LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 2, 2025 TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2298 by Lalani (Relating to a health care facility grant program supporting the use of artificial intelligence technology in scanning medical images for cancer detection.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2298, As Introduced: a negative impact of ($2,750,288) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($1,379,793)2027($1,370,495)2028($1,370,715)2029($1,370,898)2030($1,371,085)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($1,379,793)1.02027($1,370,495)1.02028($1,370,715)1.02029($1,370,898)1.02030($1,371,085)1.0 Fiscal AnalysisThis bill adds Chapter 56 to the Health and Safety Code to require the Health and Human Services Commission (HHSC) to implement a grant program to financially support hospitals and clinics that want to use artificial intelligence (AI) technology to identify cancer in medical images. The grant program is available to any hospital or health center in Texas that offers medical imaging services. This bill requires an annual report for grantees one year after the grant is awarded. HHSC would be able to solicit and accept gifts, grants, and donations from any source to implement the provisions of the bill. The bill would take effect September 1, 2025. Chapter 56 would expire on September 1, 2035, without being extended.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 2, 2025
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2298 by Lalani (Relating to a health care facility grant program supporting the use of artificial intelligence technology in scanning medical images for cancer detection.), As Introduced
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2298 by Lalani (Relating to a health care facility grant program supporting the use of artificial intelligence technology in scanning medical images for cancer detection.), As Introduced
Honorable Gary VanDeaver, Chair, House Committee on Public Health
Honorable Gary VanDeaver, Chair, House Committee on Public Health
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2298 by Lalani (Relating to a health care facility grant program supporting the use of artificial intelligence technology in scanning medical images for cancer detection.), As Introduced
HB2298 by Lalani (Relating to a health care facility grant program supporting the use of artificial intelligence technology in scanning medical images for cancer detection.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2298, As Introduced: a negative impact of ($2,750,288) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2298, As Introduced: a negative impact of ($2,750,288) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($1,379,793)
2027 ($1,370,495)
2028 ($1,370,715)
2029 ($1,370,898)
2030 ($1,371,085)
All Funds, Five-Year Impact:
2026 ($1,379,793) 1.0
2027 ($1,370,495) 1.0
2028 ($1,370,715) 1.0
2029 ($1,370,898) 1.0
2030 ($1,371,085) 1.0
Fiscal Analysis
This bill adds Chapter 56 to the Health and Safety Code to require the Health and Human Services Commission (HHSC) to implement a grant program to financially support hospitals and clinics that want to use artificial intelligence (AI) technology to identify cancer in medical images. The grant program is available to any hospital or health center in Texas that offers medical imaging services. This bill requires an annual report for grantees one year after the grant is awarded. HHSC would be able to solicit and accept gifts, grants, and donations from any source to implement the provisions of the bill. The bill would take effect September 1, 2025. Chapter 56 would expire on September 1, 2035, without being extended.
Methodology
This analysis assumes HHSC would require 1.0 full-time-equivalent (FTE) starting in fiscal year 2026 to establish a grant program to financially support hospitals and clinics that want to use (AI) technology to identify cancer in medical images. This analysis assumes the agency would require$1,379,793 from the General Revenue Fund ($1,379,793 from All Funds) in fiscal year 2026 and $1,370,495 from the General Revenue Fund ($1,370,495 from All Funds) in fiscal year 2027 to implement the provisions of the bill, which include the grant, administering the grant program which encompasses providing technical assistance and training to grantees, perform policy research and planning, and ensure compliance with clinical guidelines for healthcare facilities using AI to detect cancer.Included in the amounts above are assumed FTE costs totaling $129,793 from the General Revenue Fund ($129,793 from All Funds) and 1.0 FTE in fiscal year 2026 and $120,495 from the General Revenue Fund ($120,495 from All Funds) and 1.0 FTE in fiscal year 2027. This includes $9,694 from the General Revenue Fund ($9,694 from All Funds) in fiscal year 2026 for one-time costs related to the implementation of provisions of this bill.This analysis also assumes HHSC would require $1,250,000 from the General Revenue Fund ($1,250,000 from All Funds) beginning in fiscal year 2026 for grant award amounts as prescribed by this bill. According to this bill, the agency may award a maximum of five grants each fiscal year not to exceed $250,000 per grantee.
Included in the amounts above are assumed FTE costs totaling $129,793 from the General Revenue Fund ($129,793 from All Funds) and 1.0 FTE in fiscal year 2026 and $120,495 from the General Revenue Fund ($120,495 from All Funds) and 1.0 FTE in fiscal year 2027. This includes $9,694 from the General Revenue Fund ($9,694 from All Funds) in fiscal year 2026 for one-time costs related to the implementation of provisions of this bill.This analysis also assumes HHSC would require $1,250,000 from the General Revenue Fund ($1,250,000 from All Funds) beginning in fiscal year 2026 for grant award amounts as prescribed by this bill. According to this bill, the agency may award a maximum of five grants each fiscal year not to exceed $250,000 per grantee.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 529 Health and Human Services Commission
529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, ER, LBl, NV
JMc, NPe, ER, LBl, NV