The 89th Texas Legislative Session ended in late May, resulting in more than 8,000 bills considered, 1,155 bills signed into law by Governor Abbott and 26 bills vetoed. The Greater Arlington Chamber of Commerce worked hard to deliver on our key priorities to promote and approve the overall vitality and prosperity of the Texas Economy and the economy of our region.

INFRASTRUCTURE: A key priority this session was to develop the necessary infrastructure to fuel our economy and support our rapid population growth and economic development opportunities. Two significant wins this session were a $20 billion investment in water infrastructure to address the state’s growing water crisis and $5 billion of new funding for the Texas Energy fund, including $1.8 billion incentivizing businesses to develop backup energy systems. Both require voter approval and will be on the ballot in November.

ECONOMIC DEVELOPMENT: The State reauthorized the R&D tax credit, maintaining an essential tool in our efforts to drive private investment in research, innovation, and high-wage jobs. In support of growing businesses, the legislature increased the business personal property tax exemption. The legislature also expanded film incentives, boosting a rapidly growing industry in North Texas. Specific to Arlington, Senator Phil King authored SB2004, enabling the Grand Prix of Arlington to be eligible for funding from the State’s Major Event Trust Fund Program. Several bills that would have restricted current policies and/or had a negative impact on economic development capabilities were successfully defeated.

EDUCATION & WORKFORCE: The State approved a historic level of K-12 funding with HB2, authorizing $8.5 billion. Although the level of investment is applauded, there is more work to do. When factoring in inflation, the school districts are still below the basic student allotment from years of stagnant investment. While the Chamber did not engage in SB2, it should be noted that $1 billion was allotted to education savings accounts, allowing families to receive up to $8,000 to pay private school tuition or other education-related expenses.

EFFICIENCY: The Chamber supported efforts to create efficiency across the government and to reduce administrative burdens on business. The Legislature approved the creation of the Texas Regulatory Efficiency Office to review and reduce unnecessary regulations. Additionally, the Regulatory Reform and Efficiency Act was passed, aiming to streamline rulemaking processes, enhance transparency, and limit regulatory overreach.

LOCAL CONTROL: Arlington had a big win in HB 21 which significantly reforms the rules for Housing Finance Corporations (HFCs). This gives decision-making back to local governments by prohibiting out-of-jurisdiction HFCs, like the Pecos Housing Authority, from owning a property for residential development outside of its jurisdiction unless it obtains approval from the host city. There are big concerns with the passage of SB 840, a bill that allows multi-family projects to be developed “by right” in areas currently zoned for office, commercial, retail, warehouse, or mixed-use purposes, without the need for rezoning, variances, or public hearings. 

SPECIAL SESSION: The Governor has summoned a special session starting on July 21, lasting up to 30 days, to reconsider six specific bills, including those related to consumable hemp products, real estate document recording, water and well development fees, legal defenses for trafficking victims, industrial regulations near semiconductor facilities, and judicial branch operations. While these six bills are the primary focus, there is anticipation for additional topics to be addressed, like prohibiting taxpayer-funded lobbying by local governments and potential congressional redistricting.