TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1008 by Middleton (relating to state and local authority to regulate the food service industry.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for SB1008, Committee Report 1st House, Substituted: a negative impact of ($294,526) 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.

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($154,507)
2027	($140,019)
2028	($140,019)
2029	($140,019)
2030	($140,019)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($154,507)	1.0
2027	($140,019)	1.0
2028	($140,019)	1.0
2029	($140,019)	1.0
2030	($140,019)	1.0

The bill would authorize local governments to only require a permit, license, certification, or other form of authority if it would be required of a food service establishment, retail food store, mobile food unit, roadside food vendor, or temporary food service establishment or an employee of any of those entities if the entity or person was located within the jurisdiction of the Department of State Health Services (DSHS).

The bill would require local governments to submit their fee schedules to the DSHS to include in the online registry of local ordinances. DSHS would be required to publish the fee schedules on the agency's website within ten days of receipt.

DSHS would require a 1.0 full-time equivalent (FTE) Sanitarian III position to maintain and monitor the fee registry. Benefits, salaries, and related costs for the position would be $0.1 million for each fiscal year.

DSHS is unable to estimate how many local jurisdictions would opt to cease inspection and permitting for retail foods establishments. If these activities were turned over to DSHS, the agency would need additional support for inspection and permitting activities.

DSHS would communicate the new standards to staff and notify stakeholders and local governments through guidance documents and the DSHS website. This could be absorbed within existing resources.

DSHS would modify the existing system to create a registry for local governments to submit their annual retail fee schedules. DSHS estimates a cost of less than $0.1 million for internal staff time.

Information technology related costs for the 1.0 FTE Sanitarian III position would be insignificant.

There could be an impact to a political subdivision that's currently implementing regulations that would be prohibited or reduced by the bill.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 26, 2025