LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 11, 2025 TO: Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB10 by Capriglione (Relating to reforming the procedure by which state agencies adopt rules and impose regulatory requirements and the deference given to the interpretation of laws and rules by state agencies in certain judicial proceedings.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB10, As Introduced: a negative impact of ($15,697,853) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($7,907,650)2027($7,790,203)2028($7,790,203)2029($7,790,203)2030($7,790,203)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($7,907,650)35.52027($7,790,203)35.52028($7,790,203)35.52029($7,790,203)35.52030($7,790,203)35.5 Fiscal AnalysisThe bill would amend the Government Code to establish the Texas Regulatory Efficiency Office (Office) as an office within the Office of the Governor (OOG) and create the Texas Regulatory Efficiency Advisory Panel (Panel), administratively attached to the OOG. The Office would be established to identify opportunities to streamline rule adoption, regulatory review, and contested cases; assist state agencies to identify unnecessary or ineffective rules, evaluate impact and costs; coordinate with the Secretary of State (SOS), the Department of Information Resources (DIR), and other state agencies to improve public access to information about state rules, forms, and filings and create an interactive website for public use; establish goals for state agencies to reduce certain regulatory requirements; and prepare and publish manuals, guides, or other publications. The Office would coordinate with the Panel, state agencies, and the OOG to accomplish these purposes.The OOG would provide staff, facilities, and other administrative support necessary to assist the Panel. The Panel would be composed of seven members appointed by the Governor.The bill would take effect September 1, 2025, or immediately if it receives a vote of two-thirds of all members elected to each house.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 11, 2025
TO: Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB10 by Capriglione (Relating to reforming the procedure by which state agencies adopt rules and impose regulatory requirements and the deference given to the interpretation of laws and rules by state agencies in certain judicial proceedings.), As Introduced
TO: Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB10 by Capriglione (Relating to reforming the procedure by which state agencies adopt rules and impose regulatory requirements and the deference given to the interpretation of laws and rules by state agencies in certain judicial proceedings.), As Introduced
Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB10 by Capriglione (Relating to reforming the procedure by which state agencies adopt rules and impose regulatory requirements and the deference given to the interpretation of laws and rules by state agencies in certain judicial proceedings.), As Introduced
HB10 by Capriglione (Relating to reforming the procedure by which state agencies adopt rules and impose regulatory requirements and the deference given to the interpretation of laws and rules by state agencies in certain judicial proceedings.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB10, As Introduced: a negative impact of ($15,697,853) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB10, As Introduced: a negative impact of ($15,697,853) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($7,907,650)
2027 ($7,790,203)
2028 ($7,790,203)
2029 ($7,790,203)
2030 ($7,790,203)
All Funds, Five-Year Impact:
2026 ($7,907,650) 35.5
2027 ($7,790,203) 35.5
2028 ($7,790,203) 35.5
2029 ($7,790,203) 35.5
2030 ($7,790,203) 35.5
Fiscal Analysis
The bill would amend the Government Code to establish the Texas Regulatory Efficiency Office (Office) as an office within the Office of the Governor (OOG) and create the Texas Regulatory Efficiency Advisory Panel (Panel), administratively attached to the OOG. The Office would be established to identify opportunities to streamline rule adoption, regulatory review, and contested cases; assist state agencies to identify unnecessary or ineffective rules, evaluate impact and costs; coordinate with the Secretary of State (SOS), the Department of Information Resources (DIR), and other state agencies to improve public access to information about state rules, forms, and filings and create an interactive website for public use; establish goals for state agencies to reduce certain regulatory requirements; and prepare and publish manuals, guides, or other publications. The Office would coordinate with the Panel, state agencies, and the OOG to accomplish these purposes.The OOG would provide staff, facilities, and other administrative support necessary to assist the Panel. The Panel would be composed of seven members appointed by the Governor.The bill would take effect September 1, 2025, or immediately if it receives a vote of two-thirds of all members elected to each house.
Methodology
It is anticipated that in order for the Texas Regulatory Efficiency Office to establish and perform the necessary duties, the OOG will need an additional 35.5 FTEs. The OOG anticipates that in order to provide resources to the Panel, the following positions are needed: 1 Director V, 3 Manager V, 9 Program Specialist III, 1 Financial Analyst III, 9 Compliance Analyst IV, 9 General Counsel III, 1 Network Specialist V, 1 Programmer IV, 1 Information Technology Support Specialist V, 0.5 Data Analyst IV. This analysis assumes any costs to the SOS, DIR, and Office of Court Administration would be absorbed within existing resources.
Technology
The OOG indicates the cost for the interactive website would be an annual cost of $1,550,000 in each fiscal year 2026-2030.DIR estimates an onetime cost of $1,090,000 in fiscal year 2026 and estimated maintenance costs of $327,000 in fiscal year 2026 and a recurring annual maintenance cost of $654,000 in each fiscal year 2027-2030 thereafter. Onetime cost includes the application development within Texas.gov.This analysis assumes the website would be the primary responsibility of the OOG and reflects the cost estimated by the OOG.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 116 Sunset Advisory Commission, 212 Office of Court Administration, Texas Judicial Council, 300 Trusteed Programs Within the Office of the Governor, 307 Secretary of State, 313 Department of Information Resources
116 Sunset Advisory Commission, 212 Office of Court Administration, Texas Judicial Council, 300 Trusteed Programs Within the Office of the Governor, 307 Secretary of State, 313 Department of Information Resources
LBB Staff: b > td > JMc, RStu, LCO, KCu
JMc, RStu, LCO, KCu