JD Key Consulting Logo
Signed Into Law
Signed May 29, 2025Effective 2025-05-29
HB2003

Regular Session

Relating to provision to the Texas Department of Transportation of information regarding certain high-speed rail projects.

Government Affairs & Regulatory Compliance Analysis

HB2003: Government Affairs Overview

Effective immediately, HB2003 mandates a radical transparency regime for high-speed rail developers listed in the Texas Rail Plan, compelling the public release of sensitive financial, operational, and foreign investment data. This legislation effectively strips financial privacy from these projects, requiring entities to submit proprietary data to the Texas Department of Transportation (TxDOT) for mandatory publication on the agency鈥檚 website.

Rep. Cody Harris路House Bill路Regular Session

Critical
Medium Cost
Effective:2025-05-29
Business Impact

Who HB2003 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-05-29). Review with your legal and compliance teams to understand implications.

馃殯

Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Key Operational Considerations

  • 1Vendor Agreements: Future construction and engineering contracts must include acknowledgments that aggregate cost data and construction timelines will be public record.
  • 2Public Relations/IR: Investor Relations teams must be prepped to handle inquiries regarding the now-public "availability of funds" and "fixed charges" data.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

Need Government Relations Support?

JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.

Need Help Navigating This Legislation?

JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.

HB2003
Relating to provision to the Texas Department of Transportation of information regarding certain high-speed rail projects.
Critical Urgency
Passed with Opposition
House Vote127 - 0
YEA
100% in favor127 voting
Senate Vote22 - 9
YEA
NAY
71% in favor31 voting
9
Total Opposition Votes
Cost Impact
Medium
Effective
2025-05-29
Enforcing Agencies
Texas Department of Transportation
Primary Author: Rep. Cody Harris
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: May 29, 2025 (Effective immediately upon signature due to supermajority vote).
  • Compliance Deadline: Immediate. The statute requires reporting "each year the project is included in the Texas Rail Plan." If your project is currently listed, you are non-compliant until this data is submitted. Expect a formal demand from TxDOT within 30-60 days.
  • Agency Rulemaking: TxDOT must establish the specific format for these disclosures. While no formal rulemaking timeline is set, the statutory mandate is active. We anticipate TxDOT will issue interim guidance letters before formalizing Texas Administrative Code rules.

Immediate Action Plan

  • 1. Confirm Status: Verify immediately if your project is listed in the current *Texas Rail Plan*. If yes, this law applies to you today.
  • 2. Sanitize Financials: Direct your CFO to prepare a "public-facing" version of your balance sheet and construction cost projections that satisfies the statute while minimizing competitive harm.
  • 3. Notify Investors: Send formal notice to all equity partners and debt holders that their investment details (specifically foreign ties and security terms) are subject to mandatory state disclosure.
  • 4. Draft Methodology: Commission the technical report on ridership methodology immediately; this will take the longest to prepare.

Operational Changes Required

Contracts

  • NDA Overrides: Review all agreements with underwriters, foreign investors, and technology partners. Standard confidentiality clauses likely conflict with this statute. You must issue notices to partners that state law now compels disclosure of investment sources and security terms.
  • Vendor Agreements: Future construction and engineering contracts must include acknowledgments that aggregate cost data and construction timelines will be public record.

Hiring/Training

  • Technical Writing: Your data science or engineering teams must draft a "Ridership Methodology White Paper." You cannot simply report numbers; the law requires a public explanation of the *methodology* used to project ridership.
  • Public Relations/IR: Investor Relations teams must be prepped to handle inquiries regarding the now-public "availability of funds" and "fixed charges" data.

Reporting & Record-Keeping

  • The "TxDOT Disclosure Package": You must immediately compile a specific annual report containing:
  • 1. Financing: Evidence of funds available vs. funds required.
  • 2. Securities: Terms of sale, fixed charges, and a narrative on how charges will be met.
  • 3. Financials: A recent balance sheet and Present Value (PV) analysis of full project costs.
  • 4. Granular Construction Data: Projected costs broken down *per year* of construction.
  • 5. Foreign Ties: Explicit disclosure of any foreign investment.

Fees & Costs

  • No Statutory Fees: There are no filing fees associated with HB2003.
  • Internal Costs: Anticipate "Medium" internal costs regarding legal review, redaction efforts, and potential increased insurance premiums (D&O) resulting from the public exposure of financial vulnerabilities.

Strategic Ambiguities & Considerations

  • Trade Secret Conflict: The statute mandates TxDOT "shall make the information available to the public" without an explicit carve-out for proprietary trade secrets. It is unclear if the Texas Public Information Act (TPIA) protections will shield your proprietary algorithms or pricing models. Assume maximum disclosure until TxDOT rules otherwise.
  • "Foreign Investment" Threshold: The law does not define a minimum threshold (e.g., 5% vs. 51% ownership). Until clarified, any amount of foreign capital must be disclosed to avoid allegations of concealment.
  • "Proposed Route" Specificity: The law requires disclosure of the route but does not specify the resolution (corridor vs. parcel). We advise submitting corridor-level data to prevent artificial inflation of land prices before acquisition.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey鈥攆ormer Chairman of the Republican Party of Texas鈥攖o understand this bill's impact on your operations and develop an actionable compliance plan.

Schedule a Consultation

Information 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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 22, 2025
Passed House
Apr 25, 2025
Passed Senate
May 19, 2025
Signed
May 29, 2025
Effective
May 29, 2025
TopicsTransportationTransportation--miscellaneousTransportation--railroadsTransportation, Texas Department ofState FinancesState Finances--management & Control
03

House Authors

Rep. Cody HarrisRepublican 路 Primary Author
Joint Authors
Coauthors (2)

Senate Sponsors

Sen. Lois KolkhorstRepublican 路 Primary Sponsor
Cosponsors (2)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Cody Harris

View all bills by Rep. Cody Harris

Related by Topic

View more Transportation legislation
Quick Reference

Frequently Asked Questions

Common questions about HB2003

Q

What does Texas HB2003 do?

Effective immediately, HB2003 mandates a radical transparency regime for high-speed rail developers listed in the Texas Rail Plan, compelling the public release of sensitive financial, operational, and foreign investment data. This legislation effectively strips financial privacy from these projects, requiring entities to submit proprietary data to the Texas Department of Transportation (TxDOT) for mandatory publication on the agency鈥檚 website.

Q

Who authored HB2003?

HB2003 was authored by Texas Representative Cody Harris during the Regular Session.

Q

When was HB2003 signed into law?

HB2003 was signed into law by Governor Greg Abbott on May 29, 2025.

Q

Which agencies enforce HB2003?

HB2003 is enforced by Texas Department of Transportation (TxDOT).

Q

How significant are the changes in HB2003?

The regulatory priority for HB2003 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB2003?

The cost impact of HB2003 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB2003 address?

HB2003 addresses topics including transportation, transportation--miscellaneous, transportation--railroads, transportation, texas department of and state finances.

Q

What are the key dates for HB2003?

Key dates for HB2003: Effective date is 2025-05-29. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB2003?

HB2003 primarily affects transportation and logistics companies. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

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.

Legislative data provided by LegiScanLast updated: January 11, 2026