Relating to requiring owners or operators of commercial passenger bus services to provide certain notifications to residents concerning operations.
ModeratePlan for compliance
Low Cost
Effective:2025-06-20
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date:June 20, 2025 (Note: While the bill text states September 1, legislative passage data indicates immediate effect. You must operate under the assumption that this law is currently active).
Compliance Deadline:Immediate. If you plan to open a terminal on September 1, 2025, you must have published notice by June 3, 2025.
Agency Rulemaking: None anticipated. This statute is self-executing within the Business & Commerce Code; do not wait for agency guidance to comply.
Immediate Action Plan
Audit the Pipeline: Immediately review all terminal openings scheduled for Q3 and Q4 2025. If notice has not been published, delay opening dates to accommodate the 90-day window.
Update Lease Templates: Insert clauses pausing rent obligations until the notice period clears.
Map Bilingual Zones: Assign staff to map the nearest schools for all prospective sites to determine if non-English publication is required.
Draft Emergency SOP: Define strict protocols for when the "emergency waiver" can be invoked to prevent abuse by local managers.
Operational Changes Required
Contracts
Commercial Leases: Standard lease agreements are now a liability.
Contingency Clauses: You must amend Letter of Intent (LOI) and Lease templates to include a "Regulatory Contingency." Rent commencement must be tied to the successful expiration of the 90-day notice period without injunctive challenge.
Vendor Agreements: Do not sign service contracts (security, janitorial, IT) with start dates prior to the 90-day mark.
Hiring/Training
Real Estate Teams: Must be trained to identify the "Bilingual Trigger." They must identify the elementary or middle school nearest to the proposed site; if that school offers a bilingual program, foreign-language publication is mandatory.
Operations Directors: Must be trained on the "Emergency Exception" (natural disasters/road closures) to ensure it is not used loosely, which could invite litigation.
Reporting & Record-Keeping
The Compliance Packet: For every new terminal, Legal must retain:
Affidavit of Publication: Notarized proof from the newspaper of general circulation (and foreign language paper, if applicable).
School Zoning Verification: A map or district document proving the bilingual status (or lack thereof) of the nearest school.
Refusal of Publication: If a newspaper refuses the ad, document this immediately; it is your statutory defense.
Fees & Costs
Advertising Costs: Budget for newspaper ad placement rates (English and potentially secondary language).
Legal Review: Increased legal spend for lease negotiation regarding the 90-day contingency.
Strategic Ambiguities & Considerations
The "Ticket Sales" Loophole: The law defines a "Terminal" as a facility where tickets are sold. Operators may attempt to bypass this law by operating "digital-only" locations where no physical tickets are sold on-premises. Warning: This is a high-risk strategy that may invite municipal litigation.
"New" vs. "Relocated": The statute does not explicitly exempt moving an existing terminal to a new address within the same city. Treat *any* change of physical address as a "new terminal" requiring the full 90-day notice.
Need Help Understanding Implementation?
Our government affairs experts can walk you through this bill's specific impact on your operations.
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.
The bill author has informed the committee of unsafe conditions at some sites at which commercial passenger bus companies provide services and that there are concerns that these sites are in neighborhoods where schools are located. The bill author has also informed the committee that such a company should demonstrate transparency with the local community and engage with community members who live near such locations before operations at these sites begin. H.B. 3966 seeks to address this issue by requiring the owner or operator of a commercial passenger bus service to provide prior written notice to residents who live within two miles of a new bus stop, terminal, or other installation located in Texas that is operated by the company.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 3966 amends the Business & Commerce Code to require the owner or operator of a commercial passenger bus service, at least 90 calendar days before the date the service begins operating a new bus stop, terminal, or other installation located in Texas, to provide written notice of the stop, terminal, or installation to residents who live within two miles of the stop, terminal, or installation. The bill requires the notice to be delivered by mail and include the address or a description of the location of the new bus stop, terminal, or other installation.
H.B. 3966 defines "commercial passenger bus service" as a business that operates a passenger bus service that provides regularly scheduled intercity bus transportation to passengers in exchange for compensation.
Honorable Tom Craddick, Chair, House Committee on Transportation
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3966 by Morales, Christina (Relating to requiring owners or operators of commercial passenger bus services to provide certain notifications to residents concerning operations.), As Introduced
No fiscal implication to the State is anticipated.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff:
JMc, AAL, BC, CWi
Related Legislation
Explore more bills from this author and on related topics
Commercial passenger bus operators (intercity, 35+ seats) must now adhere to a mandatory 90-day public notice period before commencing operations at any new terminal. This law effectively imposes a three-month moratorium on opening new facilities unless specific newspaper publication requirements—including potential bilingual notices—are met prior to opening. Implementation Timeline Effective Date: June 20, 2025 (Note: While the bill text states September 1, legislative passage data indicates immediate effect.
Q
Who authored HB3966?
HB3966 was authored by Texas Representative Christina Morales during the Regular Session.
Q
When was HB3966 signed into law?
HB3966 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
How urgent is compliance with HB3966?
The compliance urgency for HB3966 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB3966?
The cost impact of HB3966 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB3966 address?
HB3966 addresses topics including transportation, transportation--mass transit and public notice.
Legislative data provided by LegiScanLast updated: November 25, 2025
Need Strategic Guidance on This Bill?
Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.
