According to the Legislative Budget Board (LBB), HB 1695 is not expected to have a significant fiscal impact on the State of Texas. The bill's provisions, which allow commercial sign owners to relocate signs under certain conditions related to public infrastructure or visibility obstructions, do not introduce any major financial burdens that would require additional state funding. Any costs incurred in administering or complying with the new regulations are anticipated to be minimal and manageable within existing agency budgets, particularly those of the Texas Department of Transportation (TxDOT)​.

The bill also poses no significant fiscal implications for local governments. While it mandates that municipalities accommodate the relocation of signs through special exceptions to ordinances, it does not require local governments to provide compensation or financial assistance for such relocations. This limits the financial responsibility of local jurisdictions and ensures that implementation would not disrupt municipal budgets​.

Overall, HB 1695 is designed to protect private property rights and business interests without creating new state or local expenditures. By placing the cost of sign relocation on the sign owners themselves and not mandating financial incentives or compensations, the bill achieves its regulatory objectives in a fiscally neutral manner.

HB 1695 represents a prudent and liberty-affirming solution to a recurring issue in Texas infrastructure development: the conflict between expanding public works and the rights of commercial sign owners. Under current law, TxDOT allows for the relocation of signs displaced by road and infrastructure projects. However, some municipalities have denied relocation permits, which in turn forces the state to acquire these signs through costly negotiations or eminent domain, driving up taxpayer costs. HB 1695 ensures that municipalities must grant special exceptions to their ordinances to allow relocations in line with state law, bringing consistency and predictability to the process.

Importantly, this legislation does not grow the size or scope of government. It does not establish new agencies, grant additional regulatory authority, or require the creation of new enforcement mechanisms. The bill also does not increase the regulatory burden on individuals or businesses. In fact, it reduces red tape by protecting the vested rights of sign owners and making it easier for them to maintain lawful, functional signage even in changing regulatory environments. Businesses are responsible for covering the cost of relocations, which prevents any shift of financial responsibility to the public.

From a fiscal perspective, HB 1695 has no significant cost to the state or to local governments. It potentially lowers public expenditures by reducing the need for eminent domain proceedings, thereby helping to protect taxpayer dollars. The bill also avoids creating unfunded mandates, ensuring municipalities retain flexibility in handling exceptions through their established local processes.

HB 1695 achieves meaningful reform without expanding government or increasing burdens, and as such, Texas Policy Research recommends that lawmakers vote YES.

• Individual Liberty: The bill supports individual liberty by protecting the rights of business owners to maintain lawful commercial signage, which is a form of expression. It ensures that these signs can be relocated when impacted by public projects or obstructed due to government actions. This guards against arbitrary municipal interference that could suppress visibility and business viability, reinforcing the principle of free speech in the commercial context.
• Personal Responsibility: The bill places the cost of sign relocation on the sign owner without providing compensation, even when the relocation is necessitated by government infrastructure projects. This aligns with the principle of personal responsibility by making clear that property owners must bear the financial costs of adapting to changes, while still giving them the legal ability to preserve the utility of their property.
• Free Enterprise: The bill directly supports free enterprise by reducing regulatory barriers that hinder a business's ability to advertise and operate effectively. Signage is a vital marketing tool for many businesses, particularly those dependent on high-traffic visibility. The bill ensures businesses can continue to use signage as an economic asset, even amid public infrastructure changes.
• Private Property Rights: By codifying the rights of owners to relocate signs and recognizing the ongoing ownership of lawfully erected signs, even those that have become nonconforming due to changing regulations, this bill reinforces private property rights. It ensures that property owners retain the use and value of their signage investments, even in the face of evolving government regulations or projects.
• Limited Government: The bill advances limited government by curbing municipal overreach. It prevents cities from blocking sign relocations that comply with state law and forces them to issue special exceptions when necessary. At the same time, it avoids expanding state authority or creating new bureaucratic processes, ensuring a more predictable and restrained regulatory environment.

• SB 2198 (Same As)