LEGISLATIVE UPDATE: MARCH 13, 2015

DRC ACTIVITIES

Jay Barksdale was in Austin this week and hosted the Dallas Delegation breakfast meeting on behalf of the DRC. The delegation, under the leadership of delegation co-chairs Rep. Kenneth Sheets and Rep. Helen Giddings, was briefed on North Texas transportation projects by TxDOT’s Dallas District Engineer, Mr. Kelly Selman.

Lanet Greenhaw, the DRC’s Managing Director of Education, represented our Education Team and testified in favor of quality Pre-Kindergarten program bills. DRC members Ken Malcolmson and Mark Melton also testified in favor of quality Pre-Kindergarten programs on behalf of the DRC. As described in detail below, the deadline for the House and Senate to file bills is today at 6:00 PM. Our Public Policy Team has been working hard to ensure that all bills in correlation with our Legislative Agenda are tracked.

GOVERNOR

Governor’s Economic Development Plan

After receiving Site Selection magazine’s Governor’s Cup last week, Governor Greg Abbott took the opportunity this week to announce his economic development proposals. He said, “Texas is once again the top state for job-creating capital investment projects. We have built a framework that allows free enterprise to flourish, including less government, low taxes, reasonable regulations and the right-to-work laws that attract job creators and keep job growth here in the state of Texas. As governor, I intend to do more to build an even stronger business environment, to attract even more businesses and encourage even more Texas entrepreneurs to invest their capital in themselves by opening a business or growing a business” Abbott’s plan includes: • Reducing taxes for employers and property owners; • Reducing the regulatory burden that drives up the cost of doing business, especially for small businesses, women-owned businesses and veteran-owned businesses; • Speeding up the permitting process to help businesses get their projects done faster; • Investing in the roads needed to keep commerce moving without raising fees, tolls, taxes or debt; and • Ensuring our students are equipped with both the technical skills and critical-thinking skills employers demand for the jobs growing here in Texas.

1

Governor Abbott concluded, “With clear economic development policies focused on creating jobs and expanding opportunity, we will take Texas to the next level for business recruitment. Texas is the top state for capital investments, for job creation, for exports, for energy production and more. The Texas model is proof that limited government encourages unlimited opportunity for all. When it comes to doing business, there really is no place like Texas. And we intend to make it even better.”

STATEWIDE

Bill Filing Deadline

The deadline for legislators to file bills to be considered by the and House this session is 6:00 p.m. on Friday, March 13, 2015. Beginning next week, it will take a rules suspension to get permission to introduce a bill. The filing deadline does not apply to local bills, concurrent resolutions or simple resolutions. Monday through Thursday this week 581 Senate bills and 11 SJRs (proposed constitutional amendments) were filed and 1101 House bills and 29 HJRs were filed - for a total of 1,682 bills and 40 proposed constitutional amendments.

SENATE

This week, the Senate was in session on Monday, Tuesday and Wednesday conducting routine business.

Total number of bills reported out of Senate Committees this week: ...... 16 Total number of bills passed by the Senate this week: ...... 0

Next Week: The Senate adjourned until Monday, March 16, 2015 at 2:00 p.m. Monday’s Senate Intent Calendar has 14 bills including SB 17 by Senator Craig Estes (R-Wichita Falls) allowing concealed handgun licensees to openly carry a holstered gun. Other bills on the Senate Intent Calendar for Monday are included in the issue categories below.

HOUSE

This week, the House was in session Monday through Thursday conducting routine business. The House mourned the loss of Sandra Lee Anderson, wife of Representative Charles “Doc” Anderson (R- Waco), who passed away on Saturday March 7, 2015.

On Thursday, prior to adjourning the House for the weekend, Speaker Joe Straus announced that the House would debate its first bill on Monday (the first time the House will be in session after the constitutional moratorium on passing legislation unless it is designated an emergency by the governor) and stay very busy through the end of the session. He said, “Members, enjoy your last long

2

weekend.” Then added, “And don’t sweat the filing deadline too much, we have already filed a record number of bills.

Total number of bills reported out of House Committees this week: ...... 6 Total number of bills passed by the House this week: ...... 0

Next Week: The House adjourned until 2:00 p.m. on Monday, March 16, 2015. They have their first calendar on Monday. It has one bill – HB 10 by , which would amend several criminal and civil statutes involving human trafficking, compelling prostitution, and other offenses. And, it would require the governor’s office to establish the Child Sex Trafficking Prevention Unit within the Governor’s criminal justice division.

BUDGET

Senate Finance Committee Workgroups:

Workgroup on Articles I (General Government), IV (Judiciary), and V (Public Safety and Criminal Justice) met on Friday of this week. Workgroup Article II (Health and Human Services) met on Friday this week.

House Appropriations Committee

The full House Appropriations Committee met on Monday, Wednesday, and Thursday of this week. They posted a meeting for Friday, but it was cancelled.

House Appropriations Committee’s Subcommittees:

Subcommittee on Articles I (General Government), IV (Judiciary), and V (Public Safety and Criminal Justice) met on Monday this week. Subcommittee on Article II (Health and Human Services) met on Monday and Tuesday this week. Subcommittee on Article III (Education) met on Monday and Tuesday this week. Subcommittee on Articles VI (Natural Resources), VII (Business and Economic Development), and VIII (Regulatory) met on Monday this week.

Local Budget Transparency

Senator Paul Bettencourt (R-Houston) announced that he has filed two bills to ensure local government transparency. SB 1041 would amend the Texas Election Code to require local bond election ballots – including those effecting cities, counties, school districts, and special taxing districts –to include the following information:

3

• The amount of debt currently outstanding, • Current debt service payments, • Current debt obligations, • The amount of new debt being proposed, and • Estimated per household burden being proposed.

Senator Bettencourt said, “SB 1041 will result in voters being more adequately informed about any new debt they are being asked to approve during local bond elections. We need to have clear and concise transparency requirements for the disclosure of debt information to voters. This legislation will mean that voters statewide will be able to confidently cast a more informed vote during these elections.” The second bill, SB 1042, would require all local taxing entities to post their financial statements online. Bettencourt noted, “In the 21st century, every governmental body – federal, state, and local – should be posting this information online. This bill will simply reflect today’s reality."

Fund Diversions

On Monday, Representatives John Otto (R-Dayton) and (R-San Angelo) announced the filing of HBs 6 and 7 to reverse the practice of collecting fees for one purpose and using them instead to certify other areas of the state budget. HB 6 by Otto would address the amount of unspent money in General Revenue-Dedicated accounts that can be counted for budget certification and reduce unspent balances down to $3 billion from the current use of $4.2 billion used to certify the 2014-15 State Budget. HB 7 by Darby would clarify the appropriate uses for these accounts, and provide an opportunity to eliminate and reduce the fees paid by Texas citizens and businesses. For some accounts where balances are sufficient for appropriations, HB 7 would direct fees to be suspended or ended entirely. Representative Otto, Chairman of the House Appropriations Committee said, “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.” House Speaker Joe Straus (R-San Antonio) endorsed the proposals saying, “Last session, Representatives Otto and Darby passed House Bills 6 and 7 to curtail the use of dedicated funds for budget certification by over $1 billion. These bills were both signed into law and marked the first time since 1991 that the State Budget used a significantly lower amount of unspent balances to certify the budget. The Texas House is committed to making our budget more transparent and accountable. We made significant progress on this issue last session and we'll make further progress in the weeks to come. Taxpayers should know that the taxes and fees they pay will be used as promised."

4

Employees Retirement System

On Tuesday, Representatives (R-Van), Chair of the House Pensions Committee; John Otto (R-Dayton), Chair of the House Appropriations Committee; and Sylvester Turner (D-Houston), Vice Chair of the House Appropriations Committee, outlined a plan to return the Employees Retirement System of Texas (ERS) to solvency. They filed HB 9, which would increase funding to the state employee pension system. The state's Retirement Trust Fund currently has $7.5 billion in unfunded liabilities. Chairman Flynn said, "With this legislation, we are keeping our commitment to our hardworking state employees in their retirement years. This is a vital benefit to employees who earn an average salary of approximately $45,000 a year." Chairmen Flynn, Otto and Turner announced the House's intention to increase the state's contribution to the pension plan, raising it to 9.5 percent of an employee's pay. State agencies will continue to contribute 0.5 percent. The employee contribution rate in current statute is 7.2 percent for 2016 and 7.5 percent for 2017. The plan increases that contribution rate to 9.5 percent for 2016 and 2017. In order to mitigate the effects of that increase, the House leaders are proposing a 2.5 percent, across-the-board pay increase for state employees to take effect in 2016. Chairman Otto concluded, "The Appropriations Committee recognizes the importance of prioritizing expenditures and fulfilling our obligation to state employees. This proposal accomplishes both of these goals while also attaining actuarial soundness.”

Constitutional Spending Cap

On Tuesday, Senator Kelly Hancock (R-North Richland Hills), filed SB 9 and SJR 2, which would change the way the Legislative Budget Board calculates the state spending limit. SJR 2 would also increase the number of votes needed to exceed the spending limit. Currently, making an exception to the limit simply requires a majority approval in both legislative houses. This bill would increase that to a three-fifths vote.

Senator Hancock said, “The constitutionally-mandated limitation on state spending is intended to keep appropriations from growing faster than the state's economy. However, current law bases Texas' economic growth rate on personal income growth statistics. Since personal income typically grows at a faster rate than the overall economy, the spending limit is out of reach. My proposed legislation would direct the LBB to use a population plus inflation formula when calculating the spending limit, rather than personal income. The people of Texas have made it clear that they want a fiscally responsible state government. It is time to ensure that the constitutional spending limit is no longer just a theory, but an enacted measure of fiscal restraint." Subcommittee on State and Local Bonded Indebtedness

On Tuesday, Representative , Chairman of the Investments and Financial Services Committee, appointed Representative (R-Southlake) to Chair the Subcommittee

5

on State and Local Bonded Indebtedness. The new sub-committee will have five members and be charged with considering legislative measures dealing with the authority to issue bonds, the effects of bonded indebtedness on our economy and the transparency provided to taxpayers regarding bond issuance and transactions. Other subcommittee members are Representatives Dan Flynn (R-Van), (R-Odessa), Phil Stephenson (R-Wharton) and (D-Mission). In making the appointment, Chairman Parker stated, “There is no doubt in my mind that Representative Capriglione is the right man for this very critical job. Bonded indebtedness has always been a tool for state and local governments to finance certain aspects of public services, however the time has come for us to take a step back, examine our processes and see if reform is necessary.”

Next Week: Senate Finance Committee – The Senate Finance Committee has not yet posted any meetings. House Appropriations Committee – The House Appropriations Committee has not yet posted any meetings.

ECONOMIC DEVELOPMENT

Next Week: The House Ways and Means Committee will meet on Tuesday, March 17, 2015 at 8:30 a.m. in E2.010 of the capitol extension to take 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. 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; • 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.

6

ENERGY

On Monday, the House Energy Resources Committee and the House International Trade and Intergovernmental Relations Committee met jointly to discuss crude oil exports and natural gas exports. All three Railroad Commissioners provided invited testimony at the joint meeting. Chairman Christi Craddick said, “The U.S. crude oil export ban that was put into place decades ago no longer makes sense in current times. While trade restrictions put a strain on this important American industry and threaten future oil production, expanding markets for U.S. crude oil will incentivize production and create a more vibrant energy sector.” Commissioner David Porter said, “Not being able to export into the international oil market with every other country in the world makes us subject to volatile OPEC prices. Currently, WTI crude is valued at around $50 a barrel, while Brent prices are roughly $60. That’s a 20 percent spread. With Texas producing about three million barrels per day, that’s about a billion dollar difference each month for our economy.” Commissioner Ryan Sitton added, “I applaud the for recognizing the importance of lifting the oil export ban. The growth in production in Texas and the United States over the last six years has dwarfed production in other countries. We are in a position to establish a new normal whereby we get beyond discussions of energy independence and focus our efforts on dominating global energy markets. To fully realize this opportunity, the United States needs a comprehensive energy plan; something we haven’t really ever had. That would include repealing the oil export ban, revising or eliminating the Jones Act and getting the Keystone Pipeline built. I fully support our state’s strong stance to make these energy policy changes a reality and allowing Texans to compete in a market free of government manipulation.”

Next Week: The House Energy Resources Committee will meet on Monday, March 16, 2015 at 2:00 p.m. in E2.010 of the capitol extension to take up: 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.

SENATE INTENT CALENDAR FOR MONDAY, MARCH 16, 2015

SCR 13 by Kel Seliger (R-Amarillo) would urge the U.S. Congress and the president to recognize that crude oil exports and free trade are in the national interest and to end the current ban on crude oil exports.

7

ENVIRONMENT

On Monday, the Senate Agriculture, Water, and Rural Affairs Committee received invited testimony from Texas Commission on Environmental Quality and Texas Water Development Board.

The House Natural Resources Committee met on Wednesday to take up: HB 928 by Ryan Guillen (D-Rio Grande City) would require the Water Conservation Advisory Council to assist with drought preparedness and response by monitoring and developing strategies for responding to drought. It was left pending.

Refundable Deposits on Beverage Containers - Representative Eddie Rodriguez (D-Austin) filed HB 2425, which would set up an independent board to oversee the collection and refund of 5 cent or 10 cent deposits on all glass, plastic or aluminum beverage containers sold in Texas. Representative Rodriguez said, “This is a comprehensive solution to utilize the state’s aluminum, plastic, and glass beverage containers in ways that would create jobs, new industries, and increase the recycling rate. It is a self-sustained financial model with no cost to the taxpayer and provides an immediate benefit by reducing litter and cost for Material Recovery Facilities (MRFs), scrap yards and local governments. We all know the 'Don't Mess with Texas' campaign, and my legislation will give it a boost by removing even more waste from the sides of our highways and beaches. This is common-sense, pro-business and pro-environment policy."

Next Week: The Senate Agriculture, Water, and Rural Affairs Committee will meet on Monday, March 16, 2015 at 2:00 p.m. in E1.012 of the capitol extension to take up: 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. 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.

The House Environmental Regulation Committee will meet on Tuesday, March 17, 2015 at 8:00 a.m. in E1.026 of the capitol extension to take up: HB 1146 by (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.

8

GENERAL BUSINESS

On Tuesday, the House Economic and Small Business Development Committee took up: HB 589 by Cindy Burkett (R-Sunnyvale) would disqualify from unemployment benefits a person that fails or refuses to submit to a pre-employment drug test required by a potential employer. It was left pending. HB 934 by Tony Dale (R-Cedar Park) would specify that a person who resigned from their last job after giving advance notice, and whose employment was then terminated by the employer before the date stated in the advance notice, is disqualified from receiving unemployment benefits. It was left pending.

Also on Tuesday, the Senate Business and Commerce Committee took up: SB 641 by Charles Schwertner (R-Georgetown) would prohibit a merchant from imposing a surcharge on a buyer who uses a debit or stored value card instead of cash, a check, credit card, or similar means of payment. In support were representatives of Independent Bankers Association of Texas, Texas Bankers Association, and Credit Union Coalition of Texas. There was no opposition. It was left pending.

On Tuesday, the Senate Natural Resources and Economic Development Committee took up: SB 664 by Van Taylor (R-Plano) would authorize an employer to discharge an employee, regardless of contractual obligations, based on a reasonable belief that the employee falsified military records to obtain employment or employment benefits. In support were Michael Gutierrez, representing himself, and Annie Spilman of NFIB-Texas. There was no opposition. It was reported favorably without amendments. It is on Monday’s Senate Intent Calendar. SB 722 by Charles Perry (R-Lubbock) would disqualify from unemployment benefits a person that fails or refuses to submit to a pre-employment drug test required by a potential employer. In support were representatives of Texas Association of Business, Texas Trucking Association, Associated Builders and Contractors of Texas, Texas Restaurant Association and NFIB-TEXAS. In opposition were representatives of Texas AFL-CIO, American Civil Liberties Union-Texas, Communication Workers of America, and Mental Health America of Texas. It was reported favorably without amendments.

Payday Lending

On Tuesday, Representative James White (R-Woodville) filed HB 2808, which he says “creates a common-sense statewide solution to the payday lending crisis threatening the financial security of hundreds of thousands of Texans.” HB 2808 would: • Limit the number of allowed refinances to four; • Require a partial pay down of 25 percent for each refinance; and • Tighten definitions in current law to make consumer protections easier to enforce.

9

Representative White said “HB 2808 represents a sensible approach to end the cycle of debt that traps so many Texas families.” AARP State Director Bob Jackson added, “City ordinances in Texas are taking some of the bite out of the payday lending debt trap, but all Texans deserve the same protection from unscrupulous lending practices that one-third of the state’s residents now enjoy. Current Texas laws do not limit the fees payday lenders and auto title businesses can charge. There is also no limit to the number of times these businesses can charge high-fees for essentially the same loan. These lending practices often trap borrowers in a cycle of debt where they are never able to pay down the loan.” Joining AARP to work on the issue are the Texas Catholic Conference, the Christian Life Commission (Baptists), Texas Appleseed and the Center for Public Policy Priorities (CPPP). Cities that have adopted payday and auto title lending ordinances to date include: Austin, Amarillo, Balcones Heights, Baytown, Bellaire, Bryan, College Station, Dallas, Denton, Dickinson, El Paso, Flower Mound, Garland, Houston, Midland, San Antonio, Somerset, South Houston, Universal City, and West University Place.

Next Week: The House Business and Industry Committee will meet on Tuesday, March 17, 2015 at 11:30 a.m. in E2.016 to take 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.

HEALTH

On Tuesday, the House Public Health Committee took up: HB 170 by Carol Alvarado (D-Houston) would subject vapor products to the same regulations as cigarettes. In support were representatives of Texas PTA, R Street Institute, Texas Pediatric Society, Texas Medical Association, United Ways of Texas, Texas Municipal Police Association, Texas Academy of Family Physicians, Texas Association of Business, and Texas Children’s Hospital. In opposition was Andrew Westerkom with Texas E-Cigarette and Vaping Association. It was left pending. HB 661 by (R-Fulshear) would create the Interstate Medical Licensure Compact Commission to administer the Interstate Medical Licensure Compact, and would authorize fees. In

10

support were representatives of Texas Medical Association, Texas e-Health Alliance, United Ways of Texas, Texas Association for Home Care and Hospice, Texas Association of Business, Mental Health America of Texas and Texas Hospital Association. In opposition were representatives of Association of American Physicians and Surgeons and Texas Right to Life. It was left pending.

Next Week: The House Human Services Committee will meet on Monday, March 16, 2015 at 2:00 p.m. in E2.030 of the capitol extension to take up the sunset bills for the Texas Council for Developmental Disabilities, Texas Health Services Authority, and the Department of Assistive and Rehabilitative Services.

The House Public Health Committee will meet on Tuesday, March 17, 2015 at 8:00 a.m. in E2.012 of the capitol extension to take 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. 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.

SENATE INTENT CALENDAR FOR MONDAY, MARCH 16, 2015

SB 97 by Juan “Chuy” Hinojosa (D-McAllen) would prohibit the sale of e-cigarettes to persons younger than 18 years of age; would allow local regulation of the sale, distribution, or use of e- cigarettes; and would prohibit smoking e-cigarettes in schools, elevators, enclosed theaters, libraries, museums, hospitals, and in busses, airplanes or trains, except in designated areas.

HIGHER EDUCATION

The House Higher Education Committee met on Wednesday and took up: HB 699 by Poncho Nevarez (D-Eagle Pass) would require institutions of higher education to adopt a policy on campus sexual assault. In support were representatives of Texas Association Against Sexual Assault, Texas American Federation of Teachers, and United Ways of Texas. There was no opposition. It was left pending. HB 753 by Sergio Munoz, Jr. (D-Mission) would clarify the statutory name of The University of Texas Rio Grande Valley. There was no testimony. It was left pending. HB 1051 by John Wray (R-Waxahachie) would establish a campus of the Texas State Technical College System in the City of Red Oak in Ellis County. In support were Alan Hugley of the City of Red Oak and former State Representatives Jim Pitts, representing himself. It was left pending.

Also on Wednesday, the Government Transparency and Operation Committee took up: HB 590 by Gary Elkins (R-Houston) would authorize public and private institutions of higher education to establish a research technology corporation to commercialize technologies that are owned wholly

11

or partially by the institution; and would authorize an ad valorem tax exemption for the corporation’s real and tangible personal property. It was left pending.

On Wednesday, the Senate Higher Education Committee took up: 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. In support were representatives of Texas Association of Business and United Ways of Texas. There was no opposition. It was considered in committee but no action was taken. SB 177 by Kel Seliger (R-Amarillo) would clarify and codify best practices of university governance by applying principles from nationally recognized organizations such as the Association of Governing Boards and the Southern Association of Colleges and Schools. It would require training of regents to take place during the regent’s first year in office, and require it to include ethics training and to address laws protecting student privacy. In support was Daniel Becka, Director of Advocacy for Texas Exes. There was no opposition. It was left pending. SB 317 by Juan “Chuy” Hinojosa (D-McAllen) would clarify the statutory name of The University of Texas Rio Grande Valley. There was no testimony. It was considered in committee but no action was taken.

HUMAN RESOURCES/EMPLOYMENT

On Tuesday, the House Business and Industry Committee took up: HB 187 by Senfronia Thompson (D-Houston) would specify the circumstances under which an unlawful employment practice has occurred, with respect to an allegation of discrimination in payment compensation. In support were representatives of Texas AFL-CIO, Texas Employment Lawyers Association, Workers Defense Project, Texas American Federation of Teachers, MALDEF, ACLU of Texas, and Texas Watch. In opposition were representatives of National Federation of Independent Business/Texas, Texas Retailers Association, Texas Society for Human Resources Management, Texas Association of Business, Associated Builders and Contractors of Texas, and Texas Association of Staffing. 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 E2.016 of the capitol extension to take 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.

12

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.

INSURANCE

Next Week: The House Judiciary and Civil Jurisprudence Committee will meet on Tuesday, March 17, 2015 at 2:00 p.m. in E2.026 of the capitol extension to take 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.

PRIVACY

The House Criminal Jurisprudence Committee met on Wednesday and took up: HB 101 by Ryan Guillen (D-Rio Grande City) and HB 603 by Sarah Davis (R-Houston) would make it an offense to intentionally display, distribute, publish, advertise, offer or otherwise disclose visual material depicting another person engaged in sexual conduct and knows or should have known that the depicted person has not consented to the disclosure. (HB 101 and HB 603 are identical.) They were left pending. HB 496 by Mary Gonzalez (D-El Paso) would make it a Class A misdemeanor to unlawfully disclose or promote intimate visual material depicting a person without their consent. It was left pending. HB 896 by (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. It was left pending.

Also on Wednesday, the Government Transparency and Operation Committee took up: HB 640 by (D-Edinburg) would require the Texas Department of Public Safety to conduct a study to determine the feasibility of establishing a system to allow a person to use a digital image displayed on an electronic device for identification purposes or to prove that the person has a driver’s license. It was left pending.

13

PROCUREMENT

The Senate Finance Committee met on Wednesday this week and took up: SB 20 by Jane Nelson (R-Flower Mound) is an omnibus procurement reform bill. Testifying in support was Tom “Smitty” Smith of Public Citizen. Registering support were representatives of Texas Association of Health Plans and Texas Medical Association. TechAmerica submitted written testimony. The committee also heard from representatives of the Department of Information Resources, State Auditor’s Office, Legislative Budget Board, and the Comptroller’s office. Chairman Nelson announced that she is preparing a committee substitute. Members that want to propose changes to be considered for incorporation into the substitute must submit them to her by close of business on Friday. It was left pending.

Next Week: The House Public Education Committee will meet on Tuesday, March 17, 2015 at 2:00 p.m. in E2.036 of the capitol extension to take 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.

SENATE INTENT CALENDAR FOR MONDAY, MARCH 16, 2015

SB 408 by Jose Rodriguez (D-El Paso) would allow counties to give preference to local bidders for purchase of real or personal property if the local bidder is within five percent of the lowest bid price received by the county.

PUBLIC EDUCATION

On Tuesday, the House Public Education Committee took up: HB 4 by (R-Humble) would require the Commissioner of Education to establish a High Quality Pre-Kindergarten Program to provide funding for school districts to implement a quality pre- kindergarten program. In order for districts to qualify, they must fully align their curriculum with the Texas Prekindergarten Guidelines and measure progress to meet the learning outcomes identified in the guidelines. Prekindergarten teachers must also be appropriately certified in early childhood education. Individual districts would be required to develop a parental engagement plan to establish and maintain high levels of family involvement in the student's educational career. It was left pending. HB 173 by Carol Alvarado (D-Houston) would require school districts that offer prekindergarten classes to include in the district’s Public Education Information Management Systems (PEIMS) report

14

the class size and student/staff ratio and each type of assessment instrument administered and the results. It was left pending. HB 296 by (D-Houston) would require school districts that receive state or federal prekindergarten funds to offer an enhanced quality prekindergarten program that includes no more than 22 students per class with an average ratio of at least one teacher or educational aide per 11 students, at least one teacher with a bachelor’s degree and appropriate certification, require each teacher to have at least nine credit hours of college credit in early childhood, and a curriculum from the list approved by the Education Commissioner. It was left pending. HB 424 by Harold Dutton (D-Houston) would require school districts to offer a full-day pre- kindergarten program (instead of half-day) to students that qualify. It was left pending. HB 1100 by Eric Johnson (D-Dallas) would establish a Gold Standard Prekindergarten Program and would require school districts offering a Gold Standard Pre-K Program to develop and implement a parent engagement plan to achieve high levels of parental involvement. It was left pending. HB 1188 by (D-Beaumont) would establish a joint interim committee to study and make recommendations concerning early childhood education. It was left pending.

On Wednesday, the Senate Education Committee took up: 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. SB 13 by Charles Perry (R-Lubbock) would prohibit a rule adopted by the Commissioner of Education from limiting the number of dual credit hours in which a student can enroll. It was left pending. SB 894 by Larry Taylor (R-Friendswood) would make several changes to the operation of the state virtual school network. It was left pending.

Next Week: The House Public Education Committee will meet on Tuesday, March 17, 2015 at 2:00 p.m. in E2.036 of the capitol extension to take 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. 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. 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 date the trustee takes office. HB 1060 by Justin Rodriguez (D-San Antonio) would provide that a teacher who is employed by a school district through participation in a program requiring a two-year teaching commitment in an

15

underserved area or low-income community and who leaves employment after the two-year commitment would not be included in the school district’s teacher turnover report.

SENATE INTENT CALENDAR FOR MONDAY, MARCH 16, 2015

SB 149 by Kel Seliger (R-Amarillo) would establish an individual graduation committee for each student who fails to pass an end-of-course assessment after two attempts.

TAX

The House Ways and Means Committee met on Tuesday and took up: HB 157 by (R-San Antonio) would require the sales tax rate adopted by cities to be in one-eighth of one percent increments; however it does not allow the combined rate of all local sales taxes to exceed the two percent cap. Testifying in support were Chris Fails of the City of Hollywood Park and Bill Longley of Texas Municipal League. There was no opposition. It was left pending. HB 285 by Drew Springer (R-Muenster) would allow appraisal districts to post on the Internet an aerial photograph that depicts residential property with five or more separately owned buildings or an overhead sketch of the property that depicts only the outline of one or more buildings on the property; the general landscape features of the property, including ponds, pools, and walls; and the dimensions of or distances between the buildings and features depicted. Brent South of Texas Association of Appraisal Districts testified in support. Shannon Kelley of Freedom of Information Foundation of Texas registered opposition. It was left pending. HB 376 by Ron Simmons (R-Carrollton) would expand the additional five-year tax recapture for changing the use of land that received agricultural valuation to include conveyance of the property to a person, the state, or a political subdivision that changes the use of the land but is not subject to the additional tax under current law; and regains possession of the land within five years of the conveyance, and uses it in a way that would have subjected it to the additional tax under current law. In support were representatives of Travis County Commissioners Court, Texas Conference of Urban Counties, and Texas Municipal League. There was no opposition. It was left pending. HB 706 by Jessica Farrar (D-Houston) would prohibit the chief appraiser from requiring a person to re- apply for an exemption if property on which a solar or wind-powered energy device is installed or constructed has already qualified for an exemption unless the property changes ownership or the person’s qualification for the exemption changes. In support were representatives of Harris County Appraisal District, Texas Solar Power Association, Public Citizen, Texas Association of Appraisal Districts, Environment Texas, SunPower Corporation, and Lone Star Chapter of the Sierra Club. There was no opposition. It was left pending. HB 806 by J.M. Lozano (R-Kingsville) would allow persons applying for a residence homestead exemption to include with the application an affidavit stating that the applicant is unable to obtain a driver’s license or state issued personal identification certificate because of a sincerely held religious

16

belief and the property for which the applicant is claiming the exemption is the applicant’s residence homestead. In support was Brent South with Texas Association of Appraisal Districts. It was left pending.

Property Tax Appraisal Reform

On Tuesday, Senator Rodney Ellis (D-Houston) filed SB 1084, which would change the property tax appraisal system. Senator Ellis said, "Homeowners and local communities across Texas are shouldering an unfair burden when large commercial property owners manipulate the property tax system to drive down their property values and property tax bills. While most homeowners pay taxes on the real value of their property, many large commercial property owners routinely use appeals and lawsuits to avoid paying their fair share. When large commercial property owners shirk their responsibility, ordinary homeowners pay more property taxes to make up the difference. That's not fair, it's bad public policy, and it needs to change. SB 1084 closes the loophole related to how owners of business properties worth more than $1 million present their cases in court. No longer can lawyers for these property owners game the system, ‘cherry-pick’ properties, or make adjustments that do not follow generally accepted appraisal techniques just to drive down their appraised value. Instead, they must select a reasonable and representative sample of comparable properties located within the county and based on similarities in location, square footage, age, and other conditions. Relief could only be granted by a court if the appraisal ratio of the property exceeds the median appraised level of the comparable properties by 10 percent.” SB 1084 would also require the Comptroller to adopt rules that establish standards for the equal and uniform appraisal of industrial, petrochemical refining and processing, and utility properties. Lastly, the bill allows courts to award attorney's fees to appraisal districts that establish that the property in litigation was appraised in an equal and uniform manner.

Coalition for Equal and Uniform Taxation Response

A coalition of Texas business organizations formed the Coalition for Equal and Uniform Taxation (CEUT) to defend the Texas constitution’s guarantee of Equal and Uniform Taxation, and fight efforts to impose mandatory sales price disclosure. David Margulies spoke on behalf of the organization about property tax appraisal reform legislation saying, “The Texas Constitution’s requirement of equal and uniform taxation is one of the fundamental reasons for Texas’ growing, healthy economy. Our tax system has been under attack by certain taxing jurisdictions with an agenda that will hurt the Texas economy and has the potential to raise taxes for many Texans. The current constitutional requirement of equal and uniform taxation is being challenged with false claims that undervalued commercial property is raising taxes on homeowners. A recent report by Texas Taxpayers and Research Association (TTARA) states ‘All available information – be it from the appraisal districts themselves on the disputes they handle, or be it from the Comptroller’s review of local values - does not offer evidence of the widespread undervaluation of commercial property.’” Organizations

17

participating in the coalition include: the Texas Association of Business (TAB), Texas Building Owners and Managers Association (Texas BOMA), NAOIP (Commercial Real Estate Development Association), International Council of Shopping Centers (ICSC), Real Estate Council of Texas (RECsTX), Texas Apartment Association (TAA), Texas Association of Builders, Texas Association of Realtors, Texas Hotel & Lodging Association (THLA), Texas Self Storage Association (TSSA) and The Real Estate Council of Dallas.

Next Week: The House Ways and Means Committee will meet on Tuesday, March 17, 2015 at 8:30 a.m. in E2.010 of the capitol extension to take up: HB 1261 by Susan King (R-Abilene) would direct the comptroller to issue a biennial exemptions and exclusions report and require the comptroller to use available statistical data to estimate the impact of an exemption, discount, exclusion, special valuation, special accounting treatment, special rate, or special method of reporting related to a tax if no actual data is available. HB 992 and HJR 75 by Dennis Bonnen (R-Angleton) would extend the disabled veterans’ homestead exemption for a surviving spouse to a widow whose disabled veteran spouse had died before the exemption went into effect.

TELECOMMUNICATIONS

Reported from Committee

HB 80 by (R-Midland) would prohibit the use of a wireless communication device to read, write, or send a text-based communication while operating a motor vehicle unless the vehicle is stopped and is outside a lane of travel. It was reported favorably from the House Transportation Committee. Representative Craddick said, "Many thanks to Chairman Pickett and the members of the House Transportation Committee for their time and attention to our effort to save lives. I am elated House Bill 80 has been reported favorably by the committee and is moving through the legislative process. I truly believe this legislation will ultimately save lives. The death of any Texan because of a texting crash is unnecessary and preventable. We must give all law enforcement officers this tool to keep our roadways safe and put into place a statewide law that will deter drivers from texting while driving. If this bill passes and saves one life, it will be worth it."

On Tuesday, the House Business and Industry Committee took up: HB 411 by Chris Turner (D-Arlington) would prohibit telemarketing calls by a credit access business even if the consumer’s phone number is not on the Texas no-call list. In support were representatives of Texas Appleseed, Family Promise, Christian Life Commission, Helping Hands Ministry of Belton, AARP, Texas Catholic Conference of Bishops, Texas Association of Goodwills, United Ways of Dallas, Houston and of Texas, and Texas Municipal League. In opposition were representatives of Consumer Service Alliance of Texas, Texas Association of Business, and Advance America. It was left pending.

18

TORT

On Monday, the Senate State Affairs Committee took up: 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 except for the entity’s negligence, disregard for the safety of participants, dangerous condition on the land, facilities, or equipment, or the dangerous propensity, that is not disclosed to the participant, or failure to train or improper training of an employee. In support were representatives of Dewberry Farm, LLC, Exotic Wildlife Association, Graff Family Farm, Texas Farm Bureau, Texas Wildlife Association, and Texas and Southwestern Cattle Raisers Association. No action was taken.

On Tuesday, the House Judiciary and Civil Jurisprudence Committee took up: HB 230 by Jessica Farrar (D-Houston) would clarify that attorney’s fees cannot be recovered under Section 38.001 of the Civil Practices and Remedies Code from the state, a state agency or institution, or political subdivision in civil cases and would clarify that attorney’s fees can be recovered against any legal entity in addition to individuals and corporations. It was left pending. HB 241 by (R-Plano) would allow electronic communication sent to a defendant through a social media presence to be authorized by the Texas Supreme Court through the Texas Rules of Civil Procedure as a method of substituted service of citation. It was left pending.

Next Week: The House Judiciary and Civil Jurisprudence Committee will meet on Tuesday, March 17, 2015 at 2:00 p.m. in E2.026 of the capitol extension to take up: HB 1050 by James White (R-Hillister) would clarify that persons who donate apparently wholesome food to a church, a not-for-profit organization or a nonprofit organization for distribution to the needy would apply if the food is apparently wholesome at the time of donation. HB 1116 by J.D. Sheffield (R-Gatesville) would add to the definition of volunteer health care provider a licensed social worker or a retired social worker who is eligible to engage in the practice of social work under Texas law.

WORKERS’ COMPENSATION

Next Week: The House Business and Industry Committee will meet on Tuesday, March 17, 2015 at 11:30 a.m. in E2.016 of the capitol extension to take up: HB 1094 by (R-Fort Worth) would allow spouses of first responders killed in the line of duty to continue receiving death income benefits (DIB’s) for life even after remarriage.

19

State Websites Additional information can be obtained via the Senate, House, and capitol websites: www.senate.state.tx.us www.house.state.tx.us www.capitol.state.tx.us

20