Texas Senate Passes Bill Limiting Authority of Cities, Counties to Impose Local Regulations

The Texas State Capitol is seen on the first day of the 87th Legislature's third special session in Austin, Texas, on Sept. 20, 2021. (Tamir Kalifa/Getty Images)

Texas Senate lawmakers passed a bill on May 16 designed to take some authority away from cities and counties in the state that impose regulations exceeding state law.

House Bill 2127, known as the “Texas Regulatory Consistency Act” is sponsored by state Sen. Brandon Creighton and state Rep. Dustin Burrows, both Republicans.

It passed the Senate in an 18–13 vote mostly along party lines after previously passing the House in April.

According to an analysis of the bill, the legislation was filed because “the state has historically been the exclusive regulator of many aspects of commerce and trade in this state” but in recent years, “several local jurisdictions have sought to establish their own regulations of commerce that are different than the state’s regulations.”

These local regulations, according to the bill analysis, have “led to a patchwork of regulations that apply inconsistently across this state.”

Under the bill (pdf) statewide “consistency” would be granted by “returning sovereign regulatory powers to the state where those powers belong.”

Specifically, the bill would limit the ability of local governments from making rules or regulations in nine areas of state law: agriculture, business and commerce, finance, insurance, labor, local government, natural resources, occupations, and property, which go beyond state law.

“The provisions of this code preclude municipalities and counties from adopting or enforcing an ordinance, order, rule, or policy in a field occupied by a provision of this code unless explicitly authorized by statute,” the bill states.

“A municipal or county ordinance, order, rule, or policy that violates this section is void and unenforceable,” it states.

Workers exit the Marathon Galveston Bay Refinery in Texas City, Texas on May 10, 2022. (Brandon Bell/Getty Images)

Local Regulations ‘Conflict With State Law’

Additionally, the bill allows Texans to file a lawsuit against any municipality or county if they are “adversely affected” by orders, regulations, or rules rolled out by them in violation of the legislation, although they would have three months’ notice to correct the issue before legal action can be taken.

Such lawsuits would allow Texans to seek declaratory and injunctive relief and associated attorneys fees, according to the bill.

Tuesday’s bill contains some last-minute amendments including a provision prohibiting local governments from enacting protections for tenants facing evictions, and clarifying that lawsuits may only be bought against municipalities or counties and not individual officials.

Local municipalities or counties will also be entitled to recover costs if lawsuits bought against them are deemed “frivolous” by courts.

The legislation now heads back to the House where lawmakers will review the newly-amended bill.

Advocates of the bill, including Burrows, argue that it is needed to help small businesses deal with “inconsistent and overreaching regulations that conflict with state law.”

“Texas won’t allow ill-conceived decisions to take down the entire ship that drives our state’s economy,” Burrows wrote on Twitter late Wednesday.

The Texas Public Policy Foundation (TPPF), a conservative think tank based in Austin, welcomed the passing of the bill, adding that the state is currently “running under a patchwork of inconsistent regulations” that are harming business growth and conflicting with the rights of private citizens.

“House Bill 2127 provides a consistent regulatory system and increased compliance by ensuring that the state of Texas, not municipalities, is the exclusive regulatory authority over specified areas of state commerce,” said Rod Bordelon, senior fellow for regulatory affairs at TPPF, in a statement.

“This important legislation will preempt, and make unenforceable, city ordinances that duplicate and add to regulations already imposed by the State of Texas. We applaud Rep. Dustin Burrows and Sen. Brandon Creighton for their unwavering commitment to small businesses across Texas,” Bordelon added.

Opposition to Legislation

Elsewhere, the National Federation of Independent Business (NFIB), a nonprofit organization representing small and independent businesses, said the bill will provide small business owners with relief from the current “patchwork of regulations” across the state.

“For more than five years, as cities stepped outside their jurisdiction, the pandemic pumped the brakes on our economy, and uncertainty plagued the business environment, our small business owners have done their best to keep their doors open, take care of their employees, and serve their customers,” Annie Spilman, NFIB Texas director, said in a statement to The Texas Tribune.

“Today, the Senate has joined the House in standing up for Texas job creators.”

However, opponents including the Texas Democratic Party, condemned the legislation, arguing that it amounts to government overreach. They also fear it will roll back local protections for workers in areas such as wages and break times.

“We trust that community leaders know their communities far better than Texas Republicans at the Capitol do, and local decisions should be made by local school districts, cities, and counties—local leaders, mayors, and county judges who know their jurisdictions best,” the party said in a statement.

Houston city attorney Collyn Peddie has also condemned the bill.

“In a given day, city officials in each Texas city make thousands of decisions and undertake thousands of tasks essential to keep those cities running and their residents protected,” Peddie wrote in an April statement (pdf).

“There is no indication that the State is prepared or able to undertake or immediately delegate performance of these tasks for every city in Texas if HB 2127 takes effect and prevents cities from continuing to provide these services and protections. It is highly likely, therefore, that essential city services and protections in cities across Texas will be lost in the transition and thereafter,” Peddie wrote.

Texas Gov. Greg Abbott has backed the bill, meaning it will likely be signed into law in the coming weeks or months, The Texan reported.