According to the Legislative Budget Board (LBB), SB 705 is not expected to have a significant fiscal impact on the State of Texas. The bill modifies the composition and terms of the Air Conditioning and Refrigeration Contractors Advisory Board under the Texas Department of Licensing and Regulation (TDLR), including reducing the number of members and adjusting term expirations. These changes are largely administrative in nature and do not require new programs, infrastructure, or significant additional staffing.

The analysis assumes that any minor administrative costs associated with implementing these changes, such as updating internal procedures, documentation, or board management systems, could be absorbed by TDLR using existing appropriated resources. This means no new appropriations or supplemental funding would be required to carry out the provisions of the bill.

Furthermore, the bill is not anticipated to have a significant fiscal implication for local governments. Since the advisory board operates at the state level and does not impose new regulatory or fiscal mandates on municipalities, counties, or other local entities, no local impact is projected under the current version of the bill.

SB 705 offers a focused and practical reform to the structure of the Air Conditioning and Refrigeration Contractors Advisory Board, which advises the Texas Department of Licensing and Regulation (TDLR). The bill eliminates two ex officio nonvoting positions that are now considered outdated and largely ceremonial. These seats, traditionally held by senior TDLR officials, no longer contribute meaningfully to board operations. By removing them, the bill ensures a more efficient and streamlined advisory process. Additionally, it modifies the board’s staggered term structure so that three, rather than two, appointed members' terms expire every two years, promoting consistency and effective governance.

This legislation aligns with the core liberty principle of Limited Government by reducing unnecessary bureaucratic overhead and ensuring the advisory board remains purposeful and lean. It also supports Free Enterprise by maintaining a clear, functional regulatory body without adding burdensome rules or structures that could hinder business participation or responsiveness. Importantly, there is no new rulemaking authority created, and no fiscal impact is expected at either the state or local level, according to the Legislative Budget Board.

SB 705 reflects responsible administrative housekeeping that respects taxpayer resources and enhances the efficiency of a licensing-related board. Therefore, Texas Policy Research recommends that lawmakers vote YES on SB 705.

• Individual Liberty: The bill does not affect individual rights or liberties directly, such as free speech, due process, or bodily autonomy. However, to the extent that improved board function could lead to more balanced or transparent regulatory policies in the future, it may create a more open and fair environment for individuals who are subject to licensing requirements.
• Personal Responsibility: There is no direct effect on personal accountability. The bill neither imposes new obligations nor shifts responsibility from individuals to the state.
• Free Enterprise: Although the bill does not alter licensing requirements or reduce regulatory burdens directly, it may help the advisory board operate more efficiently and responsively. An advisory board that is better structured and more focused can contribute to fairer, more predictable rulemaking that benefits contractors and small businesses in the HVAC industry. This supports a freer market environment by reinforcing a regulatory process that is clearer and less encumbered by redundant oversight.
• Private Property Rights: No provisions in the bill touch on property rights, land use, or eminent domain.
• Limited Government: The bill reduces the size of a state advisory board by removing two ex officio nonvoting members—positions that were historically filled by senior leadership at the Texas Department of Licensing and Regulation (TDLR) but are now considered ceremonial and functionally unnecessary. This is a textbook example of streamlining government by eliminating roles that do not contribute to policy decisions or regulatory oversight. Fewer nonessential roles reduce bureaucratic inertia and reinforce the idea that state boards should be lean and purpose-driven.