LEGISLATIVE UPDATE: MARCH 20, 2015

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1 LEGISLATIVE UPDATE: MARCH 20, 2015 DRC ACTIVITIES The DRC Public Policy team had another busy week! On Monday, March 16, the DRC hosted over 400 attendees at Governor Greg Abbott s first speech in North Texas since he was elected Governor. Read the recap and view photos from the event. On Tuesday, March 17, 150 leaders attended the Infrastructure Forum featuring Former United States Transportation Secretary Ray LaHood. During the event, Secretary LaHood spoke about the Federal Highway Trust Fund and the need for federal leaders to find sustainable sources of funding to improve and meet infrastructure needs. His keynote address was followed by a regional panel of experts discussing air, rail, and roads. Panelists included Sean Donohue, CEO of Dallas/Fort Worth International Airport; Richard Lawless, CEO of Texas Central Railway; and Victor Vandergriff, Texas Transportation Commissioner. Read the recap and view photos from this event. Director of Public Policy Virginia Schaefer went to Austin this week and registered DRC support for HB 100 to the House Higher Education committee members. HB 100, authored by Representative John Zerwas, would authorize the issuance of Tuition Revenue Bonds for capital construction projects at Texas colleges and universities. Virginia also attended various committee hearings and made office visits. GOVERNOR National Ambient Air Quality Standard On Monday, Governor Greg Abbott sent a letter to Gina McCarthy, Administrator of the Environmental Protection Agency, requesting that the agency void its proposed changes to the National Ambient Air Quality Standard (NAAQS) for ozone in favor of maintaining the current standard of 75 parts per billion (ppb). In the letter, co-signed by ten other governors, Governor Abbott pointed to the unprecedented improvements in Texas air quality since the Clean Air Act was signed into law four decades ago and noted that the EPA s arbitrary standards go to such extremes even some of Texas most pristine national parks would not be able to comply. Governor Abbott argued that the NAAQS jettisons freemarket policies that promote job growth and economic innovation by imposing an onerous, jobcrushing standard. The letter cites a Congressional Research Service study estimating the EPA s newly-proposed standards could plunge anywhere from 76 percent to 96 percent of the counties 1

2 currently monitored for ozone into nonattainment. The letter goes on to highlight the newlyproposed requirements that would jeopardize much-needed transportation infrastructure projects, stating Roads that would add desperately needed capacity in nonattainment areas would be subject to review by multiple federal agencies - despite the fact that many of these projects may actually reduce ozone emissions by relieving congestion. The 11 states that have signed onto the letter are: Texas, Oklahoma, Mississippi, Indiana, Louisiana, Maine, Wisconsin, Georgia, Idaho, South Carolina and Arkansas. STATEWIDE Bill Filing Deadline The deadline for legislators to file bills to be considered by the Texas Senate and House this session was Friday, March 13, Last week 955 Senate bills and 23 SJR s (proposed constitutional amendments) were filed and 1631 House bills and 39 HJR s were filed - for a total of 2,586 bills and 62 proposed constitutional amendments filed during the last week of filing. Here are the bill totals compared to the three previous sessions: 2015 Bills Filed by Deadline: House 4,114 Senate 1, Bills Filed by Deadline: House 3,853 Senate 1, Bills Filed by Deadline: House 3,802 Senate 1, Bills Filed by Deadline: House - 4,697 Senate 2,439 2

3 SENATE This week, the Senate was in session on Monday through Thursday and considered bills from the Intent Calendar every day. On Monday, the Senate gave preliminary approval to SB 17 by Senator Craig Estes (R-Wichita Falls) allowing concealed handgun licensees to openly carry a holstered gun. On Tuesday, the Senate passed nine bills including giving final approval to SB 17 by a vote of along party lines with all the Republicans voting for it and all the Democrats voting against it - Senator Jose Menendez (D-San Antonio) was absent on Tuesday, but he voted with the other Democrats against it on 2nd Reading on Monday. Upon passage of SB 17, Lt. Governor Dan Patrick said, In the history of the Texas Senate, this is the first time an open carry bill has made it out of committee and onto the Senate floor. I am very proud of the fact that today, we made Texas history. We've worked tirelessly on the issues that are most important to Texans. I applaud the good work our senators have put forth on making sure our Second Amendment Rights are protected, never ignored and properly enforced. Senator Rodney Ellis (D-Houston), who opposed SB 17 said, "I'm disappointed we've chosen to concentrate our energy and precious taxpayer dollars on arming more Texans with guns. Instead, we should be focusing on arming the hardworking people of this state with 21st century educational opportunities to compete in today's economy, better paying jobs and fairer wages, and access to quality, affordable health care." Some of the other bills that passed on Tuesday are discussed in the issue categories below. On Wednesday, the Senate passed three bills including SB 197 by Charles Schwertner (R- Georgetown), which would require the Cancer Prevention and Research Institute of Texas to develop a financial self-sufficiency plan to operate without state funding. Two amendments were adopted and it passed by a vote of 30 to 1 with Senator Robert Nichols casting the only nay vote. Also on Wednesday, after over five hours of debate on 25 amendments, the Senate gave preliminary approval to SB 11 by Brian Birdwell (R-Granbury), which would allow Texas concealed handgun license holders to carry handguns on campuses of institutions of higher education, by a party-line vote of 20 to 11. On Thursday, the Senate passed three bills including SB 219 by Charles Schwertner (R-Georgetown), which would clarify and update statutes relating to the provision and administration of health and human services. Senator Schwertner told his Senate colleagues that it was recommended by the Sunset Commission as a clean-up bill to delete or update archaic language and pave the way for the legislature to debate the health and human services-related sunset bills. The Senate also passed SB 610 by Charles Perry (R-Lubbock) would provide that an agritourism entity would not be liable for an agritourism participant injury or damages arising out of the agritourism participant injury if a warning was posted or the entity obtained a written agreement and warning statement from the participant. It was Senator Perry s first bill in the Senate, and after the veteran Senators bantered with him, it 3

4 passed unanimously. And, the Senate gave final approval to SB 11 without debate by a partisan vote of 20 Republicans to 11 Democrats. Total number of bills reported out of Senate Committees this week: Total number of bills passed by the Senate this week: Next Week: The Senate adjourned until Monday, March 23, 2015 at 2:00 p.m. Monday s Senate Intent Calendar has 35 bills. The key Senate Intent calendar bills for Monday are included in the issue categories below. HOUSE This week, the House was in session Monday through Thursday. On Monday, the House debated and gave preliminary approval to HB 10 by Senfronia Thompson, which would amend several criminal and civil statutes involving human trafficking, compelling prostitution, and other offenses. The House gave final approval to HB 10 on Tuesday. On Wednesday, the House debated and gave preliminary approval to HB 11 by Dennis Bonnen (R-Angleton), which is a homeland security bill that would enhance penalties for the smuggling of persons, create a new offense of continuous smuggling of persons, change policies and duties of the Department of Public Safety, implement technology and crime reporting strategies, and reauthorize an anti-gang grant program. Nineteen floor amendments were adopted and it passed to third reading by a vote of 131 to 12. On Wednesday, the House also gave preliminary approval to HB 437 by John Raney (R-Bryan), which would make an individual reentering employment with a state agency after military service eligible on the first day of reemployment for health insurance coverage under the Texas Employees Group Benefits Act; and HB 834 by Ana Hernandez (D-Houston), which would remove the requirement that local law enforcement agencies verify that a missing senior citizen's domicile is in Texas before notifying the Department of Public Safety to issue a Silver Alert. All three of the bills debated on Wednesday received final passage on Thursday. Total number of bills reported out of House Committees this week: Total number of bills passed by the House this week:... 4 Next Week: The House adjourned until 2:00 p.m. on Monday, March 23, The House calendar has bills on Tuesday, Wednesday and Thursday. On Tuesday, the House will discuss HB 900, by Jason Isaac (R-Dripping Springs) making changes to the Major Events Trust Fund. On Tuesday, they will take up HB 80 by Tom Craddick (R-Midland) prohibiting texting while driving. And, on Thursday, the House 4

5 has HB 550 by Four Price (R-Amarillo) on its calendar. It is the House version of SB 219, which cleans up statutes related to health and human services, and which passed the Senate this week. BUDGET Senate Finance Committee The Senate Finance Committee met on Tuesday and Thursday this week. On Tuesday, they took up: SB 9 and SJR 2 by Kelly Hancock (R-North Richland Hills) would propose a constitutional amendment basing the state spending cap on population growth and inflation. In support were representatives of Texas Public Policy Foundation, Americans for Prosperity, Republican Party of Texas, Texas Eagle Forum, Texans for Fiscal Responsibility, National Federation of Independent Business, and Empower Texans/Texans for Fiscal Responsibility. In opposition were representatives of Center for Public Policy Priorities, Texas American Federation of Teachers, Texans Care for Children, Texas Impact, ADAPT of Texas, Association of Texas Professional Educators, and Texas Elementary Principals and Supervisors Association. They were left pending. House Appropriations Committee The House Appropriations Committee met on Thursday of this week. They took up: SB 2 by John Otto (R-Dayton) is the supplemental appropriations bill. The committee took invited testimony only. It is posted again for next Tuesday, March 24, On Wednesday, the House Appropriations Committee s Subcommittee on Budget Transparency took up: HB 5 by John Otto (R-Dayton) would require the Legislative Budget Board to perform a strategic fiscal review for all state agencies currently under review by the Sunset Advisory Commission. On Thursday, it was recalled from subcommittee and reported favorably without amendments. HB 8 by John Otto (R-Dayton) would propose a constitutional amendment providing that if the Economic Stabilization Fund (Rainy Day Fund) reaches its cap, the excess oil and gas taxes and interest would go toward retiring state debt early. On Thursday, it was recalled from subcommittee and reported favorably without amendments. HB 903 by Giovanni Capriglione (R-Southlake) would require any amount in the Rainy Day Fund that exceeds 30% of the cap to be invested in accordance with the prudent person standard. On Thursday, it was recalled from subcommittee and reported favorably without amendments. HJR 8 by John Otto (R-Dayton) would propose a constitutional amendment to provide that if the Economic Stabilization Fund (Rainy Day Fund) reaches its cap, the comptroller must move any excess oil and gas taxes or excess interest into an account dedicated to retiring state debt early. On Thursday, it was recalled from subcommittee and reported favorably without amendments. 5

6 Next Week: Senate Finance Committee The Senate Finance Committee will meet on Tuesday, Wednesday, and Thursday next week to discuss recommendations of the work groups. The meeting on Tuesday, March 24, 2015 will be at 9:00 a.m.; the meeting on Wednesday, March 25, 2015 will be at 11:00 a.m. or upon adjournment; and the meeting on Thursday, March 26, 2015 will be at 9:00 a.m. All meetings will be in the Senate Finance Committee room E1.036 of the capitol extension. House Appropriations Committee The House Appropriations Committee will meet on Tuesday, March 24, 2015 at 8:00 a.m. in E1.030 of the capitol extension to take up HB 1, the general appropriations bill and HB 2, the supplemental appropriations bill. The committee is expected to finalize both bills next week. ECONOMIC DEVELOPMENT On Tuesday, the House Ways and Means Committee took up: HB 1250 by Jim Murphy (R-Houston) would change the wage requirement for Chapter 313 agreements from at least 110 percent of the county average weekly wage for manufacturing jobs in the county to at least 110 percent of the lesser of the state median annual wage for manufacturing jobs in Texas or the county average annual wage for manufacturing jobs in the county. In support were representatives of Texas Association of Manufacturers, Texas Taxpayers and Research Association, Texas Oil and Gas Association, Association of Electric Companies of Texas, Texas Chemical Council, Greater Austin Chamber of Commerce, The Wind Coalition, Texas Association of Business, The Metro Eight Chambers of Commerce, Greater Houston Partnership. Hewlett Packard, National Federation of Independent Business/Texas, and Dow Chemical Company. In opposition was Dick Lavine of the Center for Public Policy Priorities. It was left pending. HB 1987 by Drew Springer (R-Muenster) would make several changes in the administration of Chapter 313 agreements including: allowing a school district to request the comptroller to submit a recommendation as to whether the new jobs creation requirement should be waived or reduced and if reduced, the number of new jobs that should be required; allowing waiver of the new jobs requirement only if the comptroller recommends waiving or reducing the requirement; adding relevant information to the economic impact statement that would assist the comptroller in making a recommendation regarding waiver or reduction of the new jobs requirement; 6

7 specifying that the limitation agreement must provide for the recapture of property tax revenue if, in the first tax year after the agreement expires, the market value of the property is less than 80 percent of the market value of the property in the first tax year after the date the qualifying time period expires. In support was Dick Lavine of Center for Public Policy Priorities. In opposition were representatives of The Wind Coalition, Texas Taxpayers and Research Association, Greater Austin Chamber of Commerce, Texas Association of Manufacturers, Texas Oil and Gas Association, Association of Electric Companies of Texas, Texas Chemical Council and Texas League of Conservation Voters. It was left pending. On Thursday, the House Economic and Small Business Development Committee took up: HB 1156 by Carol Alvarado (D-Houston) would require the Department of Information Resources to create a single integrated web portal where a company considering moving to or expanding in Texas can fill out a uniform application that will automatically list the incentives that they pre-qualify for. At the same time, the portal would send the application to the proper state and local officials for further customized incentive packages and consultations. It was left pending. HB 1485 by Eddie Rodriguez (D-Austin) would establish the Texas Grocery Access Investment Fund administered through Texas Department of Agriculture to provide financing to construct, rehabilitate or expand grocery stores in underserved communities in urban and rural low and moderate income areas. It was left pending. Next Week: The House Business and Industry Committee will meet on Tuesday, March 24, 2015 at 11:30 a.m. in E2.016 of the capitol extension to take up: HB 1984 by Greg Bonnen (R-Friendswood) would require the Texas Economic Development and Tourism Office and the Aerospace and Aviation Advisory Committee to develop short-term and longterm policy initiatives or recommend reforms the state may undertake or implement to promote the aerospace industry. ENERGY On Monday, the House Energy Resources Committee took up: HB 497 by Gene Wu (D-Houston) would expand the definition of saltwater pipeline facility to mean a pipeline facility that conducts water that contains salt and other substances and is intended to be used in drilling or operating a well-used in the exploration for or production of oil or gas, including an injection well used for enhanced recovery operations. In support were representatives of the Lone Star Chapter of the Sierra Club, Concho Resources, Chevron, Enbridge Energy, Permian Basin 7

8 Petroleum Association, Independent Producers and Royalty Owners Association, Texas Pipeline Association, Texas Oil and Gas Association, Texas Alliance for Energy Producers, Apache Corporation, Frio County, and Texas League of Conservation Voters. There was no opposition. It was left pending. HB 1331 by Phil King (R-Weatherford) would exempt a person who generates drill cuttings and transfers them to another person with the contractual understanding they will be used for a beneficial use from liability in tort for a consequence of the subsequent use of the drill cuttings. In support were representatives of Enbridge Energy, Devon Energy, Concho Resources, Inc., Chevron, Permian Basin Petroleum Association, Texas Independent Producers and Royalty Owners Association, Texas Pipeline Association, Texas Propane Gas Association, Texas Oil and Gas Association, Texas Alliance of Energy Producers, Apache Corporation, and Texans for Lawsuit Reform. There was no opposition. It was left pending. On Tuesday, the Senate Natural Resources and Economic Development Committee took up: SB 775 by Troy Fraser (R-Marble Falls) would repeal provisions relating to the goal for natural gas use that require the Public Utilitiy Commission to establish the natural gas energy credits program to encourage utilities to use natural gas produced in Texas as the preferential fuel. In support were representatives of Texas Public Policy Foundation, Association of Electric Companies of Texas, Texas Competitive Power Advocates, Calpine Corporation, R Street Institute, Texas Association of Manufacturers, Exelon, Public Citizen and Texas Chemical Council. There was no opposition. It was left pending on Tuesday, but the committee voted it out on Wednesday without amendments and recommended it for the Local and Uncontested calendar. SB 931 by Troy Fraser (R-Marble Falls) would terminate the state s goals for renewable energy on December and would prohibit the Public Utility Commission from designating a new competitive renewable energy zone after January 1, On or after December 31, 2015, retail electric providers would be required to purchase sufficient renewable energy credits to verify any marketing claims the provider makes related to the content of renewable energy. In support were representatives of R Street Institute, Texas Association of Manufacturers, Texas Public Policy Foundation, Texas Competitive Power Advocates, Calpine Corporation, Exelon Power, Texas Oil and Gas Association, and Texas Chemical Council. In opposition were representatives of The Wind Coalition, Public Citizen, Lone Star Chapter of the Sierra Club, Environment Texas, Clean Water Action, Texas Impact, Environmental Defense Fund, and Texas League of Conservation Voters. It was left pending. On Wednesday, the House State Affairs Committee took up: HB 489 by Rafael Anchia (D-Dallas) would require the Public Utility Commission to ensure that retail electric providers or aggregators that offer residential or small commercial customers a product or 8

9 service related to smart thermostats provide customers clear descriptions in plain language of the contract terms and the customers rights. No action was taken. HB 911 Kenneth Sheets (R-Dallas) would increase the membership of the Public Utility Commission from three to five members, one of whom must be appointed by the governor from a list submitted by the Speaker of the House and one appointed by the Lieutenant Governor. No action was taken. Next Week: The House Energy Resources Committee will meet on Monday, March 23, 2015 at 2:00 p.m. in E2.010 of the capitol extension to take up: HB 40 by Drew Darby (R-San Angelo) would establish that the authority of a municipality or other political subdivision to regulate an oil and gas operation is expressly preempted, except that a municipality is authorized to enact, amend, or enforce a measure that regulates only surface activity that is incident to an oil and gas operation, is commercially reasonable, does not effectively prohibit an oil and gas operation, and is not otherwise preempted by state or federal law. HB 539 by Phil King (R-Weatherford) would institute requirements a municipality must comply with before adopting an oil or gas municipal ordinance including requesting a fiscal note and an equalized education funding impact statement from the Legislative Budget Board and a statement on the impact of the proposed ordinance on local school districts from the Comptroller. ENVIRONMENT On Monday, the Senate Agriculture, Water, and Rural Affairs Committee took up: SB 394 by Charles Perry (R-Lubbock) would require the Texas Commission on Environmental Quality, for a respondent that is a local government and has not previously committed the same violation, to approve a supplemental environmental project that is necessary to bring the respondent into compliance with environmental laws or that is necessary to remediate environmental harm cause by the local government's alleged violation. In support was Heather Cook of the City of Austin. There was no opposition. It was left pending. SB 505 by Charles Perry (R-Lubbock) would require Meteorological Evaluation Towers (METs) to be painted and marked in accordance with Federal Aviation Administration and National Transportation Safety Board guidelines. In support were representatives of Texas Agricultural Aviation Association and City of Corpus Christi. In opposition were representatives of The Wind Coalition and Public Citizen Texas. It was left pending. SB 551 by Kel Seliger (R-Amarillo) would require the Water Conservation Advisory Council to submit recommendations for legislation to advance water conservation in its biennial report to the governor, lieutenant governor, and speaker. In support were representatives of City of Austin, League of Women Voters of Texas, Lone Star Chapter of the Sierra Club, The Nature Conservancy, Texas Association of Business, Manville Water Supply Corporation, Texas League of Conservation Voters, and San Antonio 9

10 Water System. There was no opposition. It was left pending on Monday, but the committee voted it out on Wednesday without amendments and recommended it for the Local and Uncontested calendar. On Tuesday, the House Environmental Regulation Committee took up: HB 1146 by Kyle Kacal (R-College Station) would allow a volunteer to be the licensed operator of a water supply system and require the owner or manager of such a water system to maintain records related to each volunteer operator. In support was Shanna Igo of Texas Municipal League. There was no opposition. It was left pending. HB 1269 by Drew Springer (R-Muenster) would require the Texas Commission on Environmental Quality to approve a supplemental environmental project in lieu of an administrative penalty for counties with a population of less than 50,000 or any other local government that lies in part within such a county, and if the project does not cost enough to offset the penalty. It would require the entity to make up the balance by upgrading the facility for which the penalty was assessed. In support were representatives of City of Ballinger, County Judges and Commissioners Association of Texas, Wilbarger County and Texas Municipal League. It was left pending. HB 1794 by Charlie Geren (R-Fort Worth) would provide that businesses subject to alleged environmental violations would pay punitive civil penalties only for their own intentional conduct, not for the actions of others as long as they are acting in good faith and complying with applicable state enforcement actions. In support were representatives of Texas Civil Justice League, Texas Association of Manufacturers, Anadarko Petroleum, Enbridge, Texas Food & Fuel Association, American Insurance Association, Texas Pipeline Association, National Waste and Recycling Association of Texas, Republic Services, American Electric Power, Devon Energy, Shell Oil Company, BP, Texans for Lawsuit Reform, Texas Civil Justice League, BNSF Railway, Texas Railroad Association, Independent Insurance Agents of Texas, DuPont, Gas Processors Association, Huntsman Corporation, Association of Electric Companies of Texas, Texas Association of Business, Occidental Petroleum, International Petroleum, Associated General Contractors, ExxonMobil, Koch Companies, AT&T, Texas Chemical Council, Energy Transfer, Texas Oil and Gas Association, ConocoPhillips, Zachry Corporation, Texas Alliance of Energy Producers, Texas Pest Control Association, Dow Chemical, and Luminant. In opposition were representatives of San Jacinto River Coalition, Harris and Travis Counties, Bayou Preservation Association, Texas Conference of Urban Counties, Lone Star Chapter of the Sierra Club, Public Citizen, County Judges and Commissioners Association, Environment Texas, Clean Water Action, Texas Campaign for the Environment, Texas League of Conservation Voters, and Texas Watch. It was left pending. 10

11 On Wednesday, the House Natural Resources Committee took up: HB 280 by Ron Simmons (R-Carrollton) would require the Texas Water Development Board to post on its website information related to the state water implementation fund (SWIFT), including the method of prioritization and scoring for the projects established by the board, nonconfidential information from the applications submitted to the board, the bonds issued for projects that receive SWIFT funding, the repayment status of any loan provided, and other specific financial information related to operating expenses administering the fund. It was left pending. HB 1275 by Jim Keffer (R-Eastland) would make river authorities subject to an economy and efficiency audit by the state auditor as if they were state agencies. It was left pending. HB 1290 by Jim Keffer (R-Eastland) would require sunset review of river authorities including a review of each entity s governance, management, operating structure, and compliance with legislative requirements. The river authorities would be reviewed at a rate of 3-4 per biennium in alphabetical order beginning with the Bandera, Brazos and Central Colorado River Authorities. It was left pending. Next Week: The Senate Agriculture, Water, and Rural Affairs Committee will meet on Monday, March 23, 2015 at 2:00 p.m. in E1.012 of the capitol extension to take up: SB 521 by Troy Fraser (R-Marble Falls) would extend the initial period for the Texas Commission on Environmental Quality to issue an emergency authorization relating to the use of state water from 120 days to two years, and would allow the commission to renew or automatically renew such an authorization for a period not to exceed one year for each renewal. SB 523 by Brian Birdwell (R-Granbury) would require sunset review of river authorities including a review of each entity s governance, management, operating structure, and compliance with legislative requirements. The river authorities would be reviewed at a rate of 3-4 per biennium in alphabetical order beginning with the Bandera, Brazos and Central Colorado River Authorities. The House Environmental Regulation Committee will meet on Tuesday, March 24, 2015 at 8:00 a.m. in E1.026 of the capitol extension to take up: HB 87 by Mary Gonzalez (D-El Paso) would prohibit large retailers (annual sales of $5 million or more) from selling new computer or television equipment in Texas unless the retailer accepts, without charge, computer and television equipment for recycling and ensures that all equipment collected is recycled, reused, or disposed of legally. HB 912 by Jason Isaac (R-Dripping Springs) requires the Texas Commission on Environmental Quality to dismiss a protest against a commission decision on a wastewater discharge permit if the protest is filed by a municipality that is subject to less stringent wastewater treatment requirements than the requirements established by the permit. HB 1058 by Joe Farias (D-San Antonio) would require the owner or operator of a municipal solid waste landfill or incinerator to post a sign that encourages consumers to recycle electronic waste; and 11

12 would clarify that the owner or operator is not liable for electronic waste collected at the landfill or incinerator and is not required to remove electronic waste collected if the owner or operator has made a good faith effort to comply with the law. It also requires solid waste transporters to provide each person who has contracted with the transporter an informational insert that encourages consumers to recycle electronic waste; and clarifies that a transporter is not liable for electronic waste transported if the transporter has made a good faith effort to comply. HB 2763 by Ed Thompson (R-Pearland) would require the Texas Commission on Environmental Quality to convene an advisory committee established under the Solid Waste Disposal Act, and through the committee, to conduct a study quantifying the amount of materials currently being recycled, economic impacts including lost state and local revenues from the materials that are not being recycled, and to identify ways to develop new markets to increase recycling. GENERAL BUSINESS On Tuesday, the House Business and Industry Committee took up: HB 1686 by Marsha Farney (R-Georgetown) would specify that a franchisor is not considered to be an employer of a franchisee or a franchisee s employees for the purposes of: employment discrimination, payment of wages, minimum wage, professional employer organizations, unemployment compensation, workers compensation, and worker s health and safety. It was left pending. Next Week: The House Business and Industry Committee will meet on Tuesday, March 17, 2015 at 11:30 a.m. in E HEALTH On Monday, the House Human Services Committee took up the sunset bills for the Texas Council for Developmental Disabilities (HB 1679), Texas Health Services Authority (HB 1680), and the Department of Assistive and Rehabilitative Services (HB 2463). HB 1679 was reported favorably without amendments; HB 1680 was reported favorably as substituted; and HB 2463 was left pending. On Tuesday, the House Public Health Committee took up: HB 698 by Tracy O. King (D-Batesville) would clarify provisions related to licensing and regulation of the fitting and dispensing of hearing instruments. In support was Scott Pospisil of Texas Hearing Aid Association. There was no opposition. It was left pending. HB 751 by John Zerwas (R-Fulshear) would require communication between a dispensing pharmacist and prescribing practitioner in cases when an interchangeable biological product is provided to a patient in place of the product prescribed. In support were representatives of Coalition of Texans with Disabilities, Global Healthy Living Foundation, International Cancer Advocacy Network, Amgen, Inc., Eli Lilly and Company, Texas Healthcare and Bioscience Institute, Novartis, Arthritis Foundation, 12

13 American Cancer Society, Biotechnology Industries Organization, AbbVie, Takeda Pharmaceuticals, Coalition of Texans with Disabilities, Texas Nurse Practitioners, Generic Pharmaceutical Association, Texas Academy of Family Physicians, Express Scripts, GlaxoSmithKline, Bristol-Meyers Squibb, Johnson & Johnson, Genentech, Texas Medical Association, and Texas Dermatological Society. In opposition was Wendy Wilson of Prime Therapeutics. It was left pending. On Wednesday, the Senate Health and Human Services Committee took up: SB 694 by Paul Bettencourt (R-Houston) would establish the Right To Try Act authorizing patients with terminal conditions to access investigational drugs, biological products, and devices that are in clinical trials. In laying out the bill, Senator Bettencourt said, "Let's get government out of the way if a patient and a doctor want to have the 'Right to Try' drugs and treatments in terminally ill situations. Under current law, the FDA has a compassionate use exception policy that allows for terminally ill patients to receive drugs and treatments prior to being FDA approved if the treating physician certifies that certain conditions are met. Under SB 694, the 30 day wait period is shaved off of the wait time for terminally ill patients, precious time for a patient when they are stronger and their bodies are healthy enough to fight and succeed with safe, ground breaking treatments. SB 694 is named after Andrea Sloan, an Austin attorney who battled ovarian cancer and waited for several months for an experimental drug her doctors believed could extend her life, and which came too late for her in her battle. It was left pending. Passed the Senate: SB 97 by Juan Chuy Hinojosa (D-McAllen) would prohibit the sale of e-cigarettes to persons younger than 18 years of age. Senator Hinojosa said, "I am pleased that this legislation passed out of the Senate and I am proud of the bipartisan support to protect our children. SB 97 is a necessary regulation to keep these federally unregulated, potentially addicting products out of the hands of our teens. Today's vote puts Texas one step closer to joining the 41 other states that already prohibit the sale of electronic cigarettes or vaping/alternative tobacco products to minors due to the potentially harmful health consequences and the addictive nature of the nicotine in e- cigarettes." It passed by a vote of 27 to 3 with Senators Konni Burton (R-Colleyville), Bob Hall (R-Canton), and Don Huffines (D- Dallas) voting nay. Senator Huffines submitted a reason for his vote in the journal stating, Regulations on businesses and families undermine personal responsibility and place the government in an inappropriate role of supplanting sound judgment and parental accountability. I voted against SB 97 because it is a heavy-handed regulatory approach. There are other, less intrusive pieces of legislation that are navigating the legislative process this session, and I look forward to the opportunity to support those other approaches. 13

14 SB 133 by Charles Schwertner (R-Georgetown) would add school district employees and school resource officers to the mental health training and reporting requirements in the Health and Safety Code. It passed by a vote of SB 424 by Charles Schwertner (R-Georgetown) would allow the Department of State Health Services to place an emergency suspension on a hospital license holder if the license holder s actions place the public health and safety in immediate jeopardy. It passed by a vote of Health Care Coverage for Low-Income Texans Representative Garnet Coleman (D-Houston) announced the filing HB 3845, which proposes a "Texas Way" to expand health care coverage to low-income Texans. It would include a request for a block grant from the federal government. If adopted, it would mark the first time a state has formally requested a block grant under the 1115 waiver process. Representative Coleman said, Over a million Texas residents currently fall into a health care coverage gap because they don't qualify for Medicaid and don't earn enough to qualify for assistance in obtaining coverage under the Affordable Care Act. HB 3845 would allow newly covered Texans to purchase private insurance plans through a combination of subsidies and cost-sharing provisions. Texas has unique needs, needs that merit finding a distinctly Texan solution to closing the coverage gap for our most vulnerable residents. While other states are finding ways to expand coverage to those who need it, we have yet to provide the federal government with a plan they can even respond to. We should explore all options - including a block grant - that would finally allow uninsured Texans to purchase health insurance. We have the highest rate of uninsured and the highest number of uninsured children. It's time to start that conversation." Senator José Rodríguez filed a similar bill, SB Senator Rodriguez said, In addition to providing access to private health insurance for more than 1 million low-wage working Texans, including 50,000 military veterans, SB 1039 would be a more effective use of state and local taxpayer dollars. The Texas Way will provide access to private health insurance so that low-wage working Texans can access primary and preventive care rather than relying on hospital emergency departments for acute care. It will also provide a transparent process to assess the impact of reduced uncompensated care costs on local property taxes that currently pay for about $1 billion of indigent health care services. Employers and those who purchase private health insurance will also benefit. Reported from Committee: HB 661 by John Zerwas (R-Fulshear) would create the Interstate Medical Licensure Compact Commission to administer the Interstate Medical Licensure Compact, and would authorize fees. Next Week: The Senate Health and Human Services Committee will meet on Monday, March 23, 2015 at 8:00 a.m. in E1.016 of the capitol extension to take up the sunset bills for the Health and Human Services Commission (SB 200); Department of State Health Services (SB 202); the Department of 14

15 Aging and Disability Services (SB 204); Department of Family and Protective Services (SB 206); office of inspector general of the Health and Human Services Commission (SB 207); Texas Council on Purchasing from People with Disabilities (SB 212); and health-related task forces, work groups, advisory councils, and advisory committees (SB 277). The House Public Health Committee will meet on Tuesday, March 24, 2015 at 8:00 a.m. in E2.012 of the capitol extension to take up several bills regulating vapor products and: HB 21 by Kyle Kacal (R-College Station) would establish the Right To Try Act authorizing patients with terminal conditions to access investigational drugs, biological products, and devices that are in clinical trials. (companion to SB 694, which was heard this week in the Senate Health and Human Services Committee.) HB 1945 by Greg Bonnen (R-Friendswood) would specify that a physician providing direct primary care is not an insurer or health maintenance organization subject to regulation by the Texas Department of Insurance. A state agency or health insurer would be prohibited from interfering with a physician for providing, or with a person for paying for, direct primary care. HIGHER EDUCATION On Wednesday, the Senate Higher Education Committee took up: SB 453 by Kel Seliger (R-Amarillo) would increase the scaled score of 50 percent to 60 percent for the minimum score required for public school students to receive credit by examination administered through the College-Level Examination Program. It was reported favorably without amendments and recommended for the Local and Uncontested calendar. It is on Monday s Senate Intent calendar. SB 686 by Kel Seliger (R-Amarillo) would allow state appropriations to the Math and Science Scholars Loan Repayment Program. It was left pending. SB 947 by Judith Zaffirini (D-Laredo) would require the Texas Higher Education Coordinating Board to study the creation of more work-study jobs that are not on college campuses. The Center for Public Policy Priorities released a new report showing that currently all jobs under the Texas College Work Study Program are on-campus jobs, which limit career potential and economic development. According to Beyond the Campus: Connecting Community College Students to Meaningful Employment, Texas should boost work study jobs off campus, something already allowed under current law. Garrett Groves, Economic Opportunity Program Director at CPPP said, "Texas has been a leader in recognizing the value of connecting students with jobs. Now it's time to fulfill the potential of the Texas College Work Study Program by making sure more students work off campus in jobs that advance their careers and boost the Texas economy." It was reported favorably without amendments. 15

16 Also on Wednesday, the House Higher Education Committee took up: HB 100 by John Zerwas (R-Fulshear) would authorize the issuance of Tuition Revenue Bonds for capital construction projects at Texas colleges and universities. In support were representatives of Greater Fort Bend Economic Development Council, City of San Antonio, Fort Worth Chamber of Commerce, Greater Houston Partnership, Dallas Regional Chamber, Teaching Hospitals of Texas, San Antonio Chamber of Commerce, City of Arlington, and City of Corpus Christi. In opposition was Merry Lynn Gerstenschlager of Texas Eagle Forum. It was left pending. Reported from Committee: SB 806 by Donna Campbell (R-New Braunfels) would require the Texas Workforce Commission in consultation with the Texas Higher Education Coordinating Board to annually report the results of the College Credit for Heroes program including the results of any grants awarded. It was reported favorably from the Senate Veteran Affairs and Military Installations Committee without amendments and recommended for the Local and Uncontested calendar. Next Week: Senate Intent Calendar: SB 44 by Judith Zaffirini (D-Laredo) would add undergraduate research and undergraduate financial aid grants to the list of items an institution of higher education can receive to qualify for Texas Research Incentive Program matching grants. It is on the Senate Intent Calendar for Monday, March 23, The House Higher Education Committee will meet on Wednesday, March 25, 2015 at 8:00 a.m. in E2.014 of the capitol extension to take up: HB 700 by Helen Giddings (D-Dallas) would repeal the Texas B-On-time student loan program. HB 1054 by Travis Clardy (R-Nacogdoches) would require the Texas Higher Education Coordinating Board to prescribe a score below which a student is eligible for basic academic skills education for each assessment instrument designated by the board for use by institutions of higher education to determine the need for developmental education. HB 1583 by Travis Clardy (R-Nacogdoches) would require public junior colleges to establish a block schedule curriculum for each associate degree or certificate program offered under which courses required for a student s enrollment in the program as a full-time student are offered each semester in scheduled blocks designed to provide scheduling predictability from semester to semester and allow students to enroll in an entire block schedule curriculum rather than enrolling in individual courses. HB 1992 by John Zerwas (R-Fulshear) would provide that an institution of higher education may not require a score of more than three as the minimum required score on an Advanced Placement examination for granting course credit. 16

17 HB 2483 by John Zerwas (R-Fulshear) would allow the fixed tuition price plan of an institution not offering other tuition payment options to include a maximum tuition rate and to vary between semesters during the period covered by the fixed tuition price plan, but the institution s tuition charges may not exceed the established maximum tuition rate. HB 2848 by Myra Crownover (R-Denton) would set the allocation of the annual constitutional appropriation for institutions of higher education and technical colleges and increases the overall allocation from $2.625 billion to $3.938 billion. HUMAN RESOURCES/EMPLOYMENT On Tuesday, the House Business and Industry Committee took up: HB 58 by Armando Mando Martinez (D-Weslaco) would make it an unlawful employment practice if an employer has a leave policy allowing an employee to personal leave to care for the employee s sick child and the leave policy does not allow the same leave for an adopted or foster child residing in the same household as the employee. It was left pending. HB 94 by Mary Gonzalez (D-El Paso) would require the Texas Workforce Commission to establish a database listing all employers that have been penalized for failure to pay wages or convicted of an offense involving theft of service. It was left pending. On Wednesday, the Senate Veteran Affairs and Military Installations Committee took up: SB 807 by Donna Campbell (R-New Braunfels) would require a state agency that issues a license to waive the license application and examination fees for an applicant who is a military service member or military veteran whose military service, training, or education substantially meets all of the requirements for the license; or a military service member, military veteran, or military spouse who holds a current license issued by another jurisdiction that has licensing requirements that are substantially equivalent to the requirements for the license in Texas. It was left pending on March 11,2015 but it was voted out favorably on March 18, 2015 (the paperwork has not yet been filed with the clerk). INSURANCE On Tuesday, the House Judiciary and Civil Jurisprudence Committee took up: HB 1433 by John Smithee (R-Amarillo) would reduce the amount of penalty owed by an HMO or preferred provider for failure to pay a health care claim, and would establish a two-year statute of limitations on a suit against an insurance provider for failure to promptly pay a clean health care claim. It was left pending. 17

18 On Tuesday, the Senate Business and Commerce Committee took up: SB 782 by Kevin Eltife (R-Tyler) would clarify that the Texas Insurance Commissioner is authorized to investigate other offenses in addition to insurance fraud, including by providing technical or litigation assistance to other governmental agencies. In support were representatives of Texas Coalition for Affordable Insurance Solutions, Independent Insurance Agents of Texas, National Association of Mutual Insurance Companies, American Insurance Association, and Association of Fire and Casualty Companies of Texas. There was no opposition. It was left pending. SB 783 by Kevin Eltife (R-Tyler) would prohibit the Texas Department of Insurance (TDI) fraud unit from accepting gifts from a regulated entity, and would require the insurance fraud unit to develop fraud prevention educational programs and informational materials. In support were representatives of Texas Coalition for Affordable Insurance Solutions, Independent Insurance Agents of Texas, National Association of Mutual Insurance Companies, American Insurance Association, and Association of Fire and Casualty Companies of Texas. There was not opposition. It was left pending. PRIVACY On Tuesday, the Senate Business and Commerce Committee took up: SB 34 by Judith Zaffirini (D-Laredo) would require the Department of Information Resources to submit a report prior to each legislative session evaluating the information security of the state s information resources. In support were representatives of TechAmerica, HID Global, and Hewlett Packard. There was no opposition. It was left pending. On Tuesday, the Senate Criminal Justice Committee took up: SB 345 by Joan Huffman (R-Houston) would apply the offense of breach of computer security to a person who knowingly accesses a computer, computer network, or computer system with the intent to obtain a benefit in violation of a clear and conspicuous prohibition by the owner of the computer, computer network, or computer system or a contractual agreement to which the person has expressly agreed. In support were representatives of Texas Municipal Police Association, Sheriff Association of Texas, Independent Bankers Association of Texas, and Montgomery and Harris County District Attorney s Offices. There was no opposition. It was left pending on Tuesday, but on Thursday, the committee reported it favorably and recommended it for the Local and Uncontested calendar. On Wednesday, the House Criminal Jurisprudence Committee took up: HB 861 by Tony Dale (R-Cedar Park) would change the offense of online solicitation of a minor to apply to persons age 17 or older with the intent to commit a crime under the Code of Criminal Procedure Section (5) (A) which is continuous sexual abuse of a young child, indecency with a child, sexual assault, aggravated sexual assault, or prohibited sexual conduct; (5) (B) which is 18

19 compelling prostitution, sexual performance by a child, or possession or promotion of child pornography; or (5) (K) which is trafficking of persons. It was left pending. Next Week: The Senate Criminal Justice Committee will meet on Tuesday, March 24, 2015 at 1:30 p.m. in E1.016 to take up: SB 344 by Joan Huffman (R-Houston) would change the offense of online solicitation of a minor to apply to persons age 17 or older with the intent to commit a crime under the Code of Criminal Procedure Section (5) (A) which is continuous sexual abuse of a young child, indecency with a child, sexual assault, aggravated sexual assault, or prohibited sexual conduct; (5) (B) which is compelling prostitution, sexual performance by a child, or possession or promotion of child pornography; or (5) (K) which is trafficking of persons. (It is the companion to HB 816, which was heard this week in the House Criminal Jurisprudence Committee.) PROCUREMENT On Tuesday, the House Public Education Committee took up: HB 1486 by Rick Galindo (R-San Antonio) would prohibit the board of trustees of an independent school district from having direct communication with an actual or prospective bidder after the district has issued a request for proposals or advertised for bids on a contract until after the board has awarded the contract. In support were representatives of South San Antonio Chamber of Commerce, South San Antonio ISD Board of Trustees, Texas State Teachers Association, Association of Texas Professional Educators and Texas Classroom Teachers Association. In opposition was Grover Campbell of Texas Association of School Boards. It was left pending. Also on Tuesday, the Senate Business and Commerce Committee took up: SB 705 by Carlos Uresti (D-San Antonio) would require an agency with a contract that has increased in cost by more than 20 percent to submit the contract to the Comptroller s Contract Advisory Team. It was left pending. On Wednesday, the House Government Transparency and Operation Committee took up: HB 1890 by Gary Elkins (R-Houston) would require the Department of Information Resources to develop a legacy system modernization strategy to guide the state in legacy system modernization efforts. There were no witnesses. It was left pending. HB 2000 by Roland Gutierrez (D-San Antonio) would authorize the Electric Reliability Council of Texas, the Lower Colorado River Authority, private schools, private or independent institutions of higher education, and volunteer fire departments to purchase information technology commodity items through the Department of Information Resources. There were no witnesses. It was left pending. 19

20 On Thursday, the House General Investigating & Ethics Committee heard invited testimony from the Health and Human Services Commission, Department of Transportation, Department of Public Safety and Department of Criminal Justice. PROPERTY Next Week: The Senate State Affairs Committee will meet on Monday, March 23, 2015 at 9:00 a.m. in the Senate Chamber to take up: SB 178 by Robert Nichols (R-Jacksonville) would prohibit the use of eminent domain to take private property for a recreational purpose including for a parks and recreation system, a park, a greenbelt, or a trail. SB 479 by Charles Schwertner (R-Georgetown) would increase the requirements on governmental entities that exercise eminent domain authority by requiring a governmental entity exercising its eminent domain authority to complete at least three of the following property development actions within ten years or the landowner would be allowed to repurchase the land for the original purchase price: (1) perform significant labor on the property; (2) purchase materials for development; (3) procure the services of an architect, engineer, or surveyor in preparation for development; (4) apply for state or federal funds for development; or (5) apply for a state or federal permit needed for development. PUBLIC EDUCATION On Tuesday, the House Public Education Committee took up: HB 228 by Ryan Guillen (D-Rio Grande City) would allow school districts to offer a flexible school day program at a campus or campuses that would benefit from the program. In support were representatives of Texas PTA, Goodwill Central Texas, Texas Association of School Boards, Texas Association of School Administrators, Texas Elementary Principals and Supervisors Association, Texas Association of Community Schools, Texas Association of Goodwills, Dallas ISD, and Texas Rural Education Association. There was no opposition. It was left pending. HB 279 by Ron Simmons (R-Carrollton) would authorize public education grants for students eligible to participate in a school district s special education program and are the subject of an individualized education program. In support were representatives of TIER, Texas Business Leadership Council, Texas Catholic Conference of Bishops, Association of Texas Professional Educators, and Texas Classroom Teachers Association. In opposition were representatives of American Federation of Teachers, Texas Association of Community Schools, Texas Rural Education Association, and Texas School Alliance. It was left pending. HB 657 by Jimmie Don Aycock (R-Killeen) would require members of the board of trustees of a public school district to complete the required training hours for the first year of service beginning on the 20