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. This includes the ability to write in specific identities, ensuring a more accurate representation of the diverse populations served. Additionally, the bill requires agencies to collect data on individuals' English proficiency, disabilities, health coverage, chronic conditions, and other relevant health metrics, while ensuring that the data collection process is voluntary.

Furthermore, the bill stipulates that the collected data must be analyzed and made publicly available in an organized format on the agencies' websites, while adhering to privacy laws to protect individual identities. The Health and Human Services Commission is tasked with updating data collection standards and publishing the required metrics by January 1, 2028. The act is set to take effect on September 1, 2025, and includes provisions for state agencies to seek necessary federal waivers before implementing certain provisions.