diff --git a/project/ticket-120/README.md b/project/ticket-120/README.md
new file mode 100644
index 00000000..e43f79c8
--- /dev/null
+++ b/project/ticket-120/README.md
@@ -0,0 +1,25 @@
+# Ticket 120: Separate todo2code ticket hydration policy
+
+- **ID**: ticket-120
+- **Owner**: unresolved:human
+- **Status**: IN_PROGRESS
+- **Workflow state**: EDIT
+- **Created**: 2026-09-08
+
+SESSION_EXECUTION_AUTHORIZATION: User requested continued refactoring, GitHub publication, deployment and testing.
+
+AC-01: Extract bounded todo2code verification command construction from ticket
+hydration while preserving contract gating, diagnostic validation, source path
+binding, labels and input defaults.
+
+## Acceptance criteria
+
+- [ ] AC-01: Hydration behavior remains unchanged and complexity decreases.
+
+Validation: 7 focused tests, Koru-driven regressions, Ruff, managed
+governance, Docker Compose and compileall passed.
+
+## Tracking boundary
+
+This directory contains the minimal reviewed intent. Optional participant prose
+and raw command logs are not required delivery output.
diff --git a/project/ticket-120/intent.json b/project/ticket-120/intent.json
new file mode 100644
index 00000000..65eb97cc
--- /dev/null
+++ b/project/ticket-120/intent.json
@@ -0,0 +1,29 @@
+{
+  "schema": "new-project.intent/v3",
+  "ticket": "ticket-120",
+  "summary": "Separate todo2code ticket hydration policy",
+  "workstream": "application",
+  "classification": {
+    "kind": "SERVICE",
+    "priority": "P2",
+    "origin": "requested"
+  },
+  "allowedPaths": ["src/koru/queue/ticket_templates.py", "tests/test_todo2code_autonomous_gate.py", "project/ticket-120/**"],
+  "forbiddenPaths": ["project/ticket-*/user-*.md"],
+  "stacks": ["python", "docker"],
+  "dependsOn": [],
+  "conflictsWith": [],
+  "integrationTicket": null,
+  "delivery": {
+    "acceptedBaseSha": "1d9f14e3678dd30d5e6178b7571ad99ee891b1d5",
+    "targetBranch": "main",
+    "outcome": "Publish a behavior-preserving extraction of todo2code ticket hydration command construction.",
+    "nonGoals": ["No changes to execution authority, ticket schema, dependencies or public interfaces."],
+    "complexity": "S",
+    "estimatedMinutes": 30,
+    "budgets": {"maxImplementationFiles": 2, "maxAffectedComponents": 1, "maxPublicInterfaceChanges": 0, "maxRuntimeDependencies": 0},
+    "architecture": {"status": "accepted", "decision": "Move diagnostic verification command assembly into a focused helper while retaining hydration and fail-closed contract behavior.", "components": [{"name": "todo2code-hydration", "paths": ["src/koru/queue/ticket_templates.py", "tests/test_todo2code_autonomous_gate.py"]}], "responsibilityChanges": false, "interfaceChanges": [], "dataChanges": [], "ui": {"impact": "none", "states": [], "evidence": []}, "rollback": "Revert protected merge."},
+    "runtimeDependencies": [],
+    "validation": [{"criterion": "AC-01", "commands": ["python -m pytest -q tests/test_todo2code_autonomous_gate.py", "./project/governance-check.sh", "docker compose config --quiet"], "evidence": "Focused regression, Koru run and independent CI."}]
+  }
+}
diff --git a/src/koru/queue/ticket_templates.py b/src/koru/queue/ticket_templates.py
index 002dfc5f..5ef3ae84 100644
--- a/src/koru/queue/ticket_templates.py
+++ b/src/koru/queue/ticket_templates.py
@@ -250,6 +250,21 @@ def hydrate_subactor_repair_ticket(ticket: dict[str, Any]) -> dict[str, Any]:
     return out
 
 
+def _todo2code_verify_command(project: Path, diagnostic_ids: list[str]) -> str | None:
+    """Build the Koru verification command for validated todo2code diagnostics."""
+    if not diagnostic_ids:
+        return None
+    t2c = t2c_executable(project)
+    if not t2c:
+        return None
+    koru_source_root = str(Path(__file__).resolve().parents[2])
+    command = ["env", f"PYTHONPATH={koru_source_root}", sys.executable, "-m",
+               "koru.queue.todo2code_gate", "--project", ".", "--t2c", t2c]
+    for diagnostic_id in diagnostic_ids:
+        command.extend(["--diagnostic", diagnostic_id])
+    return shlex.join(command)
+
+
 def hydrate_todo2code_ticket(ticket: dict[str, Any], project: Path) -> dict[str, Any]:
     """Hydrate todo2code defaults without manufacturing execution authority."""
     labels = [str(label) for label in (ticket.get("labels") or [])]
@@ -295,27 +310,10 @@ def hydrate_todo2code_ticket(ticket: dict[str, Any], project: Path) -> dict[str,
         str(value) for value in (context.get("diagnostic_ids") or [])
         if re.fullmatch(r"DIAG-[a-f0-9]+", str(value))
     ]
-    if not str(inputs.get("verify_command") or "").strip() and diagnostic_ids:
-        t2c = t2c_executable(project)
-        if t2c:
-            # Verification runs in a temporary worktree of the target project.
-            # A relative developer PYTHONPATH (commonly ``src``) would then
-            # resolve against that project and make the Koru gate disappear.
-            koru_source_root = str(Path(__file__).resolve().parents[2])
-            command = [
-                "env",
-                f"PYTHONPATH={koru_source_root}",
-                sys.executable,
-                "-m",
-                "koru.queue.todo2code_gate",
-                "--project",
-                ".",
-                "--t2c",
-                t2c,
-            ]
-            for diagnostic_id in diagnostic_ids:
-                command.extend(["--diagnostic", diagnostic_id])
-            inputs["verify_command"] = shlex.join(command)
+    if not str(inputs.get("verify_command") or "").strip():
+        verify_command = _todo2code_verify_command(project, diagnostic_ids)
+        if verify_command:
+            inputs["verify_command"] = verify_command
 
     if "type:development-defect" not in lowered:
         labels.append("type:development-defect")