LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 20, 2025 TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3560 by Pierson (Relating to the licensing of mental hospitals and mental health facilities and the definition of facility for the purposes of the employee misconduct registry.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3560, Committee Report 1st House, Substituted: a negative impact of ($3,057,658) 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($2,211,950)2027($845,708)2028($846,808)2029($847,723)2030($848,658)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromFederal Funds555 Change in Number of State Employees from FY 20252026($1,547,814)($664,136)($679,136)5.02027($845,708)$0$05.02028($846,808)$0$05.02029($847,723)$0$05.02030($848,658)$0$05.0 Fiscal AnalysisThe bill would add licensed private mental hospitals and other mental health facilities to the types of facilities that the Health and Human Services Commission (HHSC) is required to investigate employee reportable conduct on. The bill would amend the license applications of private mental hospitals and other mental health facilities license applications to include the name and address of the person responsible for the daily operations of the facility. This bill would be effective September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 20, 2025
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3560 by Pierson (Relating to the licensing of mental hospitals and mental health facilities and the definition of facility for the purposes of the employee misconduct registry.), Committee Report 1st House, Substituted
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3560 by Pierson (Relating to the licensing of mental hospitals and mental health facilities and the definition of facility for the purposes of the employee misconduct registry.), Committee Report 1st House, Substituted
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
HB3560 by Pierson (Relating to the licensing of mental hospitals and mental health facilities and the definition of facility for the purposes of the employee misconduct registry.), Committee Report 1st House, Substituted
HB3560 by Pierson (Relating to the licensing of mental hospitals and mental health facilities and the definition of facility for the purposes of the employee misconduct registry.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3560, Committee Report 1st House, Substituted: a negative impact of ($3,057,658) 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 HB3560, Committee Report 1st House, Substituted: a negative impact of ($3,057,658) 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 ($2,211,950)
2027 ($845,708)
2028 ($846,808)
2029 ($847,723)
2030 ($848,658)
All Funds, Five-Year Impact:
2026 ($1,547,814) ($664,136) ($679,136) 5.0
2027 ($845,708) $0 $0 5.0
2028 ($846,808) $0 $0 5.0
2029 ($847,723) $0 $0 5.0
2030 ($848,658) $0 $0 5.0
Fiscal Analysis
The bill would add licensed private mental hospitals and other mental health facilities to the types of facilities that the Health and Human Services Commission (HHSC) is required to investigate employee reportable conduct on. The bill would amend the license applications of private mental hospitals and other mental health facilities license applications to include the name and address of the person responsible for the daily operations of the facility. This bill would be effective September 1, 2025.
Methodology
According to HHSC, additional staff are needed to account for the new provider type, which could impact up to 63 currently licensed private mental hospitals and other mental health facilities. This analysis assumes HHSC would require an additional 5.0 full-time-equivalents (FTEs) to account for the new provider type, including: 4.0 Nurse III to investigate reportable conduct committed by facility employees and 1.0 Program Specialist VII to assist with related regulatory activities and policies required to account for the new provider type. Personnel-related costs, including salaries and travel, are estimated to total $807,593 in General Revenue in fiscal year 2026 and $845,708 in General Revenue in fiscal year 2027.
Technology
According to HHSC, updates would be required to the Employee Misconduct Registry (EMR) system, websites, and databases to account for the new provider type. The total technology cost is estimated to be $2,083,493 in All Funds ($1,404,357 in General Revenue and $679,136 in Federal Funds) in fiscal year 2026 to make one-time modifications to the EMR system and other related technology system changes.
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, SB
JMc, NPe, ER, LBl, NV, SB