A series of significant new laws in Texas are set to take effect in 2026, impacting various sectors including immigration enforcement, small businesses, housing disputes, and the burgeoning field of artificial intelligence. These legislative measures, passed during the last session, reflect the state lawmakers’ focus on public safety, economic support, and emerging technologies in the upcoming year.
One of the most notable changes is Senate Bill 8, which mandates that Texas sheriffs operating county jails cooperate with federal immigration authorities through the 287(g) program. This program, a partnership with U.S. Immigration and Customs Enforcement (ICE), requires sheriff’s offices to enter agreements enabling trained deputies to verify immigration status and perform certain federal immigration enforcement duties within local jails. Proponents assert that the law enhances collaboration between state and federal authorities, while critics contend it imposes additional burdens and costs on local law enforcement. This requirement will apply to nearly all Texas counties that operate jails.
In an effort to support small businesses, House Bill 9 expands a property tax exemption, allowing up to $125,000 of business personal property, including inventory, to be exempt from taxation. Texas leaders have indicated that this measure aims to alleviate the financial burden on small businesses by reducing the taxable inventory amount. Business groups have welcomed the law as a means to lower operating costs, particularly benefiting retailers and manufacturers. Importantly, the exemption will apply automatically, so qualifying businesses will not need to apply separately to obtain the tax relief.
Senate Bill 38 introduces a faster eviction process for squatters, expediting proceedings when individuals occupy property without legal permission. The law shortens the timelines for courts to act once a landlord files an eviction case related to unlawful occupancy. While landlords must still provide notice before filing, the new measures aim to minimize delays that can hinder property owners from regaining control of their homes or rental units. Supporters of the bill argue that it addresses rising concerns from property owners, but tenant advocates warn that it could undermine legal protections in contested housing situations.
On the technology front, House Bill 149 establishes formal regulations governing the use of artificial intelligence by state agencies and contractors. This legislation sets standards designed to enhance transparency, mitigate bias, and ensure accountability in government decision-making processes that leverage AI systems. It also introduces a framework for oversight as AI tools become increasingly prevalent in areas such as data analysis, public services, and administrative functions. Advocates for the law argue that it positions Texas to proactively manage AI-related risks while still fostering innovation.
As Texas implements these laws, the broader implications for immigration policy, small businesses, housing rights, and AI regulation will unfold. Stakeholders across various sectors will be watching closely to assess the impact of these legislative changes, which collectively signify a shift in the state’s approach to both public policy and emerging technologies.
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