Texas Legislature Adjourns Second Special Session

On September 3rd, the Texas Legislature adjourned the second-called special session sine die. Combined with the first-called special session, the Legislature passed the following legislation:

• U.S. congressional redistricting:  Redrawing Congressional seats to make it more likely that up to five seats currently held by Democrats will go to Republican candidates to Congress.
• Providing outdoor warning sirens in certain flood-prone areas and requiring youth summer camps to adopt emergency evacuation procedures, training, and emergency ladders for cabins currently located in floodplains.  Additionally, youth summer camps are now prohibited from constructing new cabins within a floodplain.
• A revised “bathroom bill” that restricts bathroom use in government-owned buildings, public schools, and universities based on sex assigned at birth.
• Further restrictions on abortion-inducing drugs from being mailed to recipients in Texas.

Left Unaccomplished from the Agenda

• Additional hemp-derived THC regulations:
• Lt. Gov. Patrick has long favored a complete ban on any products containing THC, while Gov. Abbott and some House Republicans favor stricter control and licensing for some THC products. The Senate passed its version of the legislation quickly, but consensus could not be reached between the two chambers and the Governor.  At this time, businesses may continue to sell products, including beverages, containing THC, but should exercise caution and discretion if choosing to do so.
• Note: A ban on THC vaping products passed separately during the regular session took effect on September 1^st. Additionally, after the 2nd special session adjourned, Governor Abbott issued an order directing state agencies (such as Texas Alcoholic Beverage Commission and State Health Services) to work within their rulemaking powers to regulate the sale of THC in Texas; the most notable of these changes was setting a 21+ age limit for sale, but at time of writing many of these rules are still being developed. This order by Abbott is only a stopgap measure, however, and further legislation on the issue is expected to be a topic during the 90th Legislature in 2027 (or any special session called before then). 
• Additional flood relief measures and investigations:
• The Senate and House already appointed special investigating committees to work during the interim period on recommendations and further actions the Legislature can take.
• SB 10, property tax reform:
• The Senate proposed restricting year-over-year increases in local government spending to 2.5% for governments over 75,000 population. The House removed the population cap on the limitation and decreased the percentage increase allowed to only 1%. A mutually satisfactory compromise could not be reached during the second special session.

What’s Next? 

With several items on the Governor’s call left unresolved, it remains to be seen whether Governor Abbott will call the Legislature back for a third special session. While this will become less likely as we get closer to election season, the Governor has the power to call legislators back to Austin at any time between now and the start of the next regular session, which will begin on January 12, 2027.  THLA will keep you up to date as developments affecting our industry occur.