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A bill that officials in Austin and other Texas cities worry would dismantle many local regulations — governing everything from beekeeping practices to renter protections — is quickly making its way through the Texas Legislature.

Driving the news: The Texas Senate could vote on House Bill 2127 any time, after it passed the House and a Senate committee approved the bill last week. Its passage in the Senate would send it to Gov. Greg Abbott, who supports it.

Why it matters: The bill could scale back more than a century of cities' home rule authority in Texas, per the Texas Municipal League. Home rule essentially gives some cities the power to govern themselves, implementing anything that is not specifically counter to state law.

It would create uncertainty and lead to court battles if signed into law, the Texas Municipal League argues.

State of play: Texas' home rule cities, like Austin, have authority to adopt ordinances on everything from development to water protection to health and safety.

Details: Nondiscrimination ordinances such as the Crown Act — which prohibits discrimination on the basis of hair style or texture — and reproductive health protections would also be loosened by HB 2127, per a May 5 memo from Austin's intergovernmental affairs officer to the mayor and city council.

The bill also would preempt cities from adopting new payday lending ordinances or amending existing ones moving forward.

What they're saying: The goal of the bill, per its author, Republican Rep. Dustin Burrows of Lubbock, is to smooth out a patchwork of local regulations impacting business across the state.

"We want those small-business owners creating new jobs and providing for their families, not trying to navigate a Byzantine array of local regulations that twist and turn every time" they cross city limits, Burrows said, per the Texas Tribune.

The other side: Progressive organizations are worried it would stop cities from passing local laws to protect workers, like rest break requirements for construction workers in Austin.

The big picture: This year's legislative session has blue Texas cities playing defense against a red Legislature seeking to rein them in. Burrows' bill is one of many Austin has been watching.

The bottom line: The bill appears increasingly likely to make it to Abbott's desk before the legislative session wraps at the end of the month.

Austin rules under attack

A bill that could dismantle many local regulations could make its way to the governor's desk.

Illustration of the Texas State Capitol with lines radiating from it.

A bill that officials in Austin and other Texas cities worry would dismantle many local regulations — governing everything from beekeeping practices to renter protections — is quickly making its way through the Texas Legislature.Driving the news: The Texas Senate could vote on <a class="gtmContentClick" data-vars-link-text="House Bill 2127" data-vars-click-url="https://capitol.texas.gov/BillLookup/BillStages.aspx?LegSess=88R&amp;Bill=HB2127" data-vars-content-id="1ed9e93b-ed48-40ea-b8b1-15ec059730bd" data-vars-headline="Austin rules under attack" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://capitol.texas.gov/BillLookup/BillStages.aspx?LegSess=88R&amp;Bill=HB2127" target="_blank">House Bill 2127</a> any time, after it passed the House and a Senate committee approved the bill last week. Its passage in the Senate would send it to Gov. Greg Abbott, <a class="gtmContentClick" data-vars-link-text="who supports it" data-vars-click-url="https://www.statesman.com/story/news/state/2023/03/01/greg-abbott-tppf-panel-education-parental-empowerment/69958265007/" data-vars-content-id="1ed9e93b-ed48-40ea-b8b1-15ec059730bd" data-vars-headline="Austin rules under attack" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.statesman.com/story/news/state/2023/03/01/greg-abbott-tppf-panel-education-parental-empowerment/69958265007/" target="_blank">who supports it</a>.

News

Politics

Austin leaders are alarmed about legislation they say could slash the city's budget and result in higher property taxes — but the bill's author, a Republican state lawmaker from Georgetown, says that's not his goal.

Driving the news: Senate Bill 1110 would in some cases prevent cities from taking revenue from electric utilities they own or operate.

State Sen. Charles Schwertner filed the bill after widespread power outages in Austin last month, as some key ratepayers complained about their electric bill payments supporting other important city services.

Context: As much as 9% of city-owned Austin Energy's revenue is shuffled into Austin's coffers, according to Ed Van Eenoo, chief financial officer of the city of Austin.

That amounts to about $115 million in fiscal year 2023, per the city of Austin.

Between the lines: In what might be a wily political move, Austin officials warned in legislative testimony last week that stifling the transfer of money from the utility could lead to the raising of property taxes — a third rail for Republican leaders.

"Cities need to maintain parks and pay police officers regardless of where the revenue comes from," Van Eenoo told the Senate Business and Commerce committee last week. "Without a general fund transfer, the likely outcome for cities with [municipal-owned utilities] means higher property tax bills."

The Legislature passed a bill in 2019, signed into law by Gov. Greg Abbott, that requires local voter approval to raise property tax revenue by more than 3.5%.

Details: Schwertner says he wants to prevent or reduce utility rate increases. He's concerned some cities take too much money from their utilities, leaving the utilities in a poor financial state.

The City Council approved two electric rate hikes last year, in part driven by the rising cost of natural gas.

Yes, but: Mark Dombroski, Austin Energy's deputy general manager and chief financial and administrative officer, said the measure would force the utility to slash the general fund transfer to increase rates down the road.

"All electric utilities provide a payment to their owners, just in different forms," Dombroski said in his testimony, adding: "Our general fund transfer is very reasonable. It is a benefit to our community."

The other side: Schwertner disputes that the bill would cut city budgets.

"That's not right. That's not the intent of the bill," Schwertner said during the hearing. "It just would prohibit transfers that cause a rate increase or cause indebtedness on the part of the utility."

Zoom out: There are 72 municipally owned electric utilities in Texas that the bill could affect.

What's next: The Senate panel would need to approve the bill before it goes to the full Senate for a vote.

It would also need to pass the House before going to Abbott for his signature.

State lawmaker proposal could slash Austin budget

A state proposal would hamper transfers of utility money.

Illustration of a hundred dollar bill stylized as an electric symbol.

Austin leaders are alarmed about legislation they say could slash the city&#x27;s budget and result in higher property taxes — but the bill&#x27;s author, a Republican state lawmaker from Georgetown, says that&#x27;s not his goal.Driving the news: <a class="gtmContentClick" data-vars-link-text="Senate Bill 1110" data-vars-click-url="https://capitol.texas.gov/BillLookup/History.aspx?LegSess=88R&amp;Bill=SB1110" data-vars-content-id="242fb099-c2aa-410f-8656-0e840d12a12f" data-vars-headline="State lawmaker proposal could slash Austin budget" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://capitol.texas.gov/BillLookup/History.aspx?LegSess=88R&amp;Bill=SB1110" target="_blank">Senate Bill 1110</a> would in some cases prevent cities from taking revenue from electric utilities they own or operate.

Megan Stringer

Featured stories

Austin rules under attack

State lawmaker proposal could slash Austin budget