According to the Legislative Budget Board (LBB), HB 3405 is not expected to have a significant fiscal impact on the State of Texas. The LBB assumes that any administrative or operational costs associated with implementing the bill can be absorbed using existing agency resources, meaning no additional appropriations or staffing are anticipated.

The LBB also concludes that the bill is not expected to have a significant fiscal impact on units of local government. Because the legislation primarily clarifies trust accounting requirements and provides courts with limited discretion to require additional accounting information upon a showing of good cause, any resulting workload for state or local courts is expected to be minimal and manageable within existing resources.

HB 3405 makes a narrow procedural clarification to Texas trust law that improves transparency in trust administration without materially expanding the size or scope of government. The bill preserves the existing rule that trustees generally are not required to allocate receipts and disbursements between principal and income when the distribution standards and beneficiaries are identical, while allowing a court to require those allocations upon a showing of good cause in individual cases. This authority is exercised only through existing judicial processes and does not create any new state agency, program, office, or regulatory framework.

The bill does not meaningfully increase the burden on taxpayers. According to the LBB, the legislation is expected to have no significant fiscal implication for either state or local government, and any implementation costs can be absorbed using existing resources. Likewise, the bill does not impose a meaningful new regulatory burden on individuals or businesses. Trustees remain subject to the same general accounting requirements under current law, with additional principal-and-income allocations required only when a court finds good cause in a particular dispute.

Because the legislation strengthens judicial oversight in limited circumstances while avoiding government growth, increased taxpayer exposure, or broad new compliance obligations, Texas Policy Research recommends that lawmakers vote YES on HB 3405. The bill provides a targeted improvement to trust administration that enhances accountability without materially expanding governmental authority or regulatory reach.

• Individual Liberty: The bill neither expands nor restricts individual rights or personal freedoms. It concerns the procedural requirements for trust accountings and grants courts limited discretion to require additional financial information when good cause is shown. It does not create new mandates, penalties, or restrictions on the general public.
• Personal Responsibility: The bill promotes accountability by allowing courts to require more detailed trust accountings in appropriate cases. This reinforces trustees' fiduciary responsibilities without imposing unnecessary reporting requirements in routine situations, encouraging responsible administration of private trusts.
• Free Enterprise: The bill has little to no effect on private markets or commercial activity. It does not regulate businesses, create barriers to entry, impose licensing requirements, or otherwise alter the operation of the marketplace. Its application is limited to trust administration and judicial proceedings.
• Private Property Rights: The bill strengthens protections for trust beneficiaries by giving courts the ability to require more detailed accounting information when warranted. This enhances transparency and oversight of privately held trust assets without changing ownership rights or expanding governmental control over private property.
• Limited Government: The bill does not create a new agency, program, fund, or regulatory regime, nor does it significantly increase government spending or administrative responsibilities. Although it modestly expands judicial discretion by allowing courts to require additional accounting details upon a showing of good cause, that authority is exercised within the existing court system and does not materially expand the size or scope of government.

• SB 1218 (Same As)