LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 6, 2025 TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5 by Craddick (Relating to the creation of the Dementia Prevention and Research Institute of Texas.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB5, As Introduced: an impact of $0 through the biennium ending August 31, 2027.The Dementia Prevention and Research Fund would initially be funded with a transfer of $3.0 billion from the General Revenue Fund as provided by the associated constitutional amendment. The fiscal impact from this transfer is shown in the fiscal note for HJR 3. 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$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromNew Other Fund - Dementia Prevention and Research Fund Change in Number of State Employees from FY 20252026($11,194,000)54.02027($322,388,000)54.02028($322,388,000)54.02029($322,388,000)54.02030($322,388,000)54.0 Fiscal AnalysisThe bill would amend the Health and Safety Code to establish the Dementia Prevention and Research Institute of Texas (DPRIT) to support research on dementia and related disorders. Research would be funded by grants from DPRIT through a transfer from the General Revenue Fund under Section 68, Article III, Texas Constitution; legislative appropriations; gifts; grants; interest; dividends; patent, royalty, and license income; and other income. The bill would establish a higher education advisory committee, an oversight committee, a program integration committee, and a peer review committee. The bill would require that all appointments be made to the oversight committee no later than December 31, 2025. The oversight committee would not be able to begin official action until a majority of the appointed officers have taken office.The bill would require the oversight committee to hire a chief executive officer and a chief compliance officer for DPRIT. The bill would authorize the chief executive officer to hire any other officer position the chief executive officer determines necessary.The bill would establish in statute the Dementia Prevention and Research Fund as created under Section 68, Article III, Texas Constitution. The fund would initially be funded with a transfer of $3.0 billion from the General Revenue Fund as provided by the associated constitutional amendment. The fiscal impact from this transfer is shown in the fiscal note for HJR 3. Additionally, the fund may consist of legislative appropriations; gifts; grants; interest; dividends; patent, royalty, and license income; and other income. Authorized uses of the fund are for awarding grants, including grants for dementia and related disorder research and for research facilities in this state to conduct dementia research; the purchase of research facilities by or for a grant recipient; and the operation of the institute. The bill would require the Texas Treasury Safekeeping Trust Company to hold and invest the fund and any accounts established in the fund. The bill would also provide certain guidelines regarding the management and investment of the fund, reporting requirements, and the adoption of a written investment policy.Contingent on the passage of a constitutional amendment (HJR 3), the effective date of the bill is December 1, 2025.Note: This legislation would create a fund or account in the Treasury and state that money in the fund or account may be spent without further legislative appropriation. Article VIII, Section VI of the Texas Constitution provides that money drawn from the state treasury requires an appropriation. A constitutional amendment providing authority to spend without further appropriation would be required absent that appropriation.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 6, 2025
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5 by Craddick (Relating to the creation of the Dementia Prevention and Research Institute of Texas.), As Introduced
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5 by Craddick (Relating to the creation of the Dementia Prevention and Research Institute of Texas.), 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
HB5 by Craddick (Relating to the creation of the Dementia Prevention and Research Institute of Texas.), As Introduced
HB5 by Craddick (Relating to the creation of the Dementia Prevention and Research Institute of Texas.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB5, As Introduced: an impact of $0 through the biennium ending August 31, 2027.The Dementia Prevention and Research Fund would initially be funded with a transfer of $3.0 billion from the General Revenue Fund as provided by the associated constitutional amendment. The fiscal impact from this transfer is shown in the fiscal note for HJR 3. 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 HB5, As Introduced: an impact of $0 through the biennium ending August 31, 2027.The Dementia Prevention and Research Fund would initially be funded with a transfer of $3.0 billion from the General Revenue Fund as provided by the associated constitutional amendment. The fiscal impact from this transfer is shown in the fiscal note for HJR 3. 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 Dementia Prevention and Research Fund would initially be funded with a transfer of $3.0 billion from the General Revenue Fund as provided by the associated constitutional amendment. The fiscal impact from this transfer is shown in the fiscal note for HJR 3.
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 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($11,194,000) 54.0
2027 ($322,388,000) 54.0
2028 ($322,388,000) 54.0
2029 ($322,388,000) 54.0
2030 ($322,388,000) 54.0
Fiscal Analysis
The bill would amend the Health and Safety Code to establish the Dementia Prevention and Research Institute of Texas (DPRIT) to support research on dementia and related disorders. Research would be funded by grants from DPRIT through a transfer from the General Revenue Fund under Section 68, Article III, Texas Constitution; legislative appropriations; gifts; grants; interest; dividends; patent, royalty, and license income; and other income. The bill would establish a higher education advisory committee, an oversight committee, a program integration committee, and a peer review committee. The bill would require that all appointments be made to the oversight committee no later than December 31, 2025. The oversight committee would not be able to begin official action until a majority of the appointed officers have taken office.The bill would require the oversight committee to hire a chief executive officer and a chief compliance officer for DPRIT. The bill would authorize the chief executive officer to hire any other officer position the chief executive officer determines necessary.The bill would establish in statute the Dementia Prevention and Research Fund as created under Section 68, Article III, Texas Constitution. The fund would initially be funded with a transfer of $3.0 billion from the General Revenue Fund as provided by the associated constitutional amendment. The fiscal impact from this transfer is shown in the fiscal note for HJR 3. Additionally, the fund may consist of legislative appropriations; gifts; grants; interest; dividends; patent, royalty, and license income; and other income. Authorized uses of the fund are for awarding grants, including grants for dementia and related disorder research and for research facilities in this state to conduct dementia research; the purchase of research facilities by or for a grant recipient; and the operation of the institute. The bill would require the Texas Treasury Safekeeping Trust Company to hold and invest the fund and any accounts established in the fund. The bill would also provide certain guidelines regarding the management and investment of the fund, reporting requirements, and the adoption of a written investment policy.Contingent on the passage of a constitutional amendment (HJR 3), the effective date of the bill is December 1, 2025.Note: This legislation would create a fund or account in the Treasury and state that money in the fund or account may be spent without further legislative appropriation. Article VIII, Section VI of the Texas Constitution provides that money drawn from the state treasury requires an appropriation. A constitutional amendment providing authority to spend without further appropriation would be required absent that appropriation.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Methodology
The bill would require that all appointments be made to the oversight committee no later than December 31, 2025. The oversight committee would not be able to begin official action until a majority of the appointed officers have taken office. This analysis assumes that the oversight committee is in place and has hired a chief executive officer and a chief compliance officer by March 1, 2026. This analysis assumes that the agency spends the remainder of fiscal year 2026 organizing and hiring staff and is fully staffed and begins awarding grants in fiscal year 2027. If the agency operations have not begun by March 1, 2026, then DPRIT activities, and the associated costs currently assumed in this fiscal note to occur in fiscal year 2026 could be pushed to fiscal year 2027.The bill would authorize the institute to award grants of up to $300.0 million annually. This analysis assumes that the institute awards $300.0 million each year, beginning in fiscal year 2027.This analysis assumes that DPRIT would be organized similarly to, and have similar administrative costs to the Cancer Prevention and Research Institute of Texas. This analysis assumes administrative costs of $11,194,000 in fiscal year 2026 and $22,388,000 per year beginning in fiscal year 2027.This includes staffing costs for 54.0 FTEs of $3.4 million in in fiscal year 2026, and $6.8 million per year beginning in fiscal year 2027. Other administrative costs include rent, supplies, utilities, travel and professional services. The amount of any patent, royalty, and license income cannot be determined.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 116 Sunset Advisory Commission, 304 Comptroller of Public Accounts, 537 State Health Services, Department of
116 Sunset Advisory Commission, 304 Comptroller of Public Accounts, 537 State Health Services, Department of
LBB Staff: b > td > JMc, NPe, SD, BRI, KK
JMc, NPe, SD, BRI, KK