H.B. No. 5242 aims to enhance the collection and publication of demographic data related to public benefits programs in Texas. The bill introduces two new sections to the Government Code, specifically Sections 526.0011 and 526.0012, which mandate that health and human services agencies provide individuals receiving benefits the option to select from a comprehensive list of race and ethnic origin categories, including various subcategories with write-in options. Additionally, the bill requires these agencies to collect data on individuals' English proficiency, disabilities, health coverage, chronic conditions, and other relevant health metrics. The data collection is voluntary, and the agencies must ensure compliance with federal privacy laws.

Furthermore, the bill stipulates that the collected demographic data must be analyzed and made publicly available in an organized format on the agencies' websites. The Health and Human Services Commission is tasked with updating the data annually and ensuring that the data reflects the most current demographic trends. The bill also includes provisions for state agencies to seek necessary federal waivers before implementing certain provisions, and it is set to take effect on September 1, 2025. By January 1, 2028, the agencies must revise their data collection standards to align with the new requirements.