Skip to main content

87th Legislative Summary: Transportation, Infrastructure and Business Issues

Published Jul 01, 2021 by Steven Will

midyear skyline highway.jpg

With the end of the 87th Texas Legislative Session, the Partnership produced a summary report on its legislative priorities. This post focuses on outcomes related to priorities of Houston's business community including transportation, infrastructure, economic development and legal liability protections. 

Coastal Barrier

Senate Bill 1160 - PASSED INTO LAW
Senate Author: Senator Larry Taylor (R-Galveston)
House Sponsor: Representative Dennis Paul (R-Houston)

Highlights: 

  • Creates the Gulf Coast Protection District for the coastal barrier project, enhancing protection for the greater Houston area and the Texas economy from the devastating effects of hurricanes and storm surges

The Partnership supports the construction of a coastal barrier to protect the Houston region from hurricanes and storm surge. At the federal level, we anticipate that the U.S. Army Corps of Engineers will release a Chief's Report this summer, after which Congress can authorize and fund the project. To receive federal funding, the state is required to designate a local sponsoring entity. 

SB 1160 creates the local sponsoring entity - the Gulf Coast Protection District - for the coastal barrier project. The district will have the authority to issue bonds, impose fees and taxes not to exceed legislative limits, and exercise eminent domain to facilitate the construction of the project that would protect the Houston area and Texas economy from the effects of hurricanes and storm surges. 

+++
 
Transportation Budget

Senate Bill 1 - PASSED INTO LAW
Senate Author: Senator Jane Nelson (R-Flower Mound)
House Sponsor: Representative Greg Bonnen (R-League City)

SB 1, includes a 2.9 percent decrease, from $31.1 billion last session to $30.2 billion this biennium. This does not threaten or delay the state's commitment to the State Highway Fund, serving transportation needs, and TxDOT's reductions primarily reflect the loss of one-time funding sources.

+++

Chapter 313

House Bill 1556 - FAILED TO PASS
House Author: Representative Jim Murphy (R-Houston)
Senate Sponsor: None
 
House Bill 4242 - FAILED TO PASS
House Author: Representative Morgan Meyer (R-Dallas)
Senate Sponsor: Senator Brian Birdwell (R-Granbury)

In 2001 the Texas Legislature and Governor Rick Perry worked to establish a new economic development program designed to attract capital-intensive businesses, high-paying jobs and expand the property tax base. The program would offset Texas' high business property tax rates relative to other states by offering a 10-year limited abatement to school property taxes, which often comprise 50percent of a local property tax bill. The program came to be known as Chapter 313, after the section of the tax code where it is located. It specifically targeted the manufacturing, R&D, power generation, computer centers and renewable power business sectors. Qualifying businesses received an abatement of their local school district maintenance and operation property taxes, while continuing to pay all other property and sales taxes. After the 10-year abatement period, the facility rolled onto the local tax rolls at the full rate.

The program was reauthorized and reformed in 2013, adding additional reporting requirements and oversight by the Texas Comptroller of Public Accounts. Qualification requirements were further strengthened to target those projects which otherwise would not have located in Texas. Through September of 2020, Comptroller reports estimated the program brought over $200 billion in capital investment and 56,000 direct and indirect jobs to Texas, including nearly 100 separate manufacturing projects in the Houston region. With the program set to expire on December 31, 2022, HB 4242 proposed a simple 2-year reauthorization with no changes to the program, so the Legislature could better study the issue in the interim. 

The Partnership worked with a statewide coalition, known as Keep Texas First, consisting of other chambers of commerce, businesses and economic development organizations to coordinate the reauthorization effort. Ultimately, all reauthorization legislation failed to pass. 

Chapter 313 is scheduled to expire at the end of 2022. Without Chapter 313, Texas will have the fourth highest business property taxes in the nation for large, capital-intensive projects, putting our state at a severe disadvantage for recruiting new companies.

The Keep Texas First coalition is already coordinating ways to work with the Legislature to restore our economic competitiveness until a more permanent solution can be found.

+++

Legal Liability Protections

Senate Bill 6 - PASSED INTO LAW
Senate Author: Senator Kelly Hancock (R-North Richland Hills)
House Sponsor: Representative Jeff Leach (R-Plano)

Highlights: 

  • Offers statewide liability protection for businesses, education institutions, health care facilities and government offices complying with posted government safety protocols, extending beyond COVID-19 to all pandemics 

The COVID-19 pandemic exposed businesses to a quickly-changing set of regulations and recommendations from government and health care entities. Companies, particularly small businesses with limited resources, faced the very real prospect of being sued for not properly protecting employees or customers from contracting COVID-19, even if the companies were acting in good faith. 

SB 6 provides explicit statewide liability protection for businesses, education institutions, health care facilities and government offices operating in good faith and in compliance with all posted government safety protocols. The bill extends beyond COVID-19 to all pandemics.

Efforts to enact nationwide liability protections remain ongoing in Congress, and the Partnership continues to work with our Texas delegation to achieve that outcome.

See the full 87th Legislative Session summary report

Related News

Public Policy

Key Takeaways from the Partnership’s Public Policy Kickoff Meeting

3/31/25
The Greater Houston Partnership recently convened members from all seven of its public policy advisory committees for a joint kickoff meeting that set the stage for our 2025 advocacy efforts. The meeting offered an in-depth look at the current policy landscapes in Washington, D.C. and Austin, and gave members a preview of the issues our committees will be tackling throughout the year.  This collaborative forum underscored the Partnership’s commitment to driving thoughtful, business-informed policy across education, energy, health care, immigration, local government, technology, and transportation and infrastructure. What We're Watching in Washington and Austin  Our expert partners at Cornerstone Government Affairs and Troutman Pepper Locke walked members through the major legislative developments at the federal and state levels.  Federal Outlook: Cornerstone’s Tyler Nelson emphasized that the first 100 days of the administration have been among the most active in recent memory. With major shifts on the horizon—particularly in tax, energy regulation, immigration, and trade—many executive actions are expected to face legal challenges. Industry-specific tariffs are anticipated in early April.  State Outlook: Troutman Pepper’s Robert Miller highlighted bipartisan cooperation in the Texas Legislature as they work to allocate the state’s historic $24 billion surplus. Key debates center on education funding, water infrastructure, and a bold new proposal for a Dementia Prevention Research Institute of Texas (DPRIT).  Partnership Policy Priorities for 2025  Following the policy briefings, our internal team of subject-matter experts led a panel discussion spotlighting the key issues each advisory committee will focus on this year:  Education  To align with broader education reform efforts, the Partnership has unified its public and higher education committees into a single, streamlined Education Advisory Committee. We’re closely monitoring bills that address early childhood education, school safety, and critical investments in public education, including House Bill 2, which proposes nearly $8 billion in funding enhancements.  Energy  Houston’s energy future is rooted in an all-of-the-above strategy. While oil and gas remain foundational, we’re seeing increasing momentum in solar, hydrogen, and nuclear innovation. The city’s designation as a federal Hydrogen Hub and major projects like the Sunnyside Solar Farm reflect the region’s growing leadership in the energy transition.  Health Care  Mental health in the workplace remains a top priority. With leadership from bp America and Deloitte, the Health Care Advisory Committee is exploring strategies to improve mental health outcomes and reduce burnout. At the state level, we’re supporting the $3 billion DPRIT proposal, which would expand research into neurological disorders and prevention.  Immigration  The Partnership continues to advocate for clear, consistent federal immigration policies that meet the needs of Houston’s business community. Our priorities include modernizing visa programs, resolving DACA status, streamlining case processing, and enhancing border security in a balanced and business-friendly way.  Local Issues  The Local Issues Committee is focused on responsible city budgeting, economic development, and regional resilience. As the Whitmire administration concentrates on public safety and basic services, we are also monitoring the implications of Proposition A, which allows more council members to influence the City Council agenda.  Tech Policy  With AI on the rise, the Partnership is engaged in statewide conversations about ensuring policy keeps pace with innovation. Our Tech Policy Committee is providing input on proposed AI regulations to ensure they are both effective and industry-aligned, helping strengthen Houston’s position as a growing tech hub.  Transportation & Infrastructure  The Partnership is supporting major efforts at both the state and federal levels to improve water and transportation infrastructure. At the state level, we’re backing new funding streams for water infrastructure and supporting TxDOT’s $148 billion transportation plan. Federally, we’re advocating for funding to advance the Texas Coastal Spine, a critical flood protection project for the Houston region.  Get Involved in Shaping Houston’s Future  The work of our public policy committees is central to ensuring that Houston remains a vibrant, globally competitive region. From education and infrastructure to innovation and immigration, our advocacy efforts are driven by the insights and experiences of our members. Want to have a seat at the table? Join a committee, share your business priorities, and deepen your engagement in shaping Houston’s future by getting in touch with member.engagement@houston.org.
Read More
Public Policy

Texas Senate Passes its 2026-27 Budget Proposal

3/27/25
On Tuesday, the Texas Senate unanimously passed Senate Bill 1 (SB 1), its version of the state budget proposal for the next two years. Senator Joan Huffman outlined the priority funding and key projects, including the Texas Water Funding, Dementia Prevention and Research Institute of Texas, public education, workforce development and more.  The Senate spent roughly three hours discussing SB 1, which increases appropriations by more than $15 billion from the current budget. The Partnership’s Budget Explorer Tool is updated with the latest version of the Senate Base Budget. Use the tool to explore the following: Topline funding totals for state agencies Public education funding and targeted programs under the Texas Education Agency Funding for water and flood projects across various state agencies Increased Education Spending The committee substitute to SB 1 increased the base budget by about $4 billion, bringing the total spending proposal to $336 billion.  The Texas Education Agency saw the addition of nine programs to the bill. Those include: $11 million for the Teach for America Program $10 million to boost school bus safety $7.5 million in start-up grants for Adult Education Programs in Texas schools $5 million for grants to support low-performing elementary schools $2 million to increase enrollment for College, Career, and Military Readiness programs $800,000 for five new employees at the State Board of Education Senator Brandon Creighton noted in the SB 1 debate that the finance committee chose to maintain the Basic Allotment at $6,100 per student to increase funding for targeted programs instead. Sen. Creighton said the decision was influenced by testimony from supporters of funding specific programs instead of raising the basic allotment. Water Funding Rising Higher The proposed funding for Article VI, which covers agencies under the Natural Resources title, significantly decreased from the current budget. Senators proposed cutting Article VI funding by over $826 million, a 9.41% cut in spending. However, the funding decrease is misleading, as lawmakers have proposed adding $2.5 billion to the supplemental budget for the Texas Water Development Board, contingent on passing a related bill. This allocation is currently noted as a footnote in Article IX of the supplemental budget. Regardless, funding for water projects was increased generally across the board in the committee substitute to SB 1. The Texas Commission on Environmental Quality received increased appropriations for key water resource funds, including a $12 million increase for safe drinking water programs and a $5 million-plus increase in funding for water resource permitting. Still on Tap Lawmakers are still working to deliver a constitutional proposition to dedicate $1 billion annually to the Texas Water Fund for the next 10 years. House Joint Resolution 7 was unanimously voted out of the House Natural Resources Committee on March 19. On Monday, the Senate Committee on Water, Agriculture, and Rural Affairs unanimously passed Senate Bill 7. This enabling legislation outlines the framework for spending the $1 billion in dedicated funding. The Senate wants 80% of the funding to go to new water supply sources, while the House wants more flexibility to use funding for infrastructure repair and maintenance. Building Resilience In addition to water supply funding, lawmakers are looking to increase funding for flood projects around the state. The Soil and Water Conservation Board is investing additional dollars in flood control dams—new construction and ongoing maintenance. If passed, total flood funding will reach over $254 million for the next two years.
Read More

Related Events

Digital Technology

Houston’s AI-Driven Data Center Boom: Investment, Innovation, and Policy

As Houston rapidly evolves into a hub for AI, cloud computing, and data infrastructure, the city is experiencing a surge in data center investments driven by its unique position at the intersection of energy,…

Learn More
Learn More
Executive Partners