A new year means a new wave of legislation for the Lonestar State. From tax relief for businesses to age verification on digital platforms, stay up to date on the latest in Texas laws that go into effect on January 1, 2026.
AI Oversight (HB 149)
The Texas Responsible Artificial Intelligence Governance Act (TRAIGA) provides a regulatory framework for AI. The bill prohibits the use of AI for criminal activity or self-harm as well as its use for discriminatory government “social scoring” – that is, government agencies nor companies can designate a “grade” to people.
Through the bill, companies must disclose when citizens are interacting with their website rather than a human. The bill also creates a “regulatory sandbox” or safe environment in which a state supervision along with an AI Council oversees how companies testAI technologies on citizens.
Age verification and Digital platforms (SB 2420)
SB 2420 mandates that app stores require an age verification. As such, app stores must feature prominent age ratings and descriptors and provide linked accounts of minor users so that app downloads and in-app purchases link to parental accounts for ultimate download and/or purchase.
Local immigration enforcement (SB 8)
SB 8 mandates the formal cooperation of Texas sheriffs operating county jails with ICE. The 287(g) agreements grant local officers the power to perform federal immigration duties, that is, to check inmates’ immigration status and serve federal warrants within jails. With SB 8, Texas will provide state grants between $80,000 to $140,000 to counties with populations under 1 million to cover training and personnel costs.
Tax relief for businesses (HB 9)
The Business Property Tax Relief increases property tax exemption for Business Personal Property (BPP) that includes inventory, equipment, and furniture. Before, tax breaks were in place for property under the value of $2,500 whereas with this bill, that exemption applies to property valued up to $125,000. This is intended to provide tax relief to small-to-medium businesses across the state.
Expedited Eviction for Unauthorized Occupants (SB 38)
The landlord-friendly SB 38 expedites the legal process for removing unauthorized occupants or “squatters”. The bill simplifies the eviction process, authorizing the landowners to schedule hearings within 21 days of case filings. Additionally, the bill limits considered third-party issues at hearings – restricting cases to point of legal occupancy. Tenants retain basic notice and appeal processes.