Capitol Bottom Line

What the statehouses are doing to the cost of doing business.

Release No. 32 · Written by Everett Pratt

Release No. 32 ·

Colorado Decides Next Week on Landscapers' Gas Tools; Texas Bills Would Void Low-Wage Noncompetes, Repeal Licenses and Require AI Overrides

Colorado's air commission holds its hearing on summer limits for commercial gas mowers and blowers November 18-20. In Texas, prefiled bills would ban noncompetes for workers earning $15 an hour or less, end state licensing of PEOs and two electrician trades, and require human override switches on high-risk AI.

The Bill Board 4 bills
StateBillStageThe read
CORegulation 29 (5 CCR 1001-33)Hearing Nov. 18-20Commercial landscapers in the Front Range would cut summer use of gas trimmers, blowers and mowers to 90% of inventory in 2027 and 10% by 2032, and file annual reports
TXSB 251Prefiled Nov. 9 for the 2027 sessionEmployers lose noncompetes for anyone paid $15 an hour or less, on contracts signed from Sept. 1, 2027
TXHB 849Prefiled Nov. 9 for the 2027 sessionPEOs, journeyman industrial electricians, journeyman linemen and dog and cat breeders would no longer need a state license
TXHB 510Prefiled Nov. 9 for the 2027 sessionDeployers of high-risk AI must build, test and staff a human override, with attorney general penalties for failures
Read the release, with Pratt's read on each bill

Earlier releases

· No. 31
Colorado Voters Back a Higher Top Rate on Business Income; Florida Halves Its Commercial Assessment Cap; Texas Targets Data Centers

CO FL TX Colorado's graduated income tax appears to have passed and reaches business income above $500,000. Florida's Amendment 3 cuts the cap on commercial assessment growth to 5%. And Texas senators prefiled bills to repeal data center tax breaks and require a new state permit.

· No. 30
California's First Corporate Emissions Reports Are Due; Texas Bills Would Require Workers' Comp for Builders and a $100,000 Oil Waste Fee

CA TX Companies with more than $1 billion in revenue owe California their first Scope 1 and 2 emissions reports today, with flat fees to follow. In Texas, new filings would end optional workers' comp in construction, add a necessity test for oil waste sites and cut medical billing time to 90 days.

· No. 29
Hochul Still Holds New York's Data Center and Health Data Bills; Illinois Revives the POWER Act; Texas Files Solar and Farm Repair Bills

NY IL TX With the election over, the unfinished business is back: 388 New York bills await the governor, Illinois returns November 17 with data center rules pending, and Texas opened 2027 bill filing with a solar tax repeal and a farm equipment right-to-repair bill.

· No. 28
California's Billionaire Tax Trails and Its Top Rate Wins; Arizona Caps Grocery Taxes; Colorado Rejects a Right to Natural Gas

CA AZ CO Two days after the vote, Proposition 40 is losing and the asset tax ban in Proposition 42 leads, but California's top income tax rate is now permanent and the CEQA deadlines are trailing. Arizona's grocery tax cap passed, its mileage tax ban is too close to call, and Colorado's gas amendment failed.

· No. 27
Hochul Signs Limits on AI Companion Features for Minors; Texas Moves to Stop Taxing Health Records Software and Opens Utility Storage Deals

NY TX New York's Chapter 368 bars chatbot features such as flattery and long memory unless an operator first confirms a user is an adult, and a baby monitor law follows. Texas's comptroller proposes ending sales tax on electronic health records, and a PUC storage rule takes effect Nov. 4.

· No. 26
California Weighs a Billionaire Tax, a Permanent Top Rate and Faster CEQA Review; Arizona Votes on Grocery and Mileage Taxes

CA AZ Five days out, business taxes and permitting are on the Nov. 3 ballot in two states. California voters decide a one-time 5% wealth tax, a ban on new asset taxes, a permanent top income tax rate and CEQA deadlines. Arizona decides a 2% cap on city grocery taxes and a ban on mileage-based fees.

· No. 25
Texas Writes the Terms for Plugging Its Oldest Idle Wells; New York Cuts Filings for Banks and Nursing Homes

TX NY Railroad Commission rules for SB 1150 set four narrow ways to keep a 15-year-idle well unplugged and widen annual testing, and a carbon storage rule loosens bonding. New York proposes fewer bank investment filings and monthly, not weekly, nursing home bed counts.

· No. 24
Texas Moves to Stop Taxing Marketplace Seller Fees and Raises Its Fast-Track Lawsuit Limit; New York Quadruples a Volunteer Credit

TX NY The Texas comptroller proposes to undo a 2025 rule that taxed the fees online platforms charge their sellers, at a cost of about $18 million a year in state revenue. Texas also lifts its expedited-suit ceiling to $325,000, and New York signs a larger volunteer firefighter credit and lands a rare earth plant.

· No. 23
Texas Drafts Lenders and Title Firms Into Its Foreign Land Law; Illinois Appeals for Its Swipe Fee Ban; Arizona Approves a 700 MW Gas Plant

TX IL AZ Proposed Texas SB 17 rules would make lenders, title insurers and agents report suspect foreign land deals, and a newborn coverage rule for employer plans takes effect. Illinois will appeal the swipe fee injunction. Arizona certifies the Eagle Eye gas plant and credits APS bills.

· No. 22
Texas Drafts Shrimp Labels for 8,200 Small Firms and Trims Its Alcohol Rules; New York Ties Rental Permits to Lead Certificates

TX NY Proposed Texas rules would make shrimp wholesalers label imports, while the alcohol regulator moves to cut recordkeeping and warning-letter penalties. New York's lead rule for older rentals takes effect, and gas utilities must start annual emissions reports.

· No. 21
Texas Makes Big Loads Post $50,000 a Megawatt to Connect; Newsom Signs the Monopoly Bill With a Warning and Licenses Business Lenders

TX CA The Texas PUC's large load interconnection rule takes effect October 8 and reaches projects already in the queue. In California, Gov. Newsom signed AB 1776 with a caution about its market power standard, put merchant cash advances under license and opened a faster permit path for retailers.

· No. 20
Newsom Signs Workplace Surveillance Limits and Vetoes a Community Solar Mandate; Florida's Trucking and Rental Fraud Laws Start Oct. 1

CA FL On California's last signing day, Gov. Newsom signed AB 1331 and AB 1883 on workplace monitoring, vetoed AB 1813 over a $1.5 billion ratepayer estimate and vetoed a health care AI override bill. In Florida, SB 488 and HB 1293 take effect October 1.

· No. 19
Newsom Ends California's Summer Gas Blend Early and Signs Menu Sugar Warnings; Colorado Puts a Right to Natural Gas on the Ballot

CA CO NY California's governor suspended the summer gasoline rules a month ahead of schedule and signed SB 869, which puts added-sugar icons on chain restaurant drink menus. Colorado voters will decide Amendment 82 on November 3, and New York created a rebate for battery landscaping equipment.

· No. 18
Newsom Signs Seven Data Center Laws, Ending CEQA Shortcuts and Writing Tariffs Into Statute; Texas Rewrites Home Health Licensing

CA TX California's governor signed SB 886, SB 887, AB 2383, AB 2469, SB 1168 and the two reporting bills on September 21, over opposition from CalChamber, manufacturers and the data center industry. Texas proposed a home health and hospice rule that makes agencies suspend accused aides through every appeal.

· No. 17
Newsom Keeps California's Factory CEQA Exemption and Vetoes a One-Year Prior Authorization Rule; Florida's $15 Wage Arrives Sept. 30

CA FL Gov. Newsom vetoed SB 954, which would have rewritten last year's environmental review exemption for advanced manufacturing, and AB 539, which would have locked in approved prior authorizations for a year. In Florida, the last scheduled step of the 2020 wage amendment lands September 30.

· No. 16
New York Opens Personnel Files to Workers and Raises Construction Call-In Pay; California Signs a Voluntary AI Audit Framework

NY CA Gov. Hochul signed a personnel-records access law that takes effect November 8 and a reporting-pay law for construction crews. In Sacramento, Gov. Newsom signed a voluntary system for third-party AI audits, while a narrowed AI layoff-notice bill waits on his desk.

· No. 15
Newsom Signs Social Media Liability and Teen Feed Limits and Pauses Chatbot Toys; New York Ends File-and-Use Auto Rate Increases

CA NY California's governor signed 13 child online safety bills, including new damages for platforms found negligent in harming children and a ban on addictive features for users under 16. New York regulators proposed the rule that ends insurers' ability to raise personal auto rates without approval.

· No. 14
California Sends Newsom a $19.75 Farm Wage, an AI Firing Rule and Website Lawsuit Relief; Arizona's Data Center Pause Takes Effect

CA AZ Three California bills now waiting on the governor would raise the floor for farm labor, put a human in charge of AI-assisted firings and end private website-tracking suits under one statute. Arizona's budget tax law, with its three-year data center pause, takes effect September 12.

· No. 13
California's Wildfire Liability Deal Dies Without a Vote and an Antitrust Bill Reaches Newsom; Colorado's Graduated Tax Makes the Ballot

CA CO SB 492, the narrowed utility wildfire package, never got an Assembly floor vote, leaving utility liability and its cost to ratepayers unsettled. AB 1776 adds a single-firm monopoly ban to California's antitrust law. Colorado's graduated income tax, with corporate rates up to 8.4%, qualified for November.

· No. 12
California Sends Newsom Data Center Energy and Water Reporting Bills and a Ratepayer Cost Check; Texas Solar Sellers Must Register Sept. 1

CA TX AB 1577 and AB 2619 would make data center owners report power, noise and water use to the state and local permit offices, a year after a similar water bill was vetoed. AB 2124 would price energy mandates before lawmakers vote. Texas solar sellers need a state registration from September 1.

· No. 11
California Sends Newsom a Review of Its Biggest Business Tax Breaks; Colorado Puts a 4.4% Income Tax Cap on the Ballot

CA CO SB 1349 would have the Legislative Analyst rate six large corporate and investor tax breaks for repeal, while two other bills headed to the governor fix claim denials for providers and speed commercial plan checks. Colorado's rate cap qualified for November as the competing graduated tax waits on its signature count.

· No. 10
California Advances a Fix for Pass-Through Interest Deductions and a Tighter Executive Pay Limit; New York Writes Construction Leave Rules

CA NY SB 1435, which takes the federal business interest cap out of California's personal income tax, cleared Assembly Appropriations on Aug. 13, as AB 2222's executive pay limit cleared the Senate panel and an industrial power rate bill was held. New York proposed paid family leave rules for union construction workers.

· No. 9
California Shelves a Monthly Wage Report and a Medi-Cal Employer List; Texas Drafts Paid Curtailment for Big Power Users

CA TX AZ The Assembly Appropriations Committee held SB 1054 and SB 1284 on its suspense file, sparing employers monthly hours-and-occupation filings and a public list of who employs Medi-Cal enrollees. Texas proposed its large load demand service, and Arizona's co-ops won a standard path for data center contracts.

· No. 8
Texas Ties Employer Audits to a New Wage Data Request and Raises Jobless Work Searches to Five; Colorado Targets Gas Lawn Mowers

TX CO NY The Texas Workforce Commission wants occupation, hours, county and remote-work data on every quarterly wage report, and its tougher work-search rule takes effect today. Colorado proposed a summer phase-down of gas equipment for commercial landscapers, and New York cleared a power hookup for Empire Wind.

· No. 7
New York Locks In a Tighter Carbon Cap for Power Plants; Texas Closes the Door on New Workers' Comp Self-Insurance Groups

NY TX New York adopted the RGGI program review, cutting its power plant allowance budget by close to 90% over a decade and raising the auction floor. New York's labor board proposed new private-sector and farm labor procedures, and Texas wrote a ban on new self-insurance groups into its rules.

· No. 6
New York Finalizes Its Social Media Feed Rules; Colorado Proposes a 0.86% Leave Premium and Halves a Food Business Credit

NY CO The attorney general adopted age-assurance rules for the SAFE for Kids Act, which her own analysis says could cost platforms up to $144 million a year. Colorado's FAMLI Division set a 2027 premium and ended private plan renewals, and a 2026 law cut a grocery equipment credit to $5 million.

· No. 5
Texas Proposes Ending 4CP and Billing Data Centers on Reserved Capacity; Illinois Signs Refund and Service Window Laws

TX IL The Public Utility Commission of Texas would spread transmission costs over 12 monthly peaks and bill large loads on contracted demand for at least 20 years; comments are due Aug. 11. Pritzker signed a ban on store-credit-only refunds and a phone-call rule for long service windows.

· No. 4
Colorado Keeps the EEO-1 as Washington Moves to Drop It; New York Drafts Stablecoin Rules and Weighs Upstate Utility Increases

CO NY The EEOC voted 2-1 on July 21 to propose ending federal workforce demographic reports. Colorado's HB26-1207 will require them anyway from July 2027. New York's financial regulator proposed a stablecoin rule built to match federal law, and upstate rate requests go to hearing Sept. 14.

· No. 3
Newsom Makes California's Contractor Claims Process Permanent and Opens Shared Solar to Warehouses; Illinois Limits Insurer Downcoding

CA IL SB 33 keeps the 45-day review, 60-day payment and 7% interest rules for public works claims past their 2027 sunset. AB 2175 and AB 2559 help warehouses, factories and builders. Illinois's new downcoding law puts a person behind every reduced claim from 2028.

· No. 2
Newsom Signs California's Workers' Comp Fund Overhaul; Illinois Sets a Flat Utility Discount Charge and Bans PFAS in Cosmetics

CA IL SB 171, signed July 13, rewrites the second-injury fund that employers pay for through an assessment that reached nearly $850 million. Illinois fixed how its low-income utility discount is billed to businesses, and banned formaldehyde, mercury and some PFAS in cosmetics from 2028.

· No. 1
Illinois Signs Annual Audits Into Its AI Safety Law; Florida's Tax Package, Data Center Tariff Rule and Restaurant Fee Notices Take Effect

IL FL Gov. Pritzker signed SB 315 on July 6, adding a yearly outside audit that New York does not require. In Florida, a tax package with relief for packinghouses and cardrooms, a rule that 50-megawatt customers pay their own grid costs and a restaurant fee disclosure law all started July 1.