LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 21, 2025 TO: Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3945 by Bumgarner (Relating to the licensing and regulation of massage therapy and other programs administered by the Texas Department of Licensing and Regulation; creating a criminal offense; providing a civil penalty.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3945, As Introduced: a negative impact of ($463,942) 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($234,471)2027($229,471)2028($229,471)2029($229,471)2030($229,471)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund12026($234,471)2027($229,471)2028($229,471)2029($229,471)2030($229,471)All Funds, Six-Year Impact: Fiscal Year Change in Number of State Employees from FY 202420252.020262.020272.020282.020292.020302.0 Fiscal AnalysisThis bill amends chapter 51 of the Occupations Code relating to the Texas Department of Licensing and Regulation (TDLR) to expand TDLR's current authority for regulating massage establishments and massage schools. This bill outlines eligibility for a massage establishment or massage school licensing and gives TDLR authority to issue emergency orders and allows the executive director to suspend the license of a massage establishment or massage school. The bill creates a civil penalty for violations of regulations and a criminal penalty for violating emergency orders. The bill also amends the time with which the State Office of Administrative Hearings much conduct a formal hearing on TDLR emergency orders from 10 days to 17 days after an emergency order has been issued.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 21, 2025
TO: Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3945 by Bumgarner (Relating to the licensing and regulation of massage therapy and other programs administered by the Texas Department of Licensing and Regulation; creating a criminal offense; providing a civil penalty.), As Introduced
TO: Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3945 by Bumgarner (Relating to the licensing and regulation of massage therapy and other programs administered by the Texas Department of Licensing and Regulation; creating a criminal offense; providing a civil penalty.), As Introduced
Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures
Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3945 by Bumgarner (Relating to the licensing and regulation of massage therapy and other programs administered by the Texas Department of Licensing and Regulation; creating a criminal offense; providing a civil penalty.), As Introduced
HB3945 by Bumgarner (Relating to the licensing and regulation of massage therapy and other programs administered by the Texas Department of Licensing and Regulation; creating a criminal offense; providing a civil penalty.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3945, As Introduced: a negative impact of ($463,942) 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 HB3945, As Introduced: a negative impact of ($463,942) 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 ($234,471)
2027 ($229,471)
2028 ($229,471)
2029 ($229,471)
2030 ($229,471)
All Funds, Five-Year Impact:
2026 ($234,471)
2027 ($229,471)
2028 ($229,471)
2029 ($229,471)
2030 ($229,471)
All Funds, Six-Year Impact:
2025 2.0
2026 2.0
2027 2.0
2028 2.0
2029 2.0
2030 2.0
Fiscal Analysis
This bill amends chapter 51 of the Occupations Code relating to the Texas Department of Licensing and Regulation (TDLR) to expand TDLR's current authority for regulating massage establishments and massage schools. This bill outlines eligibility for a massage establishment or massage school licensing and gives TDLR authority to issue emergency orders and allows the executive director to suspend the license of a massage establishment or massage school. The bill creates a civil penalty for violations of regulations and a criminal penalty for violating emergency orders. The bill also amends the time with which the State Office of Administrative Hearings much conduct a formal hearing on TDLR emergency orders from 10 days to 17 days after an emergency order has been issued.
Methodology
According to the State Office of Administrative Hearings, this bill would create an estimated 96 additional emergency order cases in fiscal year 2026 and 192 emergency order cases in Fiscal Year 2027. Based on other human trafficking-related massage therapy cases, SOAH estimates requiring 11.0 hours of Administrative Law Judge hours per case. SOAH estimates needing 1.0 additional ALJ and 1.0 additional Legal Secretary positions to handle the estimated 1,056 additional ALJ hours in Fiscal Year 2026 and 2,112 additional ALJ hours in Fiscal Year 2027.Based on the analysis of the Office of Court Administrative, Office of the Attorney General, Department of Information Resources, and Texas Department of Licensing and Regulation, this bill would have not have a significant fiscal impact to the operation of these agencies. It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.
Technology
SOAH estimates technology coasts to be $14,000 in Fiscal Year 2026 for new equipment and software then $9,000 in Fiscal Year 2027 for continued software costs.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant.
It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant.
Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 313 Department of Information Resources, 360 State Office of Administrative Hearings, 452 Department of Licensing and Regulation
212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 313 Department of Information Resources, 360 State Office of Administrative Hearings, 452 Department of Licensing and Regulation
LBB Staff: b > td > JMc, TUf, GDZ, KSi
JMc, TUf, GDZ, KSi