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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 88(R)

House Bill 2127

House Author:  Burrows et al.

Effective:  9-1-23

Senate Sponsor:  Creighton et al.


            House Bill 2127 amends the Agriculture Code, Business & Commerce Code, Finance Code, Insurance Code, Labor Code, Natural Resources Code, Occupations Code, and Property Code to preempt the municipal and county regulation of conduct in a field of regulation occupied by a provision of those codes, unless expressly authorized by another statute, and amends the Local Government Code to limit the ordinances or rules that the governing body of a municipality may adopt, enforce, or maintain to such ordinances and rules that are consistent with state law. The bill renders void and unenforceable and deems inconsistent with the referenced codes any ordinance, order, or rule in violation of the state preemption established by the bill. Among other provisions, the bill also:

·        establishes an exception to its preemption provisions in the Finance Code by providing that a municipality or county may enforce or maintain an ordinance, order, or rule regulating any conduct under Finance Code provisions related to credit services organizations or any conduct related to a credit services organization or a credit access business, as those terms are defined by the Finance Code, that was adopted before January 1, 2023, and that would have been valid under the law as it existed before the date of preemption under the bill; and

·        specifies that, for purposes of the preemption provided for under the Labor Code and the Property Code, a field occupied by the Labor Code includes employment leave, hiring practices, breaks, employment benefits, scheduling practices, and any terms of employment that exceed or conflict with federal or state law for employers other than a municipality or county and a field occupied by the Property Code includes an ordinance, order, or rule regulating evictions or otherwise prohibiting, restricting, or delaying delivery of a notice to vacate or filing a suit to recover possession of the premises.

House Bill 2127 amends the Civil Practice and Remedies Code to grant standing to any person, or a trade association representing the person, who has sustained an injury from a municipal or county ordinance, order, or rule, adopted or enforced by a municipality or county in violation of the bill's preemptions or limitations on municipal regulation to bring an action against the municipality or county. For these purposes, "person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, agency or instrumentality, public corporation, any legal or commercial entity, or protected or registered series of a for‑profit entity.