Texas Legislature Monthly Report

March 2018

POLITICAL: Primary Elections – was the first state in the country to hold its Primary Elections, which were on Tuesday, March 6th. Republican Primary turnout was 10.12% of registered voters – 1,543.725 voters cast ballots, a 16 percent increase over 2014 (the last non-presidential year). Democratic Primary turnout was 6.8% of registered voters - 1,037,799 voters cast ballots, 491,319 more than in 2014, when 546,480 Texans cast ballots, a 90% increase.

STATEWIDE RACES: Republican Primary – All of the statewide elected officials on the ballot won their Republican Primary races without a run-off – U.S. Senator , Governor , Lt. Governor , Agriculture Commissioner , Land Commissioner George P. Bush, Railroad Commissioner , and Court of Criminal Appeals Presiding Justice . Note: Attorney General , Comptroller , Supreme Court Justices , John Devine, and Jeff Brown, and Court of Criminal Appeals Justice Barbara Parker Hervey were unopposed.

Court of Criminal Appeals Place 8 – The only statewide open seat in the Republican Primary was Court of Criminal Appeals Place 8. Galveston District Judge Michelle M. Slaughter won that race without a run-off.

Democratic Primary: U.S. Senate – Beto O’Rourke of El Paso won the Democratic Primary and will challenge U.S. Senator Ted Cruz in the November General Election. Governor – There will be a run-off between former County Sheriff Lupe Valdez and Andrew White, son of former Governor Mark White. Lt. Governor – Michael Collier, a CPA from Humble will challenge Lt. Governor Dan Patrick. Comptroller – Joi L. Chevalier, a product manager for Dell Computer is the Democratic nominee for Comptroller and will challenge Glenn Hegar in November. Land Commissioner – Austin attorney Miguel Suazo is the Democratic nominee who will challenge Land Commissioner George P. Bush. Railroad Commissioner – Roman McAllen of Denton is the Democrat who will take on Railroad Commissioner Christi Craddick in November.

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TEXAS SENATE: The currently has 20 Republicans and 11 Democrats. 16 incumbent Senators are not up for re-election until 2020. 15 of the 31 Senate districts are up for election in 2018. One incumbent Senator is not seeking re-election: • in District 8 – , wife of Attorney General Ken Paxton won the Republican Primary in Senate District 8. One incumbent Senator has no major party opposition in the Primary or the General Elections: • in District 23 Six incumbent Senators did not have Primary Election opposition, but have General Election opponents: • in District 7, • Konni Burton in District 10, • in District 9, • in District 16, • Robert Nichols in District 3, and • Kirk Watson in District 14. 7 incumbent Senate members had Primary Election contests and 6 of them won their elections. One incumbent Senate member was defeated in the Primary: Senator Craig Estes in District 30 There is one Democratic Run-off to select a candidate to oppose incumbent Republican: in District 17 – Democratic Primary Run-off between Rita Lucido and Fran Watson

TEXAS HOUSE OF REPRESENTATIVES The Texas House has 94 Republicans and 55 Democrats - one Republican has resigned, and his seat is vacant – Rep. Leighton Schubert (District 13). The Special Election will be on May 5, 2018. All 150 members of the Texas House are up for re-election in 2018. 42 incumbent State Representatives had Primary Election contests and 34 of them won their races. 6 incumbent Representatives were defeated in the Primary: • Wayne Faircloth in District 23 • Dawnna Dukes in District 46 • Roberto Alonzo in District 104 • Jason Villalba in District 114 • Diana Arevalo in District 116 • Tomas Uresti in District 118 2 incumbent Representatives will be in run-off elections: • Rene Oliveira in District 37 – Oliveira’s Democratic Primary Run-off challenger is Alex Dominguez • Scott Cosper in District 54 – Cosper’s Republican Primary Run-off challenger is Brad Buckley 13 Incumbent Members of the Texas House did Not Seeking Re-election:

2 • Cindy Burkett in District 113, • Byron Cook in District 8, • in District 106, • Helen Giddings in District 109, • Larry Gonzales in District 52, • Lance Gooden in District 4, • Jason Isaac in District 45, • Mark Keough in District 15, • Jodie Laubenberg in District 89, • Larry Phillips in District 62, • Kevin Roberts in District 126. • Leighton Schubert in District 13, and • in District 121. There are run-off elections in 8 Open seats: • House District 4 – Republican Primary Run-off between Keith Bell and Stuart Spitzer (being vacated by Rep. Lance Gooden) • House District 8 – Republican Primary Run-off between Cody Harris and Thomas McNutt (being vacated by Rep. Byron Cook) • House District 13 – Republican Primary Run-off between Ben Leman and Jill Wolfskill (being vacated by Rep. Leighton Schubert, who has already resigned – special election to fill his unexpired term is on May 5, 2018) • House District 45 – Democratic Primary Run-off between Rebecca Bell- Metereau and Erin Zwiener (being vacated by Rep. Jason Isaac) • House District 46 – Democratic Primary Run-off between Sheryl Cole and Jose “Chito” Vela (Rep. Dawnna Dukes did not make the Run-off) • House District 62 – Republican Primary Run-off between Brent Lawson and Reggie Smith (being vacated by Rep. Larry Phillips) • House District 109 – Democratic Primary Run-off between Deshaundra Lockhart Jones and Carl Sherman (being vacated by Rep. Helen Giddings) • House District 121 – Republican Primary Run-off between Steve Allison and Matt Beebe (being vacated by Speaker Joe Straus) There will be run-off elections in 3 Democratic Primaries to determine who will challenge Republican incumbents: • Paul Workman in District 47 – Democratic Primary Run-off between Elaina Fowler and Vikki Goodwin • in District 64 – Democratic Primary Run-off between Andrew Morris and Mat Pruneda • Jim Murphy in District 133 – Democratic Primary Run-off between Sandra G. Moore and Marty Schexnayder There will be a run-off election in 1 Republican Primary to determine who will challenge a Democratic incumbent: • Victoria Neave in District 107 – Republican Primary Run-off between Deanna Maria Metzger and Joe Ruzicka

3 Texas Association of Business vs. Empower Texans - The Republican Primary had several races where traditional pro-business Republicans and social conservative Republicans were fighting it out for control of the Republican Party. Traditional pro-business Republican candidates endorsed by Texas Association of Business (TAB) prevailed in 15 races, while social conservative Republican candidates endorsed by Texans for Fiscal Responsibility/Empower Texans (TFR/ET) prevailed in 8 races. One race is going to a run-off.

STATEWIDE: Hurricane Harvey Recovery: Senate Finance Committee – The Senate Finance Committee met on March 20th, to take up its interim charge on Hurricane Harvey Relief and Recovery. The committee heard from Education Commissioner Mike Morath, and representatives of the Legislative Budget Board, Health and Human Services Commission, , the General Land Office, and the Lone Star Chapter of he Sierra Club. Sarah Keyton of the Legislative Budget Board gave an update on costs and expenditures related to Hurricane Harvey recovery: • Fiscal years 2017–18 hurricane expenditures total $2.1 billion in All Funds ($1,644.6 million in Federal Funds and $206.2 million in General Revenue). • In addition to these expenditures, agencies estimate an additional $5.1 billion in projected costs in All Funds for FY 2018 ($4,590.0 million in Federal Funds and $336.0 million in General Revenue).

BUDGET: Senate Finance Committee – The Senate Finance Committee met on March 20th, to take up its interim charge on the Economic Stabilization Fund - Examine options to increase investment earnings of the Economic Stabilization Fund in a manner that minimizes overall risk to the fund balance. Investment options should ensure the liquidity of a sufficient portion of the balance so that the legislature has the resources necessary to address the needs of the state, including natural disasters. Evaluate how the Economic Stabilization Fund constitutional limit is calculated; consider alternative methods to calculate the limit, and alternative uses for funds above the limit. The committee heard from Comptroller Glenn Hegar, and representatives of the Texas Treasury Safekeeping Trust Company, Texas Taxpayers and Research Association, Center for Fiscal Policy at Texas Public Policy Foundation, and The Pew Charitable Trusts.

House Select Committee on Economic Competitiveness – The House Select Committee on Economic Competitiveness issued its report on March 13th. The committee was established by House Speaker Joe Straus. The committee held two public hearings on November 15, 2017 and December 5, 2017. The committee recommended:

4 Public Education: The legislature must prioritize funding for public education that is regularly adjusted to account for growth in population and inflation. Policymakers should closely examine the effectiveness of public education expenditures to ensure that dollars are used to maximize student success, and ensure the state's academic accountability system increases the performance of schools and students. Higher Education and Workforce Development: The legislature should increase investment in formula funding, financial aid and workforce and technical training programs at community colleges and state technical colleges. The state should also partner with the business community to develop a comprehensive statewide workforce development plan. Infrastructure: The state must continue to invest in improving and maintaining infrastructure. The devastating effects of Hurricane Harvey provide a rare opportunity to combine state and federal funding to make critical investments in flood control and mitigation projects that will reduce the impact of future storms. Economic Development Incentives: The legislature should maximize the impact of tax and economic development incentives by periodically reviewing their return on investment and making changes if necessary. Policymakers must also certify that incentives are being applied consistently across the state, and that they provide equal access for small, medium and large businesses. Business Climate: The Texas economy has benefitted from a state government that consistently values a strong business climate based on low taxes, limited regulation and local control. Future legislatures should focus on these key areas to maintain a predictable and reliable business climate, avoiding legislation that distracts from critical priorities and is viewed by many as enabling discrimination against certain groups or classes of Texans. Texas policymakers must acknowledge warnings from leaders in the business community, academicians and law enforcement officials about the consequences of such discriminatory legislation to avoid endangering the state's successful economy. Note: The Report was signed by Chairman Byron Cook (R-Corsicana), and Representatives Senfronia Thompson (D-), Sarah Davis (R-Houston), (D-El Paso), and Rene Oliveira (D-Brownsville). Committee members Representatives Angie Chen Button (R-Richardson) and Charlie Geren (R-Fort Worth) did not sign the report.

Senate Higher Education Committee – On March 21st, the Senate Higher Education Committee took up its interim charge on System/Campus Expansion - Consider what role the state should have in overseeing the approval and development of new higher education locations into geographical areas already served by existing institutions. Develop a long-term statewide strategy for authorizing new locations and programs, which includes a plan to ensure adequate support for expansion. Explore where there are underserved areas of the state and what type of programs would best serve the population to fill regional workforce needs.

PRIVACY:

5 Senate Select Committee on Cybersecurity – On March 21st, the Senate Select Committee on Cybersecurity took invited testimony on the state of cybersecurity in Texas. The committee heard from:

Legislative Budget Board – Representatives of the Legislative Budget Board reported that the Texas Department of Information Resources (DIR) provides statewide leadership and oversight for management of government information and communications technology as well as cybersecurity controls. In order for state agencies to have a strategic roadmap for success, the DIR created the Texas Cybersecurity Strategic Plan for Fiscal Years 2018-2023 to focus on cybersecurity initiatives. For Fiscal year 2018-2019, DIR was appropriated $21.5 million to provide security policy, assurance, education, and awareness; and assist state entities in identifying security vulnerabilities. An additional $8 million is expended annually on 180 agency employees whose responsibilities are primarily related to cybersecurity. Additional state information technology budget items include: • In FY 2016-2017, agencies were appropriated $17.7 million for new cybersecurity projects. • In addition to the $21.5 million appropriation to DIR for on-going cybersecurity services, in FY 2018-2019 other agencies received $24 million for new cybersecurity projects and initiatives. • Typically, cybersecurity is not a specified item in the state budget and is included within appropriations for related strategies, projects, and programs. • State agency IT Operating Plans average $2.8 billion per year between 2016 and 2019 for capital budget projects and daily operations. • Cybersecurity projects are an estimated 2 percent of planned IT expenses with the exception of data center services, which is estimated between 5 and 10 percent. Major Information Resources Projects include: • The Quality Assurance Team (QAT) is overseeing 79 major information resources projects with current estimated costs of $1.5 billion over the life of the projects. • The majority of these are not dedicated cybersecurity projects, although several are being developed strictly for Cybersecurity Advancements and Data Loss Prevention within the agencies or with cybersecurity impacts. • SB 533 from the 2017 legislative session requires a state agency assessment of proposed technical architecture for projects to ensure that the agency is using industry accepted architecture standards in planning for implementation. Impact of Security Breaches: • In FY 2013, the Health & Human Services Commission reported $2.3 million of staffing costs to respond to and recover from 1,948 security incidents. • In FY 2016, the Department of State Health Services reported security incident costs of approximately $1.9 million.

6 • Other potential impacts and issues include: physical loss of devices or media containing data; incidents affecting IT infrastructure hosted by a third party; electronic leakage of data; personal data exposure; inappropriate IT resource use by employees; and viruses and malware.

Adobe Systems - Steve Gottwals, Technical Director of Security Solutions for Adobe Systems, Inc., said, “Cybersecurity is a preeminent issue for state governments. Many states are solely focused on one type of cybersecurity management: firewall type protection. States are forgetting the importance of securing documents or content management inside and outside the firewall. Security must also include content centric security solutions such as Digital Rights Management (DRM). Content focused security solutions are a must for states to consider when implementing a complete cybersecurity plan and DRM is an important tool to combat cybersecurity threats and protect government information.” He said the problem is that states have limited tools and understanding of potential threats to protect leaks of critical information. By focusing on firewall type protections, states are vulnerable to content theft. His suggested solution is for state legislatures to require state agencies to review their content security solutions to determine if the proper tools are in place. If lacking, new policies should be established by state agencies.

CompTIA submitted written testimony that said, “As bad as things seem to be, there’s really no reason to panic or get overwhelmed. There are no mysterious causes. Solutions exist. We can help mitigate these problems by: • Approaching security as a business and process issue; • Educating end-users as well as IT workers; • Improving the software development cycle; • Adopting common-sense approaches to new hardware development; and • Applying security controls as part of a mature approach to risk management.” It concluded by saying, “At some point, all organizations will be assessed, either by hackers, or by qualified penetration testing and security analytics professionals. It’s our hope that corporations will take the appropriate measures to ensure that they pass these assessments with flying colors. We also hope that the very first assessment of a cybersecurity worker’s skill isn’t having to rush into a poorly-considered, improperly executed response. It’s our hope that the response will be well-considered by cybersecurity professionals, C-level individuals, and boards. It’s our hope that this response will be based on effective, customized metrics that are relevant to a specific corporation, and not a theoretical construct.”

Other Witnesses – The committee also heard from representatives of the Public Utility Commission, University of Texas–, VMWare, Inc., Cisco Systems, and Amazon Web Services.

PUBLIC EDUCATION:

7 Final ESSA State Plan – On March 7th, the Texas Education Agency (TEA) formally submitted to the U.S. Department of Education the state’s Every Student Succeeds Act (ESSA) consolidated plan. This is the final version to be reviewed by U.S. Secretary of Education Betsy DeVos. After the public comment period on an initial draft last year, TEA submitted a plan to federal officials in September 2017. Since that time, TEA and Department of Education staff have been in ongoing conversations to answer questions on the Texas plan and revise specific provisions, when necessary. Specific highlights of the final consolidated state plan include: • Maintaining rigorous, yet achievable goals for all student groups; • Creating stronger alignment between all state and federal program areas; • Shifting the proficiency level for students from the “Approaches” label on State of Texas Assessment of Academic Readiness (STAAR) to the “Meets” label; and • Better aligning of federal funding with priorities within TEA’s strategic plan. ESSA requires federal review and approval of a state consolidated plan, which provides a comprehensive overview of how each state will use federal funds to advance its own goals and visions of success for students. The law increases flexibility and decision-making authority afforded to states, encourages innovation, and holds states accountable for results. ESSA requires federal review and approval of a state consolidated plan, which provides a comprehensive overview of how each state will use federal funds to advance its own goals and visions of success for students. Note: On March 26th, the U.S. Department of Education announced the U.S. Secretary of Education Betsy DeVos approved the Texas ESSA consolidated plan.

Texas Commission on Public School Finance – The Texas Commission on Public School Finance met on March 19th. Witnesses included: • Former State Representative Jimmie Don Aycock, who is also a former chair of the House Public Education Committee, suggested that the Cost of Education Index, which was last modified in 1991, needs to be eliminated or updated. He also suggested that charters, which are usually in urban areas and close to other schools, should be funded at the same rate as the feeder school because otherwise it harms the feeder school’s recapture status or amount. • Former State Representative Paul Colbert said the current school finance system was built on an equitable base, but some features were inadequately or inequitably funded from the beginning and others have been allowed to become outdated. All weights and formulas should be continuously reviewed and based on currently updated data. He added, “Money matters. Funding that is adequate to provide the appropriate programming for the wide variety of student needs in the wide variety of Texas schools makes a difference when it is well spent.” He concluded, “Equity matters. Adequacy for all is not possible without equity. At least some, and likely many students will not be adequately funded if the system is inequitable.”

8 • State Board of Education Member Barbara Cargill, chair of the Long- Range Plan for Public Education Steering Committee, reported that the SBOE is developing a new long-range plan for Public Education, which is expected to establish goals for Texas public schools through 2030. They are using the 60x30TX higher education plan as a model. They are in the process of seeking public input. They have already held 10 meetings around the state and received 11,500 responses to an on-line survey. The plan is expected to be completed by August and adopted by the SBOE in September. The plan focuses on: • Student engagement and empowerment; • Educator preparation, recruitment and retention; • Family engagement and empowerment; and • Equity and access. Dallas Attorney Tom Luce said that Texas’ academic achievement growth has stopped because of changes made since 2010 including: • Reduction in state funding by $5 billion; • Lowering of graduation standards, especially in STEM; and • Weakening of the accountability system. He added that Texas is not keeping up with rising workforce expectation. According to Georgetown Center on Education and the Workforce, 59 percent of all Texas jobs will require some postsecondary training by 2020, up from 47 percent in 2010. Also, according to Houston Endowment and the Texas Tribune, only 20.9 percent of students in Texas who began 8th grade in 2005 received a certificate or degree from a Texas college or university within six years of their anticipated high school graduation date. He suggested picking levers where the state would get the most return-on-investment and fund those things – like Pre- Kindergarten or retaining good teachers.

Emily Saas of Texas Public Policy Foundation said that per student spending adjusted for inflation has increased 7.6% since the 2004-2005 school year. She suggested: • Teacher compensation should be untethered from teacher longevity. The salary schedule should be changed from time spent to value added, which should be rewarded. • Expand innovation and competition by encouraging the growth of charter schools. Academic achievement increases in the charter school and in the traditional schools around them. The demand for charter schools is evidenced by the 140,000 students that are on charter waiting lists.

Chandra Villanueva of the Center for Public Policy Priorities said better funded schools lead to: • Smaller classrooms; • Greater access to science labs, computers, art and music; and • Professional development and support for teachers. She said it would take $3.2 billion to get education funding back to 2008 levels.

9 Other witnesses included representatives of Texas Association of School Boards, the Equity Center, Reason Foundation, Intercultural Development Research Association, Texas Association of School Administrators, Texas Association of School Business Officers, Texas Schools Coalition, Texas School Alliance, Fast Growth Schools coalition, Texas Association of Community Schools, Texas Association of Midsize Schools, Texas Rural Education Association, National Alliance of Public Charter Schools, Texas Charter School Association, South Texas Association of Schools, Texas-American Federation of Teachers, Texas Alliance of Black School Educators, Texas Classroom Teachers Association, MALDEF, NAACP, Texas Council of Administrators of Special Education, Disability Rights, and the Austin, Cy-Fair, Mesquite, Plano and Spring Branch IDS.

Senate Education Committee – On March 26th, the Senate Education Committee took up its interim study charges on:

Teacher Compensation: Study current, local, state, and/or national compensation strategies for classroom teachers and make recommendations to elevate the teaching profession as well as comprehensive policies to attract, retain, and reward teachers. The committee heard from:

Education Commissioner Mike Morath made three recommendations: • Good teachers should be paid significantly more to improve retention and recruitment especially in high poverty and rural schools. • There are reasonable processes to determine what it means to be good. It requires local level buy in but must have some statewide calibration. • A policy framework on improving teacher support must include competition, compensation, and it requires a long-term commitment. Texas Education Agency has a strategic plan to drive outcomes up. A key element of the plan is to recruit, support and retain teachers and principals. Pay and working conditions are important, but you cannot just address those issues and think it is a miracle cure. System-wide improvement for the state’s 350,000 teachers requires focus on recruitment, preparation for the classroom, support once they are in the classroom, and retention,

Molly Weiner, Director or Policy for Texas Aspires Foundation presented information from Dan Goldhaber of EducationNext that says: • Higher-quality teachers are more likely to leave the schools serving lots of disadvantaged students. That probably happens because these schools are more difficult to teach in and because the teacher labor market tends to treat all teaching jobs, at least within districts, as if they are the same. • The empirical evidence continues to suggest we need to focus on individual teachers, their performance and how to improve it. • We need to provide appropriate incentives to teachers if we want to address inequities.

10 Other Witnesses included representatives of Educate Texas, Texas State Teachers Association, Association of Texas Professional Educators, Texas American Federation of Teachers, Texas Public Policy Foundation, and Texas Classroom Teachers Association.

TRANSPORTATION: House Transportation Committee – On March 20th, the House Transportation Committee and the House International Trade and Intergovernmental Affairs Committee held a joint hearing in Weslaco to take up their joint charge to: • Review the current state of infrastructure at Texas' international shipping ports and border ports of entry in Texas. Identify transportation-related impediments to international trade and estimate the impact of those challenges, including border wait times, on the state's economy. Make recommendations for improvements to facilitate international trade and economic growth.

Texas Association of Manufacturers President Tony Bennett spoke about international trade involving border crossings with Mexico and international ports. He said Texas’ dramatic economic growth and Texas status as the nation’s top exporting state with Mexico as our top trading partner, highway infrastructure funding and staffing at bridge crossings with Mexico present critical obstacles. He said, “Texas economic development experts along the border mention the need for more commercial lanes on the bridges and more efficient land configurations, which present both safety and efficiency issues.” He suggested changes regarding overweight truck permits and special corridors. He added, “We believe more can be done to safely provide greater efficiency options for the agriculture, manufacturing and energy industries. With the use of axles and brakes, and the newer safety sensor technologies available today, reconfigured trucks could safely haul 10 to 15 percent more goods and help alleviate considerable commercial congestion at the state’s regional border crossings.” On the issue of ports, Bennett said, “The highest priority issue for most Texas seaports is channel improvement or dredging, both widening and deepening the channels. While funding for channel projects is predominately a federal responsibility, they routinely require a non-federal agency to pay a portion of the cost of the project, typically 35 to 50 percent. Navigation Districts have been the primary source for these matching funds. Much infrastructure work is overdue at Texas’ ports. These impediments are already hampering economic growth. Texas can ill-afford major delays in the completion already on our heels. With the recent widening of the Panama Canal, it’s essential for Texas port infrastructure to be able to attract ships to keep up with global competition.”

WORKFORCE:

Texas Workforce Investment Council – On March 21st, Governor Greg Abbott named Mark Dunn chair of the Texas Workforce Investment Council. The council assists the Governor and the Legislature with strategic planning for and

11 evaluation of the Texas workforce system to promote the development of a well- educated, highly skilled workforce for Texas.

Mark Dunn of Lufkin is the president of Dunn’s Construction LLC. He is an executive committee member of the East Texas Region I Water Planning Group, is currently serving a second term as president of EAA Chapter 1219, and just finished his third term as a board member of the Angelina County Chamber of Commerce. Dunn received a Bachelor of Science in Industrial Technology from Sam Houston State University.

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

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