According to the Legislative Budget Board (LBB), SB 1860 is not expected to have a significant fiscal impact on the State of Texas. The bill primarily refines the scope of applicability for certain digital safety regulations by exempting small businesses, educational institutions, and federally regulated entities from compliance under Chapter 509 of the Business & Commerce Code. Because the changes largely relate to statutory clarification and the exclusion of already-regulated or low-risk entities, the administrative burden on state enforcement agencies—such as the Office of the Attorney General—is not anticipated to materially increase or decrease.

The report also notes that any minor costs or savings resulting from the implementation of the bill would be considered insignificant and absorbable within existing agency budgets. This suggests that the infrastructure for oversight, legal interpretation, and compliance monitoring already exists and would not require additional staffing or resources to manage the changes brought by SB 1860.

For local governments, the bill is projected to have no fiscal implications. Since enforcement responsibilities and compliance monitoring under the affected statute are generally centralized at the state level, there is no anticipated cost or operational shift for municipalities, counties, or school districts.

SB 1860 is a clarifying and narrowly tailored amendment to the SCOPE Act, passed in the 88th Texas Legislature to protect minors from harmful digital content. This bill revises the applicability of Chapter 509 of the Business & Commerce Code by exempting specific entities such as private schools, small businesses, and digital service providers already subject to comprehensive federal privacy laws. It ensures that the original child-protection goals of the SCOPE Act remain intact while addressing overbreadth and compliance concerns raised by affected parties.

This legislation advances the principle of limited government by scaling back unnecessary or duplicative regulatory authority over low-risk institutions. Instead of expanding government reach, SB 1860 defines clear boundaries around state oversight. The exemption of private schools, in particular, aligns regulatory policy with Texas’s historical approach of distinguishing public and private educational governance. Furthermore, it avoids introducing any new administrative programs or rulemaking mandates, and does not increase the footprint of any agency.

Importantly, SB 1860 also poses no additional burden on taxpayers. The Legislative Budget Board determined that it carries no significant fiscal impact for the state and no impact for local governments. There are no appropriations, fees, or enforcement expansions tied to the bill. Because it clarifies and limits applicability rather than initiating new obligations, the legislation also reduces the regulatory burden on individuals and businesses. Entities that operate under HIPAA, FERPA, or limited-scope services such as email providers are relieved from navigating overlapping or unnecessary state-level digital safety mandates.

In summary, SB 1860 responsibly narrows the application of an existing statute to ensure proportional, effective governance. It protects children online without overregulating schools, employers, or small businesses, and does so without expanding government or imposing new costs. As such, the bill is a sound legislative adjustment and Texas Policy Research recommends that lawmakers vote YES on SB 1860.

• Individual Liberty: The bill protects individual freedom by ensuring that state law does not intrude unnecessarily into the digital practices of private actors who are either already regulated under federal law or operate in ways that present minimal risk to minors. By exempting private schools and small digital platforms (such as email services or content-focused websites), the bill preserves the right of individuals and institutions to manage their affairs without excessive state oversight. It also respects the rights of parents to make decisions about their children's digital engagement—without placing broad compliance burdens on organizations that may not meaningfully impact child safety.
• Personal Responsibility: The bill affirms the role of personal and parental responsibility in overseeing minors’ online activity. Rather than relying on the state to blanket-regulate all digital environments, the bill removes entities that are less central to the problem or already held accountable through other legal frameworks. It thus reinforces the idea that families, educators, and consumers are capable of making informed decisions in contexts where government involvement is unnecessary or duplicative.
• Free Enterprise: The bill significantly reduces regulatory burdens on small businesses and digital service providers, promoting innovation and entrepreneurship. By shielding low-risk and federally compliant businesses from state-level redundancy, SB 1860 fosters a more predictable and navigable business environment—particularly in the tech and education sectors. This encourages a competitive marketplace where companies are not penalized for providing services unrelated to harmful online content.
• Private Property Rights: By narrowing the application of Chapter 509 of the Business & Commerce Code, the bill protects the autonomy of private institutions—including private schools—to operate without state-imposed mandates that were originally designed for public systems. This respects the legal and operational distinctions between public and private entities and defends the principle that property owners (including organizations) should not be subject to unnecessary regulatory constraints on how they use their resources or manage their services.
• Limited Government: Fundamentally, the bill exemplifies limited government. It reduces the reach of a recently enacted law by refining who it applies to, avoids creating new enforcement authority, and imposes no new mandates or costs. It limits the state's role to what is necessary and appropriate, leaving broader governance to existing federal laws and private sector judgment where applicable.