AUSTIN (Sept. 1, 2023) – Today the Texas Regulatory Consistency Act (HB 2127) a bipartisan bill introduced by Rep. Dustin Burrows (R-Lubbock) and Sen. Brandon Creighton (R-Conroe) and signed into law by Governor Greg Abbott, will take effect.

Marking the momentous occasion, NFIB State Director Annie Spilman said:

“After five years of uncertainty, our small business owners finally have some peace of mind. The compliance nightmare is finally over.

“It’s worth remembering how we got to this point. In various cities across our state, local officials have attempted to pass onerous and duplicative mandates that if enforced, would have devastated our local job creators. In some instances, if an employer was accused of violating an ordinance, their records and their employees’ records could be subpoenaed.

“That is no way to ensure Texas small businesses keep their doors open, their employees paid, and our communities strong.

“Today, Texans finally have a constitutional tool at their disposal to fight back against local officials governing with a heavy hand rather than addressing the needs of their constituents. Despite the Travis County judge’s declaratory ruling, small business owners should not be deterred from availing themselves of their rights under the Texas Regulatory Consistency Act.”

Background:

The Texas Regulatory Consistency Act clarifies that business and labor standards are maintained under state and federal law, while more narrowly focused law on health, safety, and permitting of businesses will still fall under local authority. This clarification will help small business owners better comply with regulations, rather than being burdened by the complexity of multiple jurisdictions of law over their business practices.

NFIB Texas, a member of the Alliance for Securing and Strengthening the Economy in Texas (ASSET), joined the business coalition in filing an amicus brief in the case City of Houston vs. The State of Texas. NFIB Texas is committed to defending the constitutionality of the Texas Regulatory Consistency Act.

The law was approved by the House on a bipartisan basis in April, before passing the Senate in May. NFIB and local job creators testified before both the House and Senate in support of the bill, with one NFIB member saying: “We need the protection of the state, when it comes to cities telling us how to run our businesses.”

READ: FACT CHECK: Patchwork of Regulations Threatens Texas Small Business Owners