Key Takeaways
- New Texas laws are taking effect in 2026, bringing changes to immigration enforcement, small businesses, housing disputes, and the use of artificial intelligence
- The laws reflect lawmakers’ priorities on public safety, economic relief, and emerging technology
- Some of the key laws include the requirement for Texas county jails to cooperate with federal immigration authorities, the expansion of a property tax exemption for businesses, a faster eviction process for squatters, and new regulations for artificial intelligence in Texas
- The laws aim to provide tax relief for small businesses, address growing concerns from property owners, and ensure transparency and accountability in the use of AI systems
Introduction to New Texas Laws
A slate of new Texas laws are taking effect in 2026, bringing changes that touch on various aspects of life in the state, including immigration enforcement, small businesses, housing disputes, and the rapidly expanding use of artificial intelligence. As stated in the original article, "The measures, passed during the last legislative session, reflect lawmakers’ priorities on public safety, economic relief and emerging technology for the new year." These laws are designed to address some of the pressing issues facing the state and its residents, and they are expected to have a significant impact on various sectors of the economy and society.
Immigration Enforcement and Cooperation
One of the key laws taking effect is Senate Bill 8, which requires Texas sheriffs who operate county jails to cooperate with federal immigration authorities through the 287(g) program, a partnership with U.S. Immigration and Customs Enforcement (ICE). As the article notes, "Under the law, sheriff’s offices must enter agreements that allow trained deputies to verify immigration status and carry out certain federal immigration enforcement duties inside local jails." This law is expected to strengthen cooperation between state and federal authorities, but critics have argued that it places additional responsibilities and costs on local law enforcement. According to the article, "Supporters have said the measure strengthens cooperation between state and federal authorities, while critics argued it places additional responsibilities and costs on local law enforcement."
Tax Relief for Small Businesses
Another significant law taking effect is House Bill 9, which expands a property tax exemption for businesses by exempting up to $125,000 of business personal property, including inventory, from taxation. As the article states, "State leaders said the change is designed to provide tax relief for small businesses by reducing the amount of inventory subject to local property taxes." This law is expected to provide much-needed relief for small businesses, particularly retailers and manufacturers, by reducing their operating costs. The exemption applies automatically, meaning qualifying businesses do not need to apply separately to receive the tax break.
Faster Eviction Process for Squatters
Senate Bill 38 is another law taking effect, which speeds up the eviction process in cases involving squatters or people occupying a property without legal permission. The law shortens timelines for courts to act once a landlord files an eviction case related to unlawful occupancy. While landlords are still required to provide notice before filing, the measure limits delays that can keep property owners from regaining control of their homes or rental units. As the article notes, "Lawmakers backing the bill said it addresses growing concerns from property owners, while tenant advocates warned it could reduce legal protections in disputed housing situations."
Regulating Artificial Intelligence in Texas
Finally, House Bill 149 creates formal regulations governing the use of artificial intelligence by state agencies and contractors. The law establishes standards aimed at increasing transparency, reducing bias, and ensuring accountability when AI systems are used in government decision-making. As the article states, "It also sets up a framework for oversight as AI tools become more common in areas such as data analysis, public services and administrative processes." Supporters of the legislation believe that it positions Texas to address AI risks early, while still allowing innovation to continue. The law is expected to have a significant impact on the use of AI in Texas, ensuring that it is used in a responsible and transparent manner.

