According to the Legislative Budget Board (LBB), the fiscal implications of HB 2844 are projected to be modestly negative in the short term but net positive over the long term. According to the Legislative Budget Board, the bill would result in an estimated net cost to General Revenue-related funds of approximately $1.38 million for the biennium ending August 31, 2027. The upfront costs are primarily associated with the establishment and administration of a new state licensing program for mobile food vendors by the Department of State Health Services (DSHS).

In fiscal year 2026, DSHS would incur estimated costs of $3.41 million, primarily to cover personnel and administrative setup. These costs include the hiring of 33 full-time equivalents (FTEs), such as sanitarians, licensing specialists, attorneys, and program staff. Additionally, the State Office of Administrative Hearings (SOAH) anticipates increased caseloads tied to license denials and enforcement actions, resulting in its own request for three new FTEs starting in 2027.

Offsetting these costs is new revenue generated from licensing and inspection fees. Beginning in fiscal year 2027, the bill is expected to generate about $5.1 million annually in General Revenue, primarily from an estimated 12,000 mobile food vendor licenses ($175 per license) and corresponding health inspections ($250 per inspection). Even in the partial implementation year of 2026, approximately $850,000 in revenue is expected.

While there is a small net cost in the first two years, the bill is expected to generate annual net surpluses of over $1.1 million from fiscal years 2028 through 2030. These projections demonstrate the bill’s long-term fiscal sustainability once the licensing and regulatory infrastructure is operational. However, the fiscal impact on local governments, particularly due to preemption of local fees and permitting authority, could not be fully determined at this time.

HB 2844, known as the Mobile Food Vendor Regulatory Consistency Act, receives a strong "Yes" recommendation. The bill addresses a well-documented problem in Texas: the inconsistent and often burdensome patchwork of local permitting requirements for mobile food vendors. By establishing a uniform statewide licensing system administered by the Department of State Health Services (DSHS), HB 2844 ensures predictability, reduces duplication, and streamlines compliance for thousands of mobile food entrepreneurs. This is especially impactful for small-scale and low-income vendors who often struggle to navigate conflicting local regulations.

The bill expands the scope of state government modestly by creating new administrative functions, including licensing, inspections, a database, and enforcement procedures. However, this expansion is narrowly tailored and fiscally responsible. The initial implementation cost is offset through a structured fee system that is expected to generate $5.1 million annually beginning in FY 2027. These revenues will fully support program operations without requiring new taxes or increasing the general taxpayer burden. After a net cost of approximately $1.38 million in the first biennium, the program is projected to run at a net surplus in future fiscal years.

Crucially, HB 2844 does not impose new regulations on vendors in addition to existing ones—it replaces multiple overlapping local rules with a single statewide framework. This substitution reduces the total regulatory burden on individuals and businesses while maintaining essential food safety standards. Vendors will benefit from having one permit, one inspection process, and a single set of rules that apply consistently regardless of where they operate in Texas. This creates a more business-friendly environment and facilitates legal growth for mobile food enterprises.

The bill also respects local autonomy where appropriate. While it preempts conflicting local rules related to licensing and inspection, it preserves the authority of municipalities to regulate aspects such as noise, operating hours, and park use, as long as those rules do not conflict with the bill’s provisions. This balance supports limited government by ensuring that localities retain reasonable control over community-specific concerns without obstructing lawful commerce.

From a liberty perspective, the legislation upholds the principles of free enterprise and personal responsibility. It enables individuals to operate mobile food businesses without excessive regulatory barriers while holding them accountable to clear state health standards. At the same time, it enhances transparency through a standardized appeals process and preserves due process protections for license holders facing enforcement actions.

In sum, HB 2844 is a thoughtful, measured reform that reduces red tape, promotes entrepreneurship, protects public health, and achieves long-term fiscal sustainability without growing government inappropriately or burdening taxpayers. It addresses real-world regulatory challenges with pragmatic solutions grounded in liberty-oriented values. For these reasons, Texas Policy Research recommends that lawmakers vote YES on HB 2844.

• Individual Liberty: The bill empowers individuals by allowing mobile food vendors to operate freely across the state without being subject to inconsistent and sometimes arbitrary local regulations. Currently, vendors face varied and often duplicative requirements from city to city, creating barriers to lawful business activity. By replacing this patchwork with a uniform state license, the bill enhances individual autonomy, allowing people to pursue lawful enterprise without navigating excessive red tape. This simplification increases the ability of Texans, especially low-income and minority entrepreneurs, to exercise economic freedom and mobility.
• Personal Responsibility: While reducing local regulatory burdens, the bill preserves the requirement for mobile food vendors to comply with state-level food safety standards and other applicable laws. Vendors must still apply for a license, undergo health inspections, and follow relevant safety protocols. This framework reflects a sound balance: individuals are granted greater freedom to operate, but with clear accountability. It reinforces the idea that liberty is not the absence of rules, but the presence of fair, consistent ones that respect both individual initiative and public safety.
• Free Enterprise: This bill is a direct enhancement of free enterprise. By reducing regulatory fragmentation and compliance costs, it encourages new business formation and expansion, particularly in the mobile food sector, which is often a first step into entrepreneurship. The current environment deters competition and innovation by favoring vendors who can afford to navigate complex local requirements. The bill levels the playing field and supports a more dynamic, competitive food economy, increasing consumer choice and economic opportunity statewide.
• Private Property Rights: The bill embodies the principle of limited government by eliminating overlapping local licensing regimes and consolidating regulatory authority at the state level. Rather than creating a new layer of bureaucracy, the bill streamlines existing processes under one agency (DSHS), while capping fees and preventing local overreach. Although it adds specific functions to a state agency, this is done in service of reducing the overall regulatory burden. The bill also ensures that any rules adopted must be narrowly tailored to actual health or safety concerns, preventing mission creep or unnecessary expansion of regulatory authority.
• Limited Government: While the bill does not directly alter any laws related to ownership, leasing, or use of property, it does help protect the ability of mobile vendors to operate their businesses in a broader range of locations without excessive interference. To the extent that local restrictions on vending have acted as a de facto limit on the productive use of personal or commercial property, the bill alleviates some of that pressure, but its impact on private property rights is indirect and therefore considered neutral.