LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION February 27, 2025 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB5 by Huffman (relating to the creation of the Dementia Prevention and Research Institute of Texas.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB5, Committee Report 1st House, Substituted: 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 SJR 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($300,000,000)54.02027($300,000,000)54.02028($300,000,000)54.02029($300,000,000)54.02030($300,000,000)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 SJR 3. Additionally, the fund may consist of legislative appropriations, gifts, and grants. Any interest; dividends; patent, royalty, and license income earned by the fund would be deposited to the General Revenue Fund. 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. Contingent on the passage of a constitutional amendment (SJR 3), the effective date of the bill is December 1, 2025.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
February 27, 2025
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB5 by Huffman (relating to the creation of the Dementia Prevention and Research Institute of Texas.), Committee Report 1st House, Substituted
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB5 by Huffman (relating to the creation of the Dementia Prevention and Research Institute of Texas.), Committee Report 1st House, Substituted
Honorable Joan Huffman, Chair, Senate Committee on Finance
Honorable Joan Huffman, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB5 by Huffman (relating to the creation of the Dementia Prevention and Research Institute of Texas.), Committee Report 1st House, Substituted
SB5 by Huffman (relating to the creation of the Dementia Prevention and Research Institute of Texas.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB5, Committee Report 1st House, Substituted: 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 SJR 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 SB5, Committee Report 1st House, Substituted: 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 SJR 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 SJR 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 ($300,000,000) 54.0
2027 ($300,000,000) 54.0
2028 ($300,000,000) 54.0
2029 ($300,000,000) 54.0
2030 ($300,000,000) 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 SJR 3. Additionally, the fund may consist of legislative appropriations, gifts, and grants. Any interest; dividends; patent, royalty, and license income earned by the fund would be deposited to the General Revenue Fund. 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. Contingent on the passage of a constitutional amendment (SJR 3), the effective date of the bill is December 1, 2025.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 authorize the institute to award grants of up to $300.0 million annually. The accompanying joint resolution (SJR 3) would make $300.0 million available for appropriation from the Dementia Prevention and Research Fund in fiscal year 2026 and $300.0 million and any unspent, previously appropriated amounts in each subsequent year. 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 approximately $22,388,000 per year. This includes $6.8 million in staffing costs for 54.0 FTEs per year. Other administrative costs include rent, supplies, utilities, travel and professional services. Administrative costs would be paid out of the Dementia Prevention and Research Fund. 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
116 Sunset Advisory Commission, 304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD, BRI
JMc, KK, SD, BRI