Bay Area Edition | July 2025

State

BY HANNAH NORTON

Gov. Abbott signs 1,000+ new laws, calls July special session Texas’ 140-day regular legislative session ended June 2. Gov. Greg Abbott signed 1,155 bills into law, set 140 to become law without his signature and vetoed 26 bills. All seven of the governor’s top legislative priorities passed, although he said June 23 that “there is more we can do” and called lawmakers back to Austin for a 30- day special session that will begin July 21. 1 Cellphones banned in public schools When Texas’ K-12 students return to campus this fall, they will be prohibited from using cellphones and other personal communication devices throughout the school day. School districts could:

• Purchase pouches to store devices during the school day • Ask students to keep devices in their lockers or backpacks Texas’ 2026-27 budget includes $20M in grants to help districts implement the law. SOURCE: TEXAS LEGISLATURE ONLINE, TEXAS EDUCATION AGENCY COMMUNITY IMPACT

Abbott signed House Bill 1481 into law on June 20, giving school districts 90 days to adopt new electronic device policies, including disciplinary measures for students who violate the ban.

During the special session, he asked lawmakers to reconsider a few bills he vetoed, including a proposed ban on consumable THC products and two criminal justice bills. Under the Texas Constitution, lawmakers can only pass legislation on topics selected by the governor during a special session.

2 Schools to see $8.5B funding boost Texas’ nearly 9,000 public schools will see an $8.5 billion funding boost over the next two years after Abbott signed House Bill 2 into law June 4. HB 2 seeks to rework the state’s school nance system by creating new funding allotments to raise educator salaries and help districts cover xed costs. The funding increase comes as some school Texas districts across Community Impact ’s coverage areas grapple with growing budget shortfalls, leading some districts to consider closing campuses, cutting sta and slashing elective courses.

3 Voters asked to approve additional property tax relief Texas voters will have the nal say Nov. 4 on three proposed constitutional amendments aimed at increasing property tax exemptions for homeowners and businesses. Senate Bill 4 would raise the statewide tax exemption for all homeowners from $100,000 to $140,000, while Senate Bill 23 would give homeowners who are over 65 years old or have a disability a $200,000 exemption. House Bill 9 would exempt up to $125,000 of businesses’ inventory from taxation, up from $2,500 today. Texas’ tax system The state of Texas does not charge property taxes. Homeowners are taxed by over 3,700 local governments, including:

4 Laws seek to strengthen grid, wa- ter infrastructure Senate Bill 6 tightens regulations on large electric consumers, such as data centers, with the goal of encouraging them to rely fully on backup power during emergencies. House Joint Resolution 7 , if approved by voters, will send $1 billion annually in sales and use tax revenue to the Texas Water Fund, a state account created in 2023 to help nance water projects.

“These laws will repair aging infrastructure, expand new water sources, and help ensure that our communities, families, and businesses have the resources they need to thrive for decades to come.” REP. GREG BONNEN, RFRIENDSWOOD

Funding increases in HB 2 include:

for raises for teachers and

support sta $4.2B

for health insurance, utilities

and other xed costs $1.3B for special education $850M

School districts

Cities and counties

for early literacy and numeracy $433M

for school safety $430M

Hospital districts

Junior college districts

5 Tighter bail rules on November ballot

for teacher preparation

and certication $200M

Senate Joint Resolution 5 , which will appear on the ballot in November, proposes amending the Texas Constitution to require judges to deny bail for certain felony oenses, keeping more defendants in jail as they await trial.

SOURCE: TEXAS COMPTROLLER OF PUBLIC ACCOUNTS COMMUNITY IMPACT

SOURCE: TEXAS LEGISLATURE ONLINE COMMUNITY IMPACT

Municipal utility districts

6 Texas teachers now have more disciplinary authority After nearly half of Texas public school teachers cited discipline issues as a top workplace challenge in recent years, House Bill 6 gives educators more discretion to remove from the classroom students who are repeatedly disruptive or threaten the safety of others. The law took eect immediately after Abbott signed it on June 20.

“Texas must enact a regulatory framework that protects public safety, aligns with federal law, has a fully funded enforcement structure and can take eect without delay.” GOV. GREG ABBOTT

7 Abbott vetoes proposed ban on THC sales Hemp retailers across Texas can remain open for now after Abbott vetoed Senate Bill 3 , a proposed ban on consumable THC products, on June 22. Citing “undeniable” legal issues with the bill, Abbott said tighter regulations on the hemp industry were needed in lieu of an outright ban.

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