Texas Senate

Subject: Wound Care Dressing and Menstrual Product Sales Tax Exemption, Senate Bill 379 (SB 379)

• Author: State Sen. Joan Huffman (R-Houston)
• TFR Position: Oppose
• Background: SB 379 seeks to add wound care dressings and menstrual products sold for the principal purpose of feminine hygiene in connection with the menstrual cycle to the list of sales tax-exempt items. Approving such an exemption would subsequently narrow the tax base and leave less revenue for tax relief that could benefit everyone, as opposed to only those who would purchase such products. Sales taxes should tax all final consumer purchases, without regard to whether items are classified as necessities or luxuries. Exempting such products from the sales tax base would result in less revenue for the state, leading to higher overall rates in the long run if spending is also not simultaneously cut to make up for the shortfall. For these reasons, TFR opposes SB 379.

Subject: Raising the Mandatory Retirement Age for State Justices and Judges, House Joint Resolution 107 (HJR 107)

• Author: State Rep. Four Price (R-Amarillo)/State Sen. Chuy Hinojosa (D-McAllen)
• TFR Position: Oppose
• Background: HJR 107 seeks to increase the mandatory age of retirement for state justices and judges from 75 to 79 years of age. The current trend of the state, country, and overall judiciary consisting of largely octogenarians is a bad trend, providing for a generational disconnect and entitled aging state employees that cost additional resources. If anything we should be reducing the age for retirement, not raising it. For this reason, TFR opposes HJR 107.

Subject: Growing Government, House Bill 3447 (HB 3447)

• Author: State Rep. Greg Bonnen (R-Friendswood)/State Sen. Joan Huffman (R-Houston)
• TFR Position: Oppose
• Background: HB 3447 seeks to create the Texas Space Commission and the Texas Aerospace Research and Space Economy Consortium, which will purportedly provide strategic direction for the state’s space and aerospace investments. With a negative fiscal note of nearly $4 million through the biennium and nearly $2 million every year thereafter, this is a waste of taxpayer money. There is no need for government intervention when there are multiple private companies like SPACE X and Virgin Galactic doing a much better job in the private sector. In a year when homeowners are being crushed by an ever-increasing property tax burden, we should not be growing government in this manner. For this reason, TFR opposes HB 3447.

Subject: Creation of the Texas Semiconductor Innovation Consortium, House Bill 5174 (HB 5174)

• Author: State Rep. Greg Bonnen (R-Friendswood)/State Sen. Joan Huffman (R-Houston)
• TFR Position: Oppose
• Background: HB 5174 seeks to establish the Texas Semiconductor Innovation Consortium (TSIC) and the Texas Semiconductor Innovation Fund (TSIF). TSIC would be used to leverage the expertise and capacity of institutions of higher education, industry, and non-profit “stakeholders” to develop a strategic plan to ensure ongoing semiconductor innovation, sustain Texas’ leadership in semiconductor research, design, and manufacturing; attract public and private investment in Texas related to semiconductors; identify and expand opportunities for workforce training and development related to semiconductors; and establish a forum for public and private stakeholders across the semiconductor manufacturing industry with Texas to focus on education, research, and commercial production. The TSIF would be utilized to provide appropriations to state entities and institutions of higher education as matches for semiconductor manufacturing and design projects, and award grants to business entities with an established presence within the state of Texas to encourage economic development related to semiconductor manufacturing and design. HB 5174 is estimated to have a negative impact of $1.7 million through the biennium and about $830k every year thereafter. Though Texas should absolutely be concerned about ensuring they maintain hegemony in producing semiconductors, instituting a corporate welfare program to do something the free market can do better, is not the right answer. For this reason, TFR opposes HB 5174.

Texas House of Representatives

Subject: Anti-Free Enterprise, House Bill 287 (HB 287)

• Author: State Rep. Julie Johnson (D-Farmers Branch)
• TFR Position:  Oppose on Local, Consent, and Resolutions Calendar
• Background: HB 287 seeks to force insurance companies to pay at least 80% of the replacement cost value up front on a valid claim. This regulation is anti-free enterprise and not the proper role of government. For these reasons, TFR opposes HB 287.

Subject: Property Tax Exemption at Expense of Other Taxpayers, House Bill 581 (HB 581)

• Author: State Rep. Richard Raymond (D-Laredo)
• TFR Position: Oppose on Local, Consent, and Resolutions Calendar
• Background: HB 581 seeks to add charitable housing counseling service organizations to the list of entities that qualify for property tax exemptions in a specific area of the state. Exempting one group from a tax only increases the burden on those who do not qualify for such an exemption, unless the spending of the local government levying the tax is simultaneously lowered, thereby lessening the burden. Texas taxpayers absolutely deserve property tax relief but providing an exemption for one group at the expense of another is not the right approach. For these reasons, TFR opposes HB 581.

Subject: Burdensome Regulation, House Bill 2382 (HB 2382)

• Author: State Rep. Senfronia Thompson (D-Houston)
• TFR Position: Oppose on Local, Consent, and Resolutions Calendar
• Background: HB 2382 seeks to require that jewelers provide reports on crafted precious metal transactions, regardless of the value. This requirement represents burdensome regulation on jewelers. For this reason, TFR opposes HB 2382.

Subject: Property Tax Exemption at Expense of Other Taxpayers, House Bill 3691 (HB 3691)

• Author: State Rep. Cole Hefner (R-Mount Pleasant)
• TFR Position: Oppose on Local, Consent, and Resolutions Calendar
• Background: HB 3691 seeks to add charitable senior housing organizations to the list of entities that qualify for property tax exemptions as long as they provide for charitable raffles that benefit the elderly. exemptions raise taxes on everyone else. Exempting one group from a tax only increases the burden on those who do not qualify for such an exemption, unless the spending of the local government levying the tax is simultaneously lowered, thereby lessening the burden. Texas taxpayers absolutely deserve property tax relief but providing an exemption for one group at the expense of another is not the right approach. For these reasons, TFR opposes HB 3691.

Subject:  Hotel Occupancy Tax for Denton County Sports & Events Complex, House Bill 5105 (HB 5105)

• Author: State Rep. Lynn Stucky (R-Sanger)
• TFR Position: Oppose on Local, Consent, and Resolutions Calendar
• Background: HB 5105 seeks to allow Denton County the ability to use Hotel Occupancy Tax (HOT) revenue for the purpose of development, construction, maintenance, operation, improvement, and marketing and promotion of a multipurpose sports and events complex. The continued use of HOT to finance projects is antithetical to free enterprise. The use of such things lacks accountability. There is no reason to create new taxes and grow the government to build buildings not crucial to infrastructure. For this reason, TFR opposes HB 5105.

Reminder: Vote Notices are provided to both Texas state lawmakers and the general public in advance of Texans for Fiscal Responsibility’s position on issues to be rated as part of the Fiscal Responsibility Index 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 as part of the Fiscal Responsibility Index. We will make every effort to provide notice on amendments that are pre-filed.