NOTE: This article was originally posted on June 11 and included in TAD’s June newsletter. It was updated on June 23 to reflect bill status at the end of the governor’s veto period – updates are in red. The governor also announced on June 23 that a special 30-day legislative session will start on July 21.
By Lauren Fairbanks and J Pete Laney
TAD Governmental Relations
The 89th regular legislative session drew to a close on June 2. Every legislative session has its own personality, and this session was no different. Most notably, in a shift from recent sessions, the Big Three (governor, lieutenant governor and speaker) worked very closely throughout the 140 days to usher leadership priorities across the finish line.
The House and Senate combined filed 8,719 bills this session. Of those bills, only 1,213 were passed and sent to the governor. Some have already been signed into law, but the majority have not. June 22 is the last day for the governor to act on legislation. Bills sent to the governor can be signed, vetoed or allowed to become law without his signature.
A wide range of leadership priorities made it across the finish line, including the biennial state budget, property tax relief, bail reform and, most importantly in the eyes of the governor, a school voucher program. After several failed special sessions in 2023 and ultimately spending millions of dollars during campaign season to get pro-school choice legislators elected, the governor finally got his win on vouchers this session.
While not all leadership priorities passed, many in Austin are hopeful that enough of them landed on the governor’s desk to prevent a special session. Finally, as we usually see at the end of a legislative session, the first retirement has been announced. Rep. Tony Tinderholt (R-Arlington) announced his retirement during a speech on the House floor on the last day of the session (and announced the next day he would run for Tarrant County Commissioner’s Court). More retirements likely will be announced in the coming weeks and months before the next election cycle in 2026.
Keep reading to get a glimpse at what your Texas Association of Dairymen team was tracking on behalf of the dairy industry this session, and how the bills fared.
Agricultural Operations
HB 43 by Rep. Stan Kitzman (R-Pattison)/Kevin Sparks (R-Midland), relating to the Texas Agricultural Finance Authority (TAFA) and to a study and report on plant diseases and pest outbreaks. The bill removes age restrictions for eligibility requirements and increases the loan limit while reducing interest rates for TAFA. It also extends assistance eligibility to agribusinesses essential to production agriculture. Additionally, SB 1 appropriates $100 million to implement the provisions of HB 43. HB 43 was signed by the governor June 20 and takes effect immediately. SB 1 was signed by the governor June 22 and takes effect Sept. 1.
HB 1399 by Rep. Cody Harris (R-Round Rock)/Sen. Robert Nichols (R- Jacksonville), relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail. The bill provides for property tax exemption for animal feed. Under current law, animal feed is not taxed at any point, except when it is sitting as inventory. By reducing retailer costs, exempting feed held by retailers from property tax ideally helps make animal feed more affordable. The measure has been signed by the governor but must be approved by voters in the Nov. 4 statewide election before it takes effect.
SB 1948 by Sen. Charles Perry (R-Lubbock)/ Rep. Trent Ashby (R-Lufkin), relating to the authority of a political subdivision to regulate fire prevention standards for certain agricultural facilities. The bill prohibits a governmental entity from adopting or enforcing an ordinance, order, rule or other measure that required the installation of a fire protection sprinkler system in an agriculture operation. Signed by the governor June 20 and takes effect Sept. 1.
SB 1035 by Sen. Kevin Sparks (R-Midland)/ Rep. David Spiller (R-Jacksboro), relating to the equitable relief from the enforcement of certain governmental requirement that affect agricultural operations. Texas’ Right to Farm bill was passed last session and voters approved the constitutional amendment establishing the Right to Farm. Since passage, some political subdivisions have enforced regulations that hinder standard agricultural practices, including restrictive zoning laws, limitations on farming activities and other ordinances that adversely impact farming operations. The bill updates the Right to Farm statute by providing a right of action for a person aggrieved by a political subdivision’s enforcement of an ordinance affecting agricultural operations in violation of state law. It also authorizes a person who prevails in such an action to recover court costs and reasonable attorney’s fees. It was signed by the governor May 19 and takes immediate effect.
HB 255 by Rep. Ryan Guillen (R-Rio Grande City), relating to the definitions of certain terms for purposes of the exemption from ad valorem taxation of farm products in the hands of the producer. The bill would have expanded the definition of farm products for the purposes of property tax exemption to include supplies used or produced in a farming operation, among other items. The bill passed the House but was not given a hearing in the Senate. The bill did not pass.
HB 1669 by Rep. Lacey Hull (R-Houston), relating to the sale of raw milk and raw milk products in this state. The author’s intent was to codify the Department of State Health Services related to raw milk sales, but as drafted the measure would have expanded the sale of raw milk to retail and created a raw milk coordinator. The bill did not pass.
HB 2118 by Rep. Briscoe Cain (R-Deer Park), relating to the issuance of oversized or overweight permits for vehicles transporting agricultural commodities during or preceding a disaster. The bill would have authorized the Texas Department of Motor Vehicles to issue special permits to overweight or overweight vehicles or loads that can easily be dismantled or divided and only used to deliver agricultural commodities during or before a disaster. The bill did not pass.
HB 3336 by Rep. Brad Buckley (R-Salado)/SB 1554 by Sen. Pete Flores (R-Floresville), relating to an alcoholic beverage tax credit for certain liquor or malt beverage byproducts donated for agricultural use in this state. The bill would have entitled taxpayers who donated spent grain to the agricultural industry to a tax credit. The tax credit would be equal to eight cents per pound of the dry weight of spent grain byproduct donated by the taxpayer during the state fiscal year for agricultural use, including for use in composting or as animal feed and to a location no more than 100 miles from where the byproduct was used to produce liquor or malt beverage. The bill did not pass.
HB 3830 by Rep. Pat Curry (R-Waco), relating to a franchise tax credit for certain watershed protection activities. The measure would have established a franchise tax credit to incentivize dairies to haul manure out of the Bosque watershed. The bill did not pass.
Make America Healthy Again in Texas
Following the election of President Trump and his subsequent appointment of Robert F. Kennedy, Jr. as Secretary of Health and Human Services, the “Make America Healthy Again” (MAHA) movement gained traction in Texas. The movement focuses on food labeling, nutrition education in schools and addressing speculated health risks associated with certain food additives and ingredients. The initiative aims to address what many legislators across the state see as a chronic disease epidemic. The movement was the result of a dozen bills filed in the state this session.
SB 25 by Sen. Lois Kolkhorst (R-Brenham)/Rep. Lacey Hull (R-Houston), relating to health and nutrition standards to promote healthy living, including requirements for food labeling, primary and secondary education, higher education and continuing education for certain health care professionals; authorizing a civil penalty. This bill is the culmination of the MAHA movement in Texas. The bill passed the Senate unanimously. The bill requires manufacturers to include a warning label for consumers if their products contain ingredients deemed “not recommended for human consumption by authorities in Australia, Canada, the European Union, or the United Kingdom.” Signed by the governor June 22 and takes effect Sept. 1.
SB 314 by Sen. Ryan Hughes (R-Mineola)/Rep. Caroline Harris Davila (R-Round Rock), relating to prohibiting certain food additives from being included in free or reduced-price meals provided by school districts. The bill prohibits certain food additives from being included in meals provided by Texas school districts. It mandates that any meal provided in Texas under the Child Nutrition Act of 1966 or 42 U.S.C. Section 1751 (the “national school breakfast program” and “national school lunch program,” respectively) no longer contain the additives listed within the bill. The list of banned ingredients includes brominated vegetable oil (BVO), potassium bromate, propylparaben, azodicarbonamide, butylated hydroxyanisole (BHA), red 3, red 40, yellow 5, yellow 6, blue 1, blue 2, green 3, citrus red 3, orange B, ammonia caramel (Class III), sulfite ammonia caramel (Class IV) and titanium dioxide. It was signed by the governor May 27 and takes immediate effect.
SB 379 by Sen. Mayes Middleton (R-Galveston)/Rep. Stan Gerdes (R-Smithville), relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program. The bill prohibits a SNAP recipient from using those benefits to purchase a sweetened soft drink or candy. Signed by the governor June 20 and takes effect Sept. 1.
SB 823 by Sen. Mayes Middleton (R– Galveston)/Rep. Terri Leo Wilson (R-Galveston), relating to required labeling of meat, poultry, shrimp, and certain related food products. The bill was amended in Senate committee to narrow labeling requirements for imported shrimp only. Signed by the governor June 20 and takes effect Sept. 1.
Several other bills were filed but ultimately failed to pass. They include:
- HB 2840by Rep. Joanne Shofner (R-Nacogdoches), relating to the labeling of products as milk and milk products. Would have restricted the use of “milk” on labels for products that are not secreted by the mammary glands of female mammals.
- HB 5339by Rep. Terry Wilson (R-Georgetown)/Sen. Judith Zaffirini (D-Laredo), relating to the advancing research for agricultural sustainability and pesticide harm reduction in institutions of higher education. The bill would have established the Higher Education Regenerative Agriculture Grant Program. It defined “regenerative agriculture” as a holistic system of agricultural practices and techniques that enhance overall soil health, increased soil organic matter, improved water infiltration and retention, increased resilience to droughts and flooding, enriched biological diversity, and proliferated beneficial soil microbes through a combination of practices based on certain agricultural principles. The bill would have also required the Higher Ed Coordinating Board to collaborate with the State Soil and Water Conservation Board to align research with existing soil and water conservation programs, ensure projects complemented statewide efforts to improve soil health and reduce pesticide usage.
- SB 119by Sen. Bob Hall (R-Edgewood), relating to required labeling of food containing mRNA vaccine material. The bill would have required all food products sold in the state derived from products injected with mRNA vaccine material include a clear and conspicuous label indicating the product contains mRNA vaccine material.
Animal Health
HB 2439 by Rep. Pat Curry (R-Bruceville), relating to the abolishment of the Texas Animal Health Commission and the transfer of its functions to the Department of Agriculture. The bill did not pass.
SB 503 by Sen. Charles Perry (R-Lubbock)/Rep. Stan Gerdes (R-Smithville), relating to the establishment of an electronic registry of livestock marks and brands. The bill establishes an electronic registry in order to help enhance livestock identification and support law enforcement efforts in combating theft and misidentification. It was signed by the governor May 3 and takes effect Sept. 1.
SB 2155 by Sen. Charles Perry (R-Lubbock)/Rep. Stan Kitzman (R-Pattison), relating to the regulation of veterinary professionals and facilities by the State Board of Veterinary Medical Examiners and the temporary administration of the board by the Department of Licensing and Regulation. During the 88th legislative session, the Sunset Advisory Commission recommended that the State Board of Veterinary Medical Examiners (TBVME) be attached to the Texas Department of Licensing and Regulation (TDLR) for the administrative supervision of the TBVME. The bill sets out parameters in order to allow the TBVME to detach from TDLR and act as its own entity. Signed by the governor June 20 and takes effect Sept. 1 except Section 37 which takes effect Sept. 1, 2026.
Funding Texas’ Future Water Needs
The 2025 Legislature achieved an historic water session, allotting $2.5 billion in infrastructure spending with a 50-50 split between new supply and fixing existing infrastructure in the 20-year annually dedicated funding. The two prongs of the deal are a one-time $2.5 billion appropriation to the Texas Water Development Board to use at its discretion and a $1 billion commitment each of the next 20 years to the Texas Water Fund.
The first chunk comes in the supplemental appropriations bill, HB 500, taken from the current-biennium surplus. There is no ratio split between new projects and fixing existing projects for that tranche of money; that split had been an inter-chamber disagreement throughout negotiations.
HJR 7 (Harris/Perry) sets out the $1 billion annual deposits into the Texas Water Fund, created in 2023. SB 7 (Perry/Harris) establishes a 50/50 split between the construction of new water supply and the repair and maintenance of existing ones. SB 7 also adjusts the existing State Water Implementation Fund of Texas (SWIFT) to permit its spending on water and wastewater treatment facilities, along with making the fund eligible for the half of funds itemized for new supply. Additionally, SB 7 enables the governor to nullify the split in the case of a disaster declaration, intended to allow flexibility to a distressed area if the need arises. HJR 7 must be approved by voters in the Nov. 4 statewide election before it takes effect. SB 7 was signed by the governor on June 20 – it is effective Sept. 1 except for some provisions that are not effective unless voters approve HJR 7.
Panhandle Wildfires
In February and March 2024, Texas experienced its worst wildfire ever, the Smokehouse Creek Fire which burned over a million acres and was the subject of three days of interim hearings and a Texas House report. In addition to budgetary provisions, several bills were filed by Rep. Ken King (R-Canadian), who represents the district with the most damage from the 2024 fires, to address the issues identified in the House report.
- HB 143 (King/Hancock) deals with oversight and regulation of electrical lines that are part of oil and gas operations after investigations showed the fire was started by electrical poles near oil and gas drilling sites. Signed by the governor June 20 and takes effect Sept. 1.
- HB 144 (King/Schwertner) deals with pole inspections, requiring utilities to submit a distribution pole inspection and management plan to the PUC, with an updated plan submitted every three years. Signed by the governor June 20 and takes effect immediately.
- HB 145 (King/Schwertner) requires utilities in a wildfire risk area to file a wildfire mitigation plan to the PUC. Signed by the governor June 20 and takes effect immediately.
- HB 3824 (King/Schwertner) would require the insurance commissioner to adopt fire safety standards and testing requirements for the design, installation, operation and safety of battery energy storage facilities with a capacity of at least one megawatt hour installed on or after Jan. 1, 2027. Signed by the governor June 20 and takes effect Sept. 1.
- SB 34 (Sparks/King) supports volunteer fire departments struggling to deal with large fires and improves communications. Signed by the governor June 20 and takes effect Sept. 1.
- SB 767 (Sparks/Fairly) creates a database of firefighting equipment. It was signed by the governor May 19 and takes effect Sept. 1.
