Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1669 by Hull (Relating to the sale of raw milk and raw milk products in this state; requiring a permit.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1669, As Introduced: an impact of $0 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 to General Revenue Related Funds
2026
$0
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($327,090)
$327,090
2.0
2027
($327,370)
$327,370
2.0
2028
($327,810)
$327,810
2.0
2029
($328,176)
$328,176
2.0
2030
($328,550)
$328,550
2.0
Fiscal Analysis
The bill would establish a program to issue permits to allow for the sale of raw milk and raw milk products in the state to consumers, cooperative associations, and raw milk coordinators. All bottles, containers, and packages enclosing raw milk would have specific labeling requirements.
The bill would require that a raw milk coordinator who purchases raw milk or raw milk products from a person who holds a permit to sell raw milk and raw milk products to register with the Department of State Health Services (DSHS).
The Executive Commissioner of the Health and Human Services Commission is authorized to adopt rules to implement requirements of the bill.
Methodology
This estimate assumes that DSHS would need a 1.0 full-time-equivalent (FTE) Sanitarian I position to inspect the raw milk coordinator entities and a 1.0 FTE License and Permit Specialist III position to issue registrations for the raw milk coordinator categories. Salaries, benefits, travel, and other FTE costs would total $190,983 in fiscal year 2026 and $234,138 in fiscal year 2027, all from the General Revenue Fund. The lower cost in fiscal year 2026 is attributable to a later start date for the new positions assumed in the first fiscal year.
DSHS would sample raw milk and raw milk products from dairy farms. DSHS estimates that 25 of 100 new permits would be dairies and that each would be sampled quarterly for each product type they produce. DSHS estimates that each pathogen sample costs $688.93 for a total of $68,893 in each fiscal year. DSHS would also pull 333 routine samples at $73.09 each for a total of $24,339 in each fiscal year.
In accordance with Section 12.0111 of the Texas Health and Safety Code, DSHS would be required to set the licensing and renewal fees in an amount sufficient to cover the costs to administer the program. This analysis assumes DSHS would set fees to achieve revenue to cover the necessary costs to administer the program.
Rules required to implement the bill can be absorbed within existing resources.
Technology
One-time information technology (IT) costs for system modifications to update for new regulatory requirements under the bill including changes to inspection and permit application software and to create a new registration application and process would total $42,875 in fiscal year 2026.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
529 Health and Human Services Commission, 537 State Health Services, Department of