LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 24, 2025 TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1585 by Hughes (relating to a prohibition on governmental contracts with companies of foreign adversaries for certain information and communications technology; authorizing a civil penalty; creating a criminal offense.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. It is assumed that any costs associated with the bill could be absorbed using existing resources.According to the Comptroller of Public Accounts, although creating a new criminal offense could result in an increase in revenue due to fines, costs, or fees associated with a felony offense, the extent to which state revenue would be affected cannot be determined.The impact on state correctional populations or on the demand for state correctional resources cannot be determined due to a lack of data to estimate the prevalence of conduct outlined in the bill's provisions that would be subject to criminal penalties. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 242 State Commission on Judicial Conduct, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 313 Department of Information Resources, 320 Texas Workforce Commission, 352 Bond Review Board, 452 Department of Licensing and Regulation, 503 Texas Medical Board, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation LBB Staff: b > td > JMc, WP, THO, NAz, MGol LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 24, 2025 TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1585 by Hughes (relating to a prohibition on governmental contracts with companies of foreign adversaries for certain information and communications technology; authorizing a civil penalty; creating a criminal offense.), Committee Report 1st House, Substituted TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1585 by Hughes (relating to a prohibition on governmental contracts with companies of foreign adversaries for certain information and communications technology; authorizing a civil penalty; creating a criminal offense.), Committee Report 1st House, Substituted Honorable Bryan Hughes, Chair, Senate Committee on State Affairs Honorable Bryan Hughes, Chair, Senate Committee on State Affairs Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board SB1585 by Hughes (relating to a prohibition on governmental contracts with companies of foreign adversaries for certain information and communications technology; authorizing a civil penalty; creating a criminal offense.), Committee Report 1st House, Substituted SB1585 by Hughes (relating to a prohibition on governmental contracts with companies of foreign adversaries for certain information and communications technology; authorizing a civil penalty; creating a criminal offense.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. It is assumed that any costs associated with the bill could be absorbed using existing resources.According to the Comptroller of Public Accounts, although creating a new criminal offense could result in an increase in revenue due to fines, costs, or fees associated with a felony offense, the extent to which state revenue would be affected cannot be determined.The impact on state correctional populations or on the demand for state correctional resources cannot be determined due to a lack of data to estimate the prevalence of conduct outlined in the bill's provisions that would be subject to criminal penalties. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 242 State Commission on Judicial Conduct, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 313 Department of Information Resources, 320 Texas Workforce Commission, 352 Bond Review Board, 452 Department of Licensing and Regulation, 503 Texas Medical Board, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation 212 Office of Court Administration, Texas Judicial Council, 242 State Commission on Judicial Conduct, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 313 Department of Information Resources, 320 Texas Workforce Commission, 352 Bond Review Board, 452 Department of Licensing and Regulation, 503 Texas Medical Board, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation LBB Staff: b > td > JMc, WP, THO, NAz, MGol JMc, WP, THO, NAz, MGol