A new Texas law takes effect Friday to streamline local ordinances, providing regulatory relief to local businesses across multiple areas of City code.
House Bill 2127, a keynote piece of legislation from the 88th Session of the Texas Legislature, seeks to foster a simpler business environment by preempting local rules that previously created a potentially uneven playing field. The law is called the Texas Regulatory Consistency Act.
“In recent years, several local jurisdictions have sought to establish their own regulations of commerce that are different than the state’s regulations,” the law reads, noting this has resulted in “a patchwork of regulations that apply inconsistently across this state.” HB 2127 is intended to reconcile these discrepancies.
Exactly which regulations will be affected is unclear, but the law could potentially impact more than 100 of Dallas’ municipal ordinances.
One analysis suggests it could preempt Dallas’ regulation of pesticides, herbicides, and fertilizers; landscape and tree planting and maintenance; rat and pest control; paid sick leave requirements; transportation service refusal; employee rest breaks; solid waste containers; valet parking licenses; credit services organization and credit access business registration; and dockless vehicle operators insurance.
A civil district court judge ruled the law unconstitutional Wednesday during a preliminary hearing for a lawsuit filed by the City of Houston, alongside several other municipalities.
Despite the ruling, the courts have not placed an injunction against the law, and it goes into effect September 1, as reported by The Dallas Express.
This is acknowledged by Paige Willey, the director of communications for the Office of the Attorney General.
“While the judge declared HB 2127 unconstitutional, she did not enjoin enforcement of the law by Texans who are harmed by local ordinances, which HB 2127 preempts,” Willey said in a statement published by Insider. “The Office of the Attorney General has also immediately appealed because the ruling is incorrect. This will stay the effect of the court’s declaration pending appeal. As a result, HB 2127 will go into effect on September 1.”
Houston’s suit had argued that the legislation violates the Texas Constitution by infringing upon the rights of local municipalities to regulate themselves, leading some to refer to it as the “Death Star” bill.
Cities such as Denton, San Antonio, El Paso, Arlington, Plano, Waco, and others joined Houston in the litigation, as reported by The Dallas Express.
Dallas City Attorney Tammy Palomino filed an amicus letter with the court claiming the law “abrogates the constitutional structure of government.” Council Members Adam Bazaldua (District 7), Omar Narvaez (District 6), Jaime Resendez (District 5), Jaynie Schultz (District 11), and Chad West (District 1) also signed a separate amicus brief.
A memo from Council Member Tennell Atkins (District 8) suggested that the legislation will end the prohibition of owning a rooster in Dallas, alter the regulations on fertilizer facilities, upend various local insurance requirements, and end certain anti-discrimination mandates.
The local regulations pertaining to minimum wage, water conservation, sexually oriented businesses, anti-discrimination labor requirements, and more might be affected, Atkins noted.
Still, pro-business organizations such as the Alliance for Securing and Strengthening the Economy in Texas claim that the worries of home rule interference have been overblown.
“There is no conflict between the Texas Constitution’s provisions on home-rule cities and HB 2127,” the group suggested. “The Texas Constitution is clear that even home-rule cities may not adopt ordinances or city charter provisions that are inconsistent with laws enacted by the Legislature (Art. XI, Sec. 5). That is the framework HB 2127 continues.”
HB 2127 provides an enforcement mechanism for this clause by enabling citizens to bring litigation against municipalities over ordinances in certain regulatory fields that contradict state law.
Supporters of the law emphasize that regulatory consistency will help small businesses thrive in areas previously inaccessible to them due to red tape, costly provisions, and anti-growth regulations.
At its core, “HB 2127 is a thoughtfully crafted response to the complex regulatory landscape that has, for years, frustrated Texas businesses large and small,” the Texas Association of Business explained. “Regulatory inconsistencies hinder business operations in various Texas cities and convolutes the operational process for employers that have locations in different regions across the Lone Star State.”
