At last nights Sealy, Texas City Council meeting, City Attorney Tim Kirwin provided a comprehensive update on the legislative session for 2023 in Texas. The legislature, which convenes every two years in the state, wrapped up their session with some significant changes that will impact cities across Texas.
Overview of the Legislative Session
The legislative session was a busy one, with over 8,000 bills or joint resolutions filed. Of these, 230 directly impacted cities. Despite the high number of proposed legislation, many did not pass. However, Kirwin cautioned that even if a bill did not pass during this session, it is likely to be reintroduced in the next session in 2025.
Impact of Legislation on Cities
Kirwin, along with City Manager Kimba Hill and Mayor Pro Tem Dianne Lerma, attended a Texas Municipal League (TML) legislative wrap-up conference in Austin on June 15th. They noted that some legislation went into effect immediately in June, while others will go into effect in September and January, depending on the bill passage.
Specific Legislation Details
- Senate Bill 2350: Redefining Tax Rate Calculation: The report covered Senate Bill 2350, which introduces a revised definition of the tax rate for unused increment rate calculation. This change will have implications for budget and tax rate calculations in the city. The responsibility for these calculations will be transferred to the county, which will provide the necessary calculations related to voter approval rate, revenue rate, de minimis rate, and any unused increment.
- House Bill 1819: Prohibition of Curfew Ordinances: House Bill 1819 prohibits municipalities from implementing curfew ordinances for minors. Although this may not directly impact Sealy, it reflects the state legislature’s trend of limiting the authority of municipalities. Previously, many cities had curfew ordinances for juveniles, but the legislation now prohibits their enactment.
- Senate Bill 1551: Failure to ID Criminal Offense: The meeting addressed Senate Bill 1551, which establishes a new criminal offense for failure to provide identification. This bill aims to resolve confusion surrounding failure to ID, particularly in other jurisdictions. It creates a Class C misdemeanor and provides clarity to law enforcement officers regarding the application of the law.
- Senate Bill 379: Sales Tax Exemptions: Senate Bill 379 introduces exemptions from sales tax for specific items such as wound care products, child and adult care products, feminine hygiene products, and more. Effective from September 1st, this bill carries potential fiscal implications for cities. The fiscal analysis estimates a $19 million impact on all Texas cities by 2024, increasing to $26 million by 2028. The exact impact on Sealy is yet to be determined.
- House Bill 14: Third-Party Inspection Process: House Bill 14 establishes a new third-party inspection process and sets time limits for potential inspections. Importantly, the bill prohibits cities from charging extra fees for these inspections, which become relevant if a city fails to meet specific obligations. Coordination between the city planner, Planning Commission, and city attorney will be crucial to navigate the new timelines outlined in House Bill 14.
- House Bill 2127: Super Preemption Bill: Described as a “super preemption bill,” House Bill 2127 represents a significant shift in power for home rule cities like Sealy. This legislation restricts the regulatory authority of home rule municipalities and limits their ability to pass certain ordinances. It has faced legal challenges, including a lawsuit by the City of Houston questioning its constitutionality and potential impact on municipalities across the state.
- Annexation Authority: The new legislation impacts the city’s ability to annex unilaterally. This change will require careful navigation and understanding to ensure compliance.
- Public Information Act Request (House Bill 30): This bill introduces a new Public Information Act request. This bill was in response to the Uvalde High School tragedy and led to numerous Public Information Act requests. City secretaries and deputy city secretaries will need to work closely with this new legislation.
- Prohibition of TikTok on Government Devices: The legislature passed a bill prohibiting the use of TikTok on any governmental devices due to security protocols. The city of Sealy is already in compliance with this regulation.
- Unfunded Mandates: The legislature has been moving to impose what are often referred to as unfunded mandates on municipalities, meaning the cities are required to perform tasks or provide services without additional funding.
Kirwin emphasized that understanding these new laws and their potential impacts might take some time. Some significant bills are quite vague, and their interpretation may require attorney general opinions or court cases. As these new laws take effect, city officials, planners, and legal teams will need to navigate these changes carefully to ensure compliance and understand their true impacts. You can hear the attorney’s full report in the video below starting from the 00:07:56 mark of the video.