According to the Legislative Budget Board (LBB), HB 3623 is not expected to have a significant fiscal impact on the State of Texas. The bill’s changes, modernizing the methods by which the Comptroller and state agencies may solicit bids, are procedural and do not involve any new programs, staffing, or technological infrastructure that would incur additional costs. The agencies affected, including the Comptroller of Public Accounts, are anticipated to implement the bill’s requirements using existing resources and administrative capacity.

The bill’s modernization of procurement communication methods (such as formalizing online transmission and removing outdated references like telegraph) may even result in marginal administrative savings over time, as it aligns legal requirements with current, more cost-effective digital practices already in use. However, those potential savings are not quantified in the fiscal note and are likely to be minimal.

There is also no fiscal impact anticipated for local governments. The bill applies only to state-level procurement processes and therefore imposes no requirements or costs on counties, municipalities, or other local jurisdictions. Overall, HB 3623 represents a statutory cleanup and technological alignment effort with negligible budgetary consequences.

HB 3623 is a narrowly focused statutory update that amends Section 2156.063 of the Government Code to remove “telegraph” as an authorized method of soliciting bids for purchases by the Texas Comptroller and state agencies. The bill affirms existing, modern methods, such as telephone, direct mail, facsimile, and online electronic transmission, as acceptable forms of communication in the procurement process. It is a technical cleanup bill that reflects the obsolescence of the telegraph and aligns state purchasing procedures with current operational norms.

Importantly, HB 3623 does not expand the size or scope of government. It does not create new agencies, programs, or enforcement powers, and it does not grant new regulatory authority to any state entity. Rather, it removes outdated language and reinforces the government's existing use of efficient digital tools. Similarly, the bill does not increase the burden on taxpayers. According to the Legislative Budget Board, any costs associated with implementation can be absorbed within existing agency budgets, and no local government impact is expected.

In terms of regulatory impact, HB 3623 imposes no additional requirements on private individuals or businesses. It does not alter licensing rules, contract terms, or eligibility criteria for state vendors. In fact, by simplifying statutory language and formalizing the use of online communication, the bill may modestly improve clarity and accessibility in public procurement, particularly for small or remote vendors. Thus, it aligns well with the principles of limited government and free enterprise, while being entirely neutral on individual liberty, personal responsibility, and private property rights.

Because the bill modernizes existing administrative processes without expanding government power, increasing regulatory burden, or imposing fiscal costs, Texas Policy Research recommends that lawmakers vote YES on HB 3623.

• Individual Liberty: The bill is neutral on individual liberty. It does not affect civil liberties, personal freedoms, or constitutional rights, as it strictly addresses the administrative methods used by state agencies to solicit procurement bids.
• Personal Responsibility: The bill is neutral on personal responsibility. It does not impose new obligations on individuals or businesses, nor does it incentivize or discourage responsible behavior. Its effects are confined to internal agency operations.
• Free Enterprise: The bill positively impacts free enterprise by affirming the use of online electronic transmission for bid solicitation, which aligns with how most vendors already interact with the state. By codifying modern communication methods, it lowers procedural barriers and helps level the playing field for businesses, including small and remote vendors seeking access to public contracts.
• Private Property Rights: The bill has no effect on private property rights. It does not relate to ownership, land use, eminent domain, or regulation of property and therefore does not impact this principle.
• Limited Government: The bill supports limited government by removing obsolete statutory language, specifically, the reference to telegraph communications, in favor of modern, streamlined procurement practices. It does not expand state authority, create new programs, or increase government oversight, thereby contributing to a more efficient and restrained administrative framework.