Regular Session
Government Affairs & Regulatory Compliance Analysis
HB1089 establishes the Gulf Coast Protection Account, the dedicated state funding vehicle for the multi-billion dollar "Ike Dike" and Coastal Texas Study. This legislation immediately impacts heavy civil contractors, engineering firms, and industrial stakeholders by formalizing the procurement channel through the General Land Office (GLO) for non-federal project shares.
Rep. Dennis Paul·House Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Standard regulatory changes (effective 2025-05-24). Review during normal business planning.
Affected business types:
lowMinimal cost impact anticipated.
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Key implementation requirements and action items for compliance with this legislation
Future contracts with the GLO or Gulf Coast Protection District (GCPD) utilizing these funds must explicitly reference "Coastal Storm Risk Management Projects" per the August 2021 Coastal Texas Study. Crucial: Scopes of work must strictly adhere to the District's geographic boundaries (Harris, Galveston, Chambers, Jefferson, Orange counties) to be eligible for payment. "Out of scope" change orders cannot be legally paid from this specific account.
Business development teams must pivot monitoring from USACE portals to GLO procurement channels. Finance teams must be trained to identify this specific funding stream to ensure proper ledger segregation upon receipt.
The law subjects this account to strict State Auditor oversight. Contractors must maintain segregated accounting records for any funds traceable to this account. Extend document retention policies for these specific contracts to 10+ years to align with federal USACE project lifecycles and potential delayed state audits.
There are no new statutory fees or taxes. However, the account is structured to accept private "gifts and donations." Industrial stakeholders in the petrochemical sector should anticipate strategic discussions regarding voluntary contributions to accelerate protection projects around specific assets.
The statute authorizes funding for projects "necessary or useful" but fails to define the prioritization hierarchy (e.g., whether hard infrastructure like gates takes precedence over ecosystem restoration). Furthermore, the bill does not explicitly cap the percentage of funds the GLO may use for administrative overhead. Businesses must watch the upcoming rulemaking to see how these funds are ring-fenced against agency operating costs.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB1089
HB1089 establishes the Gulf Coast Protection Account, the dedicated state funding vehicle for the multi-billion dollar "Ike Dike" and Coastal Texas Study. This legislation immediately impacts heavy civil contractors, engineering firms, and industrial stakeholders by formalizing the procurement channel through the General Land Office (GLO) for non-federal project shares.
HB1089 was authored by Texas Representative Dennis Paul during the Regular Session.
HB1089 was signed into law by Governor Greg Abbott on May 24, 2025.
HB1089 is enforced by General Land Office (GLO) and State Auditor's Office.
The regulatory priority for HB1089 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB1089 is estimated as "low". This may vary based on industry and implementation requirements.
HB1089 addresses topics including coastal affairs & beaches, disaster preparedness & relief, special districts & authorities, special districts & authorities--miscellaneous and state finances.
Key dates for HB1089: Effective date is 2025-05-24. Rulemaking: Adopt rules to administer the Gulf Coast Protection Account and govern the expenditure of funds for coastal protection projects. (Not specified). Consult with legal counsel regarding applicability.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
