New Texas Laws in 2026: What Legal Teams Need to Know
Published: January 2, 2026
Texas begins 2026 with 33 new laws that reach into immigration enforcement, education, taxes, and artificial intelligence. Several measures will require quick policy reviews, updated contracts, and new training protocols across counties, school districts, and businesses.
Below are the high-impact items and practical steps for counsel, in-house teams, and compliance leaders.
Senate Bill 8: County Jail Participation in 287(g)
SB 8 requires most counties with jails to participate in the federal 287(g) program, enabling sheriff's offices to work directly with ICE on immigration screening and warrants. The statute pairs the mandate with state grants (up to $140,000, scaled by county size) to support implementation.
Expect debate on public safety benefits versus civil rights concerns. Critics warn of racial profiling risks and reduced crime reporting from immigrant communities. Litigation is likely, along with policy challenges inside jails.
- Action for county counsel: review or negotiate MOAs, training standards, data-sharing terms, and complaint procedures under ICE's 287(g) framework.
- Audit intake and interview protocols for constitutional compliance; update documentation and retention schedules.
- Coordinate with prosecutors and public defenders on evidentiary issues tied to immigration status inquiries.
- Set grant tracking to substantiate use of funds and ongoing compliance.
Senate Bill 2420: App Store Accountability Act (Preliminarily Enjoined)
SB 2420 would require major app platforms to verify user ages and obtain parental consent for minors before downloads or in-app purchases. A federal judge issued a preliminary injunction on December 23, 2025, halting enforcement based on likely First Amendment problems and vagueness concerns.
The pause shifts pressure to ongoing litigation and potential amendments. Counsel for platforms, developers, and advertisers should still assess age-gating, consent flows, and content moderation exposure under existing laws.
- Track the case and be ready with conditional compliance plans if the injunction is lifted.
- Benchmark against federal requirements (e.g., COPPA) and state consumer protection statutes; assess speech and prior restraint risk under the First Amendment.
- Review vendor and SDK agreements for data collection, age estimation, and parental consent obligations.
House Bill 8: STAAR Replaced by Three Shorter Assessments
HB 8 ends the single high-stakes STAAR exam and replaces it with three shorter tests across the year, starting with the 2026 school year. The goal: reduce test-day pressure and provide more continuous feedback on student progress.
- For school district counsel: update policies with new testing windows, accommodations, and appeals; align teacher evaluation criteria where linked to assessments.
- Vet contracts with assessment vendors for data security, accessibility, and delivery standards; ensure compliance with student privacy requirements.
- Confirm special education and English learner testing supports are documented and auditable.
House Bill 9: Small Business Property Tax Relief
HB 9 raises the property tax exemption for business inventory and equipment from $2,500 to $125,000. Small businesses get meaningful relief and more flexibility to reinvest.
The tradeoff: a projected $442 million drop in local revenue in FY 2027, absent rate adjustments. Expect budget recalibration by cities and counties.
- For business counsel: update asset listings, exemption claims, and documentation; coordinate with tax advisors on timing of purchases and disposals.
- For local governments: prepare public disclosures, evaluate rate-setting options, and stress test debt covenants and fund balances.
- Monitor appraisal district guidance and potential rulemakings that affect implementation.
House Bill 149: Texas Responsible Artificial Intelligence Governance Act
HB 149 creates a comprehensive AI governance regime covering machine learning systems, biometrics, generative models, and social scoring. The law emphasizes transparency, accountability, and consent-backed by civil penalties and prohibitions (including biometric identification without consent). It also establishes the Texas Artificial Intelligence Council to advise on standards and oversight.
- Stand up AI governance: inventory AI systems; classify risk; document purpose, data sources, model ownership, and outputs.
- Implement impact assessments for high-risk use cases; build audit trails, bias testing, human review, and model change logs.
- Update privacy notices, consent flows (especially for biometric data), and retention policies.
- Rework vendor contracts: representations on training data provenance, model risks, bias testing, security, incident notice, and indemnities.
- Train employees who deploy or monitor AI; define escalation paths for model failures and user complaints.
If your team needs structured upskilling on AI risk, governance, and tooling, see AI training resources by job.
Key Briefing Points for Clients
- Counties with jails: 287(g) participation is now the default-expect policy changes, training, and civil rights scrutiny.
- App platforms and developers: SB 2420 is paused; keep a compliance plan ready and watch the courts.
- School districts: new assessment cadence means policy updates, vendor reviews, and privacy checks.
- Small businesses: larger property tax exemption; adjust filings and plan capital spending accordingly.
- All organizations using AI: HB 149 requires real governance-documented controls, consent for biometrics, and enforceable vendor terms.
What to Do This Month
- Map authorities, deadlines, and responsible owners for each law inside your organization or client portfolio.
- Draft or refresh SOPs, training modules, and complaint-handling procedures where public-facing risk is high.
- Schedule board or council briefings for budget impacts (HB 9) and high-risk compliance areas (SB 8, HB 149).
- Set up litigation watch on SB 2420 and potential challenges to SB 8; adjust plans as rulings land.
Texas is moving fast on enforcement, education, taxes, and AI. Legal teams that set clear owners, document controls, and keep a tight docket on rulemaking and litigation will be in the best position to protect their clients and move early where it counts.
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