Texans for Fiscal Responsibility has issued the following vote notice for May 9th, 2025

Texas House of Representatives

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Subject: House Joint Resolution 175 (HJR 175) – Money Freedom

• Author: State Rep. Stan Gerdes (R-Smithville)
• Caption: Proposing a constitutional amendment relating to the right to own, hold, and use a mutually agreed upon medium of exchange.
• TFR Position: SUPPORT
• Background: 
  • HJR 175 proposes a constitutional amendment to ensure Texans can use any agreed-upon form of money in private transactions. It protects individuals’ rights to use not only cash and coins but also digital currencies and even private forms of exchange like scrip or bullion. From a fiscally conservative perspective, it reinforces personal financial freedom and limits the government’s ability to control or restrict monetary choices. The amendment ensures that citizens retain autonomy over how they store and exchange value, which is particularly relevant in an era of increasing digital surveillance and central bank control. This measure could act as a safeguard against future efforts to eliminate cash or centralize all transactions through government-monitored systems. It respects the principles of voluntary exchange, decentralization, and property rights—core values of limited government. By enshrining this protection in the state constitution, it reduces the likelihood of bureaucratic overreach in financial affairs.

Subject: House Joint Resolution 88 (HJR 88) – Niche Property tax exemption

• Author: State Rep. Erin Zwiener (D-Driftwood)
• Caption: Proposing a constitutional amendment to authorize the commissioners court of a county to exempt from ad valorem taxation by each political subdivision that taxes the property the portion of the assessed value of a person’s property that is attributable to the installation in or on the property of a rainwater harvesting or graywater system.
• TFR Position: OPPOSE
• Background: 
  • HJR 88 proposes a constitutional amendment that would allow county commissioners courts to exempt from property taxes the portion of a home’s value added by installing a rainwater harvesting or graywater system. While the stated intent is to promote water conservation, the resolution would complicate the tax code by creating a new, selective exemption. Instead of providing broad tax relief, it rewards certain property owners based on their ability to afford and install niche environmental upgrades—an option not available to many Texans. Renters, lower-income homeowners, and those in dense urban areas where space or infrastructure doesn’t allow for these systems would be effectively excluded from any benefit, while still subsidizing the lost revenue through higher rates or reduced services. The policy could result in a patchwork of exemptions across the state, with different counties adopting different rules, undermining consistency and fairness in taxation. Additionally, it opens the door for further politically favored carve-outs, further eroding the principle of equal treatment under the tax code. It also raises enforcement and verification challenges, as local governments would be tasked with confirming installation details, valuation impact, and compliance, all of which add red tape and administrative costs. From a fiscally conservative, pro-taxpayer standpoint, this measure represents government interference in the tax base and picks winners and losers in the marketplace. For these reasons, TFR opposes HJR 88.

Subject: House Bill 21 (HB 21) – HFC Reform

• Author: State Rep. Gary Gates (R-Richmond)
• Caption: Relating to housing finance corporations; authorizing a fee.
• TFR Position: SUPPORT
• Background: 
  • HB 21 reforms how Housing Finance Corporations (HFCs) operate and receive property tax exemptions. It reins in their authority by confining them to their sponsoring city or county, preventing developers from exploiting HFCs to dodge taxes statewide. To be eligible for tax breaks, developments must reserve a set portion of units for lower- and moderate-income tenants and demonstrate substantial rent discounts compared to market rates. The bill ensures taxpayer dollars are not subsidizing projects that provide little public benefit by requiring rigorous affordability, transparency, and accountability standards. It also mandates annual audits of qualifying developments, which must be publicly disclosed and reviewed by the state. If a project fails to meet these standards or does not submit an audit, it risks losing its tax-exempt status. This helps prevent abuse and ensures HFCs are delivering on their promise to support truly affordable housing. Overall, the bill aligns with fiscal conservative values by curbing taxpayer-funded perks for private developers and promoting oversight and efficiency in local housing programs.

Subject: House Bill 346 (HB 346) – Eliminates startup business fees

• Author: State Rep. Caroline Harris (R-Round Rock)
• Caption: Relating to support for new businesses.
• TFR Position: SUPPORT
• Background: 
  • HB 346 seeks to reduce government-imposed costs on entrepreneurs by eliminating state business licensing and registration fees during a company’s first year. It also pushes state agencies to dedicate at least 5% of workforce and economic development funds to support businesses less than five years old. By doing so, the bill fosters a friendlier startup environment without expanding government bureaucracy. The legislation encourages the awarding of state contracts to new companies, aiming for a minimum of 5% of all state purchases. This can help small and local businesses grow without being crowded out by larger incumbents. The reporting requirements ensure transparency while keeping agencies accountable for supporting Texas entrepreneurs. While the bill does reduce revenue, it does so by cutting what amounts to a government barrier to entry, not by expanding spending. From a fiscally conservative viewpoint, the bill promotes free market competition, local innovation, and a leaner regulatory burden.

Subject: House Bill 565 (HB 565) – Constitutional Amendments Cost Estimate

• Author: State Rep. Carl Tepper (R-Lubbock)
• Caption: Relating to a requirement that the ballot for an election to amend the state constitution include an estimate of the cost to the state of the proposed amendment.
• TFR Position: SUPPORT
• Background: 
  • HB 565 increases transparency by requiring voters to be informed about how much proposed constitutional amendments could cost the state. When a constitutional amendment appears on the ballot, it would now include an estimate—either a recurring or one-time amount—based on analysis from the Legislative Budget Board. This empowers taxpayers with critical financial information before they vote, discouraging costly, unnecessary constitutional changes. By helping voters understand long-term fiscal impacts, the bill serves as a check on government growth. It encourages lawmakers to be more cautious when proposing amendments that would expand government spending or create new state programs. This reform prioritizes fiscal responsibility and government accountability.

Subject: House Bill 2734 (HB 2734) – Welfare application fraud

• Author: State Rep. Janis Holt (R-Silsbee)
• Caption: Relating to public assistance program fraud; creating a criminal offense.
• TFR Position: SUPPORT
• Background: 
  • HB 2734 strengthens safeguards against welfare fraud by penalizing individuals who lie on applications to receive public benefits like Medicaid or food assistance. This bill holds applicants accountable for providing false information and aligns penalties with the financial value of the fraud, deterring both small- and large-scale abuse. It promotes responsible stewardship of taxpayer dollars by ensuring that public assistance only goes to those who truly qualify. By tying punishment levels to the amount of benefits wrongfully received, the bill brings proportional accountability without creating new bureaucratic layers. From a fiscally conservative perspective, this bill reinforces fairness and trust in public systems while reducing waste, and prevents exploitation of taxpayer-funded programs.

Subject: House Bill 1186 (HB 1186) – HOT Tax subsidy

• Author: State Rep. Tom Craddick (R-Midland)
• Caption: Relating to the entitlement of certain municipalities to receive tax revenue from certain establishments located near a hotel and convention center project.
• TFR Position: OPPOSE
• Background: 
  • HB 1186 represents a misuse of state tax dollars by diverting revenue away from the general fund to support a specific local development project in Midland. Rather than allowing the free market to determine whether a hotel and convention center should be built, the bill enables government to pick winners and losers by subsidizing one project with statewide tax revenues. This kind of favoritism not only undermines taxpayer fairness but also sets a dangerous precedent where politically connected projects are rewarded at public expense. Local developments should succeed or fail based on private investment and market demand—not government handouts.

Subject: House Bill 3619 (HB 3619) – Landowner protections

• Author: State Rep. Jay Dean (R-Longview)
• Caption: Relating to the rights and liabilities of the owner of the surface estate of the tract of land on which a well to be plugged or replugged by the Railroad Commission of Texas is located.
• TFR Position: SUPPORT
• Background: 
  • HB 3619 protects Texas landowners from legal and financial liability when the state conducts abandoned well plugging operations on their property. It makes clear that the Railroad Commission and its contractors—not the landowners—bear responsibility for damages or injuries resulting from these actions. This shields property owners from costly lawsuits and unwarranted financial risk. The bill also prevents the state from unnecessarily restricting landowner access during such operations, preserving property rights. It further requires the state to restore the land to its prior condition after completing work, ensuring government activity doesn’t leave taxpayers or ranchers with cleanup costs. By codifying these protections, the bill ensures that landowners are not penalized for state-initiated remediation work.

Subject: House Bill 778 (HB 778) – Reverse Gender Transition Coverage

• Author: State Rep. Jeff Leach (R-)
• Caption: Relating to required health benefit plan coverage for gender transition adverse effects and reversals.
• TFR Position: SUPPORT
• Background: 
  • HB 778 ensures that if a health plan covered a person’s gender transition treatment, it must also cover the aftermath—whether it’s medical complications, regret-driven reversal procedures, or ongoing health screenings. This bill helps prevent taxpayers and private individuals from footing large medical bills out-of-pocket due to insurers shirking responsibility. It closes a loophole that left some Texans without coverage for post-transition care, which can be medically necessary and costly. By requiring insurance plans—not the state or taxpayers—to cover these expenses, the bill protects both individual health and public finances. It also helps improve long-term cost forecasting by requiring diagnostic codes for these treatments. HB 778 represents a step toward personal responsibility in healthcare and avoids the expansion of government programs or subsidies to fill these gaps in care.

Subject: House Bill 2858 (HB 2858) – Foreign worker program

• Author: State Rep. Ray Lopez (D-San Antonio)
• Caption: Relating to the establishment of a temporary guest worker program in this state.
• TFR Position: OPPOSE
• Background: 
  • HB 2858 would authorize the Governor of Texas to create a state-run guest worker program in partnership with a Mexican state. While promoted as a way to address labor shortages, this bill raises major concerns for Texas workers and taxpayers. By allowing employers to bypass domestic labor in favor of foreign guest workers, the bill could suppress wages, reduce job opportunities for Texans, and create disincentives for businesses to invest in local workforce development. It risks creating a government-managed system that picks winners and losers in the labor market, undermining free-market dynamics. Administering this program could also place new costs and burdens on state government, including enforcement, documentation, and cross-border coordination—all of which fall to taxpayers. In effect, the bill shifts economic responsibility from private industry to the state, expanding government’s role in workforce management and weakening incentives for employers to recruit, train, and retain domestic talent. A better path forward would focus on removing regulatory barriers and encouraging employment through market-based solutions.

Subject: House Bill 2974 (HB 2974) – Tax Subsidy

• Author: State Rep. Tom Craddick (R-Midland)
• Caption: Relating to the authority of certain municipalities to use certain tax revenue for a hotel and convention center project and to receive certain tax revenue related to the project.
• TFR Position: OPPOSE
• Background: 
  • HB 2974 allows the City of Midland to bypass existing state limits and secure additional tax rebates to fund not just one, but multiple hotel and convention center projects. These rebates include a wide range of taxes from associated restaurants, bars, and entertainment facilities. While this may benefit local developers, it does so at a direct cost to the state treasury—projected to exceed $1.2 million in just the first few years. From a fiscally conservative viewpoint, this is a classic example of government picking winners and losers, granting selective subsidies to certain favored projects. It undercuts free market competition by letting certain businesses benefit from taxpayer-funded incentives while others bear the full tax burden. It also creates precedent for more carveouts, encouraging a patchwork of city-specific giveaways. Rather than supporting broad-based tax relief, this bill funnels revenue to targeted developments that should rise or fall based on merit, not government aid.

Texas Senate

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Subject: Senate Bill 1698 (SB 1698) – E-cigarette regulations

• Author: State Sen. Tan Parker (R-Flower Mound)
• Caption: Relating to the sale of certain e-cigarettes in this state and a directory of e-cigarette manufacturers and their products; authorizing fees; authorizing administrative and civil penalties; creating a criminal offense.
• TFR Position: OPPOSE
• Background: 
  • SB 1698 creates a comprehensive regulatory framework for e-cigarettes in Texas by requiring every manufacturer to annually certify each product with the state and pay a $2,500 fee per item. The bill directs the Comptroller to maintain a publicly available directory of approved products, and only e-cigarettes listed in this directory may be sold by retailers, wholesalers, and distributors in Texas. Any product not listed—or removed from the directory—is subject to confiscation, destruction, and fines of up to $10,000 per item. Out-of-state manufacturers face even more burdens, including mandatory registration with a Texas agent and a $25,000 surety bond. The law also mandates random, unannounced inspections and requires the hiring of at least seven new government employees, at a taxpayer cost of nearly $4 million over the next two years, and nearly $2 million each year after.
  • This bill imposes steep compliance costs that will likely disproportionately impact small and independent manufacturers who may not be able to afford to pay thousands per product just to access the Texas market. Larger, established corporations may absorb these costs easily without significantly impacting their bottom line, but smaller competitors will be driven out or blocked from entry, effectively handing a government-created advantage or potential monopoly to one or more large corporations. Additionally, the rigid registration process and costly enforcement regime favor a centralized, bureaucratic approach that expands state control over a private, legal market. From a fiscally conservative and pro-taxpayer standpoint, this bill grows government, and disproportionately burdens smaller businesses with red tape.

Subject: Senate Bill 1950 (SB 1950) – Unemployment Fraud

• Author: State Sen. Brandon Creighton (R-Conroe)
• Caption: Relating to the eligibility of certain individuals for unemployment benefits and the validity of certain claims for unemployment benefits submitted to the Texas Workforce Commission.
• TFR Position: SUPPORT
• Background: 
  • SB 1950 tightens the rules for collecting unemployment benefits in Texas by ensuring that recipients are genuinely looking for work and not exploiting the system. It requires job seekers to prove they are actively applying for jobs, attending interviews, or improving their skills each week. To combat fraud, the Texas Workforce Commission must now verify identities and cross-check claims with multiple government databases. Those who are caught lying or gaming the system face penalties. Although the state will spend over $2.7 million to upgrade technology and staffing, the legislation is projected to save taxpayers over $222 million annually going forward. This bill protects the unemployment system from abuse, prioritizes accountability, reduces waste, and reinforces the principle that benefits are a safety net, not a long-term substitute for work.

Subject: Senate Bill 2063 (SB 2063) – Appraisal protests

• Author: State Sen. Tan Parker (R-Flower Mound)
• Caption: Relating to ad valorem tax protests and appeals on the ground of the unequal appraisal of property.
• TFR Position: SUPPORT
• Background: 
  • SB 2063 improves the fairness and transparency of Texas’s property tax protest system by eliminating the use of market value evidence in cases that focus only on unequal appraisal. This means taxpayers can challenge their appraisals based strictly on how their property was assessed compared to others—without the appraisal district muddying the waters by introducing subjective or fluctuating market values. By keeping the focus solely on comparative appraised values, the process becomes clearer, more consistent, and harder to manipulate. This protects homeowners and small businesses from being overtaxed due to inconsistencies by appraisal districts. It also discourages costly and prolonged disputes by simplifying the scope of evidence, saving both time and money. This legislation is a small step toward a more accountable and taxpayer-friendly appraisal system in Texas.

Subject: Senate Bill 2519 (SB 2519) – Stops Property Tax misuse

• Author: State Sen. Paul Bettencourt (R-Houston)
• Caption: Relating to restrictions on the levy and use of certain ad valorem taxes and on the issuance of certain bonds supported by ad valorem taxes.
• TFR Position: SUPPORT
• Background: 
  • SB 2519 strengthens taxpayer protections by ensuring local governments cannot repurpose voter-approved property tax increases for debt repayment or unrelated projects. It prevents the bait-and-switch tactics where voters approve a tax hike for a specific project, only to see funds redirected later without further approval. If a local government materially deviates from what was promised—such as significantly raising costs or changing the scope—property owners can sue to stop the tax collection. While that lawsuit is pending, they don’t have to pay the disputed taxes. If they win, they get their money back, plus legal costs. The bill also blocks the use of these taxes to back bonds or unrelated debts. By holding local entities accountable to their original promises, this bill curbs government overreach, strengthens transparency, and safeguards taxpayers from misuse of funds.

Subject: Senate Bill 2611 (SB 2611) – Real property fraud

• Author: State Sen. Royce West (D-Dallas)
• Caption: Relating to the status of certain documents or instruments concerning real or personal property; creating the criminal offenses of real property theft and real property fraud and establishing a statute of limitations for those offenses; harmonizing other statute of limitations provisions; increasing a criminal penalty.
• TFR Position: SUPPORT
• Background: 
  • SB 2611 creates new criminal laws specifically for real property theft and fraud, separating these from generic theft or fraud to better track and prosecute offenders. This bill gives property owners more tools to defend their rights and reclaim their land without needing costly and time-consuming litigation. It ensures that criminal judgments affecting property are filed in county records, helping prevent fraudulent owners from maintaining control of stolen real estate. The bill also mandates restitution for victims, including property owners, lenders, and title companies, to ensure those harmed are made whole—without relying on taxpayer-funded bailouts. By allowing civil courts to invalidate fraudulent documents quickly, the bill minimizes bureaucratic delays and legal costs. This measure helps to restore faith in private property rights and reduces legal uncertainty in real estate markets. It protects taxpayers by preventing bad actors from using public systems to profit off fraud. Ultimately, it upholds a key limited-government principle: safeguarding private property.

Subject: Senate Bill 2619 (SB 2619) – School accountability and transparency

• Author: State Sen. Brandon Creighton (R-Conroe)
• Caption: Relating to certain accountability-related policies and procedures related to public schools, the availability of information regarding a board of trustees of a school district or governing body of an open-enrollment charter school, and the approval by the Texas Education Agency of training provided to a member of a board of trustees of a school district.
• TFR Position: SUPPORT
• Background: 
  • SB 2619 imposes stronger accountability measures on underperforming public school districts in Texas. If a district earns an “F” for two years straight, all board trustees are required to stand for re-election, giving voters the chance to choose new leadership. The bill also ensures communities are informed about superintendent candidates by mandating that their past academic performance be publicly posted. It enhances transparency by requiring school boards to post trustee contact and term info online and submit it to the state. Crucially, it prohibits state-approved trustee training providers from pushing political agendas. The bill also calls for school performance percentile rankings to help evaluate leadership objectively. For districts taken over by the state, a required return to elected governance within two years prevents prolonged bureaucratic control. From a fiscally conservative standpoint, this bill encourages local accountability, prevents ideological misuse of public training dollars, and limits long-term state intervention. It respects taxpayer rights by fostering transparency, merit-based hiring, and minimizing top-down control of local schools.

Subject: Senate Bill 2955 (SB 2955) – HOT Tax Subsidy

• Author: State Sen. Tan Parker (R-Flower Mound)
• Caption: Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects.
• TFR Position: OPPOSE
• Background: 
  • SB 2955 allows the Town of Addison to access state hotel occupancy and sales tax revenue to subsidize a local hotel and convention center project. While pitched as a targeted economic development effort, this bill is yet another example of local governments seeking special treatment through carve-outs in state law. It effectively lets one city retain state tax dollars—collected from hotel stays and purchases—rather than returning those funds to the General Revenue Fund to support core state services. The projected fiscal loss to the state is nearly $2.4 million in just the first two years of operation, with ongoing losses expected for a decade. From a fiscally conservative standpoint, this is government picking winners and losers in the hospitality industry. It shifts risk to taxpayers for a development that should succeed or fail on its own market merits. Local commercial projects should be financed locally—not through state tax diversions. Expanding the QHP program further erodes state budget discipline and encourages more cities to lobby for similar handouts.

Subject: House Joint Resolution 2 (HJR 2) – Ban on Death Taxes

• Author: State Rep. Charlie Geren (R-Fort Worth)
• Caption: Proposing a constitutional amendment prohibiting the legislature from imposing death taxes applicable to a decedent’s property or the transfer of an estate, inheritance, legacy, succession, or gift.
• TFR Position: SUPPORT
• Background: 
  • HJR 2 proposes a constitutional amendment to permanently ban estate, inheritance, and gift taxes in Texas. This measure prevents future legislatures from taxing wealth transfers after death, protecting families, small businesses, and farmers from unexpected tax burdens. It safeguards private property rights and encourages investment and savings. Locking this policy into the constitution helps provide long-term financial certainty for taxpayers.

Subject: House Bill 517 (HB 517) – Limits POA drought penalties

• Author: State Rep. Caroline Harris (R-Round Rock)
• Caption: Relating to the authority of a property owners’ association to assess a fine for discolored vegetation or turf during a period of residential watering restriction.
• TFR Position: SUPPORT
• Background: 
  • HB 517 protects Texas homeowners from being unfairly fined by their property owners’ associations (POAs) during times of city-mandated water restrictions. It prevents POAs from enforcing lawn appearance rules that require green grass or ban brown turf when water use is limited due to drought. The bill also grants homeowners a 30-day grace period after the restriction ends to bring their lawn back into compliance. This measure ensures that residents are not put in the unreasonable position of choosing between obeying city water rules or facing HOA penalties. The bill reduces unnecessary penalties, upholds personal property rights, and limits the overreach of unelected POA boards.

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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.