According to the Legislative Budget Board (LBB), HB 993 is not expected to have a fiscal impact on the state government. The fiscal note concludes that implementation of the bill would not require additional state expenditures or generate state savings, indicating that any administrative changes associated with the legislation can be absorbed within existing state resources.

For local governments, the LBB likewise anticipates no significant fiscal implication. While municipalities may need to ensure compliance with the bill's revised permit processing requirements and restrictions on collecting permit fees when statutory deadlines are not met, the LBB does not expect these changes to result in material costs or savings for local governments overall.

Overall, the fiscal analysis indicates that HB 993 is expected to have a neutral fiscal impact, with neither the state nor local governments expected to experience significant budgetary effects as a result of the bill's enactment.

HB 993 is a limited-government reform that increases accountability for municipal permitting without expanding the size or scope of state government. Rather than creating a new agency, program, or layer of regulation, the bill strengthens existing statutory deadlines for municipal building permit decisions, limits negotiated deadline extensions to commercial permits, and clarifies that municipalities must comply with all statutory processing requirements. The bill also prevents municipalities from requiring applicants to waive these statutory protections and prohibits permit denials based solely on a municipality's inability to meet the required deadlines. These changes constrain governmental discretion instead of expanding it.

The bill does not increase the burden on taxpayers. According to the LBB, the bill has no anticipated fiscal implication to the state and no significant fiscal implication to units of local government, indicating that implementation can be accomplished within existing governmental resources without creating new spending obligations or requiring additional taxpayer funding.

The bill also does not increase the regulatory burden on individuals or businesses. Instead, it reduces uncertainty for property owners, developers, and contractors by reinforcing predictable permit processing timelines and limiting the ability of municipalities to delay action without consequence. While the bill imposes stricter compliance expectations on municipalities, those requirements apply only to governmental entities administering existing permitting processes rather than creating new obligations for permit applicants. The expanded fee-refund provision further incentivizes timely governmental action without imposing additional compliance costs on the private sector.

Overall, B 993 promotes more efficient and accountable local government, restrains administrative discretion, imposes no meaningful fiscal costs on taxpayers, and does not create new regulatory burdens on individuals or businesses. Because the bill advances government accountability while maintaining a limited fiscal and regulatory footprint, Texas Policy Research recommends that lawmakers vote YES.

• Individual Liberty: The bill does not impose new mandates, prohibitions, or penalties on individuals. Instead, it protects applicants from being forced to waive statutory rights and prevents municipalities from denying permits solely because they failed to meet statutory deadlines. This modestly strengthens protections against arbitrary government action.
• Personal Responsibility: The bill does not materially affect individual responsibility or create new government dependence. It simply requires municipalities to meet existing statutory obligations and does not shift responsibility away from permit applicants or property owners.
• Free Enterprise: The bill reduces uncertainty in the permitting process by reinforcing predictable timelines and limiting municipal discretion to extend deadlines for residential permits. More timely and consistent permitting lowers administrative barriers for builders, developers, contractors, and businesses without creating new regulatory requirements.
• Private Property Rights: By improving accountability in municipal permitting and preventing arbitrary delays or denials caused solely by government inaction, the bill better protects the ability of property owners to develop and improve their property. It also preserves applicants' statutory rights by prohibiting waiver requirements.
• Limited Government: The bill does not create a new agency, program, or rulemaking authority. Instead, it limits municipal discretion, strengthens accountability for existing statutory requirements, and creates stronger consequences when municipalities fail to comply with existing law. It also carries no anticipated fiscal impact to the state and no significant fiscal impact to local governments.