LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB46 by King (Relating to the medical use of low-THC cannabis under and the administration of the Texas Compassionate-Use Program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB46, As Introduced: a positive impact of $5,751,966 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$5,751,9662027$02028$3,800,9512029$02030$3,509,792All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund12026$5,751,9662027$02028$3,800,9512029$02030$3,509,792 Fiscal AnalysisThe bill would amend certain rules related to the Texas Compassionate Use Program including the use of certain satellite locations, operations, packaging, and administration of low-THC cannabis. Under the provisions of the bill, the Department of Public Safety (DPS) would also be able to issue 11 licenses to dispensing organizations.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 14, 2025
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB46 by King (Relating to the medical use of low-THC cannabis under and the administration of the Texas Compassionate-Use Program.), As Introduced
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB46 by King (Relating to the medical use of low-THC cannabis under and the administration of the Texas Compassionate-Use Program.), 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
HB46 by King (Relating to the medical use of low-THC cannabis under and the administration of the Texas Compassionate-Use Program.), As Introduced
HB46 by King (Relating to the medical use of low-THC cannabis under and the administration of the Texas Compassionate-Use Program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB46, As Introduced: a positive impact of $5,751,966 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 HB46, As Introduced: a positive impact of $5,751,966 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 $5,751,966
2027 $0
2028 $3,800,951
2029 $0
2030 $3,509,792
All Funds, Five-Year Impact:
2026 $5,751,966
2027 $0
2028 $3,800,951
2029 $0
2030 $3,509,792
Fiscal Analysis
The bill would amend certain rules related to the Texas Compassionate Use Program including the use of certain satellite locations, operations, packaging, and administration of low-THC cannabis. Under the provisions of the bill, the Department of Public Safety (DPS) would also be able to issue 11 licenses to dispensing organizations.
Methodology
According to DPS, any costs associated with the bill could be absorbed using existing resources. However, DPS anticipates an increase in revenue related to additional dispensing organizations. In fiscal year 2026, DPS anticipates collecting $80,916 in business application fees, $5,373,720 in business original license fees, and $297,330 in registrant original and renewal license fees. DPS assumes collections of $7,007,242 in business renewal license fees and $303,501 in registrant original and renewal license fees between fiscal years 2028-2030.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 405 Department of Public Safety, 503 Texas Medical Board, 529 Health and Human Services Commission
405 Department of Public Safety, 503 Texas Medical Board, 529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, CSh, KVEL
JMc, NPe, CSh, KVEL