Two dozen new Texas laws go into effect New Year’s Day. Here’s what you need to know.
Editor’s note: The list of Texas homeowners eligible for tax exemptions has been updated.
On Wednesday, two dozen new laws will go into effect in Texas.
These measures touch on issues ranging from property taxes to prison inmates.
And they come on the heels of 820 other laws that went into effect Sept. 1. Those ranged from from making lemonade stands legal for kids to operate to letting Texans legally carry brass knuckles, tomahawks and security key chains.
All of these new laws were passed during the 86th legislative session in 2019.
“People only notice changes if they confront them personally,” said Jim Riddlesperger, a political science professor at TCU. “As a result, many folks won’t know about these things because the changes don’t impact them directly.”
Here’s a look at some of the new laws going into effect Wednesday.
Inmate paperwork: Inmates released from prison will get a little help from the prison system after Jan. 1.
They’ll now be released with documents needed to help them find a job, including certificates showing job skill courses and training they have completed. And anyone without access to their Social Security card or birth certificate will get help in getting those documents, under House Bill 918.
When released, inmates should also have a resume that shows their work history both in and out of prison along with documents showing they’ve completed a practice job interview.
Homeowner tax exemptions: Not all homeowners know what exemptions they may be eligible for, which means they may miss out on some tax breaks.
Disabled veterans, surviving spouses of disabled veterans, Texans over the age of 65 and those with disabilities are eligible for certain property tax exemptions they may not know about.
Senate Bill 2060 requires that appraisal district officials include a short description of each exemption a person is eligible for when they receive their appraisal notice.
“Some people don’t know what they are eligible for or they think they have an exemption in place,” said Chandler Crouch, a real estate agent who helps people with their protests for free. “Some will go for years without knowing the exemption isn’t there.
“It’s definitely important that we make them aware of that.”
Protections against surprise medical bills: Parts of this new law, SB 1264, already went into effect. The rest becomes law Wednesday.
The goal of this measure, shepherded through the Legislature by state Sen. Kelly Hancock, R-North Richland Hills, is to prevent some patients from receiving large bills when they don’t have a choice of provider, such as when they unexpectedly end up in an emergency room.
“We’re determined to protect Texas patients from contentious, after-care disputes between insurance companies and providers,” Hancock has said. “The health care system is convoluted and has plenty of faults, but this is one thing that’s in our power to fix at the state level.”
The Texas Department of Licensing and Regulation will investigate complaints. Anyone who believes a health care provider committed a balance billing-related violation may file a complaint online with the state agency.
Protecting tax reductions: Homeowners get some other new help with the New Year. Anyone who successfully protests their home value should not see their value increased to the previous level the next year unless appraisers can present “clear and convincing evidence” that the increase is merited.
“They’re going to have to have strong evidence to show property value have gone up,” said state Rep. Phil King, R-Weatherford, who carried HB 1313 through the 86th legislative session.
Late mortgage payments: Homeowners with mortgages set up so the lender pays the tax bill every year can still be held liable if the bill isn’t paid on time.
They could face costly penalties and interest if the mortgage lender, typically a bank, makes a mistake.
HB 1885 lets interest and penalties be waived for homeowners in some cases when the bank holding the mortgage didn’t pay the tax bill on time.
Parking permits: Renters are getting some help from the state with parking in 2020.
Landlords who provide parking permits to tenants will have to make sure those permits match the time frame of the lease. And the landlord can’t reclaim the permit until the last day the tenant has a right to be on the property, under HB 1002, crafted by state Rep. Nicole Collier, D-Fort Worth.
It’s “common sense,” Collier has said.
Defense contractors: Federal aerospace defense contractors in Texas will get some help in the new year too.
Now they have the ability to take a deduction on direct manufacturing costs or employee/contractor direct compensation. Other states allowed for both deductions, but Texas didn’t.
Some have long said this put defense-related aerospace companies at a disadvantage. HB 1607 phases in changes to the state’s franchise law to let aerospace and defense contractors claim both deductions. This bill was authored by five House members — state Reps. Craig Goldman, R-Fort Worth; Charlie Geren, R-Fort Worth; Four Price, R-Amarillo; Chris Turner, D-Grand Prairie; Rick Miller, R-Sugar Land.
A full list of the bills that are going into effect Jan. 1 can be found online at the Legislative Reference Library of Texas.
This story was originally published January 1, 2020 at 6:00 AM.
