The Legislative Budget Board (LBB) has determined that SB 442 would have no significant fiscal impact on the state budget. The bill expands the definition of the unlawful production or distribution of sexually explicit media to include deepfake media and removes the requirement that the act must be committed with intent to deceive. Additionally, it tightens the criteria for valid consent and increases penalties for repeat offenders, elevating certain violations from a Class A misdemeanor to a third-degree felony.

While these changes may lead to increased criminal prosecutions, the impact on state correctional facilities and resources is expected to be minimal. The LBB assumes that any additional costs related to court proceedings, incarceration, or enforcement would be absorbable within current state resources. The Office of Court Administration and the Texas Judicial Council contributed to this analysis, indicating that the volume of new cases arising from the bill would not create a significant financial burden on the judicial system.

For local governments, the fiscal impact would largely depend on the number of offenses committed and the associated court costs. While additional cases may lead to some increased expenses for local court systems, these are not anticipated to be substantial enough to require new funding allocations at the municipal or county level. Furthermore, revenue from fines and legal fees could help offset any additional administrative costs incurred.

SB 442 provides critical legal updates to address the growing concern of deepfake media in sexually explicit contexts. As stated in the bill analysis provided by the Senate Research Center, existing laws do not adequately cover the unique harms posed by AI-generated or manipulated media, particularly in cases where individuals are falsely depicted in nonconsensual sexual content. The bill strengthens privacy protections, prevents digital exploitation, and ensures accountability for those who distribute such content without consent.

The legislation aligns with core liberty principles by protecting individual rights and personal autonomy while avoiding unnecessary government overreach. It maintains a balanced approach, criminalizing non-consensual distribution but allowing affirmative defenses for law enforcement, medical, and legal purposes. Additionally, the bill mandates that consent must be obtained through a written agreement, ensuring clear guidelines for ethical deepfake media production.

Given that the fiscal impact is minimal and the bill closes legal loopholes in digital privacy and criminal justice, while also reinforcing personal responsibility, protecting private property rights over one’s image, and upholding limited government intervention by targeting harmful conduct without restricting lawful digital creativity, Texas Policy Research recommends lawmakers vote YES on SB 442.