According to the Legislative Budget Board (LBB), SB 584 is not expected to have a significant fiscal impact on the State of Texas. The bill’s requirements—placing a duty on consumer reporting agencies to ensure that any third-party data included in a consumer report complies with existing reporting standards—do not mandate new enforcement structures or administrative frameworks. As such, any associated costs are expected to be minimal and absorbable within the existing resources of relevant state agencies, such as the Office of the Attorney General.

For local governments, the bill similarly poses no significant fiscal implications. The legislation does not impose duties or operational changes on municipalities, counties, or other local entities, and enforcement of consumer reporting compliance is expected to remain a state-level regulatory matter.

Overall, SB 584 is structured to improve consumer protections without expanding the size or cost of government operations. It achieves its objectives primarily through clarification of existing responsibilities rather than creating new programs or enforcement agencies.

SB 584 is a targeted amendment to the Texas Business & Commerce Code that reinforces consumer protections within the credit reporting industry. Specifically, it adds Subsection (c-1) to Section 20.05, requiring consumer reporting agencies to ensure that information they use from third parties or other agencies complies with the same legal standards as information they generate themselves. This provision closes a gap that currently allows agencies to use externally sourced data without necessarily ensuring it meets the privacy, accuracy, and fairness standards already enshrined in Texas law.

Texas Policy Research recommends that lawmakers vote YES on SB 584 based on its alignment with core liberty principles—particularly individual liberty, property rights, and personal responsibility. It strengthens consumer rights without creating new enforcement mechanisms or bureaucratic layers, thereby avoiding overreach. SB 584 ensures that consumer data is treated consistently and responsibly, regardless of where it originates. This safeguards individuals from potential harm, such as being denied housing, employment, or credit due to inaccurate or noncompliant reporting practices by third parties.

Concerns have been raised regarding whether this bill increases the size and scope of government. After review, the answer is clearly no. SB 584 does not establish any new government entities, programs, or regulatory agencies. It does not delegate additional rulemaking authority to state officers or create new layers of oversight. It simply reinforces that existing legal standards apply consistently across all data sources used in credit reports. This is a clarifying measure—not an expansion of government power—and it strengthens enforcement of current law without institutional growth.

Does the bill increase the burden on taxpayers? Again, no. According to the Legislative Budget Board, SB 584 is fiscally neutral. There are no anticipated costs to state or local governments, and any administrative duties triggered by the bill can be handled within current agency budgets. There are no new taxes, fees, or funding requests involved. For this reason, the bill does not represent any increased burden on Texas taxpayers.

Does the bill increase the regulatory burden? Marginally, but responsibly. The bill clarifies that credit reporting agencies are responsible for ensuring that third-party data meets the same standards already applicable to their internal data collection and reporting. This does create a small increase in compliance duties, but it is not a new regulatory regime—it is an extension of existing duties to ensure consistency in consumer protections. The compliance burden is likely minimal for most agencies, particularly large national reporting entities that already handle data verification and quality assurance. Importantly, the bill does not impose any new reporting requirements, penalties, or paperwork burdens.

In conclusion, SB 584 upholds key principles of limited government while enhancing the protection of individual rights in the credit marketplace. It provides regulatory clarity without growing government or imposing new fiscal burdens, and it promotes accountability in how personal financial data is used. By closing a known loophole and reinforcing existing standards, the bill strengthens both consumer confidence and market fairness.

• Individual Liberty: The bill directly enhances individual liberty by ensuring that Texas consumers are protected from the misuse or mishandling of their personal financial data. In a world where credit reports influence everything from loan approvals to employment decisions, it is critical that consumers are treated fairly and that the information used about them is accurate and lawfully obtained. By requiring consumer reporting agencies to ensure that all third-party data meets established standards, the bill helps prevent unjust harm to individuals based on erroneous or improperly sourced information. This ensures that individuals retain greater control over their economic lives and reputations.
• Personal Responsibility: While the bill primarily imposes responsibilities on institutions, it indirectly reinforces the principle of personal responsibility. Individuals are better equipped to make informed financial decisions and correct errors when the data being reported about them is accurate and law-abiding. SB 584 supports a marketplace where individuals are held accountable based on fair and transparent information—not on flawed or unlawful records from unvetted third parties.
• Free Enterprise: Free enterprise thrives on trust, transparency, and fair play. The bill contributes to a more reliable and equitable credit marketplace by ensuring consistent compliance across all data sources used by reporting agencies. This helps create a level playing field for consumers and lenders alike. However, it's worth noting that the bill introduces a modest compliance obligation for agencies that rely heavily on third-party data. While not burdensome in scope, the regulatory clarity does add accountability, which some might view as an encroachment. Nonetheless, the bill steers clear of new red tape or interference in pricing or service models and thus remains within the bounds of a free-market-enhancing reform.
• Private Property Rights: Modern privacy concerns are deeply intertwined with property rights—especially the right to control one’s personal data. The bill strengthens those rights by holding consumer reporting agencies accountable for the integrity of the information they disseminate. Consumers’ reputational and financial information, while intangible, constitutes a form of informational property. By requiring that even third-party-sourced data meet compliance standards, the bill helps guard against improper use or damage to this property.
• Limited Government: The bill maintains fidelity to the principle of limited government. It does not create a new regulatory regime or enforcement agency, nor does it authorize new rulemaking authority. It merely clarifies existing statutory obligations and ensures they are applied uniformly. The legislation avoids overregulation by focusing on reinforcing current legal standards without enlarging the administrative state or imposing significant new burdens. A minor compliance clarification does not rise to the level of governmental overreach, especially when weighed against the goal of protecting individual rights.