TRA highlights new laws, new opportunities for Texas’ foodservice industry

Texas Restaurant Association highlights new laws, new opportunities for Texas' foodservice industry

AUSTIN, TX - The foodservice industry is operating under a series of new and amended laws passed during Texas' 89th Regular Legislative Session and effective September 1. The Texas Restaurant Association delivered dozens of offensive and defensive wins during the session, creating regulatory predictability, cost savings and new opportunities to strengthen the workforce. These laws will benefit the 57,000 foodservice establishments that employ over 1.4 million Texans, as well as the communities they serve.

"As the largest private-sector employer in Texas, restaurants rely on legislators to make our business environment as strong as possible," Emily Williams Knight, Ed.D., president and CEO of the Texas Restaurant Association, said. "In a time full of unpredictability, we brought clarity to thousands of restaurants-most of which are small businesses with minimal HR or legal support. These new laws provide immediate relief and long-term stability for foodservice businesses and the families they support."

A signature win for TRA this session, SB 1008 by Senator Middleton and Representative Harris improves regulatory consistency across the state's roughly 200 different health departments. The law caps permit fees, eliminates duplicative requirements, clarifies food manager standards, and ensures transparency when local health departments change fees or inspection protocols. Together, these reforms will save restaurants time and money-allowing them to focus on providing a great experience to their employees and guests.

Key provisions of SB 1008 include:

• Permit fee relief: Local health department fees are capped by the state's fee chart, saving restaurants money they can reinvest into their business and community.
• Simpler permitting: Restaurants only need the permits required by the state, reducing paperwork and expenses.
• Food manager standards: A state food manager certificate is valid everywhere in Texas. Local governments cannot require managers to pay for an extra card or paperwork.
• Transparency requirements: Health departments must post their fees online and give at least 60 days' notice before making fee, permit or inspection changes.
• Alcohol fees: Once restaurants pay the state's alcohol permit fee, local governments cannot charge them another fee for the same thing.
• Operational flexibility: Restaurants do not have to pay for sound permits to play normal background music or to accept deliveries at night. Local officials can still enforce noise rules for problem businesses.

"Restaurants succeed when the rules are clear and consistent," Kelsey Erickson Streufert, chief public affairs officer of the Texas Restaurant Association, said. "SB 1008 will save foodservice businesses hundreds or thousands of dollars every year, plus they will be able to spend less time on red tape and more time serving their communities. Combined with dozens of other wins this session, these reforms prove the power of advocacy in creating a better operating environment for all restaurants across Texas."

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, and nearly half of Texas operators report they currently have job openings that are difficult to fill. At the same time, childcare remains one of the largest barriers to employment across the state. Texas has only 80 available workers for every 100 open jobs, and 60% of non-working parents cite childcare as a top reason they do not participate in the workforce.

Among the dozens of new laws impacting restaurants, highlights include:

• 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.
• Truth in labeling (SB 823): 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.
• Cybersecurity protections (SB 2610): Shields small businesses from paying extra damages in a lawsuit if they follow the state's model cybersecurity guidelines. This encourages best practices while protecting businesses if a breach still happens.

The Texas Restaurant Association continues to educate the foodservice industry on new laws through its weekly newsletters, monthly webinars, and its semi-annual Texas Tour, which features town halls across the state. The TRA also has prepared a toolkit to help the foodservice industry and local governments implement SB 1008. Operators with questions or concerns are encouraged to contact the TRA for assistance at [email protected].

To learn more about the Texas Restaurant Association's work, and to join the community of operators who make this work possible, visit txrestaurant.org