Preview of the Regular Session of the 89th Legislature

by Ty Embrey

With the November 2024 General Election behind us and the turn of the calendar to 2025, the Texas Legislature started its Regular Session on January 14. In accordance with the Texas Constitution, the Legislature will meet for 140 days and will adjourn the Regular Session on Monday, June 2. There are many significant issues facing the Legislature as it attempts to tackle the rapid population and business growth Texas is experiencing.

Legislative Leadership
The make-up of the Texas Legislature did not change significantly after a general election with only a few surprises. Republicans picked up 1 seat in the Texas Senate with Adam Hinojosa defeating incumbent Morgan LaMantia in a state senate seat anchored in South Texas. This election result produces a 20 to 11 Republican majority in the Texas Senate. For the Texas House of Representatives, Republicans picked up 2 seats in South Texas with victories by Don McLaughlin and Denise Villalobos so Republicans will hold an 88-62 majority in the Texas House.

While Governor Abbott and Lieutenant Governor Patrick remain in their respective positions, the Texas House of Representatives held an election for the position of Speaker of the Texas House on the first day of the Regular Session. The only individuals who can vote for the Speaker of the Texas House are the 150 State Representatives who make up the Texas House. The Texas House elected State Representative Dustin Burrows of Lubbock on the 2nd ballot. After no Speaker candidates received the required 76 votes during the 1st ballot, Speaker Burrows received 85 votes in comparison to the 55 votes received by State Representative David Cook of Mansfield. Both Speaker Burrows and State Representative Cook are Republicans. The Speaker during the previous 88th Regular Session, Dade Phelan of Beaumont, announced in December he was not running for re-election as Speaker which led to the Texas House electing a new Speaker. One of the major issues in the Speaker race is the traditional practice of Speakers appointing members from both political parties to serve as chairpersons of House committees.

Legislative Priorities
The statewide office holders have expressed their interest in addressing multiple important issues facing Texas and its citizens. Governor Abbott and Republican leadership have already stated they plan to work with the Texas Legislature on legislation related to school choice, border security, and water supply challenges. The Legislature will also continue to work on legislation to make the electric grid as reliable as possible to confront the increased energy demands and unpredictable and adverse weather events facing Texas. Over the legislative interim period, both House and Senate Committees have a substantial amount of testimony from private companies and the leadership of the Public Utility Commission (“PUC”) and ERCOT regarding the current status of the electric grid in Texas and how Texas can plan for the growth that is projected. There are ongoing discussions on the financial investment needed by the State of Texas to help the reliability of the Texas electric grid and the possible re-design of the Texas electric market.

Another main focus of legislators this Regular Session will be on the make-up of the state’s budget and how to address
the budget surplus that is anticipated.

In addition to its general funds and the Economic Stabilization Fund (“Rainy Day Fund”), Comptroller Glenn Hegar has estimated Texas will have approximately a
$20 billion budget surplus generated from several sources, including the oil and gas production taxes collected by the State of Texas. State leaders have stated the budget surplus should continue to be used to lower property taxes for the citizens in Texas who own property.

Environmental Issues
Over the legislative interim period, committees in both the Texas House of Representatives and Texas Senate held committee hearings to discuss water, wastewater, environmental, and utility issues. These committees include the Senate Committee on Water, Agriculture, and Rural Affairs and the Senate Committee on Natural Resources and Economic Development as well as the House Committee on Natural Resources and the House Committee on Environmental Regulation. While the interim committee process was shorter in length than usual due to the special sessions the Texas Legislature held in 2024, each committee heard expert and public testimony on issues related to water utility infrastructure, water supply sources, groundwater management and protection, and state and regional flood planning, among other water and wastewater issues. During the Regular Session, we can expect the committees to continue these conversations and legislators to file legislation to address these issues.

The Chairman of the Senate Water, Agriculture and Rural Affairs Committee, Charles Perry of Lubbock, has expressed his desire for the Texas Legislature to pass legislation to address the water supply issues facing Texas. Chairman Perry is looking for the Texas Legislature to allocate multiple billions of dollars to help fund a substantial number of water supply projects, which could include the development of more water supplies from produced water, seawater desalination, and brackish groundwater sources.

Lloyd Gosselink at the Legislature
Over 2,000 bills have been filed since bill filing began on Tuesday, November 12th, setting up the framework for what promises to be an incredibly busy legislative session. As bills are filed, Lloyd Gosselink will continue to monitor and track all of the key pieces of legislation. During the Regular Session, Lloyd Gosselink will participate in the legislative process to ensure the interests of our clients are represented at the Texas Legislature.

Almost 180 years after the Texas Legislature first met in a Regular Session, the 2025 Regular Session for the Texas Legislature provides an opportunity for Texans across the state to participate in the lawmaking process. Lloyd Gosselink is proud to help Texans be a part of that process.

Ty Embrey is the Chair of the Firm’s Governmental Relations Practice Group and a member of the Firm’s Water, Districts, and Air and Waste Practice Groups. If you have any questions concerning Legislative tracking and monitoring services or legislative consulting services, please contact Ty at 512.322.5829 or tembrey@lglawfirm.com.