Policy Briefs

The 89^th Texas Legislature adjourned on June 2^nd, 2025. 

Quick Takeaways:

Wins:Utility coordination & planning bills reflect consensus governance priorities

Stalls:Permit reform & infrastructure modernization faced institutional or industry resistance

Outlook: Expect continued debate over permitting, housing, and private infrastructure in the 90^th session that will commence in 2027.

WHAT’S NEXT:
The 89^th Texas Legislature adjourned on June 2^nd, 2025.  The Governor has called for a special session beginning July 21^st.  Below is a list showing outcomes / status on the bills we tracked.

Passed or Enrolled Bills:

HB 21 – Effective: 5/28/2025
Summary: Limits projects to local jurisdiction, increasing rent affordability, and added transparency & accountability

HB 24 – Effective: 9/1/2025
Summary: Raises protest thresholds (20 to 60% of adjacent landowners) and streamlines zoning to boost housing development

HB 1318 – Effective: 9/1/2025
Summary: Streamlines local government provision of water/sewer in annexed areas where utilities aren’t site adjacent

SB 480 – Effective: 5/28/2025
Summary: Allows local governments to partner on water research & planning

SB 840 – Effective: 9/1/2025
Summary: Allows residential & mixed-use residential in commercial & industrial zones by-right without a rezoning or CUP

Stalled (Sine Dine) Bills:

HB 23 – Last Action: 5/26/2025
Summary/Comments: Third-party permit review authority – pro-development, raised oversight concerns

HB 987 – Last Action: 3/6/2025
Summary/Comments: Timeline reform for building permit issuance – very developer friendly

SB 270 – Last Action: 4/9/2025
Summary/Comments: Cost study for burying power lines – stalled due to cost/utility pushback

SB 388 – Last Action: 4/22/2025
Summary/Comments: Requires 50% of new ERCOT power generation to be dispatchable (e.g. gas, nuclear). Creates compliance credit system to incentivize reliable energy sources.

SB 424 – Last Action: 2/3/2025
Summary/Comments: State money for private high-speed rail – stalled amid funding doubts

SB 819 – Last Action: 4/22/2025
Summary/Comments: Imposes new permitting, environmental review, and decommissioning requirements on wind and solar farms

SB 878 – Last Action: 4/22/2025
Summary/Comments: Restricts municipalities from offering tax relief unless tied to Chapter 312 abatements

LOOK OUT:
NAIOP’s public policy committee will be providing a detailed summary and analysis of the 89^th Texas Legislature and its impact on our members in the coming weeks.

CONTACT:
Brooke Harlander for more information and how to get involved with our Public Policy Committee.