As 2025 approaches, several significant laws are set to take effect at both the state and federal levels, impacting Texans and Americans across a variety of areas.
Texas State Laws
1. End of Vehicle Safety Inspections for Non-Commercial Vehicles
House Bill 3297 eliminates the annual safety inspection requirement for non-commercial vehicles. Beginning Jan. 1, drivers will instead pay a $7.50 inspection replacement fee during vehicle registration renewal. New cars will require a $16.75 initial inspection program replacement fee, covering the first two years.
2. Expanded Data Privacy Rights
House Bill 4 enhances Texans’ control over their personal data. The Texas Privacy and Data Security Act now mandates that companies disclose the data they collect and obtain explicit user consent. Texans can also use browser settings and device preferences to opt out of data processing.
3. Property Tax Relief for Schools and Homeowners
Senate Bill 2 ensures additional state funding to address school funding shortfalls caused by property tax limitations. This measure particularly benefits schools serving elderly and disabled homeowners.
4. Fiscal Year Adjustment for the San Antonio River Authority
House Bill 1535 shifts the fiscal year-end for the San Antonio River Authority to Sept. 30, aligning it with other government entities and streamlining budgeting processes.
5. Modernization of the Texas Criminal Code
House Bill 4504 updates the Texas Code of Criminal Procedure, providing clearer, streamlined laws for legal professionals and the public.
Federal Law Updates
1. New Overtime Rule
The U.S. Department of Labor will raise the salary threshold for overtime eligibility to $58,656 annually. Salaried workers earning below this amount will now qualify for overtime pay.
2. Federal Contractor Minimum Wage Increase
Federal contractors will see a minimum wage increase to $17.75 per hour, effective in 2025. This change, part of Executive Order 14026, applies to both tipped and non-tipped employees.
3. Phase 2 of the Overtime Rule
The Department of Labor is appealing a federal court decision halting Phase 2 of its overtime rule. If upheld, the rule would raise the salary threshold for overtime exemptions to $59,000 annually. The final outcome remains uncertain.