The fiscal implications of Senate Bill 707 (SB 707) are expected to be minimal at the state level, with no significant costs anticipated. The Legislative Budget Board (LBB) notes that any expenses associated with implementing the bill could likely be absorbed using existing resources. However, there is a potential, but indeterminate, fiscal impact if the legislature were to prohibit state government officers and employees from enforcing federal directives deemed unconstitutional. This impact would depend on whether any federal funding is tied to the enforcement of such directives. If Texas declines to comply with federal mandates, the state could risk losing federal grants or other financial support linked to those policies.

Additionally, there is no significant fiscal implication projected for local government entities. While the bill’s direct costs appear manageable, the potential for federal funding repercussions remains uncertain and would require further analysis to determine specific financial risks.

SB 707 strengthens Texas's state sovereignty by allowing the legislature to determine the constitutionality of federal directives and prohibit state officers and employees from enforcing those deemed unconstitutional. The bill provides a legislative check against federal overreach, reinforcing the Tenth Amendment and limiting government power, aligning with core conservative principles. By creating a framework for rejecting unconstitutional federal mandates, the bill safeguards Texans' rights, private property, and economic freedoms from excessive federal intervention.

Some suggestions for improvement might include things like establishing judicial oversight or a state-level judicial review mechanism that would reinforce the bill's constitutional foundation, ensuring due process before enforcement prohibitions taxke effect; or requiring the preparation of a fiscal impact assessment where a clearer financial impact analysis on potential loss of federal funding tied to noncompliance would help lawmakers anticipate risks and develop contingency plans.

SB 707 is a strong assertion of state rights, and implementing the above refinements would enhance its durability against legal challenges and ensure its smooth implementation while maintaining its intended purpose. Texas Policy Research recommends lawmakers vote YES on SB 707.