LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 12, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB502 by Perry (Relating to peace officers commissioned by the Health and Human Services Commissions office of inspector general.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB502, Committee Report 1st House, Substituted: a negative impact of ($3,584,686) 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($2,062,631)2027($1,522,055)2028($1,522,055)2029($1,522,055)2030($1,522,055)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromFederal Funds5552026($1,823,252)($239,379)($240,960)2027($1,352,938)($169,117)($169,117)2028($1,352,938)($169,117)($169,117)2029($1,352,938)($169,117)($169,117)2030($1,352,938)($169,117)($169,117) Fiscal AnalysisThe bill would require the Health and Human Services Commission's (HHSC) Office of Inspector General (OIG) to compensate peace officers according to Schedule C of the position classification salary schedule included in the General Appropriations Act. The bill would take effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 12, 2025
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB502 by Perry (Relating to peace officers commissioned by the Health and Human Services Commissions office of inspector general.), Committee Report 1st House, Substituted
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB502 by Perry (Relating to peace officers commissioned by the Health and Human Services Commissions office of inspector general.), Committee Report 1st House, Substituted
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
SB502 by Perry (Relating to peace officers commissioned by the Health and Human Services Commissions office of inspector general.), Committee Report 1st House, Substituted
SB502 by Perry (Relating to peace officers commissioned by the Health and Human Services Commissions office of inspector general.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB502, Committee Report 1st House, Substituted: a negative impact of ($3,584,686) 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 SB502, Committee Report 1st House, Substituted: a negative impact of ($3,584,686) 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 ($2,062,631)
2027 ($1,522,055)
2028 ($1,522,055)
2029 ($1,522,055)
2030 ($1,522,055)
All Funds, Five-Year Impact:
2026 ($1,823,252) ($239,379) ($240,960)
2027 ($1,352,938) ($169,117) ($169,117)
2028 ($1,352,938) ($169,117) ($169,117)
2029 ($1,352,938) ($169,117) ($169,117)
2030 ($1,352,938) ($169,117) ($169,117)
Fiscal Analysis
The bill would require the Health and Human Services Commission's (HHSC) Office of Inspector General (OIG) to compensate peace officers according to Schedule C of the position classification salary schedule included in the General Appropriations Act. The bill would take effect September 1, 2025.
Methodology
According to HHSC, additional funding is needed to provide for increased salaries for current positions at OIG that would be reclassed to the Schedule C Classification Salary Schedule. Based on information provided by the agency compared to the maximum salary permitted by the Schedule C Classification Salary Schedule in Senate Bill 1, as introduced, this analysis assumes an additional $1,691,172 in All Funds is needed each fiscal year to reclassify 37 current positions from the Schedule B Classification Salary Schedule to the Schedule C Classification Salary Schedule, including employee benefits and related salary pay.
Technology
The total technology cost is estimated to be $612,419 in All Funds in fiscal year 2026. Costs are primarily related to one-time upgrades to the Centralized Accounting and Payroll/Personnel System (CAPPS).
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 529 Health and Human Services Commission
529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, ER, NT, NV
JMc, NPe, ER, NT, NV