June 04, 2023

Texas 88th Legislative Session Update

The Texas 88th Regular Legislative Session concluded on May 29 with the General Appropriations Act (House Bill 1) providing $144.1 billion in general revenue for the 2024-2025 biennium which begins on September 1, 2023.  

The new biennium begins with a record (carryover) budget surplus of $32.7 billion from the 2022-2023 biennium plus federal funds which all totals a record $321.3 billion in spending for the 2024-2025 biennium. 

Hours after the 88th Regular Session concluded, Governor Abbott called for Special Session 1 which began that evening at 9pm. Two items were placed on the agenda:  additional property tax cuts and increased border security. 

Below are some of the bills most relevant to the City of Round Rock and the Chamber’s Members. Our Executive Review of the 88th Legislative Session event on Thursday, June 29, at Kalahari will bring best-in-class speakers to share how the $321 billion in spending and 1,000+ passed bills will affect businesses in Texas. 

The Chamber’s position and the outcomes for some of the key bills during the 88th Regular Session are: 

SB 1419 (Birdwell) – Related to 380/381 Agreements – OPPOSE 

  • Results: DIED. Did not make it out of House Ways & Means Committee  
  • This legislation would have created limitations on the use of public money under certain economic development agreements or programs created under Ch. 380 (municipal) and 381 (county) of the Local Government Code.  

HB 5 (Hunter) – Texas Jobs, Energy, Technology, and Innovation Act – FOR 

  • Results: PASSED, awaiting signature by the governor  
  • This legislation created a new, modern, transparent economic development program that provides temporary tax exemptions on school property tax.  

HB 1515 (Clardy/Springer) – Texas Economic Development and Tourism Office – FOR 

  • Results: PASSED, awaiting signature by the governor 
  • Provides continuation of the Texas Economic Development and Tourism Office and its functions for the next 12 years. 

HB 1595 (Bonnen/Huffman) – Texas University Fund – FOR 

  • Results: PASSED, awaiting signature by the governor 
  • Redesignates the National Research University Fund as the Texas University Fund and offers performance-based funding for research institutions. Provides opportunity to expand funding to Texas State University, Texas Tech University, the University of Houston, the University of North Texas and other higher education institutions. 

HB 1755 (Button/Hunter/Ordaz/Burrows/Longoria) – Creates the Lone Star Workforce of the Future Fund – FOR 

  • Results: PASSED and SIGNED by the governor 
  • This legislation creates a fund and grant program aimed to increase current and future Texans to fill workforce gaps.

HB 2127 (Burrows/Creighton) – Related to state preemption of certain municipal and county regulations – OPPOSE 

  • Results: PASSED and awaiting signature by the governor 
  • This legislation bars cities and counties from passing certain regulations and overturning existing ones that go further than state law. 

HB 2132 (Harris) – Related to TSTC in Williamson County – FOR 

  • Results: Rolled into HB 3287, which PASSED, awaiting signature by the governor 
  • This bill makes the TSTC campus in East Williamson County a permanent campus by legislative statute.  

HB 4390 (Button/Bettencourt) – Relating to the Texas Industry-Recognized Apprenticeship Programs Grant Program – FOR 

  • Results: DIED on point of order 
  • This bill would have clarified the definition of Industry-Recognized Apprenticeship Programs (IRAPs) to be tied to the Texas Workforce Commission rather than the DOL’s Registered Apprenticeship occupation list and allowed Texas’s IRAP Grant Program ($20 million) to be funded. 

HB 5089 (Meyer) – Sales Tax Sourcing – OPPOSE 

  • Results: DIED. Did not make it out of calendars 
  • This legislation would have upended the origin-based sales tax sourcing practice that has been in place for 62 years to a destination-based model. 

HB 5174 (Bonnen/Huffman) – Texas CHIPS Act – FOR 

  • Results: PASSED, awaiting signature by the governor 
  • The “Texas Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act” will create funding and research opportunities to spur economic development related to semiconductor projects in Texas. This legislation will strengthen Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, leverage the expertise and capacity at Texas higher education institutions, and maintain Texas’ position as the nation’s leader in semiconductor manufacturing. 

More information about the Round Rock Chamber’s public policy initiatives can be found at 88th Legislative Session Priorities and Agenda for Economic Vitality. 

The Executive Review of the 88th Legislative Session event on Thursday, June 29, at Kalahari will discuss the results of the session and its implications to businesses in Texas. 

Contact Us. We’re Here to Help.

Get in touch with our team to learn more about how the Round Rock Chamber can help.