🔴Relating to the fee amounts prescribed by the secretary of state for expedited commercial and business record searches or filings and the exemption from the franchise tax and certain filing fees for veteran-owned businesses.
HB 346
🔴 HB 346: State control over fees, contracts, and veteran tax relief
What it says it does:
HB 346 says it will support new businesses by waiving startup fees, speeding up filings, and encouraging more state contracts for entrepreneurs.
What it actually changes:
It gives the Secretary of State unlimited power to set expedited business fees. It repeals future franchise tax exemptions for veteran-owned businesses. It also allows state agencies to shift public funds to new businesses or “support organizations” with no bidding or audit requirements.
Who is pushing for it:
Support came from NFIB, Texas Association of Business, Texans for Lawsuit Reform, Round Rock Chamber, and the cities of Houston and Fort Worth.
Who benefits:
Large business advocacy groups and politically connected nonprofits may gain access to redirected funds and contract preferences. Agencies get more control over public dollars without new oversight.
Who gets left out or exposed:
Veteran-owned startups lose promised tax exemptions. Small businesses in rural areas may not benefit from the redirected funds. Local workforce boards lose input. Taxpayers lose budget transparency and fee protections.
Why this matters long term:
This bill creates a legal model for centralizing public funds in state agencies with little oversight. It removes local control, repeals equity-based tax policies, and sets a precedent for future procurement carveouts.
What to watch next:
Watch for rising business filing fees. Track how and where TEDTO and TWC award redirected funds. Expect similar fee and fund authority shifts in future bills under the label of “economic development.”
Bottom line:
HB 346 looks like business support, but it quietly removes public oversight, weakens fiscal checks, and cuts promised relief for veterans. The power shift is long-term. The oversight is missing.
#HB346 #TexasPolicy #FollowTheMoney #VeteranReliefRepealed #StayInformed