According to the Legislative Budget Board (LBB), HB 2450 would have a negative net fiscal impact of approximately $487,770 to General Revenue-related funds during the 2026–27 biennium. While the bill would reduce administrative costs by requiring fewer elevator inspections, those savings would be outweighed by a larger reduction in inspection fee revenue collected by the Texas Department of Licensing and Regulation (TDLR). The bill itself does not appropriate funds but would provide the legal authority for future appropriations necessary to implement its provisions.

The primary fiscal effect stems from reducing the inspection frequency for elevators in buildings with four stories or fewer from annually to once every five years. The LBB estimates that approximately 35,265 elevators would become subject to the less frequent inspection schedule. Because each certificate of compliance carries a $20 fee, TDLR would forgo an estimated $705,300 in General Revenue each fiscal year from 2026 through 2029 due to fewer inspections and certifications being performed.

The bill would also reduce agency operating costs. With fewer inspections to administer, TDLR estimates it could eliminate 6.5 full-time equivalent positions, resulting in annual General Revenue savings of approximately $461,415 during fiscal years 2026 through 2029. These personnel savings partially offset the loss of fee revenue but do not fully eliminate the bill's negative fiscal impact. The LBB also anticipates that temporary staffing resources would be needed in fiscal year 2030 when the first five-year inspection cycle comes due, causing revenues and expenditures to return to normal at that time.

Finally, the LBB concludes that no significant fiscal impact on local governments is anticipated, as the bill primarily affects state inspection activities and associated fee collections rather than local government operations.

HB 2450 modestly reduces the scope of state regulation by decreasing the required inspection frequency for elevators in buildings with four stories or fewer from annually to once every five years, while preserving the state's existing oversight framework. The bill does not create a new government program, agency, fund, or regulatory authority. Instead, it narrows an existing regulatory requirement and directs the Texas Commission of Licensing and Regulation to update its rules accordingly. Existing enforcement mechanisms remain in place, including the authority to order elevators out of service if inspections become significantly overdue, helping ensure public safety without expanding the state's enforcement powers.

The bill is also unlikely to increase the burden on taxpayers. According to the Legislative Budget Board, the legislation results in a net loss of General Revenue because fewer inspection fees will be collected; however, those lost revenues are substantially offset by lower administrative costs and a reduction of approximately 6.5 full-time equivalent positions at the Texas Department of Licensing and Regulation due to the reduced inspection workload. Rather than requiring additional appropriations or expanding government operations, the bill decreases both agency activity and staffing, reflecting a smaller regulatory footprint. No significant fiscal impact on local governments is anticipated.

Finally, the bill reduces the regulatory burden on affected property owners and businesses by lowering the frequency and cost of mandatory inspections for elevators that are often infrequently used. The committee bill analysis indicates the legislation was prompted by concerns that annual inspection costs could exceed the annual operating costs of some elevators in smaller buildings. By extending the inspection interval while retaining certification requirements and emergency enforcement authority, the bill reduces recurring compliance costs without eliminating safety oversight. Overall, the legislation represents a measured reduction in regulation, does not expand the size or scope of government, does not increase taxpayer obligations, and lessens compliance burdens on regulated entities while maintaining appropriate public safety protections. As such, Texas Policy Research recommends that lawmakers vote YES on HB 2450.

• Individual Liberty: The bill modestly enhances individual liberty by reducing a state-imposed regulatory requirement. Owners of buildings with four stories or fewer would no longer be required to obtain annual elevator inspections, giving them greater flexibility while still requiring periodic inspections every five years. The bill does not impose any new mandates, restrictions, or penalties on individuals.
• Personal Responsibility: The bill shifts greater responsibility to property owners to maintain elevator safety over a longer inspection interval rather than relying on annual state oversight. While state enforcement remains available if inspections become significantly overdue, owners have greater discretion to manage compliance between inspections.
• Free Enterprise: The bill reduces regulatory compliance costs for businesses and property owners by decreasing the frequency of mandatory inspections. This lowers recurring administrative expenses, particularly for owners of smaller or infrequently used buildings, without creating new regulations or barriers to commerce.
• Private Property Rights: The bill strengthens private property rights by reducing government regulation affecting the operation of privately owned buildings. Property owners retain more control over the timing and cost of compliance while remaining subject to reasonable safety standards and enforcement if inspections are neglected for an extended period.
• Limited Government: The bill reduces the scope of government regulation by scaling back an existing inspection requirement without creating any new programs, agencies, or regulatory authority. The Legislative Budget Board also projects a reduction in agency workload and staffing as fewer inspections are required, reflecting a modest reduction in the size and operational footprint of state government.