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Local health director warns state bills could reduce permitting revenue and shift mobile food permitting to state control

August 07, 2025 | Fredericksburg City, Gillespie County, Texas


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Local health director warns state bills could reduce permitting revenue and shift mobile food permitting to state control
Kelly, director of local environmental health, briefed the joint meeting about two state measures she said are creating uncertainty for local permitting revenues.

Kelly said Senate Bill 1008 imposes statewide limits and moves toward a single permitting system; her department’s fee schedule is currently below the proposed statewide cap, so the bill should not reduce existing local retail permitting fees. She warned, however, that overlapping permits for facilities that both manufacture and sell products present unanswered questions about fee allocation.

House Bill 2844 (mobile food) will require state permitting for mobile vendors beginning July 1, 2026, Kelly said. She described the bill as transferring permitting at least in part to the state, but noted the bill’s text gives the state until May 1 to outline implementation. Kelly told officials the state has encouraged local agencies not to prorate permits now because the state may need to grandfather vendors; local staff are attempting to cooperate while keeping customers’ costs equitable.

Why it matters: The county and city issue about 73 mobile permits now. Kelly said her department collected 668 inspections in 2024 and was on track for a similar workload in 2025; she estimated revenues could fall by about $27,000 under some interpretations of the new laws, an amount that is meaningful to a small department.

Local enforcement and inspections: Kelly said the state intends to require state permits but may still rely on local health departments to perform inspections and to check compliance with zoning and fire codes. She emphasized uncertainty about implementation details and said the state’s Department of State Health Services (DSHS) is soliciting input and may propose shared agreements.

Discussion vs. decision: Officials asked Kelly to track developments and report back; no policy change occurred at the workshop.

Ending: Kelly said she will attend a webinar and coordinate with county and city finance staff; officials asked her to return with firm revenue estimates for the budget process.

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Scribe from Workplace AI
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