The 89th Texas Legislative Session brought forward a series of new laws, including those that took effect on September 1. These changes directly impact how businesses across industries operate, from compliance requirements to contractual obligations. Here’s a quick industry breakdown of what you need to know and how it could impact your business.
Banking
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House Bill 3833 strengthens oversight of entities engaged in money transmission and currency exchange by enhancing licensing requirements, increasing transparency and aligning Texas law more closely with federal anti-money laundering standards. It grants the Texas Department of Banking greater authority to supervise and enforce compliance, including the ability to investigate, audit and impose penalties on noncompliant businesses.
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Senate Bill 1057 heightens the threshold for shareholder proposals at certain Texas-based public companies, including bank holding companies. SB 1057 introduces higher ownership thresholds requiring shareholders to hold $1 million or 3% of voting shares for six months and to solicit proxies from 67% of voting power to ensure proposals are serious, well-supported and tied to significant financial interests.
Business & Commercial Litigation
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Senate Bill 2411 allows certain corporations to impose higher thresholds for shareholder proposals, expand exculpation to officers of the corporation and streamline the approval and administration of major business transactions. Senate Bill 2411 updates the Texas Business Organizations Code for efficiency and business autonomy.
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House Bill 40 refines and strengthens the framework for the Texas Business Courts (established in 2023) by specifying clearer jurisdiction, procedures and appeals processes. It ensures that complex business cases—such as mergers, contract disputes and shareholder issues—are handled by specialized judges, aiming to improve consistency, reduce litigation delays and foster a more business-friendly legal environment.
Construction
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Senate Bill 841 amends the Texas Property Code to allow qualified assignees of construction workers, contractors and material suppliers to benefit from trust funds related to property improvements. The bill requires that any assignment of unpaid trust fund interests must be made in writing after payment to the beneficiary, with the assignee being a project beneficiary, trustee or property owner. Additionally, written notice of the assignment must be provided to the property owner and contractor within seven days of the assignment being made.
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House Bill 2960 changes the voidable nature of construction contract provisions relating to out-of-state venues. It requires that an action arising out of such contract, to the extent a venue provision is void, to be brought only in the Texas county in which the applicable property is located, unless the parties stipulate to another venue after the dispute arises.
Energy
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Senate Bill 494 sets up a task force to study oil theft across Texas and develop better enforcement strategies. The group includes regulators, police and industry representatives who will collect data and assess economic losses. This creates a coordinated approach to combat organized petroleum theft.
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House Bill 14 established the Texas Advanced Nuclear Energy Office within the Office of the Governor to position Texas as a leader in advanced nuclear technologies. By implementing financial frameworks and regulatory measures this legislation aims to expedite the deployment of nuclear energy across Texas.
Healthcare
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House Bill 388 requires the creation and universal use of a uniform coordination-of-benefits questionnaire for health benefit plans. The goal is to provide clarity and consistency when multiple insurers cover the same individual, ensuring that providers and payers can coordinate more effectively.
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House Bill 2221 establishes uniform standards for prohibited trade practices across life insurance, annuity contracts and accident and health coverage. By adding Chapter 1702 to the Insurance Code, the bill aims to harmonize expectations and protections across these key insurance-related products.
Insurance
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Senate Bill 1238 amends the Insurance Code to forbid insurers from refusing or providing differential coverage based on whether an individual is widowed.
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Senate Bill 455 relates to arbitration provisions in surplus lines insurance contracts. For surplus lines insurance covering risks located wholly in Texas, the law requires that arbitration be conducted in Texas under Texas law and contracts must be interpreted according to Texas law unless the insurer provides written notice requesting a different venue and offers a premium credit to cover the policyholder's additional costs.
Labor & Employment
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House Bill 3698 requires certain unemployment benefit recipients to participate in job-search assistance programs. The law targets individuals likely to exhaust benefits without help, though it can be applied more broadly to improve employment outcomes.
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Senate Bill 1318 relates to restrictions on covenants not to compete for physicians and certain health care practitioners. The bill establishes more stringent requirements for physician non-compete agreements, including a five-mile geographic limit and a one-year duration cap, while capping non-compete buyouts for physicians at their total annual salary and wages at termination.
Real Estate
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Senate Bill 17 seeks to prohibit certain foreign entities from purchasing land in Texas, targeting countries identified as national security threats.
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House Bill 24 seeks to modernize Texas’ petition process for zoning changes while preserving property rights and helping cities address the housing shortage.
Tax
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Senate Bill 2173 specifies that if property is transferred with a tax certificate erroneously indicating no delinquent taxes due (due to a later-canceled homestead exemption), the tax lien is extinguished, except when the transfer is between: near relatives (first degree of consanguinity), employer and employee, parent company and subsidiary or trust and beneficiary.
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House Bill 1522 requires that notices for budget-related meetings include: A taxpayer impact statement, showing the property tax bill (in dollars) for a median-valued homestead under the proposed budget. These notices must be posted in a public place at least three business days before the meeting.
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