According to the Legislative Budget Board (LBB), SB 2858 is not anticipated to have a significant fiscal impact on the State​. Although the original version contemplated direct involvement from the Attorney General in investigating and penalizing local governments, the Committee Substitute removes much of that enforcement structure. Thus, any administrative costs that might arise — for example, from judicial proceedings initiated by private parties — are expected to be absorbed within existing resources.

The original bill did propose that withheld local sales tax revenues and penalties could generate deposits into the state’s General Revenue Fund. However, under the Committee Substitute, where enforcement is driven by private action rather than the Attorney General, such revenue collections are no longer anticipated. Consequently, the fiscal impact related to revenue generation (from penalties or interest earned on withheld taxes) described in the original fiscal note would no longer apply.

At the local government level, while defending against lawsuits could impose some litigation costs on municipalities and counties, these are case-by-case and not anticipated to cause a statewide fiscal burden. Since the substitute no longer empowers the state to withhold local sales tax distributions or restrict budget and tax rates as penalties, the threat of financial disruption to cities and counties is also significantly reduced compared to the originally filed bill.

In summary, the Committee Substitute presents minimal direct fiscal impact for both state and local governments under normal circumstances, aside from potential litigation expenses for individual cities or counties if sued​.

SB 2858 presents a strong case for supporting state preemption in critical regulatory fields such as commerce, elections, and criminal justice. The bill reaffirms the foundational principle that local governments are creations of the state and must operate within the parameters set by state law. It addresses a growing problem in Texas—where local jurisdictions enact inconsistent, conflicting ordinances that create confusion, legal uncertainty, and barriers to free enterprise and effective governance. SB 2858 ensures that when the state has occupied a regulatory field, municipalities and counties cannot unilaterally change the rules, protecting both individual liberty and business operations across Texas​.

The bill’s design carefully balances enforcement with respect for local operations. While earlier versions proposed aggressive financial penalties and centralized enforcement by the Attorney General, the committee substitute takes a more measured approach by empowering private parties and trade associations to challenge non-compliant local ordinances through standard court proceedings. It thus limits government overreach while reinforcing the primacy of state law in areas where uniformity is critical. Moreover, it waives governmental immunity for such challenges, ensuring that local governments are held accountable when they step outside their proper legal bounds.

Because SB 2858 strengthens statewide consistency, safeguards individual and property rights, promotes a healthy free market environment, and maintains appropriately limited local government powers, it is fully aligned with core liberty principles. It upholds the constitutional structure envisioned by the Texas Constitution and furthers the goals of predictable, fair, and unified governance across the state. Therefore, Texas Policy Research recommends that state lawmakers vote YES on SB 2858 — supporting SB 2858 ensures that Texas continues to stand for clarity, liberty, and limited, responsible government.

• The bill enhances individual liberty by promoting access to sustainable water resources without infringing on personal rights. It does not mandate any action by individuals or private property owners. Instead, it expands opportunities for municipalities, utilities, and businesses to voluntarily pursue aquifer storage projects using reclaimed water. More reliable water supplies benefit individuals broadly without introducing new restrictions on private behavior.
• By enabling the responsible reuse of treated water for aquifer storage, the bill encourages local communities and water providers to steward Texas’ natural resources wisely. It promotes a proactive approach to water management rather than reliance solely on traditional surface water supplies. Entities that choose to take advantage of this law must ensure water is treated appropriately and manage their projects responsibly under standards set by TCEQ.
• The bill fosters free enterprise by creating new economic opportunities for businesses involved in water treatment, infrastructure development, and resource management. It reduces regulatory rigidity that would otherwise limit innovation in water reuse technologies. Private actors (engineering firms, construction contractors, water technology companies) can now compete to design and implement these ASR projects, contributing to a more dynamic water economy.
• S.B. 2885 does not negatively affect private property rights. It governs underground aquifer use (already a heavily regulated area) but does not change ownership rights, introduce forced access, or otherwise infringe on property owners’ interests. Because aquifers are typically managed under public conservation rules, this bill merely broadens the types of water that can be injected into publicly regulated storage systems.
• While the bill technically adds a small number of new staff at TCEQ (four full-time employees), it does so to implement an optional, enabling framework rather than imposing new mandates or compliance costs across the board​. The government’s role remains regulatory, protective of public water resources, and supportive of voluntary innovation rather than expansive or coercive. It carefully balances environmental stewardship with limited government intervention.

• HB 5203 (Similar To)