Advocacy

As the 89th Legislature enters the final stretch, your chamber continues to monitor and engage in critical legislation affecting the business climate and economic growth.  With important votes and negotiations still ahead, we are closely watching policy relative to the priorities set forth by the board of directors.

Local Developments

Montgomery County Road Bond

• Details: A $480 million bond, evenly distributed across precincts, to fund infrastructure, mobility, and safety projects.
• Status: Approved by voters
• Resources: For details, visit Welcome to Montgomery County, Texas

Resiliency and Flood Mitigation

• Initiative: The San Jacinto River Authority (SJRA) recently presented its Spring Creek Flood Control Dams Feasibility Study.
• Resources: For details, visit Home - Spring Creek Feasibility Study

Commercial Property Assessed Clean Energy (C-PACE) Program Consideration

• Initiative: Montgomery County is evaluating the adoption of the C-PACE program to facilitate energy and water-efficient upgrades in commercial properties.
• Mechanism: Allows property owners to secure private financing for improvements, repaid through property assessments.

Conroe ISD Leadership Transition

• Appointment: Ted Landry, principal of The Woodlands High School, has been named interim superintendent of Conroe Independent School District.

Creation of Montgomery County Management District No. 3

• Legislation: Senate Bill 3069 proposes the establishment of Montgomery County Management District No. 3.
• Powers: Grants authority to issue bonds and impose assessments, fees, and taxes to support district initiatives.
• Status: Introduced by Senator Charles Creighton; pending legislative action.

Establishment of Montgomery County Municipal Utility District No. 263

• Legislation: House Bill 5654 relates to the creation of Montgomery County Municipal Utility District No. 263.
• Powers: Provides authority to issue bonds, impose assessments, fees, and taxes, and grants limited eminent domain powers.
• Status: Passed the House on May 7, 2025; awaiting further legislative proceedings.

State Legislation

HB 2: Funding for Students and Teacher Pay

• Funding: $8 billion to increase teacher salaries and per-student funding.
• Allocations: Raises per-student allotment by $395, from $6,160 to $6,555.
• Status: Passed the House; pending Senate approval.

HB 4: Texas Education Agency (TEA) School Accountability Rating System

• Overview: HB4 aims to reform the state's public school assessment and accountability systems. The bill seeks to overhaul the current standardized testing framework, particularly the State of Texas Assessments of Academic Readiness (STAAR) test.
• Key Provisions
  • Redesigning Standardized Testing: HB4 proposes reducing the length of the STAAR test and shifting its focus toward preparing students for post-secondary education. The goal is to implement a revamped version of the test by 2026.
  • Accountability Measures: While maintaining the A–F grading system for school districts, the bill aims to prevent the Texas Education Agency (TEA) from assigning a "Not Rated" status to all districts or campuses statewide.

Limiting Legal Challenges: HB4 seeks to restrict school districts from filing lawsuits against the TEA over performance ratings unless they have first exhausted all administrative remedies provided by the agency.

Status: Passed the House, Received in the Senate and referred to the Senate K-16

SB2: School Choice

• Funding: $1 billion over two years.
• Allocations:
  • $10,300–$10,900 per child.
  • Up to $30,000 additional for children with disabilities.
  • Up to $2,000 for home-schoolers.
• Status: Signed into law

HJR 7: Investment in Texas Water Fund

• Overview: Constitutional amendment to allocate a portion of state sales and use tax revenue to the Texas Water Fund. Together, HJR 7 and SB 7 authorize $1 billion annually in dedicated funding for water supply, infrastructure, and resource development projects.
• Status: HJR 7 was passed by the House and is pending in the Senate Committee. SB7 was passed by the Senate and is scheduled for consideration in the House.

HB 14: Texas Advanced Nuclear Development Fund

• Overview: Establishes the Texas Advanced Nuclear Energy Office under the Governor’s Office to advance nuclear energy technologies.
• Funding: Creates the Texas Advanced Nuclear Development Fund (HB 500 in the Supplemental Budget Bill) with an initial allocation of $750 million.
• Grants:
  • Up to $12.5 million for initial design and location efforts.
  • Up to $200 million for construction grants.
• Additional Provisions:
  • Directs the Texas Workforce Commission to develop a workforce pipeline for the nuclear industry.
  • Authorizes the Public Utility Commission to issue performance-based completion grants for nuclear projects connected to the ERCOT grid.
• Status: Passed the House; now under Senate consideration.

HB 149: Creation of the Texas Artificial Intelligence Council

• Overview: Establishes a legal framework for the responsible development, deployment, and oversight of artificial intelligence (AI) systems.
• Key Provisions:
  • Creates the Texas Artificial Intelligence Council to advise on AI ethics, risks, and best practices.
  • Introduces consumer protections, disclosure requirements, and prohibitions on discriminatory or harmful AI practices, including bans on political censorship, social scoring, and unauthorized biometric data capture.
  • Authorizes the Texas Attorney General to enforce violations with civil penalties.
  • Establishes a regulatory sandbox program to foster innovation while maintaining public safety.
• Applicability: Applies to businesses and state agencies utilizing AI in Texas.
• Status: Passed the House, will go to Senate for consideration.

SB 14: Texas Regulatory Efficiency Office (DOGE)

• Purpose: Enhances regulatory efficiency and supports business operations.
• Objectives:
  • Centralizes coordination of state agency rules under the Governor’s Office.
  • Assists other agencies in identifying unnecessary and ineffective rules.
  • Creates a website providing businesses with comprehensive access to regulatory information.
  • Establishes mechanisms for reviewing and challenging agency rules.
  • Advises agencies on streamlining regulations, reducing costs, and improving public access to regulatory information.
• Status: Signed into law, effective September 1, 2025.

Workforce and Wages

• Minimum Wage Proposals:
  • Multiple bills propose raising the minimum wage to $15–$19/hour.
  • No bills have advanced from committee, with ongoing debates between business coalitions and labor advocates.
  • Some proposals include indexed wage floors and enhanced benefits for public employees.
• HB 120: Workforce Development Proposals:
  • Bills propose expanded grants for high-growth industries and incentives for employer-led training partnerships with community colleges and trade schools.
  • Status: None of the bills have advanced from committee

SB4: Property Tax Reform

• Overview: In addition to the $51 billion allocated in the budget for property tax relief, lawmakers are considering companion bills that would:
  • Permanently increase the homestead exemption.
  • Provide relief for small commercial properties impacted by rising valuations.
  • Explore long-term alternatives to property taxes, including consumption-based models.
• Status: Passed both chambers and is awaiting further action.

SB 1145: Allowing Oil & Gas Operations to Supply Water
This bill passed and was sent to the Governor’s desk to be signed into law.  The bill authorizes the Texas Commission on Environmental Quality (TCEQ) to issue permits allowing oil & gas companies to produce water for the public through their production operations. The bill also authorizes TCEQ to create the standards for the land application for water production purposes.

SJR 3: Creation of the Dementia Prevention and Research Institute (DPRIT)
Overview: The Texas Legislature is close to investing $3 billion over the next 10 years in groundbreaking brain research. This week, the House passed SJR 3. The resolution creates a ballot initiative for voters to approve the creation of the Dementia Prevention and Research Institute of Texas (DPRIT). DPRIT would focus on advanced research on dementia, Alzheimer’s, and Parkinson.
The companion bill, SB 5, outlines how DPRIT will be organized, regulated, and the accountability measures to be put in place.
Status: Passed the House and has been referred to the Senate

Federal Updates

H.R. 1: One Big Beautiful Bill Act

• Overview: A comprehensive fiscal year 2025 budget reconciliation bill.
• Key Provisions:

1. Tax Reforms

• • Extension of 2017 Tax Cuts: The bill extends the tax cuts initially enacted in 2017.
  • "No Tax on Tips" Provision: Introduces a provision exempting tips from federal income taxation.
  • Elimination of Taxes on Overtime: Removes federal income taxes on overtime pay.

2. Healthcare and Social Program Cuts

• • Medicaid and ACA Reductions: Includes approximately $698 billion in cuts to Medicaid over the next decade. These reductions could result in up to 14 million individuals losing healthcare coverage, particularly affecting low-income families, seniors, and people with disabilities.
  • Medicare:
    • Cuts: May trigger up to $500 billion in Medicare cuts over 10 years due to deficit rules, possibly affecting services and payments.
    • Drug Prices: Allows Medicare to start negotiating prescription drug prices in 2026, aiming to lower costs.
    • Doctor Pay: Ties physician payments to inflation (the Medicare Economic Index), helping adjust for rising costs.
    • PBM Reform: Changes in how pharmacy benefit managers are paid to reduce excessive costs and improve pricing transparency.
  • SNAP Program Changes:
    • $300 Billion in Cuts in SNAP funding over the next decade.
    • Cost Shifting to States: Shifts 5% of SNAP benefit costs and 75% of administrative costs to state governments.
    • Stricter Eligibility Requirements
      The bill limits SNAP eligibility to U.S. citizens and lawful permanent residents, excluding certain non-citizen groups that were previously eligible under federal law.
• Status: Passed the House; awaiting Senate consideration.

H.R. 935: Health Care Workforce Innovation Act

• Overview: Aims to strengthen healthcare workforce capacity by funding education and training for healthcare professionals in underserved areas.
• Funding: Proposes grants for scholarships, loan forgiveness, and training programs targeting nurses, primary care physicians, and allied health workers.
• Additional Provisions:
  • Encourages partnerships between hospitals, educational institutions, and state health agencies.
  • Prioritizes rural and suburban regions with healthcare provider shortages, including areas like The Woodlands.
• Status: Introduced in the House; referred to the House Committee on Energy and Commerce.

H.R. 420: Federal Grant Accountability Act

• Overview: Seeks to impose limitations on the amount of indirect costs allowable under federal research awards to institutions of higher education.
• Key Provisions:
  • Caps indirect costs to align with averages from private research awards.
  • Aims to ensure more funds are directed toward direct research activities.
• Status: Introduced in the House; currently under review.

The Chamber remains committed to advocating for policies that foster a competitive business climate and sustainable economic growth. For additional information or to engage on these issues, please contact our office.