According to the Legislative Budget Board (LBB), SB 1181 is not expected to have a significant fiscal impact on the state. The proposed changes to the regulation of combative sports—such as updated promoter responsibilities, licensing exemptions for certain amateur events, and the creation of a Class A misdemeanor for promoting unapproved events—are not projected to generate notable additional revenue or expenditures for the Texas Department of Licensing and Regulation (TDLR) or other state agencies involved in enforcement and oversight.

While the bill grants the TDLR new authority to approve events and enforce compliance, it is assumed that these activities can be absorbed within existing resources. Similarly, the introduction of a new misdemeanor offense is not expected to significantly affect state correctional populations or increase the demand for correctional resources.

For local governments, the fiscal impact is also considered minimal. While cities and counties may incur some costs related to the enforcement or prosecution of unauthorized events, these are projected to be infrequent and limited in scope. The bill does not impose unfunded mandates or require new infrastructure, personnel, or major administrative changes at the local level.

Overall, SB 1181 is fiscally neutral, with any incidental costs or revenues being too minor to materially affect state or local budgets.

SB 1181 seeks to modernize the regulation of combative sports in Texas by strengthening oversight of promoters, formalizing the event approval process, and introducing regulatory mechanisms for elimination tournaments. The bill closes statutory loopholes that have allowed certain events to circumvent licensing and bonding requirements, while aiming to improve participant safety through medical and licensure compliance. It also establishes a new Class A misdemeanor for promoters who knowingly hold events without approval from the Texas Department of Licensing and Regulation (TDLR).

While the intent of SB 1181 is sound—promoting safety, accountability, and regulatory consistency—the means of implementation raise significant concerns from a liberty-based policy perspective. Most notably, the bill expands the scope of government by increasing TDLR’s regulatory authority and introducing criminal penalties where civil or administrative remedies could suffice. The creation of a Class A misdemeanor offense for non-compliant event promotion is disproportionate and may unnecessarily deter participation in the industry, especially for small or amateur promoters unfamiliar with complex regulatory frameworks.

Furthermore, although there is no significant fiscal impact to taxpayers, the bill increases the regulatory burden on individuals and businesses by adding procedural hurdles and compliance risks that could stifle entrepreneurship and innovation. These burdens are not sufficiently offset by safeguards or educational provisions to ensure fair access and understanding of the new requirements.

For these reasons, Texas Policy Research recommends that lawmakers vote NO on SB 1181 unless amended to remove the criminal penalty, offer tiered or civil enforcement mechanisms, and ensure that the approval process is transparent, timely, and accessible. Such changes would maintain the bill’s public safety objectives while aligning more closely with Texas’s core principles of individual liberty, limited government, and free enterprise.

• Individual Liberty: The bill impedes individual liberty by criminalizing conduct that may not inherently involve harm to others. Specifically, Section 2052.301 creates a Class A misdemeanor for promoting a combative sports event without TDLR approval. This imposes a severe legal penalty—even potentially leading to jail time—for what may be a bureaucratic or unintentional violation, especially by small-scale or independent promoters. While ensuring public safety is important, the criminalization of regulatory non-compliance encroaches on the freedom of individuals to organize events without facing disproportionate legal consequences.
• Personal Responsibility: The bill promotes personal responsibility by holding event promoters accountable for verifying contestant eligibility, securing medical services, and complying with safety protocols. These provisions reflect a reasonable expectation that those profiting from combative sports should ensure the well-being of participants and spectators. In this respect, the bill aligns well with this principle, emphasizing individual accountability in commercial and professional conduct.
• Free Enterprise: The bill introduces new regulatory burdens that could limit market participation, especially among small businesses or new entrants unfamiliar with TDLR procedures. By requiring advance approval for each event and imposing criminal penalties for non-compliance, the bill creates barriers to entry and increases operational risks. These added restrictions may disproportionately affect local gyms, amateur clubs, and independent promoters—entities typically vital to fostering grassroots sports development and entrepreneurship.
• Private Property Rights: While the bill does not directly regulate property, it imposes new compliance obligations on private venues hosting combative sports. Property owners may become reluctant to rent space for events due to the risk of association with unapproved or non-compliant promotions. This could indirectly chill the use of private property for lawful, voluntary activities and reduce opportunities for legitimate sports gatherings.
• Limited Government: The bill notably expands government authority by granting the Texas Department of Licensing and Regulation broader rulemaking powers and creating a new criminal offense. These provisions signal a shift toward more punitive and centralized control, rather than relying on civil enforcement or industry-led standards. A truly limited government would prioritize minimal, proportional interventions and avoid criminalizing nonviolent administrative infractions.