Honorable Lacey Hull, Chair, House Committee on Human Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3902 by Rose (Relating to licensure and contracting for the delivery of medical assistance by nursing facilities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3902, As Introduced: a negative impact of ($2,722,610) through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($1,287,008)
2027
($1,435,602)
2028
($230,905)
2029
($231,292)
2030
($231,698)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from GR Match For Medicaid 758
Probable Savings/(Cost) from Federal Funds 555
Change in Number of State Employees from FY 2025
2026
($1,287,008)
($585,212)
2.0
2027
($1,435,602)
($659,104)
2.0
2028
($230,905)
($77,137)
2.0
2029
($231,292)
($77,283)
2.0
2030
($231,698)
($77,437)
2.0
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to ensure that certain requirements are satisfied relating to contracts for the delivery of medical assistance to nursing facilities and rules adopted relating to convalescent and nursing facilities and related institutions.
Methodology
According to HHSC, 2.5 additional full-time equivalents (FTEs) would be needed to conduct activities required by the bill, including advanced systems analysis. This analysis only assumes 2.0 Systems Analyst positions would be needed to implement the provisions of the bill. Personnel-related costs, including salaries, travel, and overhead are estimated to total $324,765 from All Funds in fiscal year 2026 and $305,933 from All Funds in fiscal year 2027.
This analysis assumes that HHSC would require additional resources for one-time modifications to the Texas Unified Licensure Information Portal (TULIP) and nursing facility applications and ongoing additional workload related to those systems. This additional need is estimated to total $1,496,136 from All Funds in fiscal year 2026 and $1,741,069 from All Funds in fiscal year 2027.
This analysis assumes that HHSC would require additional resources, primarily for software licenses, estimated to total $51,319 from All Funds in fiscal year 2026 and $47,704 from All Funds in fiscal year 2027.
Technology
Included in the amounts above, the total non-FTE-related technology cost is estimated to be $1,496,136 from All Funds in fiscal year 2026 and $1,741,069 from All Funds in fiscal year 2027.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.