Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective immediately, HB303 authorizes Type A and Type B general-law municipalities with populations under 500 to convert to a Type C (Commission) form of government. This legislation primarily affects businesses with contracts, real estate, or operations in rural Texas towns, as it allows for the consolidation of local political power from a five-member council to a three-member commission.
Rep. Cody Vasut·House Bill·Regular Session
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Review long-term franchise agreements (waste, utilities, broadband) and municipal service contracts in towns with populations under 500. While the municipal entity remains the legal counterparty, ensure the reduction in governing body size does not trigger specific "governance change" clauses or affect signatory authority for contract amendments.
Update Government Relations and lobbying strategies for rural operations. In a Type C municipality, the governing body shrinks to a Mayor and two Commissioners. Your team must adjust to a consolidated power structure where securing two votes ensures the passage or blockage of any ordinance.
Update vendor registration data if a municipality converts. While tax ID numbers generally remain constant, the titles of authorizing officials will change (e.g., from "Alderman" to "Commissioner"), which may trigger internal audit flags or affect invoice approval workflows.
No statutory fee increases are imposed. However, anticipate potential payment delays during the administrative transition period if a municipality restructures its finance department or check-signing authority.
The statute does not mandate a specific transition protocol for sitting officials when a council shrinks from five members to three mid-term. This creates a "regulatory gray zone" where decision-making authority may be unclear until a new election is held. Additionally, legal counsel must verify that existing local ordinances (zoning, noise, signage) remain supported by Type C statutory authority, which differs slightly from Type A powers.
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 HB303
Effective immediately, HB303 authorizes Type A and Type B general-law municipalities with populations under 500 to convert to a Type C (Commission) form of government. This legislation primarily affects businesses with contracts, real estate, or operations in rural Texas towns, as it allows for the consolidation of local political power from a five-member council to a three-member commission.
HB303 was authored by Texas Representative Cody Vasut during the Regular Session.
HB303 was signed into law by Governor Greg Abbott on May 29, 2025.
The regulatory priority for HB303 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB303 is estimated as "low". This may vary based on industry and implementation requirements.
HB303 addresses topics including city government and city government--general.
Key dates for HB303: Effective date is 2025-05-29. 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.
