According to the Legislative Budget Board (LBB), HB 449 is not expected to have a significant fiscal impact on the State of Texas. While the bill expands the scope of an existing Class A misdemeanor offense to include the use of deep fake technology in the production or distribution of sexually explicit images, the anticipated cost implications for the state are minimal. Specifically, the legislation is unlikely to materially affect state correctional populations or significantly increase the demand for correctional resources such as jails or probation services.

From the perspective of local governments, who would be responsible for enforcing the law, prosecuting offenders, and potentially supervising or confining individuals convicted under this offense, the fiscal impact is also expected to be negligible. Local law enforcement and judicial systems are already managing similar offenses, and the incremental caseload anticipated from the inclusion of deep fake cases is not expected to require additional funding or resources.

In summary, while HB 449 creates an important new legal tool to address evolving digital harms, its implementation is projected to be cost-neutral in both state and local jurisdictions. This reflects both the narrow scope of the bill and the existing infrastructure in place to manage comparable offenses.

HB 449 provides a thoughtful and narrowly tailored update to the Texas Penal Code by expanding the offense of unlawful production or distribution of sexually explicit material to include “deep fake” images, in addition to videos already covered by prior legislation. This legislative refinement responds to increasing incidents, especially involving minors, where artificial intelligence has been used to generate highly realistic but false and nonconsensual sexual images. The bill closes a serious gap in existing law, protecting victims from reputational harm, emotional distress, and privacy violations facilitated by advanced digital technology.

The bill respects liberty principles by reinforcing individual dignity and accountability without expanding state power unnecessarily. Importantly, HB 449 does not grow the size or scope of government. It does not create new agencies, regulations, or enforcement mechanisms. Instead, it adjusts existing legal definitions within the current criminal justice framework. This approach ensures that victims have recourse under the law while avoiding mission creep in state governance.

In addition, there is no increased burden on taxpayers. The Legislative Budget Board has explicitly noted that HB 449 is not expected to result in any significant fiscal impact at either the state or local level. Enforcement will rely on existing prosecutorial and law enforcement capacity, without requiring additional funding or personnel.

Lastly, the bill does not impose a regulatory burden on businesses or individuals not engaged in illegal activity. It targets only those who knowingly and deceptively produce or distribute sexually explicit deep fake images without consent. Legitimate uses of AI, digital imaging, and creative expression remain untouched.

For these reasons—protection of individual rights, minimal fiscal and regulatory impact, and respect for limited government—Texas Policy Research recommends that lawmakers vote YES on HB 449.

• Individual Liberty: The bill strengthens individual liberty by giving people more control over their image and likeness. It protects Texans—especially minors and women, from having fake, sexually explicit images of them created and spread without their consent. This is a direct defense of personal privacy and dignity, helping to prevent digital impersonation and exploitation.
• Personal Responsibility: The bill holds people accountable for using artificial intelligence to harm others. It promotes responsible behavior in the digital age by criminalizing the deliberate and deceptive creation of sexually explicit deep fake content. This aligns with the idea that people should bear the consequences of using technology to violate others’ rights.
• Free Enterprise: The bill does not regulate AI or imaging technology broadly—it only targets a very narrow and abusive use of it. Businesses and developers working in legitimate AI fields, entertainment, or tech innovation are not restricted by this law. It avoids burdening industry while addressing a serious misuse of the technology.
• Private Property Rights: While not directly related to physical property, the bill indirectly affirms that your image and likeness are part of your personal domain. It defends against unauthorized, invasive use of your digital "identity" in a way that aligns with the broader principle of protecting what is yours.
• Limited Government: Importantly, the bill does not create new agencies, regulations, or programs. It simply adds a specific behavior—deep fake sexual images—to an existing criminal statute. There's no expansion of bureaucracy, and enforcement falls within the scope of current law. This keeps government power focused and constrained.