LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 2, 2025 TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB186 by Patterson (relating to prohibiting use of social media platforms by children.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend the Business and Commerce Code to prohibit social media platforms from allowing individuals under the age of 18 to establish accounts by requiring the platforms to implement age verification. A violation of this subchapter by a social media company would be considered a deceptive trade practice, and would be subject to legal action by the Office of the Attorney General's Consumer Protection Division. According to the Comptroller of Public Accounts, the fiscal implications of the bill cannot be determined due to a lack of available data on the number of violations that would result in a civil penalty.The Office of Court Administration indicates that their costs to implement the bill's provisions are indeterminate as there is no data available to project docket volume that may be generated as a result of the bill.This analysis assumes civil penalty revenue and docket volume growth would be insignificant.The Office of the Attorney General anticipates any legal work resulting from the passage of this bill could be reasonably absorbed within their current resources. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, RStu, LCO, JKe, NV LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 2, 2025 TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB186 by Patterson (relating to prohibiting use of social media platforms by children.), Committee Report 1st House, Substituted TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB186 by Patterson (relating to prohibiting use of social media platforms by children.), Committee Report 1st House, Substituted Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB186 by Patterson (relating to prohibiting use of social media platforms by children.), Committee Report 1st House, Substituted HB186 by Patterson (relating to prohibiting use of social media platforms by children.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Business and Commerce Code to prohibit social media platforms from allowing individuals under the age of 18 to establish accounts by requiring the platforms to implement age verification. A violation of this subchapter by a social media company would be considered a deceptive trade practice, and would be subject to legal action by the Office of the Attorney General's Consumer Protection Division. According to the Comptroller of Public Accounts, the fiscal implications of the bill cannot be determined due to a lack of available data on the number of violations that would result in a civil penalty.The Office of Court Administration indicates that their costs to implement the bill's provisions are indeterminate as there is no data available to project docket volume that may be generated as a result of the bill.This analysis assumes civil penalty revenue and docket volume growth would be insignificant.The Office of the Attorney General anticipates any legal work resulting from the passage of this bill could be reasonably absorbed within their current resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts 212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, RStu, LCO, JKe, NV JMc, RStu, LCO, JKe, NV