The Senate Economic Development Committee adopted a committee substitute on House Bill 346 that revises the bill’s approach to business licensing and filing fees and extends tax relief for veteran‑owned startups.

Senator King, the bill’s senate sponsor, said the substitute “is essentially completely new language and removes any fiscal note.” He told the committee the substitute gives the Secretary of State authority and flexibility “to meet modern needs of Texas businesses” by allowing the office to set appropriate fees for an expedited business filing system. The substitute also “makes permanent the exemption from franchise tax for a new veteran owned business in their first 5 years of existence,” language the senator said was drawn from SB 524 that passed the Senate this week.

Witnesses called by the chair included Megan Tamez, director of the Veteran Entrepreneur Program at the Texas Veterans Commission, who told the committee, “I’m here to provide any answers to questions that you have.” David Eskew, managing attorney in the business and public filings division of the Texas Secretary of State’s office, appeared as a resource witness. The sponsor said the measure aims to continue support for veteran entrepreneurship and noted that “This program has helped over 13,700 veteran owned businesses since SB 938 was enacted in 2021.”

The committee adopted the substitute by unanimous consent and later voted to report the committee substitute favorably to the full Senate with a recommendation that it do pass and be printed. The committee also recommended the committee substitute for the local and uncontested calendar.