According to the Legislative Budget Board (LBB), HB 1738 is not expected to have a significant fiscal impact on the State of Texas. The LBB concludes that repealing the Class C misdemeanor offense of homosexual conduct would not result in meaningful changes to state expenditures or revenues.
The fiscal note further assumes that the repeal would have no significant effect on state correctional populations or the demand for correctional resources, reflecting the expectation that eliminating the offense would not materially alter incarceration, supervision, or criminal justice workloads at the state level.
For local governments, the LBB likewise anticipates no significant fiscal impact. Any changes related to enforcement, prosecution, community supervision, or confinement are expected to be minimal and not materially affect local government budgets.
HB 1738 repeals an unenforceable provision of the Texas Penal Code that criminalizes consensual same-sex conduct and removes corresponding obsolete references from the Health and Safety Code. As the committee bill analysis explains, the underlying offense has been unenforceable since the U.S. Supreme Court's 2003 decision in Lawrence v. Texas, and the bill updates the statutory code to reflect existing constitutional law by removing language that no longer has legal effect.
From a limited-government perspective, the bill reduces, rather than expands, the role of government. It repeals a dormant criminal offense, narrows the scope of the Penal Code, and eliminates statutory language that cannot constitutionally be enforced. The legislation does not create a new agency, program, fund, or regulatory authority, nor does it grant additional rulemaking power or impose new administrative responsibilities. Instead, it removes an obsolete criminal prohibition from Texas law, reducing the amount of unnecessary government authority retained in statute.
The bill likewise does not increase taxpayer costs or regulatory burdens. According to the LBB, the repeal is not expected to have a significant fiscal impact on either state or local governments, and any effects on enforcement, prosecution, correctional populations, or local criminal justice operations are expected to be negligible. The measure also creates no new compliance obligations, reporting requirements, licensing mandates, or civil or criminal penalties for individuals or businesses.
Although repeal is largely symbolic because the underlying offense has been unenforceable for more than two decades, removing obsolete or unconstitutional provisions from the Texas code promotes statutory clarity and eliminates the possibility that dormant laws could be cited or relied upon in the future. By shrinking the criminal code, reducing unnecessary government authority, and doing so without increasing spending, bureaucracy, or regulation, HB 1738 advances the principles of limited government and individual liberty. Accordingly, Texas Policy Research recommends that lawmakers vote YES on HB 1738.