to increase the potential assessment on insurers that finance the program by eliminating the $30 million ceiling, while also creating a statutory set-aside for wildfire-prone areas. This would likely increase available funding for volunteer fire department grants and shift a defined share of resources toward wildfire preparedness and response in high-risk regions.

Sentiment

The available record shows no committee transcript, recorded vote, or formal opposition statements, so the bill’s sentiment cannot be measured from debate history. Based on the bill’s purpose and its referral to the Appropriations committees, the measure appears to be framed as a funding and allocation adjustment for rural fire protection rather than a controversial policy change. The absence of votes or discussion suggests it was still under consideration when last reported and had not yet generated a documented public split in the legislative record provided.

Contention

The main potential point of contention is the removal of the $30 million cap on insurer assessments, which could be viewed by affected insurers as an open-ended increase in mandated funding. Another possible issue is the earmarking of at least 10 percent of appropriations for high-wildfire-risk areas, which prioritizes one category of departments over others, although the bill softens that concern by allowing unused reserved funds to be reallocated to other requests. No specific objections or supporters are documented in the provided materials.