The fiscal implications of SB 971 are minimal, according to the Legislative Budget Board (LBB). The bill is not expected to have a significant fiscal impact on the state government. Any costs associated with implementing the repeal of Section 15.001(14) of the Texas Water Code can be absorbed within existing resources of the Texas Water Development Board (TWDB).

Similarly, there is no significant fiscal impact anticipated for local governments, meaning that cities, counties, or rural water districts should not experience notable financial burdens due to the bill’s passage. The bill is primarily a technical correction and does not create new funding obligations or revenue changes for state or local entities.

Texas Policy Research is NEUTRAL on SB 971 given its limited policy impact and lack of significant fiscal implications. The bill is primarily a technical correction to address a scrivener’s error in SB 469 (88th Legislature) that unintentionally expanded the definition of "rural political subdivision" to include urban areas. By repealing Section 15.001(14) of the Texas Water Code, SB 971 allows the original definition from HB 3582 to remain the governing language.

While this change is intended to restore legislative clarity, it is unclear whether it will impact rural communities' eligibility for Texas Water Development Board (TWDB) funding. However, since the bill does not introduce new regulations or remove existing funding allocations, its practical effect is likely minimal. Given the absence of significant consequences—either positive or negative—we remain NEUTRAL, with the caveat that lawmakers should monitor its potential impact on rural water access and take further legislative action if necessary.

• HB 2302 (Same As)