According to the Legislative Budget Board (LBB), the fiscal implications of SB 2721 are expected to be cost-neutral to the General Revenue Fund over the five-year period ending in 2030. While the bill imposes new regulatory responsibilities on the Texas Funeral Service Commission (TFSC), including the licensing and oversight of anatomical donation organizations, willed body programs, and human body acquisition services, these costs are anticipated to be offset by corresponding fee revenue generated through the new licensing program​.

To implement the bill, TFSC is projected to incur approximately $1.7 million in FY 2026 and $880,000 annually thereafter, supporting 9 new full-time employees. These staff additions include inspectors, investigators, licensing specialists, legal counsel, and administrative support. The 2026 costs also include one-time expenses for office space buildout ($750,000) and equipment, as well as the initial development of a secure electronic database to track body donations and informed consent documentation. Ongoing technology maintenance is estimated at $64,500 annually after FY 2027.

The bill also creates new criminal penalties for unauthorized handling of human remains and expands civil and administrative enforcement provisions. While these changes could result in increased court fee revenue and minimal impacts to correctional systems, the precise fiscal effects are indeterminate. Similarly, the Comptroller and the Office of Court Administration were unable to project specific revenue increases due to the uncertain number of violations or licensing applicants. Still, the expectation is that any local government or judicial system impact will be minor.

In conclusion, SB 2721 introduces a regulatory regime with measurable administrative and technology costs, but these are expected to be fully offset by fee revenues authorized under the bill. As a result, the net impact to the state budget is projected to be neutral over the fiscal planning horizon.

SB 2721 represents a meaningful and necessary step toward strengthening the ethical framework and regulatory oversight of anatomical donations in Texas. Prompted by investigative findings and legislative reforms in the wake of the 88th Legislature’s dissolution of the State Anatomical Board, the bill transfers comprehensive oversight to the Texas Funeral Service Commission (TFSC) and establishes new standards for how human remains—especially unclaimed or donated bodies—are acquired, documented, and used in medical, educational, and forensic contexts. These reforms respond directly to public concerns about abuse, misuse, and lack of transparency in the body donation process and are crafted to uphold donor intent, respect decedent dignity, and restore institutional integrity.

The bill creates a licensing regime for willed body programs, human body acquisition services, and other “donees” handling anatomical donations. It mandates informed consent procedures, imposes documentation and labeling requirements, and requires TFSC to maintain a centralized, secure electronic database to track the transfer and use of donated bodies and specimens. Furthermore, SB 2721 includes civil penalties, administrative enforcement powers, and a new criminal offense for unauthorized handling of remains. These enforcement provisions demonstrate a clear commitment to ensuring compliance and accountability, particularly in an area previously characterized by inconsistent regulation.

Importantly, SB 2721 also supports core liberty principles. It strengthens personal responsibility by requiring higher ethical standards from institutions entrusted with the care of human remains. It protects private property rights by safeguarding donor consent and requiring clear procedures for rthe eturn of remains when requested. It also affirms individual liberty by establishing the right of family members to be notified and to make decisions regarding the disposition of unclaimed remains.

That said, the bill also raises concerns with respect to the principle of limited government. It expands the operational scope and staffing of TFSC, requiring nine new full-time employees, and delegates broad rulemaking authority to the agency, including discretionary enforcement powers, license revocation authority, and penalty assessments of up to $500 per violation per day. While these costs are projected to be offset by licensing fees rather than general taxpayer revenue, the expansion in regulatory scope may disproportionately burden smaller research programs, rural funeral homes, or faith-based institutions that operate anatomical donation programs with limited administrative capacity. These private actors will now be required to comply with detailed documentation, tracking, and inspection requirements or face stiff penalties.

Further concern arises from the new criminal penalty established by the bill—a state jail felony for unlicensed handling of anatomical specimens. While accountability is essential, this level of criminalization may be excessive in situations where no malice or harm was intended. For example, a nonprofit research institution or educational program acting in good faith but unaware of a licensing requirement could face felony prosecution, potentially chilling legitimate educational activity.

For these reasons, Texas Policy Research recommends lawmakers vote YES on SB 2721 and consider the amendments as described to strengthen the bill. The bill serves a legitimate public interest and introduces safeguards that are long overdue. However, it must be amended to better align with limited government and free enterprise principles. Key recommendations include: reducing the criminal penalty for first-time or non-malicious violations to a misdemeanor; adding a safe harbor provision for good-faith actors who promptly come into compliance; clarifying the limits of TFSC's rulemaking authority; and providing tiered compliance thresholds to ensure small institutions are not disproportionately burdened.

With these adjustments, SB 2721 can achieve its goal of raising ethical and operational standards in anatomical donation without unnecessarily expanding the power of the state or discouraging legitimate research, education, and public service initiatives.

• Individual Liberty: The bill supports individual liberty by ensuring that donors' bodily autonomy is respected through informed consent and by requiring institutions to track and document the use of donated remains. However, the bill also introduces felony penalties and broad state enforcement powers without clear safe harbor provisions, which may inadvertently infringe on liberty in cases involving good-faith actors or minor, technical violations. The net impact is mixed: it protects individuals' posthumous rights while raising concerns about overcriminalization.
• Personal Responsibility: The bill strongly reinforces personal responsibility. It holds institutions accountable for the ethical handling of human remains by mandating licensing, inspections, and compliance with documentation and tracking protocols. It also requires individuals donating their bodies to do so with clear, legally recognized consent. These measures ensure that both donors and institutions take ownership of their roles in the anatomical donation process.
• Free Enterprise: The bill imposes new regulatory burdens on private-sector entities, including funeral homes, educational institutions, and non-profit anatomical programs. These actors must now obtain licenses, pay fees, maintain detailed records, and submit to inspections—all of which may deter participation or increase operational costs, especially for small or rural organizations. This represents a constraint on free enterprise by raising barriers to entry and expanding compliance obligations in a sector previously under-regulated.
• Private Property Rights: The bill advances private property rights by safeguarding the intent of individuals who donate their bodies and ensuring that their remains are treated with dignity and used only as authorized. It also requires the return of remains under conditions specified by the donor, where applicable. These provisions affirm that individuals retain posthumous control over their bodily remains—an extension of property rights in the context of anatomical gifts.
• Limited Government: The bill expands the size and scope of state government by increasing the regulatory role of the Texas Funeral Service Commission (TFSC), authorizing new enforcement powers, and adding nine new full-time positions to administer the program. It grants the agency broad rulemaking authority and introduces stiff penalties, including a state jail felony. Without stronger guardrails or proportionality measures, the bill risks regulatory overreach, making it a clear departure from the principle of limited government.

• HB 5278 (Same As)