According to the Legislative Budget Board (LBB), HB 871 is not expected to have a fiscal impact on the state government. The LBB determined that no fiscal implication to the State is anticipated as a result of implementing the bill. Additionally, the LBB concluded that no significant fiscal implication to units of local government is anticipated, indicating that municipalities are expected to absorb any implementation activities within existing resources.

HB 871 updates the state-adopted municipal residential and commercial building codes by replacing the 2012 International Residential Code and International Building Code with the 2018 editions. While intended to modernize construction standards and improve building resilience, the bill expands the regulatory requirements applicable to new residential and commercial construction throughout Texas.

Although the bill does not create a new state agency, appropriate additional funding, or grant new rulemaking authority to a state entity, it nevertheless increases the scope of government regulation by imposing a broader and more complex set of mandatory construction standards in state law. Compliance with newer building codes is likely to increase construction costs for builders, developers, and ultimately homebuyers and business owners. Municipalities will also incur administrative costs associated with updating ordinances, training inspectors, and implementing the revised codes.

From a limited government perspective, the bill also further entrenches Texas's reliance on model building codes developed by the International Code Council rather than standards enacted directly by the Legislature. Each updated code edition incorporates hundreds of technical revisions that have not been individually considered through the legislative process, resulting in an expansion of regulatory requirements by reference rather than through direct statutory enactment. While the committee substitute moderates the proposal by adopting the 2018 editions instead of the 2021 editions contained in the introduced bill, it nevertheless increases regulatory obligations beyond current law.

Because the bill increases regulatory burdens on private construction, creates additional compliance costs for businesses and property owners, and expands the scope of government regulation without reducing existing requirements elsewhere, and as such, Texas Policy Research recommends that lawmakers vote NO on HB 871.

• Individual Liberty: The bill expands mandatory building regulations governing private construction by requiring compliance with newer editions of the International Residential Code and International Building Code. While the regulations are prospective and limited to new construction and certain renovations, they nonetheless reduce the discretion of individuals and businesses to determine how buildings are designed and constructed. Property owners and builders become subject to a broader set of mandatory standards than under current law.
• Personal Responsibility: The bill neither significantly enhances nor diminishes personal responsibility. It does not create subsidies, government assistance programs, or incentives that shift responsibility from individuals to the state. Instead, it relies on regulatory mandates rather than voluntary decision-making, but its primary focus is updating technical construction standards rather than altering individual incentives or behavior.
• Free Enterprise: The bill increases the regulatory burden on builders, developers, contractors, and related industries by requiring compliance with more recent building codes. These updated standards may increase construction costs, require additional training, and impose new compliance obligations, particularly for smaller builders. Although intended to improve safety and resilience, the bill expands government regulation of the construction market rather than reducing barriers or increasing market flexibility.
• Private Property Rights: By expanding the scope of mandatory construction standards applicable to private property improvements, the bill places additional restrictions on how property owners may develop, remodel, or improve their property. While it does not affect ownership rights or authorize takings, it increases government control over the permissible use and development of private property through more extensive regulatory requirements.
• Limited Government: Although the bill does not create a new agency, appropriate state funds, or grant additional rulemaking authority, it expands the government's regulatory reach by adopting newer and more comprehensive building codes into state law. It also requires municipalities to implement those updated standards. From a limited-government perspective, expanding mandatory regulations, even without increasing government spending or bureaucracy, constitutes an increase in the scope of government authority over private activity.