The Senate was in session Monday through Thursday this week. On Monday, the Senate passed 13 bills including:

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1 SENATE: The Senate was in session Monday through Thursday this week. On Monday, the Senate passed 13 bills including: SB 900 by Larry Taylor (R-Friendswood) would make several changes to the Texas Windstorm Insurance Association. The committee substitute and two floor amendments were adopted and it passed by a vote of SB 945 by Larry Taylor (R-Friendswood) would include pennies of a school district s current maintenance and operations (M&O) tax rate that are above the district s compressed tax rate in the definition of compressed tax rate for purposes of determining a district s basic allotment if the school district s actual compressed tax rate was less than $1.00. The committee substitute was adopted. SB 1626 by Jose Rodriguez (D-El Paso) would put a restriction on a property owner in a residential subdivision regarding the installation of a solar energy device in small with 50 or fewer units/lots. The committee substitute was adopted and it passed by a vote of Note: the companion HB 3539 has been voted out as substituted from the House Business and Industry Committee. On Tuesday, the Senate passed 16 bills including: SB 19 by Van Taylor (R-Plano) is an ethics reform bill. The committee substitute and ten floor amendments were adopted and it passed by a vote of After the passage of SB 19, Governor Greg Abbott said, I applaud the Texas Senate for passing a meaningful ethics reform package. SB 19 reinforces the faith and trust that Texans deserve to place in their government, and it ensures that we remain focused on who we truly serve the people of Texas. I look forward to working with the House to enact these ethics reform into law. Lt. Governor Dan Patrick added, "Expanding ethics requirements for our public officers is not only the right thing to do, but it instills public trust. Transparency in state business is a key factor to a sound and limited government." SB 139/SJR 12 by Charles Perry (R-Lubbock) would propose a constitutional amendment to strike policing and administration from the permissible uses of motor fuels taxes, vehicle registration fees and Federal highway funds. SB 139 passed by a vote of 29-2 and SJR 12 passed by a vote of 30-1.

2 On Wednesday, the Senate passed 19 bills including: SB 1307 by Jose Menendez (D-San Antonio) would clarify provisions related to occupational licenses for military service members, military veterans, and military spouses, authorizing a state agency to waive any licensing prerequisites for a military applicant, upon reviewing the applicant's credentials. There were no amendments. SB 1821/SJR 60 by Donna Campbell (R-New Braunfels) would propose a constitutional amendment authorizing political subdivisions to adopt an ad valorem tax exemption for a portion of the market value of property of a business that employs an honorably discharged veteran. On SB 1821, one floor amendment was adopted and it passed by a vote of 28-3; On SJR 60, one floor amendment was adopted and it passed by a vote of And, they gave preliminary approval to SB 1628 by Larry Taylor (R-Friendswood), which would define unfair claims settlement practices in connection with weatherrelated insurance claims and would establish venue for contested claims. It received final approval on Thursday. The committee substitute and 11 floor amendments were adopted and it passed by a vote of Senator Larry Taylor said, There have been many untruths and blatant lies regarding the intent of my consumer protection bill, SB It will eliminate catastrophic weather lawsuit abuse while assuring homeowners right to receive fair and timely claims payments from insurers. On top of the claims payments, SB 1628 enables homeowners to collect 18% penalty interest, pre-judgment interest and attorney fees. In fact, SB 1628 preserves every penalty entitled to policyholders under current law and only enhances regulatory authorities' ability to crack down on bad actors in the legal and insurance industries. SB 1628 stops trial lawyers from filing frivolous lawsuits following a weather catastrophe and strengthens homeowners' rights. Policyholders deserve the lowest insurance premiums possible and to have their claims handled promptly and fairly. On Thursday, the Senate passed 87 bills on the Local and Uncontested calendar including resolutions designating Dripping Springs as the Wedding Capital of Texas (HCR 43); designating Quitaque as the official Bison Capital of Texas (SCR 22); and designating Hico as the official Steak Capital of Texas (SCR 31). They also passed 26 bills from the Intent calendar including: SB 164 by Eddie Lucio, Jr. (D-Brownsville) would require schools that do not have a full-time counselor assigned to the campus for more than 30 consecutive instructional days to post notice of the absence on the school district s Internet website. One floor amendment was adopted and it passed by a vote of 23-8.

3 SB 228 by Brandon Creighton (R-Conroe) would institute a sales tax holiday for firearms and hunting supplies the last weekend in August. The committee substitute and one floor amendment were adopted and it passed by a vote of Senator Creighton said, SB 228 establishes a tax-free weekend for the purchase of firearms, ammunition, and hunting supplies the last weekend in August. Since 2009, retailers in east and southeast Texas have been at a competitive disadvantage when it comes to their Louisiana counterparts. Louisiana, among other states, adopted a sales tax holiday similar to the one we've passed today in the Senate. Providing this sales tax break prior to the start of hunting season will be an economic driver for small businesses and will provide our hunters much deserved savings. I am pleased to encourage and promote gunmanship and to improve opportunities for all Texans to enjoy their Second Amendment rights." SB 750 by Larry Taylor (R-Friendswood) would authorize the public school finance allotment to cover the financial expenditure for insurance premiums for windstorm and hail insurance coverage. The committee substitute was adopted. SB 778 by Kel Seliger (R-Amarillo) would tie tuition increases to performance-based. The committee substitute and five floor amendments were adopted and it passed by a vote of SB 1760 by Brandon Creighton (R-Conroe) would make several changes to property tax administration. The committee substitute and two floor amendments were adopted and it passed by a vote of Senator Creighton said, SB 1760 levels the playing field for Texas taxpayers. Standing strong for taxpayer rights was a promise I made to the citizens of Senate District 4; and, I am thankful my Senate colleagues voted to pass this landmark legislation. Lt. Governor Dan Patrick added, "Property tax relief has been one of the Senate's top priorities. SB 1760 delivers true tax relief for Texas homeowners by placing a downward pressure on the oppressive growth of property taxes through transparency. Senator Creighton's bill gives homeowners the ability to hold local government accountable for the demands they place on taxpayers. SB 1760 is another step in an overall plan to reduce property taxes for homeowners and businesses. In March, the Senate passed with bipartisan support to double the homestead exemption for homeowners to over $30,000 a year. I applaud the Senators for making sure homeowners across the state receive the tax relief Texans deserve." Specifically, SB 1760 would: remove the requirement that taxpayers due a refund have to apply for it. provide interest rate uniformity for taxpayers, by increasing the interest rate on refunds due to taxpayers to 9.5%. require local taxing entities (applies to school districts and all other taxing jurisdictions) to justify the necessity of a tax increase on notices and election ballots.

4 allow a court hearing an appraisal dispute to give preference to the testimony of an independent licensed appraiser. require the Texas Comptroller of Public Accounts to compile and annually publish a ranked list of tax rates by entity. require a local government that wishes to exceed the effective tax rate to first have a vote of at least 60% of the governing body in support of the tax increase (an amendment added by Senator Paul Bettencourt). Total number of bills reported out of Senate Committees this week: 155 Total number of bills passed by the Senate this week: 161 Total passed on the Local and Uncontested calendar: 87 Next Week: The Senate adjourned until Monday, May 4, 2015 at 11:00 a.m. Monday s Senate Intent Calendar has 83 bills. Key Senate Intent calendar bills for Monday are included in the issue categories below. HOUSE: This week, the House was in session Monday through Friday. There had been a calendar scheduled for Saturday, but they doubled up on Friday in order to be off on Saturday. On Monday, the House passed 15 Third Reading bills, but failed to pass HB 409 by Chris Turner (D-Arlington), which would have required entities with alcoholic beverage permits to maintain liability insurance. It had passed to third reading on a voice vote but failed on Third Reading by a vote of The House gave preliminary approval to three budget reform bills including: HB 6 by John Otto (R-Dayton) would address the amount of unspent money in General Revenue-Dedicated accounts that can be counted for budget certification. One floor amendment was adopted and it passed by a vote of HB 7 by Drew Darby (R-San Angelo) would eliminate and reduce fees in dedicated accounts and designated funds. The committee substitute and eight floor amendments were adopted. HJR 111 by Drew Darby (R-San Angelo) would propose a constitutional amendment phasing-out and ending budget diversions from accounts and designated funds. The committee substitute and one floor amendment were adopted. Representative Darby said, HB 7 reduces state revenue by over $400 Million by eliminating or reducing state fees on professionals, electric and phone utilities, the sale, lease or rental of diesel equipment and on delivery of gasoline to gas stations. The bill also authorizes additional reductions in unspent account balances being used to certify

5 the state budget. HJR 111 is a proposed constitutional amendment for the November 2015 ballot that would end the practice of using unspent balances for budget certification in six years. Since 1991, unspent funds in General Revenue-Dedicated accounts have been used to help certify the budget. These bills ensure that this practice will become a thing of the past; funds collected for a specific program will be spent that way, and allow for the elimination or reduction of unnecessary fees. Speaker Joe Straus added, For more than two decades, the state increasingly collected billions of dollars in fees for one purpose, but then used that money instead to certify spending in other areas of the budget. The House began working to end that practice almost three years ago, and in the 2013 session, the Legislature reduced the use of dedicated funds for budget certification by nearly $1 billion. This session, the House is well on its way to reducing that amount even further, from $4.5 billion to $2.9 billion. And if voters approve HJR 111, which the House passed today, we will end this practice altogether in the coming years. Today the House took some significant steps toward increasing transparency and assuring Texans that the taxes and fees they pay will be used as promised. I appreciate the leadership of Chairman Darby and Chairman Otto on these measures and look forward to working with the Senate to see that they become law. Other bills receiving preliminary approval in the House on Monday include: 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. The committee substitute and one floor amendment were adopted and it passed by a vote of On Tuesday, the House passed all of the Third Reading bills and gave preliminary approval the House s tax relief legislation: HB 31 by Dennis Bonnen (R-Angleton) would lower the state sales tax rate. The committee substitute and four floor amendments were adopted and it passed by a vote of HB 32 by Dennis Bonnen (R-Angleton) would reduce the franchise tax rate. The committee substitute and five floor amendments were adopted and it passed by a vote of Representative Bonnen said, Today the Texas House made history by cutting the state sales tax rate for the first time. We also sent a clear message that we are committed to providing $4.9 billion in meaningful, permanent tax relief that will benefit all Texans instead of picking winners and losers. Most importantly, we signaled to taxpayers that they can hold us accountable to today s promises because the tax reductions under

6 HB s 31 and 32 cannot be taken away without a future vote of the Legislature. Speaker Joe Straus added, "Today the House voted to provide all Texans with tax relief that encourages job creation and economic growth. The House looks forward to a productive conversation with the Senate about how best to deliver results on this issue and the many others that matter to our economy and to Texas families. The House gave preliminary approval to 14 other bills including: HB 1277 by Trent Ashby (R-Marshall) would authorize a general-law municipality to annex an area in which 50 percent or more of the property in the area to be annexed is primarily used for a commercial or industrial purpose only if the municipality is otherwise authorized to annex the area and complies with prescribed requirements; and obtains the written consent of the owners of a majority of the property in the area to be annexed. There were no amendments. On Thursday, the House passed 117 bills on the Local and Consent calendar including resolutions designating Nocona as the official Classic Car Capital of Texas (HCR 62); designating Poteet as the official Strawberry Capital of Texas (HCR 76); and designating Abilene as the official Storybook Capital of Texas (HCR 93). They gave final approval to 23 bills; and passed 21 bills to Third Reading. They passed SJR 5 by Robert Nichols (R-Jacksonville), which would propose a constitutional amendment dedicating annual motor vehicle sales tax revenue to the highway fund to be used for road construction, maintenance, acquisition of right-of-way, and repayment of road bonds. (It was substituted on the calendar for HJR 13) and gave preliminary approval to the enabling bill, HB 13. They also gave preliminary approval to: HB 20 by Ron Simmons (R-Carrollton) would establish assessment metrics for transportation projects and planning. The committee substitute and four floor amendments were adopted and it passed by a vote of HB 26 by Angie Chen Button (R-Garland) would make several changes to economic development programs in the governor s office. The committee substitute and 14 floor amendments were adopted and it passed by a vote of Speaker Joe Straus said, "The reforms in House Bill 26 will make our approach to economic development more effective and more accountable to taxpayers. This bill will keep Texas aggressive in its recruitment of job-creators while helping ensure that those efforts benefit our entire state. I want to thank Chairman Button for her many months of leadership on this issue." HB 2031 by Eddie Lucio, III (D-Brownsville) would authorize a water supply entity to use state water that consists of marine seawater for any beneficial purpose without obtaining a permit. Two floor amendments were adopted in lieu of the committee substitute.

7 SB 709 by Troy Fraser (R-Marble Falls) would shift the burden of producing evidence from the applicant to protesting parties in contested case hearings on applications with the Texas Commission on Environmental Quality. SB 709 was substituted for HB 1865 on the House calendar, seven floor amendments were adopted and it passed by a vote of SB 1191 by Kel Seliger (R-Amarillo) 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. SB 1191 was substituted for HB 2848 on the House calendar, the committee substitute was adopted and it passed by a vote of On Friday, the House passed Third Reading bills and gave preliminary approval to 48 additional bills. Key Second Reading bills that were approved include: HB 2647 by Trent Ashby (R-Lufkin) would restrict a water district from reducing or curtailing production from a well or limiting the groundwater production rate. The committee substitute and one floor amendment were adopted and it passed to Third Reading on a voice vote. It will be on the House calendar for Monday, May 4, 2015 for final passage. New House Member - On Thursday, the newest House member Ina Minjarez was sworn in. She won last week s Special Election Run-off in House District 124 to replace Jose Menendez (D-San Antonio), who moved up to the Texas Senate. Thursday was the first day since the session started that all of the 150 House districts had representation. Total number of bills reported out of House Committees this week: 574 Total number of bills passed by the House this week: 211 Total passed on the Local and Consent calendar: 117 Next Week: The House adjourned until 12:00 noon on Monday, May 4, 2015.

8 BUDGET: Conference Committee on the Budget The Conference Committee on HB 1 held an organizational meeting on Tuesday. Senator Jane Nelson (R-Flower Mound), Senate Finance Committee chair, said she was looking forward to working with the House. "It is very clear to me our big picture goals are the same. We both prioritize transportation and border security. We both provide significant tax relief and we both want to support our schools. These budgets have much more in common than they do in conflict and I am confident we can work out the difference and pass a budget that will make Texas proud." Passed the Senate: SB 53 by Jane Nelson (R-Flower Mound) would require the Legislative Budget Board to perform a strategic fiscal review for all state agencies currently under review by the Sunset Advisory Commission. It passed on the Local and Uncontested calendar by a vote of ECONOMIC DEVELOPMENT: On Wednesday, the House Investments and Financial Services Committee took up: HB 3617 by Giovanni Capriglione (R-Southlake) would establish the Business Investment Fund to facilitate job creation and retention by businesses in Texas; and would require the comptroller to select a private equity fund manager to administer the fund. It was left pending. On Thursday, the House Economic and Small Business Development Committee took up: HB 4052 by James White (R-Hillister) would require political subdivisions that maintain an Internet website to post on the website each economic development agreement that the political subdivision enters into and maintain the posting until the date the agreement expires. It was left pending. Next Week:

9 House Calendar: HB 27 by Angie Chen Button (R-Garland) would make several changes to economic development programs in the governor s office. It was on the House calendar for Friday May 1, 2015 but postponed to Thursday, May 7, HB 28 by Angie Chen Button (R-Garland) would require the state auditor to conduct periodic audits of economic development incentives. It was on the House calendar for Friday May 1, 2015 but postponed to Thursday, May 7, HB 2667 by Trent Ashby (R-Lufkin) would eliminate obsolete economic development programs and funds. It is on the House calendar for Monday, May 4, 2015 committee substitute. ENERGY: On Wednesday, the House State Affairs Committee took up: HB 962 by Matt Krause (R-Fort Worth) would repeal provisions relating to the prohibition of a power generation company from owning and controlling more than 20 percent of the installed generation capacity located in, or capable of delivering electricity to, a power region. It was left pending. On Thursday, the Senate Natural Resources and Economic Development Committee took 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 preempted by the state. It was reported out favorably. Note: The companion, SB 1165, is on the Senate Intent calendar for Monday, May 4, Reported from Committee: HB 2392 by Rafael Anchia (D-Dallas) would require money from the Texas Emissions Reduction Plan Fund to be used for the energy efficiency loan guarantee program. It was reported favorably as substituted from the House Energy Resources Committee.

10 Passed the House: HB 1736 by Jason Villalba (R-Dallas) would require The State Energy Conservation Office to establish the Building Energy Efficiency Advisory Committee, and authorize the office. The committee substitute was adopted and it passed on the Local and Consent calendar. SB 774 by Troy Fraser (R-Marble Falls) would extend from January 31, 2017 to January 31, 2019 the deadline by which the Public Utility Commission's study on periodic rate adjustments by electric utilities is required to be available for the legislature's review. It was substituted for HB 2327 on the House floor and passed on the Local and Consent calendar. Next Week: Monday s Senate Intent Calendar: SB 1165 by Troy Fraser (R-Marble Falls) would establish that the authority of a municipality or other political subdivision to regulate an oil and gas operation is expressly preempted. Note: the companion, HB 40, has passed the House and been reported favorably from the Senate Natural Resources and Economic Development Committee. The House Energy Resources Committee will meet on Monday, May 4, 2015 at 8:00 a.m. in Room 140 of the John H. Reagan State Office Building to take up: HB 3480 by Chris Turner (D-Arlington) would set out specific requirements of an air quality permit for new facilities or modifications of existing facilities that belong to oil and gas-related Standard Industrial Classification Codes. ENVIRONMENT: On Tuesday, the House Environmental Regulation Committee took up: HB 3069 by Eddie Rodriguez (D-Austin) would establish that the Texas Commission on Environmental Quality is the primary authority responsible for ensuring that Texas complies with and implements a Clean Power Plan. It was left pending. HB 3450 by Jodie Laubenberg (R-Wylie) would require the Texas Commission on Environmental Quality to notify the governor, the lieutenant governor, and the speaker after TCEQ learns of specified actions taken by the United States Environmental

11 Protection Agency relating to an enforcement action under the federal Clean Air Act. It was left pending. HB 3590 by Matt Krause (R-Fort Worth) would prohibit TCEQ or another state agency, including the Public Utility Commission, from finally adopting a rule or submitting a state implementation plan to comply with the EPA's rules under the federal Clean Air Act if those federal rules give the EPA authority to regulate a person, entity, or activity that it did not regulate on January 1, It was left pending. Also on Tuesday, the Senate Natural Resources and Economic Development Committee took up: SB 1509 by Kelly Hancock (R-North Richland Hills) would establish the penalties for knowingly or intentionally committing an environmental-related violation. It was reported favorably as substituted. It is on the Senate Intent calendar for Monday, May 4, 2015 (first placement). On Wednesday, the House Natural Resources Committee took up: HB 632 by David Simpson (R-Longview) would prohibit a regional water plan from including a proposal for the construction of a water project in another regional water planning area unless at least two-thirds of the members for that area have consented to the inclusion. It was left pending. HB 1222 by Eddie Lucio, III (D-Brownsville) would remove political subdivisions under the Water Bond Insurance Program, the Research and Planning Program, Financial Assistance for Water Pollution Control, and the Program for Water and Wastewater Financial Assistance for Disadvantaged Rural Communities from the authorization for the Texas Water Development to fund water supply projects. It was left pending. Reported from Committee: HB 30 by Lyle Larson (R-San Antonio) would require each regional water planning group to identify opportunities for and the benefits of developing large-scale desalination facilities for brackish groundwater or seawater. It was reported favorably as substituted from the House Natural Resources Committee. HB 3324 by Lyle Larson (R-San Antonio) would make provisions governing an interbasin water transfer application inapplicable to a proposed transfer of water resulting from recycled or desalinated water. It was reported favorably as substituted from the House Natural Resources Committee.

12 HB 4097 by Todd Hunter (R-Corpus Christi) would require TCEQ to adopt rules that allow desalinated seawater to be used for nonpotable uses. It was reported favorably as substituted from the House Natural Resources Committee. HB 4112 by DeWayne Burns (R-Cleburne) would establish that groundwater ownership rights entitle the landowner, including a landowner's lessees, heirs, or assigns, to any other right recognized under common law, including the right to produce or save a fair share of the groundwater below the surface of the land. It was reported favorably as substituted from the House Natural Resources Committee. Passed the House: HB 942 by Kyle Kacal (R-College Station) would set out new safety and reporting requirements for the owner or operator of an ammonium nitrate storage facility. The committee substitute was adopted and it passed to Third Reading on a voice vote on Friday, May 1, It is on the House calendar for Monday, May 4, 2015 for final passage. HB 950 by Eddie Lucio, III (D-Brownsville) would repeal a provision that makes a groundwater conservation district subject to review by the state auditor under the direction of the legislative audit committee. The committee substitute was adopted and it passed on the Local and Consent calendar. HB 1902 by Donna Howard (D-Austin) would authorize the Texas Commission on Environmental Quality to adopt and implement minimum standards for additional domestic uses and reuses of graywater. The committee substitute and one floor amendment were adopted. HB 2767 by Jim Keffer (R-Eastland) would update statutes regulating groundwater conservation districts. The committee substitute was adopted and it passed on the Local and Consent calendar. HB 3187 by Jim Keffer (R-Eastland) would allow local governmental entities to establish programs under the Property Assessed Clean Energy Act. The committee substitute was adopted and it passed on the Local and Consent calendar. Passed the Senate: SB 777 by Troy Fraser (R-Marble Falls) would authorize the Public Utilities Commission, if the commission suspends, revokes, or amends a retail electric provider s certificate for significant violations of the Public Utility Regulatory Act. The committee substitute was adopted.

13 SB 1148 by Kirk Watson (D-Austin) would remove the authority of the Public Utility Commission to authorize an emergency rate increase for a water and sewer utility for which a receiver has been appointed and establish procedures for notice of hearings. There were no amendments. Note: The companion, HB 3953, is scheduled for a hearing in the House Natural Resources Committee for Wednesday, May 6, Next Week: House Calendar: HB 200 by Jim Keffer (R-Eastland) would set out provisions governing the petition to appeal the Texas Water Development Board's approval of a desired future condition of groundwater resources. It is on the House calendar for Tuesday, May 5, 2015 (committee substitute). HB 1232 by Eddie Lucio, III (D-Brownsville) would require the Texas Water Development Board to conduct a study to define the quantity and quality of groundwater in confined and unconfined aquifers. It is on the House calendar for Tuesday, May 5, 2015 (committee substitute). HB 2179 by Eddie Lucio, III (D-Brownsville) would authorize the board of directors of a groundwater conservation district to take action on any uncontested permit application at a properly noticed public meeting held at any time after the public hearing at which the application is scheduled to be heard. It is on the House Local and Consent calendar for Tuesday, May 5, HB 3298 by Lyle Larson (R-San Antonio) would require the Texas Water Development Board to conduct a study to evaluate improvements to the transfer of water entitlements and the establishment of a water grid. It is on the House calendar for Thursday, May 7, Note: the companion, SB 1907, is on Monday s Senate Intent Calendar (listed below). HB 3356 by Eddie Lucio, III (D-Brownsville) would require a groundwater conservation district to determine the production amount of a well for a retail public utility that provides retail water service inside the district by considering service needs or service area of the retail public utility. It is on the House calendar for Thursday, May 7, 2015 (committee substitute).

14 Monday s Senate Intent Calendar: SB 1907 by Charles Perry (R-Lubbock) would require the Texas Water Development Board to conduct a study to evaluate improvements to the transfer of water entitlements and the establishment of a water grid. Note: the companion, HB 3298, is on the House calendar for Thursday, May 7, 2015 (listed above). The House Energy Resources Committee will meet on Monday, May 4, 2015 at 8:00 a.m. in Room 140 of the John H. Reagan State Office Building to take up: HB 2932 by Rafael Anchia (D-Dallas) would require the Bureau of Economic Geology to conduct a study to examine earthquakes and land shifting occurring in Texas. The Senate Agriculture, Water, and Rural Affairs Committee will meet on Monday, May 4, 2015 at 2:00 p.m. in E1.012 of the capitol extension to take up: HB 1016 by Tracy King (D-Batesville) would designate segments of the Nueces River, the Frio River, the Sabinal River, the San Marcos River, and the Comal River as being of unique ecological value. HB 1042 by James Frank (R-Wichita Falls) would designate the site of the proposed Ringgold reservoir as having unique value for the construction of a dam and reservoir. HB 1224 by Eddie Lucio, III (D-Brownsville) would authorize the Texas Water Development Board to approve the use of assets of the revolving fund, the safe drinking water revolving fund, or an additional state revolving fund as a source of revenue or security, or both revenue and security, for the payment of the principal of and interest on state revolving fund bonds. 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). The House Environmental Regulation Committee will meet on Tuesday, May 5, 2015 at 8:00 a.m. in E1.026 of the capitol extension to take up:

15 GENERAL BUSINESS: Next Week: House Calendar: HB 3522 by Oscar Longoria (D-Mission) would prohibit a merchant from accepting a credit or debit card for payment in a point of sale transaction or adding value to a stored value card unless the merchant requires the individual who uses the card to provide photo identification verifying the individual s identity as the cardholder. It was set on the House calendar for April 29, 2015, but it was postponed to May 4, Next Week: Also on Wednesday, the House Higher Education Committee took up: HB 1103 by Jim Murphy (R-Houston) would prohibit boards of trustees of an institution of higher education from issuing bonds payable from revenue funds of the institution unless the institution has satisfied the standards prescribed by the Texas Higher Education Coordinating Board for space utilization in educational and general buildings and facilities at the institution and the percentage of students enrolled in the institution who enroll in online courses offered by the university. It was left pending. HB 2755 by Sylvester Turner (D-Houston) would add the University of Houston System to participation in the Permanent University Fund. It was left pending. Passed the House: SB 1066 by Judith Zaffirini (D-Laredo) would change eligibility requirements for institutions of higher education to participate in the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship Program. It was substituted for HB 1262 and passed on the Local and Consent calendar. HUMAN RESOURCES/EMPLOYMENT: On Tuesday, the House Business and industry Committee took up: HB 1515 by Terry Canales (R-Edinburg) would prohibit an employer from requiring or in any way using an employee s or applicant s credit information as a condition of employment. It was left pending.

16 HB 1620 by Rick Galindo, III (R-San Antonio) would prohibit an employer from terminating the employment of, or otherwise discriminating against, an employee who is a volunteer emergency responder who is absent or late to work because they are responding to an emergency in that capacity. A cause for civil action would be provided. It was voted out favorably. Reported from Committee: HB 162 by Mary Gonzalez (D-El Paso) would clarify the acts that constitute an employer s bad faith in not paying wages, as relates to the determination of an administrative penalty by the Texas Workforce Commission against an employer. It was reported favorably from the House Business and Industry Committee. SB 529 by Kelly Hancock (R-North Richland Hills) would clarify that a landman is not eligible for unemployment compensation if the compensation paid to the landman directly relates only to the performance of a service performed for a private for-profit person as an independent contractor under a written contract. It was voted favorably from the House Economic and Small Business Development Committee. Note: the companion, HB 1312, is set on the House calendar for Tuesday, May 5, Passed the House: 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. The committee substitute was adopted and it passed to Third Reading on Friday, May 1, 2015 and will be on the House calendar for final passage on Monday, May 4, HB 2358 by Eddie Lucio, III (D-Brownsville) would establish the Facilitating Business Rapid Response to State Declared Disasters Act. One floor amendment was adopted and it passed to Third Reading on a voice vote on May 1, It is on the House calendar for Monday, May 4, 2015 for final passage. HB 3373 by Doug Miller (R-New Braunfels) would establish that an employer is not liable for paying a reimbursement for unemployment compensation benefits paid to an individual if the individual s separation from work resulted from being discharged for misconduct or voluntarily leaving work without good cause. It passed by a vote of (no amendments).

17 Next Week: House Calendar: HB 3150 by Dan Huberty (R-Humble) would update regulations related to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act. It is on the House calendar for Wednesday, May 6, 2015 (committee substitute). Next Week: The House Insurance Committee will meet on Wednesday, May 6, 2015 at 2:00 p.m. in E2.036 of the capitol extension to take up: 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. PRIVACY: Reported from Committee: HB 852 by Scott Sanford (R-McKinney) would require a joint House and Senate interim committee to study and review the methods by which state agencies store biometric identifiers. It was reported favorably from the House Government Transparency and Operation Committee. HB 1481 by Jim Murphy (R-Houston) would prohibit the operation of an unmanned aircraft less than 400 feet over a targeted facility. It was reported favorably as substituted from the House Criminal Jurisprudence Committee. HB 3248 by Yvonne Davis (D-Dallas) would require each state agency to develop policies and procedures to properly secure all information, including electronic information that alone or in conjunction with other information identifies an individual. It was reported favorably from the House Government Transparency and Operation Committee. Passed the Senate: SB 35 by Judith Zaffirini (D-Laredo) would require state agencies to include in the state agency s information security plan a written acknowledgement that the agency head,

18 the chief financial officer, and each executive manager have been made aware of the risks revealed during the preparation of the agency s information security plan. It passed on the Local and Uncontested calendar. SB 1844 by Judith Zaffirini (D-Laredo) would establish the Interagency Data Coordination and Transparency Commission. The committee substitute was adopted and it passed on the Local and Uncontested calendar. Next Week: The Senate Criminal Justice Committee will meet on Tuesday, May 5, 2015 at 1:30 p.m. in E1.016 of the capitol extension to take up: HB 896 by Ana Hernandez (D-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. PROCUREMENT: Reported From Committee: HB 3010 by Ron Simmons (R-Carrollton) would require the comptroller to provide goals for increasing the contract awards for the purchase of goods or services to businesses that qualify as historically underutilized businesses because the businesses are owned, operated or controlled by persons with a disability. It was reported favorably from the House State Affairs Committee. HB 3193 by Diego Bernal (D-San Antonio) would allow municipalities to consider a vendor s principal place of business in awarding municipal contracts if the contract is for services of less than $100,000 or for purchases less than $500,000. It was reported favorably as substituted from the House Urban Affairs Committee. Note: the companion, SB 1998, has been voted favorably from the Senate Intergovernmental Relations Committee. Passed the House: HB 3014 by Tan Parker (R-Flower Mound) would establish the Success Contract Payments Trust Fund with the comptroller as the trustee for payments due in connection with success contracts where the majority of the contract payment is

19 conditioned on the contractor meeting or exceeding specified performance measures toward the outcome of the contract s objectives. The committee substitute was adopted. HB 3342 by John Kuempel (R-Seguin) would allow the comptroller to enter into, participate in, sponsor, conduct, or administer one or more compacts, interagency agreements or cooperative purchasing agreements directly with or through an entity that facilitates cooperative purchasing agreements. The committee substitute was adopted and it passed to Third Reading on Friday, May 1, 2015 and will be on the House calendar for final passage on Monday, May 4, Passed the Senate: SB 1281 by Judith Zaffirini (D-Laredo) would authorize local governmental entities to participate in a cooperative purchasing program with another local government of Texas or another state or with a local cooperative organization in Texas or another state. It passed on the Local and Uncontested calendar. Next Week: House Calendar: HB 15 by John Otto (R-Dayton) would make several changes to oversight of state contracts. It was on the House calendar for April 27, 2015, but it was postponed to Monday, May 4, 2015 (committee substitute). HB 1294 by Giovanni Capriglione (R-Southlake) would require officers of major state agencies to make financial disclosures. It is on the House calendar for Wednesday, May 6, 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. It is on the House calendar for Tuesday, May 5, 2015 (committee substitute). HB 3241 by Four Price (R-Amarillo) would make several changes to procurement statutes. It is on the House calendar for Monday, May 4, 2015 (committee substitute). Note: the companion, SB 20, has passed the Senate and been referred to the House State Affairs Committee.

20 PROPERTY: On Monday, the Senate Intergovernmental Relations Committee took up: SB 615 by Konni Burton (R-Colleville) would authorize a petition to be presented to the governing body of an annexing municipality to request the release of all or part of the area to be annexed from the annexation proceeding. It was left pending. On Tuesday, the House Urban Affairs Committee took up: HB 3299 by Doug Miller (R-New Braunfels) would prohibit a municipality form enforcing an ordinance or rule that limits the number of people who may assemble on property located in an area that the municipality annexed for limited purposes if the ordinance or rule would restrict the number of people authorized to assemble on the property to less than what the fire prevention authority with jurisdiction over the property has authorized by permit. It was left pending. Also on Tuesday, the House Business and Industry Committee took up: HB 1442 by Paul Workman (R-Austin) would prohibit a property owners' association or political subdivision from enacting or enforcing any ordinance, rule, or other regulation that restricts the ability of a property owner to remove a tree or vegetation on the owner s property that the owner believes poses a risk of fire. It was left pending. And on Tuesday, the House Judiciary and Civil Jurisprudence Committee took up: HB 1784 by Paul Workman (R-Austin) would reduce the amount of actual damages for the cost to cure a construction defect that might otherwise be awarded in a construction defect claim by 10 percent for each anniversary of the date of substantial completion of the construction or repair that occurs before the date the action asserting the claim is filed. It was left pending. On Thursday, the Senate Intergovernmental Relations Committee took up: SB 1639 by Donna Campbell (R-New Braunfels) would prohibit a municipality, beginning September 1, 2015, from annexing an area for the limited purposes of applying its planning, zoning, health, and safety ordinances in the area, and prohibit a strategic partnership agreement from providing for limited purpose annexation. It was left pending. Note: the companion, HB 2221, was reported favorably as substituted from the House Land and Resource Management Committee.

21 Passed the House: HB 1289 by Helen Giddings (D-Dallas) would authorize an urban land bank to acquire and sell to a developer property intended for commercial use, and would remove provisions authorizing the land bank to sell property to a developer solely for construction of a grocery store. It passed on the Local and Consent calendar. HB 2428 by John Wray (R-Waxahachie) would set out provisions of the Texas Uniform Disclaimer of Property Interests Act to govern disclaimers of any interest in or power over property, whenever created. It passed on the Local and Consent calendar. Next Week: Monday s Senate Intent Calendar: SB 1812 by Lois Kolkhorst (R-Brenham) would require the comptroller to create and make accessible on the Internet an eminent domain database with information regarding public and private entities, including common carriers, authorized by the state by a general or special law to exercise the power of eminent domain. (committee substitute) The Senate Business and Commerce Committee will meet on Tuesday, May 5, 2015 at 9:00 a.m. in E1.016 to take up: HB 1221 by Eddie Lucio, III (D-Brownsville) would require a seller's disclosure required to be given to the purchaser of residential real property comprising not more than one dwelling unit to include a statement of whether or not the seller is aware of any portion of the property that is located in a groundwater conservation district, a subsidence district, or other special purpose district with the authority to regulate the withdrawal of groundwater. The House Business and Industry Committee will meet on Tuesday, May 5, 2015 at 2:00 p.m. in E2.016 to take up: SB 479 by Charles Schwertner (R-Georgetown) would increase the requirements on governmental entities that exercise eminent domain authority.

22 PUBLIC EDUCATION: On Tuesday, the House Public Education Committee took up: HB 1935 by Ken King (R-Canadian) would repeal statutory language phasing out Additional State Aid for Tax Reduction (ASATR) on September 1, It was left pending. SB 6 by Larry Taylor (R-Friendswood) would require the Commissioner of Education to adopt rules to evaluate school district and campus performance and assign each district and campus a performance rating of A, B, C, D, or F. It was left pending. On Thursday, the Senate Education Committee took up: SB 1303 by Jose Menendez (D-San Antonio) would increase classroom teacher salaries by $4,000 per year over what the teacher would have received in the school year beginning with the school year. It was left pending. Reported From Committee: HB 1613 by Ryan Guillen (D-Rio Grande City) would exempt a student from taking the Algebra 1, English1 and English II end-of-course tests if the student meets college readiness standards in a college preparatory mathematics or English language arts course. It was reported favorably from the House Higher Education Committee and recommended for the Local and Consent calendar. HB 3700 by Bobby Guerra (D-McAllen) would require the Commissioner of Education to develop and implement a pilot program allowing students to participate in computer science courses that are focused on the creation and use of software and computing technologies in lieu of the third mathematics or science credit. It was reported favorably from the House Public Education Committee. Next Week: Monday s Senate Intent Calendar: SB 1241 by Larry Taylor (R-Friendswood) would allow school districts to establish innovation zones to encourage local community-based initiatives to improve educational outcomes with minimum state and local requirements and encourage innovation through shared resources and facilities.

23 TAX: On Tuesday, the House Ways and Means Committee took up: HB 246 by Trey Martinez Fischer (D-San Antonio) would establish a tax credit for hiring veterans. It was left pending. HB 3732 by Byron Cook (R-Corsicana) would add a large-scale electric energy storage facility to the list of projects eligible for Chapter 313 agreements under the Texas Economic Development Act. It was voted out favorably as substituted. Reported From Committee: HB 2691 by Tracy King (D-Batesville) would provide a sales and use tax exemption and a severance tax credit for the use of alternative base fluids in energized fracturing operations. It was reported favorably from the House Ways and Means Committee. It is on the House calendar for Wednesday, May 6, SB 279/ SJR 20 by Kirk Watson (D-Austin) would propose a constitutional amendment authorizing political subdivisions other than school districts to adopt a residential homestead exemption of at least $5,000. They were reported favorably as substituted from the Senate Finance Committee. SB 1468 by Kirk Watson (D-Austin) would establish criteria for removal of an appraisal review board member. It was reported favorably as substituted from the Senate Finance Committee and is set on the Local and Uncontested calendar for May 5, Note: the companion, HB 3564, has been voted favorably as substituted from the House Ways and Means Committee. Next Week: House Calendar: HB 2114 by Jim Murphy (R-Houston) would repeal the inheritance tax and the 3 percent gross receipts tax on admission to a combative sporting event. It is on the House calendar for Tuesday, May 5, HB 2826 by Jim Murphy (R-Houston) would allow property located in more than one school district to qualify for a Chapter 313 Agreement under the Texas Economic Development Act. It is on the House calendar for Monday, May 4, 2015 (committee substitute).

24 Monday s Senate Intent Calendar: SB 755 by Van Taylor (R-Plano) would clarify that software used for web-hosting should be taxed once, specifically during the transaction where the end-user purchases software as part of the hosting package. (committee substitute Note: the companion, HB 3174 has been voted favorably as substituted from the House Ways and Means Committee) The House Ways and Means Committee will meet on Tuesday, May 5, 2015 at 8:30 a.m. in E2.010 of the capitol extension to take up: HB 722 by Travis Clardy (R-Nacogdoches) would institute a franchise tax credit of $1,000 for businesses that offer an internship of at least six weeks to a student enrolled in a career and technology education course at a high school campus that is assigned a performance rating of at lease recognized. HB 1965 by Dennis Paul (R-Houston) would set the rollback rate on the current effective tax rate plus inflation. HB 2041/HJR 99 by Cecil Bell (R-Magnolia) would propose a constitutional amendment capping the annual amount by which appraisal of all real property, business or residential, can increase at 5% personal property is not affected. HB 3484 by Dennis Bonnen (R-Angleton) would make several changes to the sales tax. HB 3867 by Gary Elkins (R-Houston) would raise the appraised value of property eligible for binding arbitration from $1 million to $3 million; and would establish a fee schedule for an application for binding arbitration and for the fee for the arbitrator based on the appraised value of the property. HB 4021 by Abel Herrero (D-Robstown) would authorize the operator of an oil or natural gas well to apply for a $50,000 per well tax credit from oil and gas taxes, providing the hydraulic fracturing fluid consists entirely of fluids other than fresh water, and would require the Railroad Commission to collect and maintain the data to monitor qualification for the tax credit.