According to the Legislative Budget Board (LBB) estimates that implementing HB 229 would have a negative impact of $2,568,300 on General Revenue-Related Funds through the biennium ending August 31, 2027. This cost would be incurred entirely during the fiscal year 2026, with no further costs projected from 2027 to 2030. The bill itself does not appropriate funds but could serve as the legal basis for future appropriations.
The primary cost driver is the requirement for state agencies to update systems and procedures to ensure that data collected about individuals' sex is classified strictly as "male" or "female." The Department of Public Safety (DPS) would need to modify its Crime Records Division (CRD) data repositories, which currently include "Male," "Female," and "Unknown" as options. The necessary updates to prohibit the use of "Unknown" are estimated to cost $2,370,000 in General Revenue Funds for fiscal year 2026. Additionally, DPS would spend $198,300 in the same fiscal year to revise training materials, system documentation, audit guidelines, and other related resources.
The Department of State Health Services (DSHS) would also need to make changes to the Texas Electronic Vital Events Registrar (TxEVER), which currently allows for "Male," "Female," and "Unknown/Not Yet Determined" as sex categories. However, DSHS indicated that the necessary changes to eliminate the "Unknown" option can be handled using existing resources, incurring no additional cost.
From a technology perspective, the bulk of the expenditure stems from change orders needed to update the CRD data repositories, as outlined by DPS. Despite these costs, there is no anticipated significant fiscal impact on local governments, as the changes primarily affect state-level data management systems.
This legislation aligns with the core liberty principles of Individual Liberty and Limited Government. By establishing standardized and clear definitions, the bill ensures that individual identities are respected and protected from inconsistent or arbitrary government interpretation. It prevents governmental overreach by clearly defining terms related to sex rather than allowing varied interpretations that could undermine privacy and safety, particularly in contexts like single-sex bathrooms, sports teams, shelters, and correctional facilities.
The bill also reinforces the principle of Personal Responsibility by acknowledging the biological differences between males and females and maintaining the integrity of spaces specifically designated for women’s safety and privacy. Additionally, the bill supports Private Property Rights and Free Enterprise by minimizing legal ambiguity, which can lead to costly litigation or compliance challenges related to the use of single-sex facilities in businesses and public accommodations.
Although the bill incurs a one-time cost of approximately $2.57 million for state agencies to update data systems, this is a limited expenditure compared to the potential ongoing legal and social costs of inconsistent data practices. The fiscal note indicates that the Department of State Health Services can manage necessary updates within existing resources, further minimizing financial impact.
Given the bill’s focus on clarifying legal standards and protecting the rights and safety of women and girls, while also limiting government overreach, Texas Policy Research recommends that lawmakers vote YES on HB 229.