News Summary
The 2025 Legislative Session concluded, affecting small businesses in Texas with the passage of several important bills. Key highlights include inventory tax relief and measures aimed at cutting red tape. However, some initiatives failed, including efforts to regulate credit card fees. A controversial bill banning cannabis-derived THC products raised concerns among business owners. This session marked significant progress while accentuating ongoing tensions regarding public health and business regulations.
Austin, Texas – The 2025 Legislative Session concluded on June 2, wrapping up 140 days of discussions that significantly affected small businesses in Texas. The National Federation of Independent Business (NFIB) tracked over 200 proposed bills during this period, successfully passing many priority measures while blocking others deemed harmful. The efforts of small business owners were highlighted with the attendance of more than 100 members during the successful Small Business Day event, demonstrating the importance of owner engagement as emphasized by House Speaker Dustin Burrows.
Legislative Highlights
A notable achievement for small businesses was the passage of HB 9, which aimed to provide inventory tax relief by increasing the business personal property tax exemption from $2,500 to $125,000. This bill, set for voter approval on the November ballot, is projected to save businesses approximately $500 million annually by covering inventory, furniture, machinery, and supplies.
Another essential area of focus was cutting regulatory red-tape. Recommendations from Governor Abbott’s Small Business Freedom Council led to several key bills being passed. SB 14 established the Texas Regulatory Efficiency Office, designed to reduce regulatory burdens on businesses. HB 5195 modernized state agency systems for improved online access and reduced paperwork, while HB 11 expanded occupational licensing reciprocity, facilitating easier skill transfers for out-of-state workers.
The rising costs of health insurance were addressed with HB 138, which introduced a process to estimate how proposed legislation might impact private health coverage expenses. Additionally, SB 2610 provided legal protections for small businesses against damages from data breach lawsuits, as long as they have implemented specified cybersecurity measures.
Legislation That Did Not Pass
Despite the successes, some initiatives fell short. NFIB advocated for legislation on credit card swipe fees and the need to combat lawsuit abuse, but these attempts did not succeed. Proposed measures, including SB 2056 for transparency in the credit card marketplace and SB 30 aimed at limiting excessive medical damages in court, also failed to gain traction.
Controversial THC Legislation
In a controversial turn, Texas lawmakers passed legislation that will ban all cannabis-derived THC products, effective September. This legislation will affect a range of items, including edibles, beverages, and gummies. Smoke shop owners have voiced concerns about the negative impacts this ban may have on small businesses. The bill was driven by safety concerns related to unregulated THC products, particularly their accessibility to minors, as emphasized by Lt. Gov. Dan Patrick. Critics have raised alarms regarding potential economic fallout and job losses within the cannabis industry due to this measure.
Additional Legislative Developments
Beyond small business legislation, the session also saw the passing of Senate Bill 10, which allows for the display of the Ten Commandments in classrooms to reflect American historical values. Additionally, House Bill 6 permits school administrators to extend in-school suspension durations at their discretion, and House Bill 229 provides strict definitions of “man” and “woman” in state law based on biological anatomy. However, key bills related to student assessments and prison air conditioning were not able to progress through the legislature.
This legislative session marked significant progress for small businesses in Texas while also highlighting areas of contention, particularly regarding public health and business regulation. As lawmakers prepare for the upcoming legislative period, the focus will likely continue to be on creating a favorable environment for small businesses while balancing public safety concerns.
Deeper Dive: News & Info About This Topic
HERE Resources
Texas Senate Bill 2610 Enhances Cybersecurity for Small Businesses
Texas Legislature Shakes Up Cannabis Industry
Sunmed Urges Governor Abbott to Veto Senate Bill 3
Texas Senate Bill 3: A Major Shift in the Hemp Industry
A Bright Future for Small Businesses in Texas
Historic Public School Funding Agreement in Texas
West Texas Faces Rising Tide of Oil Theft
Texas Lawmakers Move to Ban THC-Infused Hemp Products
New Tools for Texas Small Businesses
Texas House Passes Controversial Bill Aimed at Banning THC Products
Additional Resources
- NFIB: Texas Small Business Legislative Session
- Wikipedia: 2025 Texas Legislative Session
- KXXV News: Texas Legislative Session Recap
- Google Search: Texas Legislative Session 2025
- Statesman: Texas THC Ban Threatens Cannabis Industry
- Google Scholar: Texas THC Ban 2025
- deBanked: Texas Sales-Based Financing Law
- Encyclopedia Britannica: Texas Sales-Based Financing Law
- Cannabis Business Times: Texas Hemp Advocates
- Google News: Texas Hemp Advocates SB 3
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
