HOA Section 8 bans, renter protections and more: New laws Denton businesses, homeowners should know about

House Bill 2127: Prohibiting local regulations

Known as the Texas Regulatory Consistency Act, House Bill 2127 was signed by Gov. Greg Abbott June 13 and will take effect Sept. 1. The bill, which prevents local governments from enforcing regulations under the business and agriculture codes, was promoted by business lobbying groups as a way to correct a “patchwork” of city and county regulations that proponents say made things more difficult for small business owners.

Others argue the act is a power grab by a Republican-majority Legislature opposed to progressive initiatives in liberal metropolitan areas.

Labor and housing advocates say HB 2127 will have a disparate impact on the poor and working class, as rules mandating water breaks for construction workers and allowing tenants time to pay back rent before being evicted — both active ordinances in Dallas — are among those explicitly targeted by the bill.

Elected officials in Denton are not sure yet if, or how many, the city’s rules would be called into question by the law, a concern shared by other local leaders thanks to the bill’s broad language.

We broke down what we know so far about how HB 2127 could impact Denton a few weeks ago.

House Bill 1193: Discrimination by homeowners associations

Homeowners associations can no longer prevent homeowners from renting based on their form of payment following the passage of HB 1193, authored by Rep. Chris Turner, D-Grand Prairie. The bill follows the controversy surrounding leasing rules passed by Providence Homeowners Association in June 2022 that sought to expel renters with Section 8 Housing Choice Vouchers by fining landlords $300 weekly. The rules were suspended after coverage by the Denton Record-Chronicle and other local and state outlets led to a federal investigation and landlords with properties in the neighborhood filed lawsuits. The act will also impact Denton County’s Savannah neighborhood, which has enforced a similar ban since at least 2019. HB 1193 has not been signed by Abbott but will take effect Sept. 1.

Senate Bill 12: Sexually oriented performances

SB 12 prohibits businesses from allowing anyone under 18 years old to attend a “sexually oriented performance.” Direct reference to drag shows was removed before the bill received final approval, but it does classify the use of “accessories or prosthetics that exaggerate male or female sexual characteristics” accompanied by gesticulations as sexual conduct, which advocates say could be used to target drag costumes.

Individuals who violate the law could face a state civil penalty of up to $10,000 for each violation, as well as court costs. The act gives counties the authority to regulate sexually oriented performances, prohibiting municipalities from authorizing such events on public property or in the presence of a minor. Performers violating the law could face a Class A misdemeanor, which carries a $4,000 fine and up to a year in jail.

House Bill 14: Loosening housing regulations

Business owners, thought leaders and other advocates petitioned the Legislature to address the statewide affordable housing crisis this session, and at least one bill aimed at bringing more housing to the market passed. House Bill 14 allows licensed third-party inspectors and reviewers to sign off on site plans and building inspections, targeting the bottleneck at local government planning offices and allowing housing to come online more quickly. Developers say the backlog has contributed to increased housing costs thanks to additional overhead brought on by delays, with cities like Austin taking up to two years to clear site plan reviews.

Gov. Abbott signed HB 14 into law June 12.

Senate Bill 379: ‘Period tax’

Consumers will no longer have to pay sales tax on menstrual products and infant care items thanks to SB 379. The law eliminates taxes on pads and tampons, wound dressings, child and adult diapers, maternity clothing, breast milk pumping products and baby bottles.

Senate Bill 29: Masks

Cities can no longer pass mandates requiring facial coverings to prevent the spread of COVID-19 or require private businesses or public and private schools to enforce mask mandates following the passage of SB 29.

Hanging in the balance: Property tax relief

With Texas boasting the sixth-highest tax rate in the U.S. and residents feeling the pinch of inflation, property tax relief has been a priority for the Legislature, and Gov. Abbott, this session. But with state lawmakers and Abbott still in disagreement over how to offer relief, the Legislature is entering its third week of a special session in attempts to get a bill to the governor’s desk.

Abbott originally insisted legislators pass a measure that involved sending state dollars directly to school districts so counties could lower tax rates but has since encouraged lawmakers to agree on a broader bill for his consideration, according to the Texas Tribune. Tightening appraisal caps and increasing the homestead exemption are both being considered as measures to get relief to homeowners, though the exact approach to each is still up for debate.

Denton County’s property tax rate decreased by a penny-and-a-half in 2022-23, to $0.217543 per $100 property valuation, but many homeowners have experienced an overall increase in their tax bill in recent years due to increased home appraisal values.

Lawmakers are just over halfway through the 30-day special session, although Abbott has said he will continue to call special sessions until what he considers an acceptable compromise reaches his desk.