According to the Legislative Budget Board (LBB), HB 4395 will have no significant fiscal implications for the state. The costs associated with implementing the bill, primarily those involving electronic submission and processing of documents related to public securities, are expected to be absorbed using existing resources within the affected state agencies. These agencies include the Office of the Attorney General and the Comptroller of Public Accounts, both of which are involved in the submission and delivery process addressed by the bill.

From a local government perspective, the bill similarly presents no significant fiscal burden. While issuers of public securities—such as cities, counties, or other local entities—will be required to submit documents electronically, the legislation does not mandate new spending or significant changes to local infrastructure. Most local entities already possess or are transitioning toward digital systems, which minimizes the financial impact of this modernization requirement.

Overall, HB 4395 is designed to streamline administrative processes rather than expand operational scope or staffing, which helps explain the minimal fiscal footprint. The bill's implementation date of January 1, 2026, also allows sufficient lead time for agencies and local governments to adapt existing processes and systems.

HB 4395 offers a practical, low-cost modernization of how Texas handles public securities documentation by requiring the electronic submission and delivery of such documents to the Office of the Attorney General (OAG) and the Comptroller of Public Accounts. This bill aligns statutory processes with digital practices already adopted informally during the COVID-19 pandemic, reducing reliance on printing, physical shipping, and manual signatures. It codifies the use of secure, legally recognized electronic formats and signatures under the Uniform Electronic Transactions Act, thus promoting efficiency, accessibility, and legal consistency.

Importantly, the bill does not grow the size or scope of government. It imposes no new regulatory agencies or expanded authority. Rather, it streamlines existing responsibilities, allowing agencies to operate more efficiently within their current mandates. The Legislative Budget Board confirms that there is no significant fiscal implication to the state or local governments, and any implementation costs can be absorbed with existing resources. Taxpayers are not expected to bear any new burdens as a result of this legislation.

Additionally, HB 4395 does not increase the regulatory burden on individuals or businesses. To the contrary, it reduces logistical burdens for issuers of public securities, such as local governments, school districts, and bond attorneys, by eliminating the need to compile, print, and ship paper documents. It replaces a cumbersome manual process with a secure digital workflow, promoting transparency and reducing delays without imposing new compliance requirements.

In sum, HB 4395 is a limited, targeted improvement that supports efficient governance without expanding state power, increasing taxpayer costs, or adding red tape. As such, Texas Policy Research recommends that lawmakers vote YES on HB 4395.

• Individual Liberty: The bill enhances transparency and access to government by streamlining how public finance documents are handled. Modernizing the submission process reduces bureaucratic red tape that can obscure or delay government decisions, indirectly improving public oversight and participation. It also respects the right of individuals and entities to use legally recognized digital tools, like electronic signatures, which promotes autonomy and choice in interactions with the state.
• Personal Responsibility: The bill reinforces the idea that public officials and entities should be responsible for using efficient, modern processes. It encourages government actors to upgrade outdated practices, promoting accountability and professionalism in public finance.
• Free Enterprise: By cutting administrative delays and costs in bond approval processes, the bill makes it easier and faster for public-private infrastructure projects to move forward. This benefits bond attorneys, financial institutions, and contractors who depend on timely project funding. It reduces barriers to doing business with the government, fostering a more agile and responsive public finance system.
• Private Property Rights: While the bill does not directly affect private property rights, faster issuance of public securities can help local governments fund projects like infrastructure improvements more efficiently, which may indirectly benefit property development and investment.
• Limited Government: This bill is a textbook example of limited government in action. It doesn’t create any new agencies, expand regulatory authority, or increase government spending. Instead, it simplifies existing procedures, promotes efficiency, and reduces paperwork, shrinking the government’s operational footprint while improving performance.

• SB 2791 (Same As)