According to the Legislative Budget Board (LBB), HB 23 is not expected to have any fiscal impact on the State of Texas. This means that implementing the bill would not require additional state funding, nor would it reduce existing revenues or expenditures at the state level.

For local governments, the bill is also expected to have no significant fiscal implications. Although cities and counties might experience some administrative adjustments, such as updating websites to post relevant development rules or coordinating third-party documentation, these tasks are not anticipated to impose material new costs. In fact, by enabling third-party plan reviews and inspections, some local regulatory authorities may even experience a slight administrative relief by offloading work traditionally handled by city staff.

Overall, HB 23 is designed to empower private parties and streamline development processes without creating financial burdens for state or local governments.

HB 23 strengthens individual liberty, enhances private property rights, promotes free enterprise, and meaningfully limits government intervention in the development process. The bill grants property owners and developers the option to select qualified third-party professionals — including licensed engineers and certified inspectors — to conduct plan reviews and building inspections, rather than relying exclusively on municipal staff​.

The bill does not grow the size or scope of government. In fact, it reduces the role of local regulatory authorities by decentralizing plan reviews and inspections, moving control closer to private individuals and businesses. It also does not impose any additional burden on taxpayers; the Legislative Budget Board found no significant fiscal impact on either the state or local governments. Any administrative adjustments (such as posting regulations online) are minor and well within current capacities.

HB 23 also does not increase the regulatory burden on individuals or businesses. Instead, it reduces delays and bureaucratic bottlenecks that contribute to higher construction costs, particularly for housing. Only third-party reviewers — not applicants — must meet added requirements, such as carrying professional liability insurance. This preserves safety and accountability while freeing property owners from government-caused slowdowns.

Concerns about unintended consequences are legitimate and warrant careful attention. Critics worry that loosening municipal control could allow bad actors to exploit the system, or that certain political, religious, or ethnic groups might establish enclaves with minimal oversight. However, HB 23 is neutral in language and scope: it applies to any qualified applicant equally, requires third parties to follow all existing local codes and standards, and holds third parties accountable through licensure, liability insurance, and adherence to professional standards. Furthermore, if a third-party reviewer violates the code, the regulatory authority retains enforcement powers.

By providing additional pathways for compliance without weakening substantive standards, the bill aims to resolve a real and growing problem: housing affordability and construction delays fueled by bureaucratic backlogs. The bill’s approach — decentralization with clear guardrails — aligns with traditional liberty principles while seeking to preserve public safety and the rule of law.

Concerns have also been raised about unregulated or reckless development, particularly in rural areas with scarce water and fragile infrastructure. HB 23 does not deregulate, it only decentralizes enforcement. All existing rules about land use, water availability, zoning, and environmental standards still apply. Third-party reviewers must apply those same rules or face liability and regulatory penalties. Local governments retain enforcement authority if third-party reviewers violate standards. However, it is fair to note that in very rural or under-regulated areas, if local rules are too weak or enforcement is too passive, there could be an increased risk of hasty or inappropriate developments getting faster approvals. Thus, while the bill itself is sound and liberty-enhancing, strengthening protections for rural water and resource issues would be a wise amendment to further reassure concerned communities.

Suggested Amendment:

• A third-party reviewer conducting a plan review or inspection for a proposed development outside the boundaries of a municipality must verify and certify compliance with applicable local, county, or state water availability, infrastructure capacity, and environmental resource regulations as a condition of issuing an approval. This would ensure that in rural and unincorporated areas, third-party reviews are explicitly tied to verifying water and resource sufficiency. It would reinforce that existing protections are honored and documented, not bypassed, and preserve the bill's liberty-enhancing goals while adding a safeguard specifically for small towns and rural counties.

In conclusion, HB 23 appropriately balances liberty with accountability. It empowers individuals, reduces unnecessary government interference, maintains regulatory standards, avoids new burdens on taxpayers, and addresses real-world economic challenges. While future legislatures and local governments must remain vigilant to guard against any abuses, this bill fundamentally advances the cause of liberty, responsibility, and economic opportunity in Texas. As such, Texas Policy Research recommends that lawmakers vote YES on HB 23 and also consider an amendment to safeguard rural and unincorporated areas as described above.

• Individual Liberty: The bill strengthens individual liberty by giving property owners, builders, and developers greater control over the permitting and inspection processes. Instead of being forced to wait on potentially slow, overloaded, or unresponsive government agencies, individuals can choose their own licensed third-party professionals to conduct required reviews and inspections.
• This expands personal freedom to manage and improve property without unnecessary government interference.
• Personal Responsibility: Under the bill, property owners and developers must take greater ownership of the development process. They are responsible for hiring qualified third parties who must comply with all laws and standards. If the chosen professional fails, the applicant cannot shift blame to the government, reinforcing accountability for personal and business choices.
• Free Enterprise: It opens the inspection and plan review process to competition by allowing private-sector engineers and inspectors to compete with government officials in providing services. This can lead to better service, more innovation, faster turnaround times, and more choices for developers, especially in fast-growing areas like rural and suburban Texas.
• Private Property Rights: By removing government bottlenecks and giving individuals the option to move projects forward more efficiently, the bill makes it easier for property owners to improve, develop, or use their land as they see fit, provided they still meet all existing zoning, water, and environmental laws. It is a practical enhancement of the principle that individuals, not bureaucracies, should guide how private property is used within lawful bounds.
• Limited Government: The bill reduces the monopoly of local governments over development approvals without reducing the government's important role in setting and enforcing standards. It shifts part of the process into private hands while maintaining public control over substantive outcomes (like water conservation, public health, zoning compliance, etc.)​. Thus, it limits administrative overreach but preserves legitimate regulatory oversight.

• HB 2977 (Same As)
• SB 2354 (Same As)