2025 Texas Legislative Session Recap
Working with lawmakers across the political spectrum and many coalition partners, the Texas Restaurant Association (TRA) delivered on its priorities for the 2025 Texas legislative session.
TRA helped block, pass, and rewrite dozens of bills to protect foodservice businesses from problematic food and menu labeling requirements, tip credit changes, overly broad junk fee definitions, data privacy rules that restrict standard business websites, apps, and consumer loyalty programs, and costly employment mandates. TRA also ensured the voice of the industry was heard on utility reforms, bridge loan funding to help small businesses recover from disasters, and business insurance.
Reforms from the 89th legislative session come at a critical time, as restaurants continue to face rising costs and staffing shortages. Food and labor expenses have climbed about 35% nationwide in five years.
“Restaurants succeed when the rules are clear and consistent.”
In July, TRA applauded the Texas appeals court’s unanimous decision upholding the Texas Regulatory Consistency Act, a law that TAR championed in 2023. It ensures that restaurants and other businesses do not face conflicting local regulations on core economic topics like employment regulations (paid leave, predictive scheduling, employee benefits, etc.).
Similarly, SB 1008 improves regulatory consistency across the state’s roughly 200 different health departments. The law caps permit fees, eliminates duplicative requirements, clarifies food management standards, and ensures transparency when local health departments change fees or inspection protocols.
Specifically, restaurants only need the permits required by the state, reducing paperwork and expenses. A state food manager certificate is valid everywhere in Texas. Local governments cannot require managers to pay for an extra card or paperwork. Once restaurants pay the state’s alcohol permit fee, local governments cannot charge them another fee for the same thing.
Strengthening the Workforce with Childcare Improvements–A Top Priority
Nearly half of Texas operators report they currently have job openings that are difficult to fill. And 60% of non-working parents cite childcare as a top reason they do not participate in the workforce. TRA’s advocacy for working class families was therefore focused on childcare, along with the Texas ProStart and other education initiatives, and middle-income housing. And they are proud to report the following:
- Childcare resource hub (SB 1265): Creates a free website with tools to help employers connect their workers to childcare. This is especially useful for small businesses without HR staff.
- Childcare scholarships (SB 462): Gives childcare workers priority access to scholarships for their own children, so they do not have to wait months or years on a list. This strengthens the workforce behind Texas’ entire workforce.
- Childcare data sharing (HB 3963): Improves how state agencies share information on early childhood programs. This helps policymakers measure results while keeping personal information safe.
State & National Level Seafood Scrutiny
The Texas Legislature’s Truth in labeling (SB 823) bill clarifies that imported shrimp cannot be advertised as Texas or Gulf shrimp. Restaurants are protected if they make a good-faith mistake based on supplier information. But restaurants are not required to include the country of origin on their menus.
Other Texas legislation related to shellfish, allows restaurants and other foodservice businesses that serve Texas farm-raised oysters or participate in an approved shell recycling program to claim a sales tax rebate beginning on October 1, 2025. Visit texassurfconservancy.org for more information.
Growing scrutiny about imported seafood has escalated to the federal level. The National Oceanic and Atmospheric Administration (NOAA) released its Comparability Finding Determinations that will lead to a ban on certain imported seafood products into the U.S. beginning January 1, 2026.
