According to the Legislative Budget Board (LBB), HB 4990 would have a negative fiscal impact of approximately $8.1 million on General Revenue-related funds during the 2026–27 biennium, with no direct appropriation included in the bill itself. However, the bill would provide the legal basis for future appropriations needed to implement its provisions. Annual General Revenue costs are estimated at $6.76 million in fiscal year 2026, followed by $1.37 million each year thereafter through at least fiscal year 2030.
The majority of the fiscal impact stems from expanded responsibilities assigned to the Office of the Attorney General (OAG). The bill requires the OAG to establish and operate a statewide toll-free Open Records Hotline and to administer a new formal complaint process for alleged violations of the Public Information Act. The agency anticipates a substantial increase in complaint volume and administrative workload, requiring the addition of seven full-time employees, including attorneys, administrative support, management, and information technology personnel. Annual personnel costs are estimated at approximately $868,000, with additional recurring operating expenses of about $58,000 per year.
A significant portion of the first-year cost is attributable to technology investments needed to implement the bill. The LBB reports a one-time technology expenditure of approximately $5.77 million in fiscal year 2026 to upgrade the Attorney General's complaint intake and case management systems, automate statutory deadlines, and generate required notices and responses. In addition, the agency anticipates ongoing technology costs of approximately $447,000 annually for software licensing, cloud services, data center operations, and telecommunications after the initial implementation year.
The LBB concludes that the bill is not expected to have a significant fiscal impact on local governments, as the primary implementation responsibilities and associated costs fall on the Office of the Attorney General.
HB 4990 presents a clear tradeoff between expanding the administrative capacity of state government and improving government transparency. The bill increases the size and cost of the Office of the Attorney General by establishing a formal complaint process, codifying the Open Records Hotline, and requiring additional personnel and technology to administer these functions. According to the LBB, implementation is expected to cost approximately $8.1 million in General Revenue during the 2026–27 biennium, representing a measurable increase in taxpayer-funded government operations.
At the same time, the bill does not materially increase the regulatory burden on private individuals or businesses. Instead, it strengthens enforcement of existing public information laws by providing additional mechanisms for citizens to seek compliance from governmental bodies. The legislation creates no new rulemaking authority, criminal penalties, or substantive regulatory requirements for the private sector.
Because the bill expands state administrative capacity and taxpayer expenditures while also promoting greater transparency and accountability within government itself, the overall policy balance is mixed. Lawmakers who prioritize limiting the growth of government may view the additional bureaucracy and recurring costs as unwarranted, while those who place greater emphasis on holding government accountable may conclude the added administrative infrastructure is justified. As a result, the bill does not present a clear liberty outcome in either direction, and as such, Texas Policy Research remains NEUTRAL.