New Texas laws in effect for 2025

 

 

Several new laws took effect in Texas on January 1, 2025, such as the end of safety inspections for non-commercial vehicles and the collection and use of a consumer’s personal data. The bills were approved in the last Texas legislative session held in 2023. The 88th Texas Legislature sent more than 1,095 laws into immediate effect during 2023 and some 55 others went into effect during 2024, but several others now go into effect in 2025.

Starting January 1, non-commercial vehicles will no longer need to be inspected before registration. Instead, drivers pay a $7.50 fee when renewing their vehicle registration, according to the Texas Department of Public Safety.

“Please note the inspection program replacement fee is not an increase in the cost of your vehicle registration,” a news release from DPS states. “As its name suggests, this fee simply replaces the revenue source for state programs and operations—like the construction and expansion of state highways—once supported by vehicle safety inspections.”

With House Bill 4, also known as the Texas Data Privacy & Security Act, added Chapter 541 to the Texas Business and Commerce Code. The chapter expands data privacy rights for Texans by restricting the sale and processing of personal consumer data by businesses operating in Texas, with procedures for designating a consumer’s authorized agent going into effect in January. Texans will be able to use internet browser settings, device preferences or web extensions and opt out of the processing of their personal information by companies. The Texas Privacy and Data Security Act went into effect in July 2024, however, a chapter expands to protect consumers of businesses and companies. The process requires active user consent and demands transparency from companies about data collection.

Texas Senate Bill 2 will help keep school budgets on track if property tax revenues drop. Many sections in Senate Bill 2 have already gone into effect, but Article 4 took effect on January 1st. Starting in 2025, schools will be able to apply for additional state funding if local tax revenues fall short due to tax limitations, particularly those affecting elderly and disabled homeowners. The Texas Education Agency will also be required to post each school district’s maximum compressed rate for the current and preceding tax year.

Some other laws will go into effect later in 2025.

In July 2025, a change to issuing vehicle tags, permits, and license plates will come into effect. HB 718 amends the Tax Code and Transportation Code to eliminate the issuance of temporary paper license plates and permits by a dealer for vehicles sold in Texas.

 

The provisions of the bill change the type of temporary plates issued by a dealer to a metal license plate, require a dealer to obtain the plates from the Texas Department of Motor Vehicles (TxDMV), and establish that the plates are valid for the operation of the vehicle while the registration application submitted by the dealer is pending. The bill also revises the requirement for TxDMV to operate an applicable database to reflect the transition to metal license plates, which must allow law enforcement to obtain information about drivers to whom the license plates are issued.

In September, HB 299 goes into effect. It adopts minimum standards for accreditation as a recovery house for substance use disorder recovery and provides for the development and administration of a voluntary accreditation program by certain approved accrediting organizations. Section 469.009 states a recovery house that is not accredited in accordance with the chapter is ineligible for and may not receive state money.

Also in September, SB 2476 provides the method for determining the amount that a health maintenance organization, insurance and other healthcare providers must pay for a covered health or medical care service or transport that is provided by non-network or out-of-network emergency medical services providers. The Texas Department of Insurance is required to establish a publicly-accessible database for those rates, as they are set.

The 89th Legislature regular session is set to run in 2025 from Jan. 14 through June 2, with hundreds of pieces of legislation already filed. Legislation has already been filed to discuss items from artificial intelligence regulation to school vouchers and public education, marriage, elections, border and immigration, energy, wages and others.