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LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

April 23, 2025

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB1460 by Campbell (Relating to the ethics violations registry maintained by the Texas Ethics Commission and the requirement that state agencies verify an applicant's status on the registry before issuing or renewing a license.), As Introduced

The fiscal implications of the bill cannot be determined because the proportion of penalties assessed by the Texas Ethics Commission that could be recovered as a result of the bill, and that otherwise would not be paid, cannot be determined.

In addition, modifications to licensing agency policies and procedures required by the bill could have a significant fiscal cost at those agencies; however, these costs cannot be determined at this time.

The bill would amend the Government Code to direct the Texas Ethics Commission (TEC) to establish an Ethics Violation Registry.  Certain individuals or entities would be placed on the registry for unpaid fines assessed by TEC.  A specified list of agencies would be directed to verify whether individuals subject to licensure under their jurisdiction are on the registry and to delay or deny new and renewal applications for licensure until the penalty is resolved.

According to TEC, there are $3,229,522 in unpaid penalties assessed by the agency that have been referred to the Office of Attorney General.  The proportion of those penalties that could be recovered as a result of the bill, and that otherwise would not be paid, cannot be determined.

Also according to TEC, the cost of establishing and maintaining the registry could be absorbed within existing resources.

The anticipated fiscal impact of the bill on specified licensing agencies would vary from an anticipated significant fiscal impact to no significant fiscal impact.  Three examples:

According to the Texas Department of Insurance (TDI), the bill would prevent the agency from utilizing an auto-approval system for applications and renewals and would require significant alterations in TDI operations and require additional FTEs.

According to the Health and Human Services Commission (HHSC), the agency is unable to determine the fiscal impact as the extent of modifications needed to HHSC's Texas Unified Licensure Information Portal (TULIP) system are unknown. HHSC assumes accessing TEC's registry would require TULIP modifications and additional FTEs.

According to the Alcoholic Beverage Commission, no significant fiscal impact is anticipated.

The overall fiscal impact of the bill on licensing agencies specified within its provisions cannot be determined at this time.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

329 Real Estate Commission, 356 Texas Ethics Commission, 407 Commission on Law Enforcement, 452 Department of Licensing and Regulation, 454 Department of Insurance, 458 Alcoholic Beverage Commission, 503 Texas Medical Board, 529 Health and Human Services Commission, 537 State Health Services, Department of, 582 Commission on Environmental Quality, 608 Department of Motor Vehicles

LBB Staff:

JMc, RStu, LCO, GP, NV