TO:	Honorable Ken King, Chair, House Committee on Licensing & Administrative Procedures

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB3579 by Bumgarner (relating to the issuance of an emergency order by the Texas Department of Licensing and Regulation against a massage establishment.), Committee Report 1st House, Substituted

The fiscal implications of the bill cannot be determined due to the uncertain nature of the increase in cases as a result of the lower evidentiary standard required for the Texas Department of Licensing and Regulation to issue an emergency order to halt operation under the bill's provisions.

The bill would require the Texas Department of Licensing and Regulation (TDLR) to issue an emergency order to halt the operation of a massage establishment if TDLR learns that a law enforcement agency is investigating the establishment for a human trafficking offense or if TDLR has reasonable cause that a human trafficking offense is being committed at the establishment. These emergency suspension orders would require a hearing to be conducted by the State Office of Administrative Hearings (SOAH) within 10 days of the TDLR order.

This analysis assumes that, under the bill's provisions, there would be an increase in the number of emergency suspension cases that would trigger a SOAH hearing due to a lowered "reasonable cause" threshold; however, the number of additional emergency orders issued and associated SOAH hearings cannot be estimated.

According to SOAH and TDLR, if the number of emergency orders and associated SOAH cases is significant then both agencies would need additional full-time equivalent positions to support this increased caseload.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION


April 11, 2023