LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

April 26, 2025

TO:	Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB4014 by Bucy (Relating to a study on the use of psychedelic therapies in the treatment of certain conditions.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB4014, Committee Report 1st House, Substituted: a negative impact of ($1,000,000) 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	($1,000,000)
2027	$0
2028	$0
2029	$0
2030	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2026	($1,000,000)
2027	$0
2028	$0
2029	$0
2030	$0

Fiscal Analysis

The bill would require the Health and Human Services Commission (HHSC) to conduct a study on the use of psychedelic therapies for treatment of post-traumatic stress disorder, depression, and other co-occurring conditions.

The bill would require that HHSC submit a written report to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and chair of standing committees of each house of the legislature with primary jurisdiction of HHSC with the results of study and any recommendations for legislative or other actions necessary to ensure patient access to psychedelic therapies for treatment of post-traumatic stress disorder, depression, and other co-occurring conditions no later than December 1, 2026.

Methodology

According to HHSC, the agency does not have subject matter expertise to conduct the review and would need to consult with an external entity to perform the requirements of the bill. This analysis assumes HHSC would contract with Baylor College of Medicine to implement the provisions of the bill, including to conduct a study, perform a literature review, and other required activities. According to HHSC, the cost of the study is estimated to be $1,000,000 in General Revenue in fiscal year 2026 and is based off of previous contracts HHSC has had with the university to do similar analysis.  

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, 720 The University of Texas System Administration

LBB Staff:

JMc, NPe, ER, SB, NV, APA