According to the Legislative Budget Board (LBB), SB 43 is not expected to have a significant fiscal impact on the state. While the bill exempts certain qualified local sponsors from obtaining a Texas Commission on Environmental Quality (TCEQ) permit for small dams and reservoirs used for erosion, floodwater, and sediment control, any associated changes in costs or revenue for the state are anticipated to be minimal. The agencies involved, including the Comptroller of Public Accounts and TCEQ, do not project substantial increases in workload or loss of permit fee revenue as a result of this exemption.

Similarly, no significant fiscal implications are anticipated for units of local government. The bill’s provisions reduce a regulatory requirement rather than create new programs or mandates, so any administrative adjustments at the local level would be minor and absorbed within existing resources. In short, the measure is expected to have negligible financial effects for both state and local governments while streamlining permitting for qualifying entities.

SB 43 creates a targeted permit exemption within the Texas Water Code for “qualified local sponsors”, local districts or authorities partnered with USDA’s NRCS, to construct, maintain, or rehabilitate small dams and reservoirs (up to 200 acre-feet) for erosion, floodwater, and sediment control without first obtaining a Texas Commission on Environmental Quality (TCEQ) permit. The bill also allows these sponsors to divert water from such structures when needed for repair and maintenance, and it preserves the exemption even if the federal agreement ends, provided the property remains under the sponsor’s control for the same purposes.

The measure does not grow the size or scope of government, increase the burden on taxpayers, or raise the regulatory burden on individuals or businesses. On the contrary, it reduces state regulatory reach in a defined area by streamlining permitting for entities already operating under federal partnership standards. The Legislative Budget Board’s fiscal note confirms that no significant costs to state or local governments are expected, eliminating concerns about added taxpayer expense.

By removing an administrative step that can delay essential infrastructure work, the bill supports efficient local control and timely flood prevention maintenance while maintaining existing accountability through local governance and federal program participation. Given its limited scope, lack of fiscal impact, and reduction in regulatory requirements, SB 43 aligns with principles of regulatory efficiency and restrained government oversight. As such, Texas Policy Research recommends that lawmakers vote YES on SB 43.

• Senate Select Committee on Disaster Preparedness & Flooding: 9Y/0N