Texas Political Spotlight
Welcome back, friends
Texas lawmakers are moving to limit the influence of out-of-state donors with a new bill capping contributions in statewide and local races. Meanwhile, the Texas Senate has passed a key business tax relief measure that increases exemptions on business inventory to ease the burden on owners. At the same time, Texas Attorney General Ken Paxton has launched an investigation into General Mills for allegedly misrepresenting cereals as “healthy” despite containing petroleum-based dyes, part of a wider crackdown on synthetic additives in food.
Today’s Insights:
- Texas House Passes Measure to Regulate Out-of-State Donations
- Business Property Tax Relief Clears Texas Senate
- Texas AG Investigates General Mills Over ‘Healthy’ Marketing of Cereals With Banned Dyes
Image Credit: KXAN
Texas House Passes Measure to Regulate Out-of-State Donations
The Texas House approved HB 3592, authored by Rep. Dade Phelan, which would impose limits on campaign contributions from out-of-state donors for statewide and local elections. The bill caps individual out-of-state donations at $5,000 for statewide races, $2,500 for district offices, and $1,000 for county offices. While out-of-state contributions would face new limits, the bill does not restrict in-state donations or contributions from out-of-state political action committees (PACs), which can still give unlimited amounts. Candidates must return any disallowed out-of-state donations within five days or before the next reporting period, with civil penalties up to three times the donation amount.
The legislation reflects efforts to curb the increasing influence of out-of-state money in Texas elections, where currently no individual contribution limits exist. Although the bill has passed the House, its future in the Senate remains uncertain, as a companion measure has yet to receive a hearing. Texas is one of a few states without caps on individual political donations, contrasting with states like Florida and California, which have strict limits.
Image Credit: Texas Scorecard
Business Property Tax Relief Clears Texas Senate
The Texas Senate on Wednesday unanimously approved HB 9, a measure that would exempt up to $125,000 of a business’s inventory, or business personal property, from taxation by local entities such as school districts, cities, and counties. Currently, only inventory valued at $2,500 or less is exempt, making the bill a substantial increase in relief for business owners. Texas is one of the few states that taxes business inventory, which can include machinery, equipment, and unsold goods. The legislation, authored by Rep. Morgan Meyer, represents a compromise between earlier proposals from the House and Senate, which ranged from a $250,000 exemption to a more modest $25,000 exemption paired with franchise tax cuts.
HB 9 is a central part of a broader tax relief agreement between legislative leaders that also includes increased homestead exemptions for Texas homeowners. Companion legislation in the Senate, SB 4 and SB 23, both priorities for Lt. Gov. Dan Patrick, would raise the school district homestead exemption from $100,000 to $140,000, and provide additional relief for homeowners who are 65 and older or have disabilities. These Senate bills have passed their chamber but await consideration in the House. Meanwhile, HB 9, a top priority for House Speaker Dustin Burrows, now returns to the House for a final vote on Senate amendments before it can advance to Gov. Greg Abbott’s desk.
»»» WATCH: Senator Huffman Senate Finance Committee HB 9 Layout «««
Texas AG Investigates General Mills Over ‘Healthy’ Marketing of Cereals With Banned Dyes
Texas Attorney General Ken Paxton has launched an investigation into General Mills, alleging the company deceptively markets cereals like Trix and Lucky Charms as "healthy" and a "good source" of vitamins, despite using petroleum-based synthetic dyes. In a Civil Investigative Demand issued Tuesday, Paxton criticized the company for reintroducing dyes that had been previously removed and called on General Mills to sell dye-free versions of its cereals in the U.S., as it does in countries where such additives are banned. The investigation comes amid broader federal scrutiny, with Health and Human Services Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary announcing a plan to phase out these additives by 2026, citing health concerns, particularly for children.
“Under my watch, big food companies should be on high alert that they will be held accountable if they put toxic ingredients in our food and engage in false marketing,” said Attorney General Paxton. “I’m proud to stand with the Trump Administration and Secretary Kennedy in taking on petroleum-based synthetic dyes and will always fight to protect the health of the American people. That includes working tirelessly to ensure that food products are not illegally and deceptively marketed by corporations, which is why I’ve launched this investigation into General Mills”
- Attorney General Ken Paxton
While General Paxton’s inquiry stops short of a lawsuit, his office signals growing pressure on food manufacturers amid evolving national standards. The dyes in question, such as Red 40, Yellow 5, and Blue 1, remain legal in the U.S., though Red 3 was recently banned due to cancer risks. Paxton said companies should be “on high alert” for false advertising and suggested his office would support efforts aligned with the federal plan to remove synthetic dyes.
»»» Full Press Release from The Office of The Attorney General «««
🤝 USLege Secures Venture Capital Funding to Accelerate Nationwide Expansion
We hope you enjoyed today’s read!
Stay connected with TXLege News on X and LinkedIn!
🤝 Texas Venture Forum & Gala May 28–29
USLege is headed to the Texas Venture Forum & Gala May 28–29, sponsoring, speaking, and podcasting live from the floor. Join us for the conference and gala at the intersection of tech and government.
🎙️We Have a Podcast! 🎙️
Bills and Business is your go-to podcast for conversations related to Texas legislation and business. Hosted by Laura Carr, Co-Founder of USLege—an AI-driven legislative tracking software—we bring you in-depth analysis on economic trends, impactful legislation, and key developments shaping Texas business.
Subscribe on Youtube and Spotify for weekly episodes!
🔍 USLege - The Only AI-First Political Tracking Solution ✨
USLege helps you track legislation and find what you need faster from bills, committee hearings, floor debates, and state agency meetings faster.
Say goodbye to tedious tasks!
You can follow USLege on LinkedIn, Facebook, and X.
🤝 Texas Association of Business 📈
Texas Association of Business (TAB) is the Texas State Chamber, representing companies of every size and industry. TAB’s purpose is to champion the best business climate in the world, unleashing the power of free enterprise to enhance lives for generations.
- 01 First
Subscribe to our Newsletter
Read more news
Opinion: The Texas Century
Welcome to Friday Forum, a weekly segment where we explore diverse opinions on the topics shaping Texas politics and business. The views expressed here represent the perspectives of individual contributors and are not endorsements by TXLege News. Our aim is to encourage thoughtful discussion and present a range of viewpoints on issues that matter to Texans. Email info@uslege.ai for submitting opinion contributions.
For Texas, the hits keep coming. You’ve seen the news:
- Chief Executive Magazine has named Texas the best place for business for 23 straight years
- We just took home a 12th straight Governor’s Cup from Site Selection Magazine for the best state for business
- We are the Top Exporting state for 21 years in a row
- Home to the most Fortune 500 headquartered companies (55)
- And we’ve led the nation in population growth for the past 18 years
Oh, and Texas is the 8th largest economy in the world.
This is not an overnight success story, and it’s not the so-called “Texas Miracle.” It’s a story about the value of free enterprise, visionary entrepreneurs, innovation, and YES – limited government that allows these things to flourish.
It’s a success story built – purposely -- over the last 30 years. Let me explain.
Let’s talk about the future and how we got here.
The Texas entrepreneurial spirit – yes. Vast natural resources – true. But it’s also about state government not overtaxing and overspending.
And not just staying out of the way but supporting public policy to allow business – particularly small business, which is 55% of net new jobs– to flourish.
And we’re not slowing down; Texas added 78,000 jobs in August, a 12th straight month of growth, while most states are contracting. Texas led all states for jobs gained over the month and over the year and again set new records for total jobs, the number of Texans working, and the size of the Texas labor force.
In the mid-2010’s, an organization I co-founded (“Texas 2050”) with major Texas business and trade organizations began planning for a job-creating, strong Texas economy. Our core mission was to position Texas for economic growth over the long term. Today, we are seeing some of those objectives come to fruition.
In 2023, the 88th Texas Legislature:
- Made big investments in infrastructure (roads, water, broadband, semiconductors, and space)
- Cut property taxes for homeowners and businesses by $ 18 Billion
- Made new investments in manufacturing by passing HB 4 to create Chapter 403
- Invested substantially in public and higher education, including community colleges
- And kept a sizable surplus for good measure
What’s the next world-class industry for Texas to lead? In addition to space and semiconductors, it may very well be data centers. A recent hearing of the Texas Senate Business and Commerce Committee made clear: expansion of the Texas data center sector will be critical to meet the needs of our modern economy.
In the digital age, data is not just a byproduct of our activities; it is the core asset that fuels innovation, drives efficiency, and propels economic growth.
As organizations increasingly rely on data analytics, cloud computing, and advanced technologies to gain a competitive edge, the demand for robust data center infrastructure has never been higher. The industry is poised to invest $ 200 Billion a year – and almost $ 1 Trillion over the next five years – in data centers to process information in our modern world. That’s an incredible amount of capital investment and Texas should see a good chunk of it if we don’t regulate ourselves out of the conversation.
This makes Governor Abbott, Lt. Governor Patrick, and others’ call to double investment in the Texas Energy Fund a wise move, indeed.
That data flow will include Artificial Intelligence (AI), supportive of legislative information like the USLege platform, another obvious boom sector that Texas can and should understand, lead, and control. Some consider it a national security issue.
Forward-thinking isn’t new to Texas. The oil and real estate crash in Texas in the mid-1980’s was a tough time for many. Amid the crash, the Texas Legislature had the foresight to establish the Economic Stabilization Fund (ESF), more commonly known as the “Rainy Day” Fund, to sock money away for the next tough time.
Today, the ESF is approaching $20 Billion dollars and helps Texas keep the highest credit rating on the market.
Has Texas benefited from bad decisions in other states? Sure. But we didn’t follow those states over the cliff.
While Texas has inherent advantages and a policy climate built for growth, tax incentives still help. A modernized incentive called the “Texas Jobs, Energy, Technology, and Innovation Act” (JETI Act) will encourage development of projects for things to add capacity to our power grid, such as a natural-gas-fueled generator or batteries, production of hydrogen fuel, a seawater desalination project, oil and gas facilities, fossil fuel power generators and semiconductor fabricators.
I fully expect the 89th Texas Legislature to continue investing in job growth, perhaps with emphasis on skills training and workforce development and, dare we say, more tax cuts. After all, we are expecting a budget surplus of around another $ 20 Billion when the Legislature convenes in January.
I mentioned earlier that Texas is the 8th largest economy in the world. If recent trends continue, today Texas will add another 2,500 jobs and U-Haul will rent 10 trucks on the way from job-killing California to business-friendly Texas, and just 1 truck going the other way.
We are almost a quarter into the 21st Century and a strong foundation is set to carry Texas for many more years.
- Texas has a public policy climate built for growth. We encourage innovation, we don’t stifle it with needless regulations
- No state income tax – attractive for employers because their employees love it
- A strong economic development ecosystem – from the executive branch to local Chambers of Commerce and EDC’s, the best in the country
- A robust and skilled workforce that’s growing and adapting to innovation
We are set up for long-term success that we might someday call the “The Texas Century.”
Craig Casselberry is the Founder & CEO of Quorum Public Affairs, Inc. You can follow Craig on X and Linkedin.
We hope you enjoyed today’s read!
Opinion: Texas Businesses to Lawmakers
Welcome to Friday Forum, a weekly segment where we explore diverse opinions on the topics shaping Texas politics and business. The views expressed here represent the perspectives of individual contributors and are not endorsements by TXLege News. Our aim is to encourage thoughtful discussion and present a range of viewpoints on issues that matter to Texans. Email info@uslege.ai for submitting opinion contributions.
Texas Businesses to Lawmakers: Don’t Add to Employer Healthcare Costs
As Texas continues to lead the nation in economic growth, the mounting challenge of rising healthcare costs threatens to undermine our success. For businesses across the Lone Star State, providing competitive healthcare benefits is both a matter of employee satisfaction and a cornerstone of our economic stability. Healthcare costs remain a top concern for the state’s businesses, and government mandates toward employer-sponsored healthcare benefits present a significant challenge to maintaining competitiveness and supporting employees.
The Texas Association of Business (TAB) conducted the 2024 Texas Employers Healthcare Survey, gathering comprehensive insights into these challenges through over 200 responses from individual businesses across the state, collected via TAB’s members and chamber partners. The survey results offers a stark warning: without decisive legislative action, these escalating costs could jeopardize the state’s economic engine and constrain Texas businesses’ capacities for growth and employment, adversely raising prices for their goods and services. Lawmakers must act to shield employers from unsustainable financial pressures and ensure that healthcare remains an asset, not a liability, for Texas businesses.
According to the survey:
- 85% of Texas employers believe that healthcare costs are increasing at an unsustainable rate.
- 34% of respondents believe that healthcare benefits have become the fastest-growing expense in their business, surpassing even wages.
- 51% of surveyed employers say these escalating costs have directly interfered with their ability to raise salaries or hire new employees
More than half of respondents also concluded that government regulation of healthcare coverage is the cause of increased healthcare costs and oppose the introduction of any new state mandates that would further increase this cost.
This year’s Survey reflects many of the same – if not increased – concerns of the Texas legislature on the rising cost of healthcare for businesses from TAB’s 2022 Healthcare Survey. Our businesses’ concerns are not new.
For many Texas businesses, these costs are more than just numbers; they represent tangible barriers to growth, workforce investment, and the moral commitment to provide for their employees.
In Texas, where employer-provided health coverage insures roughly 14 million people, healthcare benefits are integral to attracting and retaining top talent. Over 75% of survey respondents identified health benefits as a crucial factor in workforce retention, with 36% ranking it as the most important benefit offered.
Yet, the rising cost of premiums – the primary reason 75% of businesses do not offer insurance – threatens employers’ ability to provide these healthcare benefits. These findings highlight the significant financial burden that rising healthcare costs impose on employers, often forcing them to reevaluate their ability to provide essential benefits.
The survey uncovers the growing opposition among Texas businesses to new state-imposed mandates that could further increase the cost of employer-sponsored healthcare benefits. More than 57% of respondents strongly oppose additional state regulations and more than 90% of employers support requiring cost estimates for any legislative proposal affecting health benefits. Texas businesses are calling for more transparency and accountability in policymaking.
We must not be complacent with policies that, in totality, infringe on the freedom and free enterprise that allows Texas to maintain a competitive and expansive economy.
Texas employers make clear that they want the Legislature to address the root causes of rising healthcare costs, not to pile on additional burdens. Specific solutions identified in the survey include:
- Transparency: 76% of respondents advocate for requiring healthcare providers to disclose their prices publicly.
- Flexibility: 73% want the option to purchase more affordable insurance plans without state-imposed mandates exceeding federal requirements.
Texas’ economic vitality depends on sensible healthcare policies that prioritize transparency and flexibility. Lawmakers must resist the temptation to impose additional mandates on employer-sponsored healthcare benefits. Instead, they should address the underlying issues driving up costs to ensure that Texas remains a place where businesses thrive, and where employees are protected.
To read more about the findings from TAB’s 2024 Texas Employers Healthcare Survey, please click here.
Glenn Hamer, President & CEO, Texas Association of Business
We hope you enjoyed today’s read!
Texas Political Spotlight: Texas GOP Divided on THC Ban Plans
Welcome back, friends
Miller urges GOP unity on the issue and supports expanding medical marijuana access while opposing recreational use.
Today’s Insights:
- Texas GOP Divided on THC Ban Plans
- Lawmakers Eye Social Media Restrictions for Minors
- Texas Grid Ready for Winter, but Cold Risks Remain
Image Credit: Brian Rosenthal, Houston Chronicle
Texas GOP Divided on THC Ban Plans
Texas Agriculture Commissioner Sid Miller disagrees with Lt. Gov. Dan Patrick on the future of THC in the state. Patrick recently announced a bill to ban all consumable THC but clarified it would not impact the Compassionate Use Program for medical cannabis. Miller, however, believes the GOP should unify on this issue and reflect the will of Texans, citing a Texas Lyceum Poll where 60% supported marijuana legalization. Although Miller opposes recreational marijuana use, he advocates for expanding medical marijuana access to all Texans with legitimate needs. He states:
“It’s about freedom. It's about less regulation. It's about less government. It's about freedom between you and your doctor and getting government out of your life.”
"So, I think it's a conservative issue."
Lawmakers Eye Social Media Restrictions for Minors
Texas lawmakers are considering measures to protect children from online dangers, including a proposed ban on minors creating social media accounts, outlined in House Bill 186 filed by Rep. Jared Patterson. Educators and law enforcement officials have raised concerns about cyberbullying, online grooming, and exposure to harmful content, much of which originates from students’ widespread access to smartphones, including on school campuses. Schools report difficulties in addressing these issues due to limited resources and students’ ability to bypass campus internet restrictions.
During legislative hearings, testimony highlighted the impacts of social media on minors, including cases of mental health struggles, exploitation, and grooming facilitated by online platforms. Proposed solutions include funding internet crimes units, deploying artificial intelligence to detect explicit content, and strengthening legal requirements for technology companies to monitor and remove harmful material. Law enforcement agencies report being inundated with thousands of monthly tips about online child exploitation but face challenges due to staffing shortages.
Supporters of House Bill 186 and other proposed initiatives point to studies showing nearly all teens and many younger children regularly use social media, often without adequate safeguards. The upcoming legislative session will prioritize addressing these risks while navigating challenges around enforcement and the role of technology companies.
Image Credit, FOX 4 KDFW
Texas Grid Ready for Winter, but Cold Risks Remain
Texas’ main power grid is better prepared for extreme cold this winter, thanks to new power generation and weatherization improvements made since the devastating 2021 Winter Storm Uri. ERCOT officials highlighted the addition of over 10,000 megawatts of capacity, including 5,155 megawatts of solar power, 3,693 megawatts of storage, 724 megawatts of natural gas, and 616 megawatts of wind. These upgrades have reduced the risk of grid emergencies during peak demand from 11.6% last winter to 8.7% this year. ERCOT meteorologist Chris Coleman forecasts a warmer-than-average winter overall but warned of a higher likelihood of extreme cold events, with current atmospheric patterns resembling those seen during Uri.
Governor Greg Abbott emphasized the state’s readiness this past week, pointing to legislative measures and ERCOT’s 2,892 inspections of facilities to enforce new weatherization standards. Despite the improvements, ERCOT acknowledged ongoing challenges, such as increased winter electricity demand, which reached a record-breaking 78,349 megawatts in January 2023. Additionally, renewable sources like solar and wind generate less power during cold months, making consistent supply a concern. Officials noted that while conditions are better than in 2021, another extreme storm would still test the grid’s resilience.
We hope you enjoyed today’s read!
