According to the Legislative Budget Board (LBB), SB 1625 is not expected to have a significant fiscal impact on the State of Texas. The costs associated with implementing the new reporting requirements for public water and wastewater systems are anticipated to be absorbable within the existing budgets of the involved state agencies, primarily the Texas Commission on Environmental Quality (TCEQ) and the Department of Information Resources (DIR)​.

Similarly, the bill is not projected to impose significant costs on local governments. While public water systems operated by municipalities or local districts will be required to update their internal procedures and potentially enhance their cybersecurity incident response capabilities, these changes are not expected to necessitate substantial new expenditures. The bill assumes that local entities either already have the relevant systems in place or can make the necessary adjustments within their current operational frameworks​.

Overall, the fiscal evaluation indicates that SB 1625 is a cost-neutral policy from a state and local budgetary perspective, enabling enhanced infrastructure security and interagency coordination without requiring new appropriations or financial support.

SB 1625 strengthens the integrity and transparency of Texas’s public water infrastructure by expanding statutory reporting requirements to include cybersecurity incidents. Currently, water system operators are only required to report certain physical or suspicious incidents to the Texas Commission on Environmental Quality (TCEQ). This bill adds to that list, mandating notification when specific digital threats occur—such as the unauthorized disclosure of sensitive personal data, the introduction of ransomware, attempts to breach proprietary systems, or disruptions to computer operations. It also directs TCEQ to share such reports with the Department of Information Resources (DIR), improving interagency coordination for cybersecurity response and public safety.

The bill supports core liberty principles, particularly personal responsibility and limited government. It enhances system operator accountability without expanding regulatory enforcement powers or increasing costs, according to the Legislative Budget Board’s fiscal analysis. Both state and local agencies are expected to implement these changes using existing resources, suggesting the measure is fiscally prudent.

The legislative intent underscores the increasing threat of cyberattacks to critical infrastructure. Public water systems, many of which rely on digital networks for operations and monitoring, are increasingly vulnerable to data breaches or ransomware. Including these types of incidents in mandatory reporting ensures that both TCEQ and DIR can provide oversight, coordinate responses, and share threat intelligence to mitigate harm. This proactive, targeted approach enhances individual liberty and public safety by helping secure essential services and personal data without burdening private entities or limiting civil freedoms.

In sum, SB 1625 reflects sound public policy: It modernizes statutory oversight in response to real and evolving threats, strengthens institutional transparency, and does so without imposing significant new costs or regulatory overreach. For these reasons, Texas Policy Research recommends that lawmakers vote YES on SB 1625.

• Individual Liberty: The bill protects individuals by ensuring the integrity and security of essential public services—namely, drinking water and wastewater systems. By requiring the reporting of cybersecurity incidents (e.g., data breaches involving sensitive personal information or ransomware attacks), the legislation helps safeguard individuals' privacy and safety. Rather than infringing on personal freedoms, it enhances citizens' ability to rely on uninterrupted and secure access to clean water—an essential condition for exercising liberty.
• Personal Responsibility: The bill fosters a culture of accountability by requiring public water system operators to establish internal procedures for promptly reporting both physical and cybersecurity incidents. This incentivizes utility managers to take proactive steps to identify, mitigate, and respond to threats rather than wait for external enforcement. It reinforces the idea that responsible governance at the local and agency level is key to maintaining public trust and safety.
• Free Enterprise: While the bill targets public systems, maintaining secure and reliable water infrastructure benefits businesses and industries that depend on a consistent water supply. By ensuring these systems remain operational and protected from digital threats, the bill creates a more stable environment for private enterprise. Furthermore, by focusing only on public systems, it avoids imposing regulatory burdens on private sector operators or technology vendors.
• Private Property Rights: There is no direct impact on private property rights. However, the protection of water infrastructure, especially in residential and rural areas, indirectly supports the value and usability of private property. For example, a cybersecurity breach leading to unsafe water or service outages could devalue property or restrict its use. By preventing or minimizing such incidents, the bill acts in favor of property owners’ interests.
• Limited Government: The bill imposes no new enforcement authority or punitive measures. Instead, it focuses on reporting and coordination between agencies (TCEQ and DIR) in response to security incidents. It does not expand regulatory control over private entities or authorize any new regulatory bodies. Moreover, the fiscal note confirms the bill is cost-neutral and will be implemented using existing agency resources​—a hallmark of responsible, limited government.