The 89th Texas Legislature adjourned on June 2nd, 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 90th session that will commence in 2027.
WHAT’S NEXT:
The 89th Texas Legislature adjourned on June 2nd, 2025. The Governor has called for a special session beginning July 21st. 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 89th 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.
