Summary of Recent Legal Changes in Texas
The legal landscape in Texas has witnessed several significant changes recently, with implications for both individuals and businesses. The impact of these adjustments may involve several areas of law, some affecting a tenant’s rights, while others affect the rights of creditors. Changes in Texas law may also be found in several business aspects, affecting virtually all businesses and daily transactions of both consumers and businesses. The passage of revised legislation strengthens consumers and exposes businesses to greater liability. While some of these changes may seem narrow or too technical, their wide-ranging effect in daily life can be significant.
One of the more frequently encountered areas being addressed in new legislation involves collection suits or lawsuits involving money borrowed or debt not repaid. One significant change in the law relates to the Uniform Commercial Code (UCC), § 9.587, which previously limited the remedies available to collectors against a principal debtor, when they were paid in accordance with his instructions and later sued for the funds . Although the UCC was silent as to the right of the obligor to recover the funds, the Texas legislature amended the UCC to include a mechanism for the creditor to seek recovery from the debtor. Another change to the UCC includes the interpretation of a security deposit, to be property of the landlord and not the tenant during the landlord’s bankruptcy.
A significant limiting of regulations has occurred in a number of other contexts under the Texas general statutes, however, whereas the UCC has been revised to strengthen the rights of creditors separately. Texas has passed a number of laws restricting the powers of contractors when construction is delayed, new mechanics’ lien revisions, as well as reform limiting the liability of directors of various types of corporations and entities. While the legislature appears to be in favor of restricting business liability, there have also been efforts to pass restrictions on liability further up the chain.
The right of the injured to sue businesses for damages under certain circumstances offers a more extensive discussion of the issue of the Texas legislature’s impact on such "tort reform."
What You Need to Know Concerning Legal Change 1 in Texas
The legal update 1 in Texas covers a range of issues that will impact a number of citizens and industries throughout the state. It finds a way to affect everything from businesses to homeowners and automobile owners, giving everybody something new to familiarize themselves with.
One of the more important areas in which some changes will be taking place is workers’ compensation. Now employers will be able to choose a network on their own if they are not already subscribed to a workers’ compensation network. However, employees can request to be excluded from it if their job tasks are defined in Chapter 401.011(48) of the Texas Labor Code, which describes hazardous jobs.
Additionally, any employee who is injured off-site because of a third party liable entity is now subject to Chapter 417.005. This law requires that all third-party recovery payments be made to the insurance carrier first, allowing them to recoup their costs for the injuries caused during the incident. A rebuttable presumption will be awarded to any person whose claim is disputed.
Another specific detail of legal update 1 in Texas is how it expands codes of conduct. It amends Chapter 155.003, 155.005, 205.004, 205.007, 501.051 and 851.601 of Texas Occupations Code, making changes to existing regulations.
Major Change to Law 2 in Texas
Local Government Code sec. 5.006 is amended to require a landowner to request a hearing regarding the necessity of an inspection or repair of their premises as soon as possible after receiving written notice from a municipality or county. As amended, this requirement extends to all landowners in the affected area, not just those whose property are subject to an order by the municipality or county. A general contractor may request a hearing on behalf of one or more homeowners for whom they have constructed an improvement.
Under amended Local Government Code sec. 214.001(g), a municipality may enter premises and repair, remove, remedy, demolish or clear a building or other structure without consent and without obtaining a municipal court order if any of the following are true: (1) serious threat to "the public’s health, safety, or morals exists," (2) the building or other structure is being maintained essentially as a nuisance, (3) the building is in violation of the municipal building code, or (4) the building is unoccupied and in imminent danger of collapse.
Local Government Code sec. 214.001(e) was amended to provide that a building, structure, or related appurtenance is "a dangerous structure" if the municipality can establish that one or more of the following findings exist: (1) the structure or appurtenance is a danger to the health, safety, morals, or safety of the public because of inadequate maintenance, damage, decay, unsafe conditions, or dilapidation, (2) the structure has substantially deteriorated because of the neglect of the owner or occupant, or (3) for nonresidential buildings or structures, the structure is unfit for the purposes for which it was constructed. Local Government Code sec. 361.0956 is amended so that a dangerous structure is also defined as any building or related appurtenance, or part of a building or appurtenance, that constitutes a peril, hazard, or potential hazard to a person. The statute further provides that a physician, physician assistant, or advanced practice registered nurse who states in writing that the immediate eviction of an immediate former occupant of the building is necessary to protect the immediate former occupant from a serious, adverse medical consequence or death is sufficient cause for a magistrate to issue an order authorizing removal of the elderly person from the subject premises, as otherwise permitted under the section. The amendments state that any newly discovered evidence offered at their hearing by either the property owner or the municipality relieves the municipality of proving that a building, structure, or related appurtenance is a dangerous structure.
Impact to Businesses and Compliance Obligations
Businesses operating in the state of Texas will need to evaluate how these legal changes will affect them and ensure they have updated their compliance protocols to maintain adherence with the new requirements . It is also critical for businesses to be aware of the amendments to existing laws, who the new protections apply to and how they can best shift their policies to account for the changes.
Why Legal Changes Matter to Texans
Although many of the more than 1,000 new Texas laws only affect specific industries or groups, a few changes impact the general population in ways that call for actions to be educated and prepared for how these changes will impact responsibilities and rights.
For instance, penalty increases for illegal dumping, a continuing problem in Texas, will require special attention. Traditionally, the fine for the first offense of illegal dumping was a minimum of $500 with a maximum of only $2,000. Life experience has now proven to these lawmakers that illegal dumping is becoming more of a problem expensive to address. New penalties for illegal dumping now range from a minimum of $1,000 to a maximum of $250,000.
Even more serious is the increased minimum penalty for illegal dumping greater than 200 cubic feet which is now $2,000. A guilty party can also be billed for costs associated with cleaning up the dumped waste. Repeat offenders face the risk of criminal charges including prison time and a civil penalty that can reach as high as $500,000.
Inflammatory statements made during protests at abortion clinics in Texas are now punishable by fines of $500 for each instance. This is likely to become an issue since abortion is a topic likely to garner the attention of protesters. On the opposing side of that, those that pre-plan for a protest, obtain a permit, and follow the law can protect themselves. Importantly, protesters must still keep their distance of at least 100 feet from the clinic entrance or driveway.
Gaining possession of life insurance proceeds for heirs will now be faster and less expensive. Typically, a completion of an affidavit of heirship is a requirement for collecting the proceeds. House Bill 1939 eliminates this requirement if certain conditions are met by the insurer. The conditions include:
Previously, anyone under 18 could not accept a gambling winnings payout of a lottery ticket. As of this year, it is now legal for a minor to claim the amount of a winning lottery ticket. The minor must also be a Texas resident and the ticket must be owned solely by the minor.
Teenagers that can provide proof to a pharmacist through an official document that their parent or guardian has requested a first-aid emergency allergic reaction kit (AR Kit) for them, can receive a kit. An AR Kit contains epinephrine auto-injectors and can be used if the teen suffers from a severe allergic reaction. This bill, is now a lifesaving asset for teenagers that suffer from severe allergic reactions.
Bills meant to wash away discriminatory practices in how manufacturers of coatings or paints report safety concerns regarding children’s toys are eliminated.
Businesses that are subject to House Bill 314, generally involving some type of service to the general population, can provide a link to the law regarding business property liens on their websites. This link can be used to clear up some details and educational information about the business property lien law.
Legal Issues and Prospective Analysis
Both Laws 1 and 2 are constitutionally unclear and likely to face as-applied and facial challenges. Indeed, there have already been proclamations that this legislation restricts "free speech" rights in legislative hearings. Additionally, as discussed, there may be litigation regarding whether and how these laws can be applied to crowd management or manipulation technologies , which are becoming more common in public spaces.
The future of Laws 1 and 2 will depend largely on whether and how they are challenged on the grounds of their intent and application. It is entirely possible that these laws will be adjusted, repealed, or supplemented with new substantive law in the future as courts are called to interpret them and assess their actual impact.