Texas Business Horizon: 2025 Texas Legislature

As your trusted legal advisor, we’re committed to keeping you informed about the ever-changing landscape of the 2025 Texas legislature. We have reviewed key bills in the Texas legislature that may significantly impact your business operations. Our goal is to provide you with clear, actionable insights to help you navigate legislative updates that may impact your business and keep you on track to achieve your corporate objectives.

The 2025 Texas legislative session kicked off in January and will be working through more than 2,200 bills. Here’s how several proposed Texas laws could play out for business

Will the Texas minimum wage increase after 15 years?

Texas minimum wage laws have not changed in 15 years; minimum wage in the state stands at $7.25 per hour. Two bills are on the table — one sponsored by Rep. Vikki Goodwin (D-Austin), HB 691, proposes to raise the minimum wage to $19 per hour. In addition, HB 193, filed by Rep. Armando Walle (D-Houston) is in support of raising the minimum wage to $15 per hour.

Proposed bills to raise Texas’s minimum wage to $15 or $19 per hour would significantly impact businesses. Increased labor costs could lead to higher prices, reduced employment, and potential job losses as companies adjust to manage expenses. Businesses might invest in automation and restructure their workforce, affecting profitability, especially for smaller enterprises. However, a higher minimum wage could create a level playing field, reducing unfair competition, and attracting skilled workers. The overall impact would depend on implementation details and economic conditions at the time of enactment.

Texas High Speed Rail Gains Momentum

The high speed rail conversation has bubbled up over the last few years and is getting traction. HB 483, proposed by Rep. John Bucy (D-Austin), revives the effort. It directs the Texas Department of Transportation to partner with a private company to build, maintain, and operate the line between Dallas, Austin, and San Antonio along Interstate 35. Bucy is also behind HB 542 which allows the state to use highway funds for transit-oriented projects.

Texas high speed rail bills could create increased economic connectivity between Dallas, Austin, and San Antonio. Private-public partnerships would drive rail development, generating significant investment opportunities and infrastructure jobs. For example, transit-oriented development would likely emerge, sparking real estate opportunities and creating new commercial zones around rail stations.

Businesses could benefit from reduced transportation costs, improved employee commuter options, and enhanced inter-city collaboration. By reducing highway congestion and creating alternative transportation methods, these proposals could attract new businesses, stimulate economic growth, and position Texas as an innovative economic leader.

The high-speed rail bill poses several challenges for Texas businesses too. It could intensify competition in the transportation sector, disrupt local economies during construction, and potentially increase tax burdens. Property values along the route may be affected, and workforce distribution could shift. Additionally, the project’s uncertainty might deter some business investments in affected areas.

Texas Gambling Law on the Agenda

Sen. Carol Alvarado (D-Houston)’s Senate Joint Resolution 16, could allow voters to decide whether to amend the state constitution to allow sports betting. The resolution also calls for seven casinos to be built across the state and for creation of the Texas Gaming Commission to regulate casino gaming and sports wagering.

Legalizing gambling through Texas gambling law SJR 16 could dramatically transform the state’s economic landscape. By introducing seven strategic casinos and sports betting, the legislation could generate $2.6 billion in annual economic output and create over 8,000 jobs, per a study by Eilers & Krejcik. The potential $363 million in direct tax revenue could provide significant financial benefits, while boosting tourism and hospitality sectors. However, the proposal also carries risks, including potential market saturation, increased gambling addiction, and complex regulatory challenges. Efforts to legalize gambling lack support in the Senate.

Will Texas Follow Other States in Legalizing Cannabis?

House Bill 1208 filed by Rep. Jessica González (D-Dallas) legalizes the possession, cultivation, manufacturing, transportation, and sale of cannabis. It permits the transportation of up to 2.5 ounces of marijuana, and allows people to store up to 10 ounces of weed at home if kept in a locked container.

Legalizing marijuana through Texas weed laws like HB 1208 would have significant impacts on businesses. Pros include potential new revenue streams, job creation, and economic growth. However, challenges arise for employers, especially those with safety-sensitive positions. While companies can still conduct drug tests and maintain drug-free workplace policies, they may need to revise these policies to account for legal off-duty use. Businesses involving heavy machinery might face increased safety concerns and potential liability issues. Overall, legalization would create new opportunities but also require careful navigation of workplace policies and safety considerations

Texas Renewable Energy Legislation Introduces Regulations

Texas lawmakers are proposing stricter regulations on renewable energy in 2025, potentially impacting businesses significantly. HB 553 seeks to require regulatory approval and environmental impact statements for new renewable projects, while other bills aim to impose buffer zones and restrict battery storage sites. This Texas renewable energy legislation could slow renewable energy growth, potentially increasing costs for businesses. However, proponents argue they protect local communities and ensure grid stability. On the positive side, existing renewable projects continue to generate substantial tax revenue and landowner payments over their lifetimes. This economic boost benefits local communities but may be threatened by new regulations, creating a complex landscape for Texas businesses navigating the evolving energy sector.

Conclusion

The 2025 Texas legislative session brings forth a diverse array of bills that could significantly shape the business landscape in our state. From potential changes in minimum wage and transportation infrastructure to the possibility of new industries emerging through gambling and cannabis legalization, Texas businesses face both challenges and opportunities. The proposed renewable energy regulations also highlight the evolving nature of our energy sector.

At our firm, we understand that navigating these potential changes can be complex. We’re here to help you understand the implications of these bills on your business and to provide the legal guidance you need to thrive in this dynamic environment. As your business partners, we are committed to helping you turn legislative challenges into strategic advantages. We will continue to monitor and analyze the bills that matter most to your business success.