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INSIDE THIS ISSUE • 83rd Legislative Update • Legislative Articles of Interest • 83rd Legislature Dates of Interest • Helpful Links • TAB Legislative and Government Affairs Staff • Rally Day was a Success! • Thank you to our 2013 Rally Day Sponsors! 83rd Legislative Update First Bill Passed out of House Two TAB Priority Bills Filed TAB Executive Director testifies on HB 4 A TAB priority on funding the State Water Plan. HB 5 Left Pending in Committee Comprehensive Education Reform Bill, includes TAB priority language on curriculum for workforce needs. On Friday, February 15, Rep. Lois Kolkhorst (R) filed HB 1377, a TAB priority bill relating to the ownership and local regulation of trees and timber. HB 1377 would: Codify case law and common law, which holds that a tree belongs to the property owner, and states that a tree may be removed by the property owner. Specifically state that a city may continue to assess tree mitigation fees and replacement regulations, as long as the fees and regulations are reasonable and proportional. Prohibit a city from enforcing mitigation fees and replacement regulations in the city’s extraterritorial jurisdiction, unless the extraterritorial jurisdiction touches an active federal military base. On Tuesday, February 19, Rep. John Kuempel (R) filed HB 1503, a TAB priority bill relating to the appointment of building contractors to certain trade advisory boards of the Texas Department of Licensing and Regulation. HB 1503 would: Add two building members to the Electrical Safety and Licensing Advisory Board (increasing its membership from nine to 11 members) and two members to the Air Conditioning and Refrigeration Contractors Advisory Board (increasing its membership from seven voting members to nine voting members). Doing so will not result in a builder majority on either board. Follow the practice of the Texas State Board of Plumbing Examiners, which currently has two builder members on its nine member board. GOVERNOR – On February 15, Governor Rick Perry announced that Tenaris will be extending its U.S. investments by building a new steel pipe manufacturing facility in Matagorda County, creating 600 jobs and $1.3 billion in capital investment. The state is providing $6 million through the Texas Enterprise Fund (TEF) to close the deal. Governor Perry said, "This announcement is only possible thanks to the hard work of state and local officials, as well as, the area business community, which always plays a major role in decisions like this. The most profound statement about our favorable economic climate comes when companies like Tenaris make an investment of this size in our state. That says that not only is Texas the best place to grow your business now, but they're confident that we'll remain that way moving forward." Tenaris is a global manufacturer of steel pipe products used for drilling in the energy industry. The 1 million sq. foot Matagorda County facility will include a state-of-the-art seamless pipe mill, heat treatment and premium threading facilities. Once complete, the mill is expected to produce 600,000 tons of pipe annually. On Thursday, February 21, Governor Perry announced that National Instruments will expand its research and development capacity in Austin, creating 1,000 jobs and making an $80 million capital investment. The state is providing $4.4 million through the Texas Enterprise Fund (TEF). Execution of the state's agreement is contingent upon finalization of a local incentive package. Governor Perry said, "Central Texas' flourishing high tech industry is further strengthened by National Instruments' expansion, which will create 1,000 technical and engineering jobs and bolster Austin's status as a hub for research, development and innovation. Texas' continued focus on STEM education is a natural fit, and will ensure the Lone Star State continues to provide the capable workforce necessary for high tech employers like National Instruments to thrive." Chief Operating Officer of National Instruments Alex Davern said, "National Instruments was founded in Austin over 35 years ago and has grown to a global company, supplying tools to scientists and engineers around the world to accelerate productivity, innovation, and discovery. The business friendly climate in Texas, along with our commitment of intense investment in research and development, is helping drive long-term job growth and economic development in Central Texas." Senator Kirk Watson added, "We welcome the 1,000 new jobs this expansion will bring. Austin is a special place, and it continues to attract employers from around the world and opportunities for people who are here. Nevertheless, we're in a competition with other cities and regions for these kinds of jobs. It speaks well of Austin that National Instruments has chosen to stay here and to grow here." Representative Elliott Naishtat concluded, "I am extremely pleased to welcome the expansion of National Instruments in Austin. High tech industries have contributed significantly to Austin's vibrant economy, and this expansion is a recognition of Austin's highly skilled workforce." SENATE – The Senate was in session on Monday, Tuesday, and Wednesday of last week conducting routine business. Last Monday, February 18 the Senate honored University of Texas President Bill Powers. Ten Senate members extolled the praises of President Powers including Senators Kevin Eltife, Kirk Watson, Eddie Lucio, Jr., Jane Nelson, Rodney Ellis, Joan Huffman, Royce West, Kel Seliger, Robert Duncan, and John Whitmire. In a rare speech, Lt. Governor David Dewhurst also expressed support for President Powers saying, “I want to say to Bill Powers, you’re a good man and we are lucky to have you. We all want to make sure that our great institutions of higher learning are accessible, that we control costs and improve our graduation rates. I believe in reform, and I know Bill Powers believes in reform. That’s why I’m particularly troubled when I see UT regents go around this man and his administration. This man deserves better treatment than what he’s getting. I am really upset about this, so tomorrow I will have more to say about this, but ladies and gentlemen, this issue is bigger than just UT Austin and President Powers, though I’m very interested in that. This is about the reputation of the state of Texas. UT Austin is our premier tier-one university nationally and President Powers deserves a great amount of credit for putting us in that position. This is about the reputation of this university, this fine man and this great state.” The Senate adjourned until 2:00 p.m. on Monday, February 25, 2013. Total number of bills reported out of Senate Committees this week: 12 HOUSE – The House was in session Monday through Thursday of last week conducting routine business. On Thursday, February 21 the House passed its first bill of the session, HB 10, the emergency Medicaid funding bill. Passage required several procedural votes including first suspending the constitutional order of business rule to allow it to be taken up before the 60th day of the session and ultimately the constitutional rule requiring bills to be read on “three several days.” One clarifying amendment was added by Chairman Jim Pitts, the bill’s sponsor, but the other pre-filed amendments were withdrawn. HB 10 passed unanimously with 148 votes. Speaker Joe Straus said, “I thank Chairman Pitts and the Appropriations Committee for their work on HB 10 and I am pleased that the House unanimously passed this important legislation to ensure that our Medicaid obligations are met.” Total number of bills passed by the House this week: 1 The House adjourned until 2:00 p.m. on Monday, February 25, 2013. BUDGET – The Senate Finance Committee’s workgroups met Monday, Tuesday and Thursday of last week, and the full Senate Finance Committee met on Thursday to hear updates from the workgroups. The House Appropriations Committee’s subcommittees met every day of last week. The full Appropriations Committee met last Thursday to take up subcommittee recommendations on Article V (Public Safety and Criminal Justice). On Monday, February 18 the House Government Efficiency and Reform Committee held an organizational meeting and took invited testimony. The committee heard from State Auditor John Keel, and representatives of the Comptroller’s Council on Competitive Government, Department of Information Resources, Texas Department of Licensing and Regulation, Sunset Advisory Commission and Office of the Inspector General. The Legislative Budget Board provided recommendations of the Interagency Required Reports Workgroup which evaluated the usefulness of statutorily required reports that are prepared and submitted by state agencies. They suggested repeal of 50 required reports and modification of another 150 reports. Texas Department of Licensing and Regulation told the committee that the agency has reduced fees resulting in a cumulative savings of $24.7 million since 2004; streamlined penalty matrices resulting in a savings of $853,237 in 2012; and streamlined license issuance using plastic credit-card type licenses with Austin-based Signature Card Inc. handling all production and distribution functions, freeing TDLR staff to focus on the agency’s core competencies. On Wednesday, February 20 the new House Select Committee on Transparency in State Agency Operations held its first formal meeting. Co-Chair Dan Flynn (R-Van) presided over the meeting and opened it with a discussion about the Committee's goals. Chairman Flynn said, "I am looking forward to working with my colleagues to make Texas more transparent and accountable. Too many times, citizens are unable to access important information about our state. Citizens have a right to know how our state performs, makes decisions, and spends taxpayer money. Until that is a reality, our job is not done. The Committee will be looking into a number of topics, including state compensation practices and purchasing decisions. Texans deserve the right to know how Texas operates and spends their tax money.