LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1705 by Parker (Relating to the regulation of virtual currency kiosks.), As Introduced The fiscal implications cannot be determined due to the full extent of the activities involved in implementation, administration, and enforcement of the bill's provisions being unknown. The bill would amend the Finance Code to add a chapter relating to the regulation of virtual currency kiosks. The bill would require virtual currency kiosk operators to hold a money transmission license issued by the Texas Department of Banking, to register with the Texas Department of Licensing and Regulation (TDLR), and to obtain prior approval from TDLR before operating. The bill would also set certain requirements and restrictions on the conduct of virtual kiosk operators and authorize TDLR to adopt rules necessary to implement, administer, and enforce the chapter. TDLR estimates that the agency would require an additional $350,000 each year and 3.0 additional full-time equivalent positions to implement the registration portions of the bill. However, the agency reports difficulty determining what it would be able to do to enforce the bill's provisions and thus what its related needs would be in the absence of specific authority granted by the bill. In addition the agency reports that the Commission of Licensing and Regulation adopts rules for TDLR and the programs it regulates, not TDLR, and it is unknown what activities the Commission might authorize by rule to implement, administer, or enforce the chapter. As the full extent of TDLR's involvement in implementation, administration, and enforcement of the bill's provisions is currently unknown, the fiscal implications of the bill cannot be determined. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 452 Department of Licensing and Regulation LBB Staff: b > td > JMc, RStu, GDZ, BFa, CMA
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 14, 2025
TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1705 by Parker (Relating to the regulation of virtual currency kiosks.), As Introduced
TO: Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1705 by Parker (Relating to the regulation of virtual currency kiosks.), As Introduced
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1705 by Parker (Relating to the regulation of virtual currency kiosks.), As Introduced
SB1705 by Parker (Relating to the regulation of virtual currency kiosks.), As Introduced
The fiscal implications cannot be determined due to the full extent of the activities involved in implementation, administration, and enforcement of the bill's provisions being unknown.
The fiscal implications cannot be determined due to the full extent of the activities involved in implementation, administration, and enforcement of the bill's provisions being unknown.
The bill would amend the Finance Code to add a chapter relating to the regulation of virtual currency kiosks. The bill would require virtual currency kiosk operators to hold a money transmission license issued by the Texas Department of Banking, to register with the Texas Department of Licensing and Regulation (TDLR), and to obtain prior approval from TDLR before operating. The bill would also set certain requirements and restrictions on the conduct of virtual kiosk operators and authorize TDLR to adopt rules necessary to implement, administer, and enforce the chapter. TDLR estimates that the agency would require an additional $350,000 each year and 3.0 additional full-time equivalent positions to implement the registration portions of the bill. However, the agency reports difficulty determining what it would be able to do to enforce the bill's provisions and thus what its related needs would be in the absence of specific authority granted by the bill. In addition the agency reports that the Commission of Licensing and Regulation adopts rules for TDLR and the programs it regulates, not TDLR, and it is unknown what activities the Commission might authorize by rule to implement, administer, or enforce the chapter. As the full extent of TDLR's involvement in implementation, administration, and enforcement of the bill's provisions is currently unknown, the fiscal implications of the bill cannot be determined.
TDLR estimates that the agency would require an additional $350,000 each year and 3.0 additional full-time equivalent positions to implement the registration portions of the bill. However, the agency reports difficulty determining what it would be able to do to enforce the bill's provisions and thus what its related needs would be in the absence of specific authority granted by the bill. In addition the agency reports that the Commission of Licensing and Regulation adopts rules for TDLR and the programs it regulates, not TDLR, and it is unknown what activities the Commission might authorize by rule to implement, administer, or enforce the chapter. As the full extent of TDLR's involvement in implementation, administration, and enforcement of the bill's provisions is currently unknown, the fiscal implications of the bill cannot be determined.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 452 Department of Licensing and Regulation
452 Department of Licensing and Regulation
LBB Staff: b > td > JMc, RStu, GDZ, BFa, CMA
JMc, RStu, GDZ, BFa, CMA