LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 31, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2422 by Hall (Relating to investigations and disciplinary or punitive action by the Texas Medical Board regarding certain treatments or practices regarding COVID-19 and to the required expungement of certain records.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB2422, As Introduced: a negative impact of ($1,060,500) 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($1,060,500)2027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund12026($1,060,500)2027$02028$02029$02030$0 Fiscal AnalysisThe bill would amend the Texas Occupations Code to prevent the Texas Medical Board (TMB) from investigating or taking disciplinary action against their licensees for prescribing certain medicines for the treatment of COVID-19, making statements about the efficacy of masks in preventing the transmission of COVID-19, or failing to wear a mask or requiring others to wear masks with the intention to prevent the transmission of COVID-19. Additionally, TMB would be required to expunge all records and reimburse legal fees in all disciplinary cases created on or after January 1, 2020, containing the words budesonide, hydroxychloroquine, ivermectin, or mask. The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house, or else it would take effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 31, 2025
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2422 by Hall (Relating to investigations and disciplinary or punitive action by the Texas Medical Board regarding certain treatments or practices regarding COVID-19 and to the required expungement of certain records.), As Introduced
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2422 by Hall (Relating to investigations and disciplinary or punitive action by the Texas Medical Board regarding certain treatments or practices regarding COVID-19 and to the required expungement of certain records.), As Introduced
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2422 by Hall (Relating to investigations and disciplinary or punitive action by the Texas Medical Board regarding certain treatments or practices regarding COVID-19 and to the required expungement of certain records.), As Introduced
SB2422 by Hall (Relating to investigations and disciplinary or punitive action by the Texas Medical Board regarding certain treatments or practices regarding COVID-19 and to the required expungement of certain records.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB2422, As Introduced: a negative impact of ($1,060,500) 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 SB2422, As Introduced: a negative impact of ($1,060,500) 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 ($1,060,500)
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($1,060,500)
2027 $0
2028 $0
2029 $0
2030 $0
Fiscal Analysis
The bill would amend the Texas Occupations Code to prevent the Texas Medical Board (TMB) from investigating or taking disciplinary action against their licensees for prescribing certain medicines for the treatment of COVID-19, making statements about the efficacy of masks in preventing the transmission of COVID-19, or failing to wear a mask or requiring others to wear masks with the intention to prevent the transmission of COVID-19. Additionally, TMB would be required to expunge all records and reimburse legal fees in all disciplinary cases created on or after January 1, 2020, containing the words budesonide, hydroxychloroquine, ivermectin, or mask. The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house, or else it would take effect September 1, 2025.
The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house, or else it would take effect September 1, 2025.
Methodology
Based on analysis from the Texas Medical Board (TMB), the agency issued 99 warning letters, issued 27 remedial plans, handled 45 complaints from informal settlement conferences, and participated in 2 State Office of Administrative Hearing cases that would be eligible for reimbursement under the provisions of the bill. This estimates assumes the cost to reimburses costs related to warning letters at $3,000 per letter ($297,000 total), complaints from informal settlement conferences at $10,000 per complaint ($450,000 total), fines related to remedial plans at $500 per plan ($13,500 total), and State Office of Administrative Hearing cases at $150,000 per case ($300,000 total). In total, this estimate assumes $1,060,500 in one-time legal fees and fines that would reimbursed to licensees in fiscal year 2026 by the agency.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 503 Texas Medical Board
503 Texas Medical Board
LBB Staff: b > td > JMc, NPe, GDZ, BFa
JMc, NPe, GDZ, BFa