According to the Legislative Budget Board (LBB), HB 38 would have a projected negative impact of approximately $3.9 million to General Revenue funds over the 2026–2027 biennium. The bill does not itself appropriate funds but would create a legal framework for the Legislature to allocate money to implement its requirements. The Health and Human Services Commission (HHSC) estimates that 6 additional full-time employees (FTEs) would be needed to support expanded activities such as 2-1-1 service enhancements, technical assistance, monitoring, data quality management, and reporting. Personnel costs alone are expected to total roughly $951,907 in FY 2026 and $895,411 in FY 2027 from all funds.
The most significant costs relate to technology upgrades necessary to support the expanded Texas Information and Referral Network (TIRN) services. HHSC projects one-time technology development expenses of about $1.66 million in FY 2026 to implement two-way text messaging capabilities, create new application interfaces, redesign the website, and organize data into the state’s Performance Management and Analytics System (PMAS). Additionally, ongoing annual maintenance costs are anticipated starting in FY 2027.
Costs for supporting area information centers, managing closed-loop referrals, and forming new partnerships with healthcare organizations would add another estimated $1.66 million annually from all funding sources. However, no significant fiscal impact is expected on local governments. The Homeland Security Council and Texas Division of Emergency Management indicated that their new responsibilities under the bill could be absorbed within existing resources.
HB 38 seeks to modernize and expand the scope of the Texas Information and Referral Network (TIRN), a state-run system designed to connect Texans with health and human services. The bill amends Section 526.0004 of the Government Code (effective April 1, 2025) to significantly enhance the network's capabilities. Under the bill, TIRN must now integrate transportation service information, support statewide disaster preparedness and emergency response efforts, and enable communication with clients via one-way and two-way text messaging to improve access, reduce wait times, and enhance service delivery.
The bill also mandates the inclusion of a real-time, publicly accessible, internet-based platform that reports de-identified client demographic information — such as gender, race, veteran status, and other social indicators — provided that clients give informed consent. In addition, TIRN must adopt a standardized screening tool to assess clients’ nonmedical needs like housing, food security, and transportation access. The legislation requires TIRN to offer enhanced navigation services for complex cases and to track service referrals and outcomes, while fostering data-sharing partnerships with healthcare systems and managed care organizations to improve service coordination.
The Committee Substitute further directs the Health and Human Services Commission to coordinate TIRN's disaster functions with the Homeland Security Council and the Texas Division of Emergency Management. Finally, the commission must produce a biennial report to top state officials outlining TIRN’s operational effectiveness, identifying service gaps, and recommending improvements.
The Committee Substitute significantly broadens the scope and operational detail of the originally filed bill. While the original version focused mainly on improving the Texas Information and Referral Network’s (TIRN) technology, data collection, and disaster response capacity, the substitute adds new dimensions, particularly regarding statewide disaster planning and interagency coordination. Specifically, HB 38 requires the network to be formally integrated into Texas’s homeland security strategic plan and emergency management plans, whereas the filed bill only referenced using interstate call center agreements for emergency responsiveness.
Additionally, the substitute expands the collection of de-identified demographic data to include more client attributes, such as whether individuals are enrolled in higher education, are caregivers to seniors, or are aged 65 and older—enhancing the network's ability to understand and serve complex community needs. The substitute also strengthens the network’s privacy requirements by mandating compliance with all applicable federal and state privacy laws, beyond just HIPAA, and introduces specific authority for data exchange agreements with external partners to support closed-loop referrals and reduce redundancies in health and human services delivery.
Finally, the committee substitute introduces more robust reporting requirements. It directs the commission to produce biennial public reports detailing the effectiveness of the network, identifying service gaps, and providing recommendations for improvement, including specific attention to data privacy and client experience—elements not as detailed in the original filing. Overall, the substitute reflects a deeper integration of TIRN into Texas’s broader disaster and health infrastructure, along with clearer operational, privacy, and accountability provisions. Texas Policy Research recommends that lawmakers vote NO on HB 38.