Texans for Fiscal Responsibility has issued the following vote notice for May 12th, 2025

Texas House of Representatives

---

Subject: House Joint Resolution 35 (HJR 35) – Grant Program from ESF

• Author: State Rep. Tom Craddick (R-Midland)
• Caption: Proposing a constitutional amendment providing for the creation of and use of money in the Grow Texas fund and allocating certain general revenues to that fund, the economic stabilization fund, and the state highway fund.
• TFR Position: OPPOSE
• Background: 
  • HJR 35 proposes redirecting severance tax revenue away from the state’s Rainy Day Fund and into a new Grow Texas Fund for infrastructure, education and health spending in oil- and gas-producing regions, by providing grants to state agencies and local governments, up to $250 million per biennium. While proponents frame this as a reinvestment in energy-producing areas, the plan reduces the amount of money going into the ESF—Texas’s key financial safety net. From a fiscally conservative standpoint, this weakens long-term financial stability by carving out a new, politically directed spending mechanism with ongoing revenue redirection. It also sets up a new commission, introducing more bureaucracy and potential for regional favoritism. The resolution places no meaningful limits on the types of infrastructure that could be funded, leaving room for mission creep. At its core, this resolution grows government by establishing a new fund and advisory body rather than prioritizing taxpayer relief or fiscal restraint.

Subject: House Joint Resolution 47 (HJR 47) – New Grant Program

• Author: State Rep.  Brooks Landgraf (R-Odessa)
• Caption: Proposing a constitutional amendment providing for the creation of the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund, dedicating the money in that fund to benefit areas of the state significantly affected by oil and gas production, and providing for the transfer of certain general revenues to that fund, the economic stabilization fund, and certain other funds and accounts.
• TFR Position: OPPOSE
• Background: 
  • HJR 47 proposes creating a new government fund called the Texas STRONG Defense Fund, which would redirect a significant portion of oil and gas tax revenue that currently supports the state’s Rainy Day Fund. Instead of saving for future emergencies or applying surplus to tax relief, this plan sets up a pipeline of public money to various grants with vague criteria tied to oil and gas regions. While framed as helping energy-producing communities, the fund risks becoming another vehicle for pork-barrel spending and government expansion. It reduces the share going to the Economic Stabilization Fund at a time when fiscal prudence is critical, and it creates a new entitlement structure that will depend on oil revenues. The projected $708 million hit to General Revenue in just the first two years undermines other core priorities and limits the state’s ability to deliver broad-based tax relief. Instead of dedicating surplus funds to permanent tax cuts or debt reduction, this measure channels money into grant programs that lack strong taxpayer safeguards. Fiscal conservatives should oppose this attempt to grow government spending through a constitutional amendment, and support tax relief efforts instead.

Subject: House Bill 127 (HB 127) – Hostile Foreign Influence

• Author: State Rep.  Terry Wilson (R-Georgetown)
• Caption: Relating to measures to protect public institutions of higher education from foreign adversaries and to the prosecution of the criminal offense of theft of trade secrets; providing civil penalties; increasing a criminal penalty.
• TFR Position: SUPPORT
• Background: 
  • HB 127 strengthens safeguards to ensure Texas public universities are not compromised by hostile foreign governments. It blocks institutions from accepting gifts or contracts tied to adversarial nations unless they meet stringent exceptions, protecting taxpayer-funded research from foreign influence. It sets up a research security council to develop and enforce best practices for research integrity. The bill also requires foreign nationals seeking research roles to undergo background checks and disclosure of affiliations to prevent intellectual property theft. Academic partnerships and cultural exchanges with adversarial nations are heavily restricted to stop indirect influence on curriculum. Institutions must monitor and report foreign travel by researchers to ensure transparency and accountability. The bill imposes penalties for noncompliance and increases criminal punishment for trade secret theft that benefits foreign entities. From a limited government and taxpayer protection perspective, the bill helps prevent misuse of state funds, secures state-supported research, and stops public institutions from unknowingly partnering with adversaries of the U.S.

Subject: House Bill 2868 (HB 2868) – Modernizes electric utility rate-setting

• Author: State Rep.  Will Metcalf (R-Montgomery)
• Caption: Relating to the consideration of the proportion of long-term debt and equity capitalization in establishing the rates of certain electric utilities.
• TFR Position: SUPPORT
• Background: 
  • HB 2868 makes utility rate-setting in Texas more transparent and grounded in current financial reality. It requires regulators to begin with the utility’s actual capital structure—how much is financed through debt versus equity—when setting rates, instead of relying on outdated assumptions. This approach limits arbitrary adjustments and helps ensure rates are based on real-world financial data. If a utility’s proposal seems out of line, the law sets a clear national benchmark to fall back on, which keeps regulators in check and prevents utilities from inflating costs. This reform ensures that utility companies aren’t unfairly penalized or rewarded during rate cases, promoting investment and stability in the power grid. It also helps keep costs predictable and fair for consumers by discouraging excessive regulatory manipulation.

Subject: House Bill 3720 (HB 3720) – Local Bridge projects

• Author: State Rep. Senfronia Thompson (D-Houston)
• Caption: Relating to the construction of bridges in Harris County.
• TFR Position: OPPOSE
• Background: 
  • HB 3720 directs TxDOT to build two costly bridges in Harris County to address local traffic issues at rail crossings. While the intent is to ease congestion and support emergency access, it comes with a significant price tag—$85 million in state taxpayer funds. The projects are not on the state highway system, raising serious concerns about whether state funds should be used at all. This means taxpayers across Texas may be footing the bill for a localized infrastructure improvement. The bill essentially bypasses standard funding requirements and sets a precedent for state involvement in local development projects. From a fiscal responsibility standpoint, this represents unnecessary state expansion into county-level responsibilities. Texans should be cautious about approving projects that benefit a specific locality while increasing the burden on statewide taxpayers.

Subject: House Bill 105 (HB 105) – Corporate Welfare Expansion

• Author: State Rep. Ryan Guillen (R-Rio Grande City)
• Caption: Relating to the Texas Jobs, Energy, Technology, and Innovation Act.
• TFR Position: OPPOSE
• Background: 
  • HB 105 expands the JETI corporate tax abatement program by creating a new class of “priority projects” for companies pledging to invest $750 million or more. These projects, along with electric generation facilities, would be exempt from any job creation obligations, weakening the program’s tie to local employment gains. The bill also loosens wage standards, allowing companies to qualify even if they don’t pay market-competitive wages across the board. The legislation would shift hundreds of millions of dollars in lost school property tax revenue to the state over the next decade, resulting in a direct cost to taxpayers. This is effectively a massive giveaway to large corporations with little guarantee of public benefit. The bill rewards companies for simply showing up, with no binding proof that the incentive is necessary to secure the investment. Furthermore, it makes no provision for performance accountability or measurable economic returns. HB 105 represents corporate welfare at taxpayer expense and erodes the principle of limited, accountable government.

Subject: House Bill 3954 (HB 3954) – HOT tax subsidy

• Author: State Rep.  Sheryl Cole (D-Austin)
• Caption: Relating to the authority of certain municipalities to use certain tax revenue derived from a hotel and convention center project.
• TFR Position: OPPOSE
• Background: 
  • HB 3954 lets the City of Pflugerville claim millions in state tax revenue to subsidize a hotel and convention center project for up to a decade. Taxpayers statewide would lose more than $1.1 million starting in 2030 to support a local development that primarily benefits private investors. From a limited government standpoint, it diverts state revenue from core priorities like infrastructure or tax relief to fund local pet projects. It encourages municipalities to seek state handouts instead of using their own resources. Projects such as these should rise or fall based on their own merits, not be propped up by taxpayers.

Subject: House Bill 3918 (HB 3918) – Local Regulation transparency

• Author: State Rep.  Mihaela Plesa (D-Dallas)
• Caption: Relating to information on local regulations governing the placement of political signs in a municipality.
• TFR Position: SUPPORT
• Background: 
  • HB 3918 improves transparency by requiring city governments to post local rules about political sign placement online, along with maps of any restricted areas. It ensures that candidates, election officials, and political parties can easily access this information without needing to navigate confusing or inconsistent local rules. By making regulations available upfront, the bill reduces the risk of unintentional violations and fines, avoiding costly legal or compliance burdens. It supports a more open political process without imposing new mandates or costs on private individuals. Overall, HB 3918 aligns with limited government principles by increasing transparency while reducing compliance confusion and regulatory inefficiency.

Subject: House Bill 4742 (HB 4742) – Enables Higher Property taxes

• Author: State Rep. Charlie Geren (R-Fort Worth)
• Caption: Relating to the ability of a school district to request an appraisal of property by the appraisal district.
• TFR Position: OPPOSE
• Background: 
  • HB 4742 would allow school districts to force appraisal districts to conduct out-of-cycle reappraisals of all property within their boundaries, even when the broader appraisal district has not scheduled one. While it’s framed as a tool to ensure up-to-date property values, it effectively enables school boards to trigger costly, potentially politically motivated reappraisals that could inflate taxable values and drive up property taxes. This move shifts administrative power away from countywide appraisal boards and undermines consistency in tax administration. Instead of promoting taxpayer fairness, it opens the door to aggressive revenue tactics disguised as equity measures. This legislation promotes increased spending and taxation under the guise of local control.

Subject: House Bill 4518 (HB 4518) – Blockchain-based nonprofits

• Author: State Rep.  David Cook (R-Mansfield)
• Caption: Relating to the formation of decentralized unincorporated nonprofit associations and the use of distributed ledger or blockchain technology for certain business purposes; authorizing fees.
• TFR Position: SUPPORT
• Background: 
  • HB 4518 gives legal recognition to a modern kind of nonprofit built on blockchain technology, helping Texas become a leader in innovation-friendly regulation. These decentralized associations let large online communities collaborate without traditional hierarchies, using smart contracts and digital tools to make decisions. By clearly outlining how these groups can operate, own property, and resolve disputes, the bill provides legal certainty and protects individual members from personal liability. It supports innovation while still requiring transparency, accountability, and adherence to a nonprofit mission. The law ensures that profits stay within the organization, not in members’ pockets, preserving the nonprofit intent. This approach attracts emerging blockchain-based projects and talent to Texas without growing government or creating new bureaucracy. It encourages economic development and technological advancement at no cost to taxpayers. By embracing these voluntary, self-governing digital entities, the state reinforces its commitment to free enterprise and limited government.

Subject: House Bill 4045 (HB 4045) – Low-income housing tax credits

• Author: State Rep. Cecil Bell (R-Magnolia)
• Caption: Relating to the allocation of low income housing tax credits.
• TFR Position: OPPOSE
• Background: 
  • HB 4045 alters the way low-income housing tax credit applications are scored by requiring that a legislator’s neutral stance be treated as if no stance was taken at all. This change subtly shifts more weight to the influence of local government resolutions rather than elected state legislators. By blurring the distinction between neutrality and non-involvement, the bill weakens the role of legislative oversight and potentially empowers politically motivated local officials to tip the scales in favor of taxpayer-funded housing projects. This opens the door to more aggressive lobbying by developers and makes it easier for questionable projects to secure public subsidies. It also risks increasing the number of subsidized developments approved without clear support from communities or their elected representatives. Fiscal conservatives should be wary of expanding state mechanisms that facilitate taxpayer-backed housing interventions.

Subject: House Bill 3911 (HB 3911) – Private Well Plugging

• Author: State Rep.  Drew Darby (R-San Angelo)
• Caption: Relating to the plugging or replugging of certain inactive wells subject to the jurisdiction of the Railroad Commission of Texas.
• TFR Position: SUPPORT
• Background: 
  • HB 3911 offers a practical, private-sector solution to a growing number of abandoned oil wells that threaten the environment and public safety by letting responsible operators or landowners voluntarily plug these wells—without exposing themselves to legal liability. This incentivizes good actors to step in and help resolve a public problem without forcing the state to expand its bureaucracy or increase spending. The bill ensures those who didn’t cause the problem aren’t unfairly penalized for trying to help fix it. Importantly, the Railroad Commission retains oversight to maintain safety and accountability. It empowers local landowners and businesses, avoids new regulations or taxes, and reinforces the principle of personal responsibility.

Subject: House Bill 3976 (HB 3976) – Taxpayer-funded professional license waivers

• Author: State Rep.  Angie Button (R-Garland)
• Caption: Relating to the waiver of license renewal fees for certain instructors in high-demand fields at public institutions of higher education.
• TFR Position: OPPOSE
• Background: 
  • HB 3976 would require state agencies to waive license renewal fees for college instructors teaching in high-demand professions. While the goal is to attract qualified instructors, this policy shifts the financial burden to taxpayers by cutting over $2 million in state revenue during the next two years, with continued losses annually. This sets a concerning precedent of picking winners—subsidizing certain professionals while ignoring others equally vital to the economy. The bill expands government involvement in the free market by distorting the licensing process and it grows state financial obligations without a funding mechanism or spending cut to offset the cost. The state should instead focus on reducing overall licensing burdens and regulations for everyone, not carving out new exemptions.

Subject: House Bill 265 (HB 265) – Grant Program from ESF

• Author: State Rep. Tom Craddick (R-Midland)
• Caption: Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, and the Grow Texas fund and to the permissible uses of money deposited to the Grow Texas fund.
• TFR Position: OPPOSE
• Background: 
  • HB 265 is the enabling legislation for HJR 35. It proposes redirecting severance tax revenue away from the state’s Rainy Day Fund and into a new Grow Texas Fund for infrastructure, education and health spending in oil- and gas-producing regions, by providing grants to state agencies and local governments, up to $250 million per biennium. While proponents frame this as a reinvestment in energy-producing areas, the plan reduces the amount of money going into the ESF—Texas’s key financial safety net. From a fiscally conservative standpoint, this weakens long-term financial stability by carving out a new, politically directed spending mechanism with ongoing revenue redirection. It also sets up a new commission, introducing more bureaucracy and potential for regional favoritism. The resolution places no meaningful limits on the types of infrastructure that could be funded, leaving room for mission creep. At its core, this resolution grows government by establishing a new fund and advisory body rather than prioritizing taxpayer relief or fiscal restraint.

Subject: House Bill 4398 (HB 4398) – Fast-track Low income housing

• Author: State Rep. Cassandra Hernandez (D-Farmers Branch)
• Caption: Relating to municipal permitting requirements for certain development projects supported with low income housing tax credit allocations.
• TFR Position: OPPOSE
• Background: 
  • HB 4398 mandates that Texas cities with more than 100,000 people fast-track building permit applications for subsidized housing developments that receive low-income housing tax credits. These applications must be processed in half the normal time, regardless of the city’s internal procedures, staffing levels, or local permitting challenges. The bill also forces cities to give these projects access to any existing fast-track review systems, giving preferential treatment over market-rate developments. While this may benefit politically favored developers, it sets a concerning precedent by compelling local governments to prioritize taxpayer-backed housing projects. It rewards projects that rely on taxpayer subsidies instead of encouraging self-sufficient, private sector solutions. Taxpayers should not bear the cost of rushed and preferential treatment for government-incentivized housing.

Subject: House Bill 4443 (HB 4443) – Green jobs training program

• Author: State Rep. Salman Bhojani (D-Euless)
• Caption: Relating to the establishment by the Texas Workforce Commission of a pilot program to train workers for careers in energy-efficient technologies.
• TFR Position: OPPOSE
• Background: 
  • HB 4443 creates a government-run pilot program to train students in energy-efficient technologies, centered in the Dallas-Fort Worth area. It requires coordination among multiple state agencies and public colleges to design courses, determine who qualifies, and partner with specific industries. High schoolers and graduates may receive dual credit or job certifications under this program. The bill mandates extensive data collection on outcomes, including job placements and wages, and it requires a full program review by 2030 to decide whether it should expand statewide. While intended to address workforce shortages, this bill imposes a new government-managed education initiative that relies on taxpayer funds and regulatory oversight. It represents an expansion of state involvement in workforce planning and educational programming. From a fiscally conservative standpoint, it risks inefficient use of resources, duplicative training efforts, and favors a politically preferred industry. Instead of letting markets and private employers lead workforce development, it increases bureaucracy and potential long-term spending.

Texas Senate

---

Subject: Senate Bill 1310 (SB 1310) – Senior Housing Regulations

• Author: State Sen. Molly Cook (D-Houston)
• Caption: Relating to senior retirement communities.
• TFR Position: OPPOSE
• Background: 
  • SB 1310 imposes new mandates on privately operated senior living communities by requiring them to develop and maintain state-regulated emergency response plans. While framed as a safety measure, this bill opens the door for increased state involvement in private housing arrangements and introduces compliance costs for operators. These costs may ultimately be passed down to residents in the form of higher rent or fees, burdening seniors on fixed incomes. The bill also establishes vague expectations and requirements regarding food, water, and staffing during emergencies. Although some original regulatory overreach—like civil penalties and HHSC filings—was removed in the substitute version, the legislation still expands government’s role into previously unregulated private housing. It creates a precedent for further micromanaging housing contracts and facility operations. A better approach would encourage voluntary best practices without expanding state oversight. From a limited government standpoint, this bill represents regulatory creep interference that could do more harm than good to seniors and taxpayers alike.

Subject: Senate Bill 2522 (SB 2522) – Reduces Regulations

• Author: State Sen. Paul Bettencourt (R-Houston)
• Caption: Relating to certain powers, limitations, and duties of a municipality and county in the extraterritorial jurisdiction of the municipality and the unincorporated area of the county.
• TFR Position: SUPPORT
• Background: 
  • SB 2522 prevents local governments from imposing strict land development rules—like lot size or density requirements—in areas outside their city limits or in rural parts of counties. This ensures that private landowners and developers are not subject to unnecessary red tape from cities. The bill repeals outdated and overly broad justifications for county land use regulation and cuts back regulatory overreach into the property rights of Texans. By rolling back these mandates, the legislation encourages more affordable housing and economic development. From a taxpayer standpoint, it limits costly bureaucracy and helps avoid regulatory barriers that drive up housing costs.

Subject: Senate Bill 2600 (SB 2600) – Eliminates fees

• Author: State Sen. Mayes Middleton (R-Galveston)
• Caption: Relating to a fee charged by a school district for the transportation of a student who lives within two miles of the school the student attends.
• TFR Position: SUPPORT
• Background: 
  • SB 2600 ends the ability of school districts to charge families extra transportation fees for students living within two miles of campus. These families already fund public education through local property taxes, and charging additional fees—particularly for services like safe transportation—is a double hit to taxpayers. This bill removes that burden and ensures equitable access to busing without imposing more costs. By eliminating this local fee authority, the bill reduces opportunities for hidden or regressive fees that disproportionately impact working families. It also promotes student safety, enhances transparency and limits local government overreach.

---

---

Reminder: Vote Notices are provided to both Texas state lawmakers and the general public, sharing Texans for Fiscal Responsibility’s position on issues eligible to be rated as a part of the Fiscal Responsibility Index. Notices are provided prior to votes being taken in each legislative chamber.

Disclaimer: We reserve the right to consider amendments to legislation that may be introduced without notice as a part of issues to be rated on the Fiscal Responsibility Index. We will make every effort to provide notice on amendments that are pre-filed.