According to the Legislative Budget Board (LBB), HB 636 would have a negative fiscal impact of approximately $487,020 on General Revenue during the 2026–27 biennium. Although the bill does not appropriate funds directly, it would provide the legal authority for the Legislature to appropriate money necessary to implement its provisions.

The estimated costs are primarily associated with implementation by the Texas Department of Housing and Community Affairs (TDHCA). The agency anticipates needing two additional full-time employees (FTEs): one Information Technology Business Analyst III to coordinate with the Texas Homeless Network on implementation of the statewide data-sharing system, and one Project Management Specialist I to collaborate with health benefit plan issuers and managed care organizations in identifying and referring individuals experiencing homelessness. Salaries, benefits, operating expenses, and travel for these positions are estimated to cost approximately $240,760 annually, with an additional one-time technology expense of $5,500 in fiscal year 2026 for computers and software.

The fiscal note also identifies ongoing technology costs associated with protecting sensitive information. TDHCA estimates it would require $35,000 each fiscal year to contract for cybersecurity testing services to ensure the security and privacy of the statewide homeless data sharing network. These recurring costs contribute to the bill's continuing fiscal impact beyond the initial biennium.

Over the five-year projection period, the LBB estimates General Revenue costs of $246,260 in fiscal year 2026 and $240,760 annually from fiscal years 2027 through 2030, reflecting the ongoing personnel and operational expenses needed to administer the program. The LBB further concludes that the bill would have no significant fiscal implication for local governments.

HB 636 is intended to improve coordination among organizations serving individuals experiencing homelessness by requiring the Texas Department of Housing and Community Affairs (TDHCA) to implement a statewide homeless data sharing network and collaborate with health benefit plan issuers, managed care organizations, and the Texas Homeless Network to identify individuals experiencing homelessness and connect them with available services. While these objectives are aimed at improving service coordination and health outcomes, the bill accomplishes them by assigning the state a new, ongoing administrative responsibility rather than relying on voluntary, locally driven, or private-sector solutions.

From a limited government perspective, the bill expands the size and scope of state government by establishing a permanent statewide program within TDHCA and increasing the agency's statutory duties. Although the bill does not grant additional rulemaking authority or impose significant new regulatory requirements on individuals or businesses, it creates an expanded government role in coordinating homelessness data, facilitating referrals, and overseeing collaboration among public and private entities. This represents a meaningful increase in state administrative authority and establishes a precedent for continued government involvement in an area that has traditionally relied heavily on local governments and nonprofit organizations.

The bill also increases the burden on taxpayers through recurring implementation costs. According to the Legislative Budget Board, TDHCA would require two additional full-time employees, ongoing cybersecurity services, and other operational expenditures, resulting in an estimated negative impact of approximately $487,020 to General Revenue during the 2026–27 biennium, with continuing annual costs thereafter. While these costs are relatively modest in isolation, they represent a permanent expansion of state expenditures without corresponding reductions elsewhere or a demonstrated need for a statewide governmental solution.

Accordingly, Texas Policy Research recommends that lawmakers vote NO on HB 636. Although the bill seeks to address a legitimate public policy concern, it does so by expanding the state's administrative responsibilities and creating recurring taxpayer obligations rather than pursuing reforms that encourage decentralized, voluntary, or market-based approaches. The bill imposes little direct regulatory burden on private parties, but its expansion of government functions, ongoing fiscal commitments, and increased state coordination outweigh its policy objectives from a limited-government and fiscal conservative perspective.

• Individual Liberty: The bill expands the state's role in collecting, sharing, and coordinating information about individuals experiencing homelessness through a statewide data-sharing network. Although it includes confidentiality protections, it increases government involvement in identifying individuals and facilitating service referrals, raising concerns about centralized data collection and the potential for future mission creep.
• Personal Responsibility: The bill neither creates direct incentives nor disincentives affecting individual responsibility. While it seeks to connect individuals with housing and supportive services, it does not establish new entitlement programs, mandate participation, or materially alter personal incentives. Its primary focus is administrative coordination rather than changing individual behavior.
• Free Enterprise: The bill does not impose significant new regulations, licensing requirements, or compliance obligations on private businesses. Although health benefit plan issuers and managed care organizations are expected to collaborate with TDHCA, the legislation does not substantially alter market competition or create meaningful barriers to entry. The impact on free enterprise is therefore minimal.
• Private Property Rights: The bill does not affect the ownership, use, transfer, or regulation of private property. It contains no provisions related to eminent domain, land-use restrictions, or property rights, resulting in little to no impact on this principle.
• Limited Government: The bill creates a new, permanent statewide administrative function within the Texas Department of Housing and Community Affairs, expands the agency's statutory responsibilities, and requires ongoing coordination with nonprofit organizations, insurers, and managed care organizations. According to the Legislative Budget Board, implementation requires additional state employees and recurring taxpayer-funded expenditures, reflecting an expansion in the size, scope, and cost of state government.

• SB 2488 (Same As)