LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 7, 2025 TO: Honorable Lacey Hull, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3589 by Campos (Relating to the licensure and regulation of certain group home facilities; authorizing a fee; creating an offense.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3589, As Introduced: a negative impact of ($8,911,378) 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($4,583,840)2027($4,327,538)2028($3,456,847)2029($3,461,983)2030($3,467,231)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($3,744,227)($839,613)($857,603)30.52027($3,513,250)($814,288)($831,769)30.52028($3,116,789)($340,058)($346,827)30.52029($3,121,489)($340,494)($347,273)30.52030($3,126,290)($340,941)($347,728)30.5 Fiscal AnalysisThis bill amends the Health and Safety Code to require certain persons to hold a license to operate or establish a group home facility. This bill would require the Health and Human Services Commission (HHSC) to establish standards and promulgate rules governing the issuance of such licenses and the regular safety inspections required by this bill. Additionally, this bill would authorize HHSC to suspend or revoke licenses or to issue an emergency order closing a group home under certain circumstances. This bill would prevail over another Act of the 89th Legislature, Regular Session, 2025, relating to non-substantive additions to and corrections in enacted codes. This bill would take effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 7, 2025
TO: Honorable Lacey Hull, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3589 by Campos (Relating to the licensure and regulation of certain group home facilities; authorizing a fee; creating an offense.), As Introduced
TO: Honorable Lacey Hull, Chair, House Committee on Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3589 by Campos (Relating to the licensure and regulation of certain group home facilities; authorizing a fee; creating an offense.), As Introduced
Honorable Lacey Hull, Chair, House Committee on Human Services
Honorable Lacey Hull, Chair, House Committee on Human Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3589 by Campos (Relating to the licensure and regulation of certain group home facilities; authorizing a fee; creating an offense.), As Introduced
HB3589 by Campos (Relating to the licensure and regulation of certain group home facilities; authorizing a fee; creating an offense.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3589, As Introduced: a negative impact of ($8,911,378) 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 HB3589, As Introduced: a negative impact of ($8,911,378) 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 ($4,583,840)
2027 ($4,327,538)
2028 ($3,456,847)
2029 ($3,461,983)
2030 ($3,467,231)
All Funds, Five-Year Impact:
2026 ($3,744,227) ($839,613) ($857,603) 30.5
2027 ($3,513,250) ($814,288) ($831,769) 30.5
2028 ($3,116,789) ($340,058) ($346,827) 30.5
2029 ($3,121,489) ($340,494) ($347,273) 30.5
2030 ($3,126,290) ($340,941) ($347,728) 30.5
Fiscal Analysis
This bill amends the Health and Safety Code to require certain persons to hold a license to operate or establish a group home facility. This bill would require the Health and Human Services Commission (HHSC) to establish standards and promulgate rules governing the issuance of such licenses and the regular safety inspections required by this bill. Additionally, this bill would authorize HHSC to suspend or revoke licenses or to issue an emergency order closing a group home under certain circumstances. This bill would prevail over another Act of the 89th Legislature, Regular Session, 2025, relating to non-substantive additions to and corrections in enacted codes. This bill would take effect September 1, 2025.
Methodology
This analysis assumes the Health and Human Services Commission (HHSC) would establish, publish, and enforce rules related to the licensing of a group home facility as required by the provisions of this bill. HHSC would also have the authority to suspend a license or order the closing of a group home facility if it finds the facility is violating the Health and Safety Code and the violation creates an immediate threat to the health and safety of a group home facility resident(s). This analysis assumes the agency would require $4,583,840 from the General Revenue Fund ($5,441,443 from All Funds) and 30.5 full-time-equivalents (FTEs) in fiscal year 2026 and $4,327,538 from the General Revenue Fund ($5,159,307 from All Funds) and 30.5 FTEs in fiscal year 2027 to implement the provisions of the bill, which include rulemaking, licensure issuance, enforcement, and other administrative activities associated with the Regulatory Services Division of HHSC.Included in the amounts above are assumed FTE costs totaling $3,623,569 from the General Revenue Fund ($4,017,321 from All Funds) and 30.5 FTEs in fiscal year 2026 and $3,367,267 from the General Revenue Fund ($3,735,185 from All Funds) and 30.5 FTEs in fiscal year 2027. This includes $281,090 from the General Revenue Fund ($304,667 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 $960,271 from the General Revenue Fund ($1,424,122 from All Funds) in fiscal year 2026 and fiscal year 2027 to implement the new license types for the agency's estimated 2,388 group home facilities across the state in the Texas Unified Licensure Information Portal (TULIP) licensing system. According to HHSC, TULIP would require changes to the current system to allow for the additional license types and all associated functionalities, including a new license type application, renewal, temporary license for Change of Ownership (CHOW) applications for nursing facilities and any changes made to the license. The agency assumes it would require a contract with Deloitte Technical Solutions Services (TSS) team in the 2026-27 biennium as well as a contracted project manager to perform complex information technology project management work, including planning and initiating projects, monitoring the progress and schedule of projects, and communicating with project stakeholders (HHSC management and other relevant parties within the agency). The agency assumes the Deloitte TTS and contracted project manager are only needed for the 2026-27 biennium.This analysis assumes the Office of Court Administration and the Comptroller of Public Accounts can implement provisions of this bill within existing agency resources.It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.
Technology
As mentioned above, HHSC would require $960,271 from the General Revenue Fund ($1,424,122 from All Funds) in each fiscal year of the 2026-27 biennium to update the TULIP licensing system. The agency would require contracting with Deloitte Technical Solutions Services (TSS) team and a contracted project manager.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 529 Health and Human Services Commission
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, ER, LBl, NV
JMc, NPe, ER, LBl, NV