HOUSE RESEARCH ORGANIZATION • TEXAS HOUSE OF REPRESENTATIVES P.O. Box 2910, Austin, Texas 78768-2910 (512) 463-0752 • https://hro.house.texas.gov

Steering Committee: Alma Allen, Chairman Gary VanDeaver, Vice Chairman

Dustin Burrows John Frullo J. M. Lozano Jim Murphy Angie Chen Button Mary González Eddie Lucio III Andrew Murr Joe Deshotel Donna Howard Ken King Ina Minjarez Toni Rose

HOUSE RESEARCH ORGANIZATION

daily floor report

Thursday, May 06, 2021 87th Legislature, Number 50 The House convenes at 10 a.m. Part Two

Two bills are on the Major State Calendar and 44 bills are on the General State Calendar for second reading consideration today. The bills analyzed or digested in Part Two of today's Daily Floor Report are listed on the following page.

Analyses of postponed bills and all bills on second reading can be found online on TLIS and at https://hro.house.texas.gov/BillAnalysis.aspx.

The following House committees were scheduled to meet today: Higher Education; State Affairs; Land and Resource Management; Public Education; Insurance; Natural Resources; Juvenile Justice and Family Issues; and Corrections.

Alma Allen Chairman 87(R) - 50

HOUSE RESEARCH ORGANIZATION Daily Floor Report Thursday, May 06, 2021 87th Legislature, Number 50 Part 2

HB 3482 by Rose Revising tax rate adjustment for indigent defense compensation costs 72 HB 458 by Shaheen Collecting income withholding for child support from certain employees 74 HB 4066 by Lucio III Creating a permit for the beneficial reuse of certain wastewater 77 HB 4294 by Metcalf Meetings of certain legislative agencies, oversight committees if disaster 79 HB 1753 by Oliverson Revising certain reports under the Texas workers' compensation system 82 HB 2281 by Hefner Revising premises of educational institutions where weapons prohibited 84 HB 2556 by Neave Designating September 30 as Vanessa Guillén Day 86 HB 2911 by White Increasing 9-1-1 service fee; providing for next generation 9-1-1 service 87 HB 3073 by Shaheen Requiring state agencies to make guidance documents public on websites 91 HB 3107 by Clardy Modifying certain election practices and procedures 93 HB 3626 by Romero Modifying out-of-state licensing for certain therapists and counselors 96 HB 3459 by Bonnen Establishing preauthorization exemption for certain health care providers 99 HB 3627 by Paddie Limiting catastrophe conditions for suspending public information laws 102 HB 764 by Krause Reducing STAAR testing for public school students 104 HB 4437 by Walle Allowing Harris County to use a local preference policy for contracts 109 HB 1501 by Dean Prohibiting regulations restricting use of natural gas or propane appliances 111 HB 3418 by Fierro Requiring information on state preference for purchasing recycled goods 113 HB 3351 by Pacheco Establishing the Texas Commission on Community College Finance 115 HB 3662 by Buckley Expanding mandated contracts under the Medicaid managed care program 118 HB 1423 by Campos Allowing HHSC to conduct follow-up inspections of nursing facilities 120 HB 3669 by Dean Allowing a public junior college library to donate certain materials 122 HB 1676 by Goodwin Child water safety requirements for certain organizations 123 HB 3927 by Hefner Revising database access, classification of temporary motor vehicle tags 126 HB 2633 by Johnson Creating a trafficked persons grant program for children, youths 128 HB 4612 by Vasut Creating the Brazoria County Management District No. 2 133 HB 546 by Pacheco Extending eligibility for certain student loan repayment programs 138 HB 211 by Thierry Taxing e-cigarettes and alternative nicotine products; reducing other taxes 140

HOUSE (2nd reading) RESEARCH HB 3482 ORGANIZATION bill digest 5/6/2021 Rose, Rodriguez

SUBJECT: Revising tax rate adjustment for indigent defense compensation costs

COMMITTEE: Ways and Means — favorable, without amendment

VOTE: 11 ayes — Meyer, Thierry, Button, Cole, Guerra, Martinez Fischer, Murphy, Noble, Rodriguez, Sanford, Shine

0 nays

WITNESSES: For — Adam Haynes, Conference of Urban Counties; Charles Reed, Dallas County Commissioners Court; Kelli Childress, El Paso County Public Defender's Office; Alex Bunin, Harris County; (Registered, but did not testify: Melissa Shannon, Bexar County Commissioners Court; Jim Allison, County Judges and Commissioners Association of Texas; Daniel Collins, El Paso County; Tammy Narvaez, Harris County Commissioners Court; Russell Schaffner, Tarrant County; Julie Wheeler, Travis County Commissioners Court)

Against — None

On — Geoff Burkhart, Texas Indigent Defense Commission; (Registered, but did not testify: Korry Castillo, Comptroller of Public Accounts)

BACKGROUND: Tax Code sec. 26.0442 provides that if a county's indigent defense compensation expenditures exceed the amount of those expenditures for the preceding tax year, the no-new-revenue maintenance and operations rate for the county is increased by certain formulas.

"Indigent defense compensation expenditures" means the amount paid by a county to provide appointed counsel for indigent individuals in criminal or civil proceedings less the amount of any state grants received for that purpose.

Concerns have been raised that tax laws allow a county's property tax rate to be adjusted to reflect increases in indigent defense compensation expenditures associated with the use of outside appointed counsel but not expenditures associated with a public defender's office.

- 72 - HB 3482 House Research Organization page 2

DIGEST: HB 3482 would amend the definition of "indigent defense compensation expenditures" for the purposes of Tax Code sec. 26.0442 to include the amount paid by a county to fund the operations of a public defender's office less the amount of any state grants.

The bill would take effect January 1, 2022, and apply only to the calculation of tax rates for a county for a tax year on or after that date.

- 73 - HOUSE HB 458 (2nd reading) RESEARCH Shaheen ORGANIZATION bill analysis 5/6/2021 (CSHB 458 by Vasut)

SUBJECT: Collecting income withholding for child support from certain employees

COMMITTEE: Juvenile Justice and Family Issues — committee substitute recommended

VOTE: 8 ayes — Neave, Swanson, Cook, Frank, Ramos, Talarico, Vasut, Wu

0 nays

1 absent — Leach

WITNESSES: For — Keith Maples, Texas Family Law Foundation; (Registered, but did not testify: Amy Bresnen, Texas Family Law Foundation; Cecilia Wood)

Against — Julie Campbell

On — Charles Reed, Dallas County Commissioners Court; Joel Rogers, Office of the Attorney General-Child Support Division

BACKGROUND: Family Code sec. 101.011 defines earnings to mean a payment to or due an individual, regardless of source and how denominated. The term includes a periodic or lump-sum payment for:

 wages, salary, compensation received as an independent contractor, overtime pay, severance pay, commission, bonus, and interest income;  payments made under a pension, an annuity, workers' compensation, and a disability or retirement program; and  unemployment benefits.

Occupations Code sec. 2402.001 defines a "transportation network company" to mean a corporation, partnership, sole proprietorship, or other entity that, for compensation, enables a passenger to prearrange with a driver, exclusively through the entity's digital network, a digitally prearranged ride.

DIGEST: CSHB 458 would add to the types of periodic or lump-sum payments that are considered "earnings" in the Family Code to include compensation

- 74 - HB 458 House Research Organization page 2

from a transportation network company and compensation from a person that operates a technology platform used to make deliveries to customers.

The bill would change the definition of "employee" as applicable to the Office of the Attorney General-Child Support Division's state directory of new hires to include:

 a driver who logged in to the digital network of a transportation network company regardless of whether the driver was considered an independent contractor under the Occupations Code; and  an individual who logged in to or otherwise used a technology platform to make deliveries for compensation.

The bill would include among the persons who were considered employers a transportation network company and a person that operates a technology platform used to make deliveries to customers. An employee who had not received earnings from the employer and an employee who was previously employed by the employer but had not received earnings from the employer for at least 60 consecutive days would be included among the persons considered newly hired employees.

The bill would take effect September 1, 2021.

SUPPORTERS CSHB 458 would help to ensure that Texas children get the financial SAY: support they deserve by amending the Family Code to clarify the requirements for collecting child support wages from certain transportation network companies, such as ride-share operators Uber and Lyft, who hire "gig" employees. Current law requires a court or the Child Support Division of the Office of the Attorney General in a child support proceeding to issue an Income Withholding Order (IWO) so that income may be withheld from an individual's income to pay child support. However, many "gig economy" employers do not currently report the independent contractors who perform these tasks to the state directory of new hires. As a result, the attorney general's office has incomplete information about an obligor's income and resources and is unable to issue IWOs to ensure child support is paid promptly and consistently.

- 75 - HB 458 House Research Organization page 3

CRITICS CSHB 458 could lead to the garnishing of a gig worker's wages, putting SAY: them at risk financially and potentially driving them to off-the-books work to hide income, which would ultimately deprive those who depend on the worker for child support payments.

- 76 - HOUSE HB 4066 (2nd reading) RESEARCH Lucio ORGANIZATION bill digest 5/6/2021 (CSHB 4066 by Price)

SUBJECT: Creating a permit for the beneficial reuse of certain wastewater

COMMITTEE: Natural Resources — committee substitute recommended

VOTE: 8 ayes — T. King, Harris, Bowers, Kacal, Lucio, Paul, Price, Wilson

0 nays

3 absent — Larson, Ramos, Walle

WITNESSES: For — Alan Pyle; (Registered, but did not testify: Chris Hosek, BP; Caleb Troxclair, EOG Resources; Jason Modglin, Texas Alliance of Energy Producers; Billy Howe, Texas Farm Bureau; Ryan Paylor, Texas Independent Producers & Royalty Owners Association)

Against — None

On — (Registered, but did not testify: David Cooney and Jeremy Mazur, Railroad Commission)

BACKGROUND: Interested parties have suggested that greywater recyclers would benefit from having a permit separate from oil and gas operator permits to streamline the permitting process.

DIGEST: CSHB 4066 would require the Railroad Commission (RRC) to adopt a permit by rule for the beneficial recycling of treated domestic wastewater and mobile drinking water treatment system wastewater generated from oil and gas drilling sites.

"Domestic wastewater" would mean wastewater that originated primarily from kitchen, bathroom, and laundry sources, including waste from food preparation, dishwashing, garbage grinding, toilets, baths, showers, and sinks of a residential dwelling.

"Mobile drinking water treatment system wastewater" would mean wastewater generated from the treatment of surface or subsurface

- 77 - HB 4066 House Research Organization page 2

groundwater for drinking purposes. The term would include reverse osmosis reject water.

In adopting a permit, RRC would have to require:

 that discharges of treated wastewater at oil and gas drilling sites were in compliance with the state's applicable water quality standards for reuse down-hole or applied to land;  notification of the start date and exact location for each domestic wastewater or mobile drinking water treatment system unit;  reporting requirements including the total number of days wastewater was reused or applied after treatment, the total volume of each type of wastewater, the total volume of treated effluent, and certain other items; and  financial security assurances of up to $200,000 per year for each active permit.

The bill would apply to an oil and gas drilling site regardless of whether the well had been completed.

RRC would have to adopt the permit by rule by December 1, 2021.

The bill would take effect September 1, 2021.

NOTES: According to the Legislative Budget Board, the bill would have a negative impact of about $3.1 million to general revenue through fiscal 2023.

- 78 - HOUSE HB 4294 (2nd reading) RESEARCH Metcalf ORGANIZATION bill digest 5/6/2021 (CSHB 4294 by Metcalf)

SUBJECT: Meetings of certain legislative agencies, oversight committees if disaster

COMMITTEE: House Administration — committee substitute recommended

VOTE: 6 ayes — Metcalf, Burns, Klick, E. Morales, Sanford, Walle

0 nays

5 absent — Cole, Anchia, Landgraf, Oliverson, Zwiener

WITNESSES: For — (Registered, but did not testify: Thomas Parkinson)

Against — None

DIGEST: CSHB 4294 would establish provisions for certain legislative and oversight committees to meet if there was a disaster declaration, to determine who would pay per diem and travel expenses for members of statutory joint committees, and to expand the Commission on Uniform State Laws.

Meetings. The bill would establish provisions for the legislative audit committee, Texas Legislative Council, legislative library board, and the Sunset Advisory Commission to meet if a disaster had been declared for the first time after the final adjournment of the most recent regular legislative session and certain conditions were met.

The provisions would go into effect only if a disaster had been declared by:

 a declaration by the U.S. president under federal law; or  a declaration or determination by a public officer, governing body, or authority under Government Code ch. 418, Health and Safety Code ch. 81, or other law.

The provision would go into effect regardless of the subject of the meeting or the topics considered by the members.

- 79 - HB 4294 House Research Organization page 2

If the joint chairs of the committee, council, or board or the chairman and vice-chairman of the commission, as applicable, were physically present at a meeting of the committee, council, board, or commission in Austin, then any number of the other members of the body could attend the meeting remotely by phone, video conference call, or other similar means of telecommunication.

A member of the body who participated in a meeting remotely would be considered present for determining a quorum, voting, and any other purpose. Meetings held under these provisions:

 would be subject to the notice requirements applicable to other meetings of the body;  would have to specify in the meeting notice the Austin location at which the joint chairs would be physically present;  would have to be open to the public and audible to the public at the Austin location;  would have to provide two-way audio communication between all members of the body attending the meeting during the entire meeting; and  if the two-way audio communication with any member was disrupted, could not continue until the two-way communication link was reestablished.

Per diem, travel for joint interim committee. The bill would establish that per diem and travel expenses paid to a member of a joint committee established by statute would have to be paid by the house to which the member belonged. Per diem and travel expenses for a public member of a committee would have to be paid by the office of the appointing entity.

Commission on Uniform State Laws. The bill would transfer Government Code provisions on the Commission on Uniform State Laws from Title 7 of the Government Code, which governs intergovernmental relations, to Title 3, Subtitle C of the Government Code, which governs legislative agencies and oversight committees.

- 80 - HB 4294 House Research Organization page 3

The bill would expand the commission, which is charged with promoting uniformity in state laws in subject areas in which uniformity is desirable and practicable. The commission currently consists of nine members appointed by the governor, the executive director of the Texas Legislative Council or a person designated by the executive director, and residents of the state who have long service in the cause of uniformity in state legislation. The commission would be expanded to include:

 two members appointed by the lieutenant governor who were members or officers of the Senate;  two members appointed by the House speaker who were members or officers of the House of Representatives;  the chair of the standing committee of the Senate with primary jurisdiction over uniform state laws; and  the chair of the standing committee of the House of Representatives with primary jurisdiction over uniform state laws.

Members added by the bill would have to be licensed attorneys.

Other provisions. The bill would authorize the Texas Legislative Council to transfer money to another legislative agency to cover expenses of the other agency that the council's executive director determined was necessary to further a purpose of the council.

The definition of legislative agency that is used to authorize cooperation between agencies would not include the Texas Ethics Commission.

This bill would take immediate effect if finally passed by a two-thirds record vote of the membership of each house. Otherwise, it would take effect September 1, 2021.

- 81 - HOUSE (2nd reading) RESEARCH HB 1753 ORGANIZATION bill digest 5/6/2021 Oliverson

SUBJECT: Revising certain reports under the Texas workers' compensation system

COMMITTEE: Business and Industry — favorable, without amendment

VOTE: 7 ayes — C. Turner, Hefner, Crockett, Lambert, Ordaz Perez, Patterson, S. Thompson

0 nays

2 absent — Cain, Shine

WITNESSES: For — (Registered, but did not testify: Lee Ann Alexander, American Property and Casualty Insurance Association; Jay Thompson, Association of Fire and Casualty Companies of Texas; Cathy DeWitt, Jobs for Texas; Megan Herring, Texas Association of Business; John Wilkerson, Texas Municipal Police Association; Barbara Salyers, Texas Mutual Insurance Company; Bobby Hillert, Texas Orthopaedic Association; Lisa Kaufman, TMLIRP)

Against — None

On — (Registered, but did not testify: Amy Lee, Texas Department of Insurance, Division of Workers' Compensation)

BACKGROUND: Insurance Code sec. 1305.502 requires the workers' compensation research and evaluation group to develop and issue an annual informational report card that identifies and compares the quality, costs, health care provider availability, and other factors of workers' compensation health care networks operating under the workers' compensation system of the state with each other and with medical care provided outside of networks.

Other evaluations, reports, and studies are issued regarding the state workers' compensation system under Insurance Code secs. 1305.501 and 2053.012 and Labor Code sec. 405.0025.

- 82 - HB 1753 House Research Organization page 2

Some have suggested changing the frequency of reports issued by the workers' compensation research and evaluation group and eliminating duplicative efforts.

DIGEST: HB 1753 would require the workers' compensation research and evaluation group to develop consumer report cards by December 1 of each even-numbered year. The bill would repeal certain provisions requiring other evaluations, reports, and studies regarding the state workers' compensation system.

The bill would take immediate effect if finally passed by a two-thirds record vote of the membership of each house. Otherwise, it would take effect September 1, 2021.

- 83 - HOUSE (2nd reading) RESEARCH HB 2281 ORGANIZATION bill digest 5/6/2021 Hefner

SUBJECT: Revising premises of educational institutions where weapons prohibited

COMMITTEE: Homeland Security and Public Safety — favorable, without amendment

VOTE: 7 ayes — White, Harless, Hefner, E. Morales, Patterson, Schaefer, Tinderholt

2 nays — Bowers, Goodwin

WITNESSES: For — Tara Mica, National Rifle Association; Gary Zimmerman; (Registered, but did not testify: Daniel Collins, El Paso County; Felisha Bull and Rachel Malone, Gun Owners of America; Rick Briscoe, Open Carry Texas; Brian Hawthorne, Sheriffs Association of Texas; Mark Borskey, Texas State Rifle Association; Marcia Strickler, Wilco We Thee People; and 12 individuals)

Against — (Registered, but did not testify: Leslie Blanton, Robin Breed, Rebecca Defelice, Nancy Einhorn, Mandy Gauld, and Melanie Greene, Moms Demand Action; Christina Puentes, Frances Schenkkan, Gyl Switzer, and Louis Wichers, Texas Gun Sense; and six individuals)

On — (Registered, but did not testify: Thomas Parkinson)

BACKGROUND: Under Penal Code sec. 46.03(a)(1), a person commits an offense if the person intentionally, knowingly or recklessly possesses or goes with a firearm or other prohibited weapon on:

 the physical premises of a school or educational institution;  any grounds or building on which an activity sponsored by a school or educational institution is being conducted; or  a passenger transportation vehicle of a school or educational institution.

It is not an offense if the person possesses a firearm or other prohibited weapon on such premises if the person possesses a concealed handgun that the person is licensed to carry on the premises of an institution of higher education, on any grounds or building on which activity sponsored

- 84 - HB 2281 House Research Organization page 2

by the institution is being conducted, or in a passenger transportation vehicle of the institution.

Some have suggested that current law prohibiting the carrying of a weapon on any grounds or building on which an activity sponsored by a school or educational institution was taking place could be interpreted in a way that the possession of an otherwise legal weapon would be an offense simply because a group of students was present on the same premises.

DIGEST: HB 2281 would revise the premises on which it would be an offense under Penal Code sec. 46.03(a)(1) to possess a firearm or other prohibited weapon and specify that a person would commit the offense if the person intentionally, knowingly, or recklessly possessed or went with such weapons on any grounds or building owned by and under the control of a school or postsecondary educational institution on which an activity sponsored by the school or institution was being conducted.

The bill would take effect September 1, 2021, and would apply only to an offense committed on or after that date.

- 85 - HOUSE (2nd reading) RESEARCH HB 2556 ORGANIZATION bill analysis 5/6/2021 Neave, et al.

SUBJECT: Designating September 30 as Vanessa Guillén Day

COMMITTEE: Defense and Veterans' Affairs — favorable, without amendment

VOTE: 8 ayes — Raymond, Buckley, Biedermann, Gervin-Hawkins, Lambert, Lopez, E. Morales, Tinderholt

0 nays

1 absent — Cyrier

WITNESSES: For — Steven Price, The VOICES of Our Veterans; Gus Pena, Veterans for Progress; and six individuals; (Registered, but did not testify: Savannah Eldrige, Be Frank 4 Justice; Mitch Fuller, Texas VFW; Jim Brennan, Texas Coalition of Veterans Organizations; Madeline Kennedy)

Against — None

DIGEST: HB 2556 would designate September 30 as Vanessa Guillén Day in memory of the life and tragic death of Vanessa Guillén and to increase awareness of and the military’s response to missing persons, sexual assault, and sexual harassment cases for service members. Vanessa Guillén Day would be regularly observed by appropriate programs and activities.

The bill would take effect September 1, 2021.

SUPPORTERS HB 2556 would recognize the life and memory of Army Specialist SAY: Vanessa Guillén. In April 2020, 20-year-old PFC Guillén was reported missing from Fort Hood and was later found to have been murdered by a fellow soldier. Naming September 30, which was PFC Guillén's birthday, as Vanessa Guillén Day would honor PFC Guillén's life.

CRITICS No concerns identified. SAY:

- 86 - HOUSE HB 2911 (2nd reading) RESEARCH White ORGANIZATION bill digest 5/6/2021 (CSHB 2911 by E. Morales)

SUBJECT: Increasing 9-1-1 service fee; providing for next generation 9-1-1 service

COMMITTEE: Homeland Security and Public Safety — committee substitute recommended

VOTE: 6 ayes — White, Bowers, Goodwin, Harless, E. Morales, Patterson

3 nays — Hefner, Schaefer, Tinderholt

WITNESSES: For — Chip VanSteenberg, Montgomery County 911; Michael Tomsu, Texas 9-1-1 Alliance; Mark Allen, Texas Association of Regional Councils; (Registered, but did not testify: Erin Burget, AT&T; Lee Kleinman, City of Dallas; Charley Wilkison, Combined Law Enforcement Associations of Texas; Frederick Frazier, Dallas Police Association FOP 716, Legislative Director State FOP; Stan Heffernan, Greater Harris County 911; Jill Glover, Republican Party of Texas; James Goerke and Shayne Woodard, Texas 9-1-1 Alliance; Monty Wynn, Texas Municipal League; Mark Seale, Texas Telephone Association)

Against — None

On — Kelli Merriweather, Commission on State Emergency Communications

BACKGROUND: Health and Safety Code sec. 771.0711 requires the Commission on State Emergency Communications to impose a 9-1-1 emergency service fee on each wireless telecommunications connection. The 9-1-1 service fee is currently 50 cents a month.

Money collected may be used only for 9-1-1 related services, including automatic number identification and automatic location information services. Within 15 days of the end of the month in which the money is collected, the commission has to distribute to each emergency communication district that does not participate in the state system a portion of the money that bears the same proportion to the total amount collected that the population of the area served by the district bears to the

- 87 - HB 2911 House Research Organization page 2 population of the state. The remaining money is deposited to the 9-1-1 services fee account.

Sec. 771.0712 requires a prepaid wireless 9-1-1 emergency services fee of two percent of the price of each prepaid wireless telecommunications service purchased to be collected from the consumer, remitted to the comptroller, and distributed consistent with the procedures in place for the emergency services fee under sec. 771.0711.

47 U.S.C. sec. 942 defines "next generation 9-1-1 service" as an IP-based system comprised of hardware, software, data, and operational policies and procedures that:

 provides standardized interfaces from emergency call and message services to support emergency communications;  processes all types of emergency calls, including voice, data, and multimedia information;  acquires and integrates additional emergency call data useful to call routing and handling;  delivers the emergency calls, messages, and data to the appropriate public safety answering point and other appropriate emergency entities;  supports data or video communications needs for coordinated incident response and management; and  provides broadband service to public safety answering points or other first responder entities.

Some have noted that while an increasing number of 9-1-1 calls originate from digital communications devices, the backbone of most 9-1-1 systems is built on outdated legacy telecommunications infrastructure. Next generation 9-1-1 could help address these challenges by using digital communication technology to improve emergency communications; however, the transition would be costly and the costs would vary across the state. Some have suggested increasing the existing 9-1-1 fee to help fund the deployment while taking steps to accommodate the unique needs of the Greater Houston County 9-1-1 Emergency Network.

- 88 - HB 2911 House Research Organization page 3

DIGEST: CSHB 2911 would require all parts of the state to be covered by next generation 9-1-1 service by September 1, 2025.

The bill would increase the 9-1-1 emergency service fee from 50 to 75 cents a month. The bill also would expand its uses to include the deployment and reliable operation of next generation 9-1-1 service.

The bill would exclude emergency communications districts in certain counties with populations over two million (Greater Harris County 9-1-1 Emergency Network) from the distribution procedures for the emergency services fee under Health and Safety Code sec. 722.0711. The Greater Harris County 9-1-1 Emergency Network would have to be included in the collection and distribution of prepaid wireless 9-1-1 emergency service fees under sec. 772.0712.

In addition to the 9-1-1 emergency service fee the Greater Harris County 9-1-1 Emergency Network imposes on line service users, the board of the district could impose a 9-1-1 emergency service fee on each wireless telecommunications connection in the district to provide for automatic number and location identification of wireless 9-1-1 calls and the deployment and reliable operation of next generation 9-1-1 service. The bill would extend provisions governing the imposition, collection, and use of the district's fee on wire service users to apply to the wireless 9-1-1 emergency fee established by the bill.

The fee imposed on wireless telecommunications connections could not exceed 75 cents a month for each connection and could not increase by more than 10 percent of the monthly fee imposed in the preceding year each time the fee was set.

The amount collected by a wireless service provider from the fee would be due monthly, and the provider would have to remit the collected amount to the comptroller no later than 30 days after the last day of the month. The comptroller would have to deposit the money in a trust fund in the state treasury for the benefit of the district. No later than 15 days following the last day of the month in which the money was collected, the Commission on State Emergency Communications would have to

- 89 - HB 2911 House Research Organization page 4

distribute to the Greater Harris County 9-1-1 Emergency Network the total amount of money remitted to the comptroller.

The Commission on State Emergency Communications would be prohibited from imposing on a wireless telecommunications connection in the district a fee for financing state emergency communications that was imposed for the same purposes.

The bill would repeal a provision providing for the reimbursement of wireless service providers for certain expenses related to 9-1-1 service.

The bill would take effect September 1, 2021, and would apply only to a fee imposed or expense that was due during a billing cycle that occurred on or after January 1, 2022.

NOTES: According to the Legislative Budget Board, the bill would result in a positive impact on the fund balance of the general revenue dedicated 9-1-1 Service Fees Account of $6.5 million in fiscal 2022 and $13.1 million in fiscal 2023.

- 90 - HOUSE (2nd reading) RESEARCH HB 3073 ORGANIZATION bill digest 5/6/2021 Shaheen

SUBJECT: Requiring state agencies to make guidance documents public on websites

COMMITTEE: State Affairs — favorable, without amendment

VOTE: 12 ayes — Paddie, Hernandez, Deshotel, Harless, Howard, Hunter, P. King, Metcalf, Raymond, Shaheen, Slawson, Smithee

0 nays

1 absent — Lucio

WITNESSES: For — Rod Bordelon, Texas Public Policy Foundation; (Registered, but did not testify: Michelle Davis, Convention of States; and eight individuals)

Against — None

BACKGROUND: Interested parties have suggested requiring state agencies to provide a link to their guidance documents on their websites to clear up any confusion between supervisory guidance documents and regulatory documents.

DIGEST: HB 3073 would require each state agency to include on its publicly accessible website a prominently displayed link to its guidance documents.

A "guidance document" would mean a statement of general applicability describing an agency's policy on a statutory, regulatory, or technical issue that related to the agency's powers and duties or that interpreted a statutory or regulatory issue related to its powers and duties. The term would not include a rule adopted by the agency.

An agency could not charge a person to access a guidance document.

The bill would be liberally construed to effectuate its purposes, but the bill could not be construed to require disclosure of information excepted from public disclosure or confidential information.

- 91 - HB 3073 House Research Organization page 2

The bill would take effect September 1, 2021. Agencies would have to comply with the bill's requirements as soon as practicable after that date, but no later than March 1, 2022.

- 92 - HOUSE HB 3107 (2nd reading) RESEARCH Clardy, et al. ORGANIZATION bill digest 5/6/2021 (CSHB 3107 by Clardy)

Is SUBJECT: Modifying certain election practices and procedures

COMMITTEE: Elections — committee substitute recommended

VOTE: 9 ayes — Cain, J. González, Beckley, Bucy, Clardy, Fierro, Jetton, Schofield, Swanson

0 nays

WITNESSES: For — (Registered, but did not testify: Joanne Richards, Common Ground for Texans; Gerald Welty, Convention of States; Heather Hawthorne, County and District Clerks Association of Texas; Klint Bush, Liberty County; Jennifer Anderson, Texas Association of Elections Administrators; Glen Maxey, ; Donald Garner, Texas Faith and Freedom Coalition; Chad Ennis, Texas Public Policy Foundation; Julie Wheeler, Travis County Commissioners Court; and 16 individuals)

Against — Laura Pressley, True Texas Elections, LLC; Marcia Strickler, Wilco We The People; (Registered, but did not testify: Ruth York, Tea Party Patriots of Eastland County and the Texas Family Defense Committee; Jen Ramos, Texas Democratic Party; Beth Biesel, Texas Eagle Forum; and 26 individuals)

On — Christina Adkins, Texas Secretary of State; (Registered, but did not testify: Alan Vera, Harris County Republican Party Ballot Security Committee; Scott O’Grady, Texans for Election Integrity; Deana Johnston, Texas Eagle Forum; Robert L. Green, Travis County Republican Party Election Integrity Committee; Dee Holley)

BACKGROUND: Concerns have been raised about the need for the Legislature to clarify and modernize certain provisions of the Texas Election Code pertaining to election practices and procedures.

DIGEST: CSHB 3107 would modify and update certain election practices and procedures relating to the submission of certain documents, voter registration applications, election judge and clerk training, notice of ballot

- 93 - HB 3107 House Research Organization page 2 drawings, early voting clerk contact information, and bilingual election clerks, among other provisions. The bill also would repeal several provisions of the Elections Code.

Email submission of certain documents. CSHB 3107 would add email as an acceptable method of transmission for a delivery, submission, or filing of a document or paper under the Election Code.

Voter registration applications. The bill would specify that for a voter registration application submitted by fax to be effective, a copy of the original application containing the voter’s original signature would have to be submitted by personal delivery or mail and be received by the county voter registrar by the fourth business day after the fax was received.

Election judge and clerk training. CSHB 3107 would specify that the required training program for election judges and election clerks would have to include specific procedures related to the early voting ballot board and the central counting station, as applicable.

Written notice of ballot drawing. The bill would require an authority conducting a drawing for the order of candidate names on a ballot to provide notice of the date, hour, and place of the drawing to each candidate. Notice would have to be given by:

 written notice, either mailed to the address on a candidate’s application for a place on the ballot or provided at the time the candidate filed an application with the appropriate authority;  telephone, if a telephone number was provided on the candidate’s application for a place on the ballot; or  email, if an email address was provided on the candidate’s application for a place on the ballot.

Early voting clerk contact information. CSHB 3107 would specify that an election order and election notice would have to state the early voting clerk’s official mailing address or street address at which the clerk could receive delivery by common or contract carrier, if different, phone number, email address, and internet website, if applicable. - 94 - HB 3107 House Research Organization page 3

Bilingual election clerks. The bill would specify that in order to be eligible to serve as a bilingual election clerk, a person would have to be a qualified voter of the state and satisfy any additional requirements prescribed by written order of a commissioners court or meet the eligibility requirements of a student election clerk.

Miscellaneous provisions and repeals. The bill would modify various other provisions relating to election practices and procedures and would repeal certain provisions of the Election Code to remove outdated language and comply with new requirements.

The bill would take effect September 1, 2021.

- 95 - HOUSE HB 3626 (2nd reading) RESEARCH Romero, et al. ORGANIZATION bill digest 5/6/2021 (CSHB 3626 by Shaheen)

SUBJECT: Modifying out-of-state licensing for certain therapists and counselors

COMMITTEE: Human Services — committee substitute recommended

VOTE: 9 ayes — Frank, Hinojosa, Hull, Klick, Meza, Neave, Noble, Rose, Shaheen

0 nays

WITNESSES: For — Jan Friese, Texas Counseling Association; (Registered, but did not testify: Elisa Tamayo, Emergence Health Network (El Paso's LMHA); Sebastien Laroche, Methodist Healthcare Ministries of South Texas, Inc.; Greg Hansch, National Alliance on Mental Illness Texas; Carrie Simmons, Opportunity Solutions Project; Tristan Castaneda Jr., Texas Association for Marriage and Family Therapy; Lee Johnson, Texas Council of Community Centers; Thomas Parkinson)

Against — None

On — (Registered, but did not testify: Darrel Spinks, TX Behavioral Health Executive Council)

BACKGROUND: Occupations Code chs. 502 and 503 establish regulations for marriage and family therapists (MFTs) and licensed professional counselors (LPCs), respectively.

Sec. 502.151 specifies the general powers and duties of the Texas Behavioral Health Executive Council in relation to MFTs, which include determining the qualifications and fitness of a license applicant and adopting a code of professional ethics for license holders.

Sec. 502.1515 specifies the duties of the Texas State Board of Examiners of Marriage and Family Therapists, which include proposing to the executive council certain rules and a schedule of sanctions for violations.

- 96 - HB 3626 House Research Organization page 2

Under sec. 502.252, an applicant is eligible to apply for a license as an MFT if the person meets certain degree, examination, work hour, and supervised work hour requirements, among others.

If an applicant for an MFT license meets certain requirements, Sec. 502.2545 allows the executive council to waive the requirement that an applicant pass a specified examination for licensure. Sec. 502.259 allows the council to grant a provisional license to practice as an MFT in Texas without examination to certain applicants.

Under sec. 503.302, an individual qualifies for a license as a licensed professional counselor (LPC) if the person meets certain degree, examination, and supervised work hour requirements, among others.

Sec. 503.308 allows the executive council to provide for the issuance of an LPC temporary license for individuals who meet all of the academic requirements for licensing and enter into a supervisory agreement with a supervisor approved by the executive council.

Concerns have been raised that the application process for certain mental health professionals relocating to Texas and seeking license reciprocity can be lengthy and burdensome, and streamlining this process for such professionals could ease their transitions to Texas and help mitigate a potential shortage of licensed mental health professionals.

DIGEST: CSHB 3626 would modify certain Texas licensing requirements for out- of-state marriage and family therapists (MFTs) and associates and for professional counselors and associates. The bill also would change certain duties associated with such licensing of the Texas State Board of Examiners of Marriage and Family Therapists, the Texas State Board of Examiners of Professional Counselors, and the Texas Behavioral Health Executive Council.

Licensed marriage and family therapist. An applicant for Texas licensure as a licensed marriage and family therapist (LMFT) who was licensed and in good standing in another state to independently practice as an LMFT and had independently practiced as such in that state before the date the Texas application for licensure was submitted would be exempt - 97 - HB 3626 House Research Organization page 3 from the yearly and hourly work experience and supervisory specifications required for such licensing in Texas. The related board also could waive the requirement that such an applicant would have to pass a specified examination.

Licensed associate. An applicant for a Texas license as an LMFT who practiced as an LMFT associate in another state could count that out-of- state experience toward the yearly and hourly work experience and supervisory specifications required for licensing in Texas if:

 the applicant was licensed in good standing as an MFT associate in the other state; and  based on a review of that experience by a licensed supervisor in Texas, the related board determined that the experience was acceptable.

An MFT associate in another state or jurisdiction that had substantially similar licensing requirements to those in Texas could be eligible for a provisional license in Texas.

Licensed professional counselor. An applicant for Texas licensure as a licensed professional counselor (LPC) who was licensed and in good standing in another state to independently practice as a professional counselor or as an art therapist and had independently practiced as such in that state for at least the two years preceding the date the Texas application was submitted would be exempt from the supervised experience hours required for LPC licensing in Texas. The related board also could waive the requirement that such an applicant pass the license examination, but the applicant would be required to pass the jurisprudence examination.

Associate license. The bill would rename the "Temporary License" provisions for LPCs as "Associate License" provisions and make related conforming changes.

The bill would take effect September 1, 2021, and would apply only to an application for a license submitted on or after that date.

- 98 - HOUSE HB 3459 (2nd reading) RESEARCH Bonnen ORGANIZATION bill digest 5/6/2021 (CSHB 3459 by Oliverson)

SUBJECT: Establishing preauthorization exemption for certain health care providers

COMMITTEE: Insurance — committee substitute recommended

VOTE: 7 ayes — Oliverson, Vo, J. González, Israel, Middleton, Romero, Sanford

2 nays — Hull, Paul

WITNESSES: For — Lisa Ehrlich and Ezequiel Silva, Texas Medical Association; John Flores, Texas Medical Association and Texas Chapter of the American College of Physicians; Lillian Timon, Texas MGMA; (Registered, but did not testify: Allison Greer, CHCS; Kyle Frazier, Patient Choice Coalition of Texas; Rebecca Galinsky, Protect TX Fragile Kids; Marshall Kenderdine, Texas Academy of Family Physicians; David Reynolds, Texas Chapter of the American College of Physicians; Kaden Norton, Texas Chiropractic Association; Carrie De Moor, Texas College of Emergency Physicians; Cameron Duncan, Texas Hospital Association; Clayton Stewart, Texas Medical Association; Bobby Hillert, Texas Orthopaedic Association; Jill Sutton, Texas Osteopathic Medical Association; Michael Grimes, Texas Radiological Society; Khrystal Davis, Texas Rare Alliance; Bonnie Bruce and Michael Warner, Texas Society of Anesthesiologists; Price Ashley, Texas Society of Pathologists; Thomas Parkinson)

Against — Jamie Dudensing, Texas Association of Health Plans; (Registered, but did not testify: Will Temple, America's Health Insurance Plans; Patricia Kolodzey, Blue Cross Blue Shield of Texas; Eric Glenn, Superior Health Plan; Shannon Meroney, Texas Association of Health Underwriters; Bill Hammond, Texas Employers for Insurance Reform)

On — (Registered, but did not testify: Libby Elliott, Texas Department of Insurance)

BACKGROUND: Insurance Code sec. 843.348 governs the preauthorization process used by health maintenance organizations for health care services.

- 99 - HB 3459 House Research Organization page 2

Sec. 1301.135 governs the preauthorization process used by insurers of preferred provider benefit plans for medical care and health care services.

Utilization review agents evaluate the medical necessity and appropriateness of health care services that are ordered, requested, or provided by a physician. Sec. 4201.206 requires that before a utilization review agent determines a health care service is not medically necessary or is experimental or investigational, the agent must provide the health care provider a reasonable opportunity to discuss with another licensed physician the patient's treatment plan and the clinical basis for the agent's determination.

Concerns have been raised that preauthorization requirements and utilization review processes are burdensome for health care providers and can prevent patients from accessing the health care they need. Some have called for an exemption to preauthorization requirements for health care providers who submit and receive approval for a certain number of preauthorization requests every year. Suggestions also have been made to ensure physicians who are most familiar with the delivery of health care in Texas are involved in utilization reviews.

DIGEST: CSHB 3459 would prohibit a health maintenance organization (HMO) and a preferred provider benefit plan insurer that used a preauthorization process for certain health care services from requiring a physician or provider to obtain a preauthorization if specified criteria were met. The bill also would revise certain provisions relating to utilization review.

Preauthorization exemption. Under the bill, a physician or provider would not be required to obtain preauthorization for a particular health care service if, in the previous year:

 the physician or provider submitted at least five preauthorization requests for a health care service; and  the HMO or insurer approved at least 80 percent of the physician or provider's submitted preauthorization requests.

The bill would establish that an exemption from preauthorization would last for one year. - 100 - HB 3459 House Research Organization page 3

Notice. By January 30 of every year, an HMO and insurer would have to provide to a physician or provider who qualified for a preauthorization exemption a notice, including:

 a statement that the physician or provider qualified for an exemption;  a list of the health care services to which the exemption applied; and  a statement that the exemption would apply only for the calendar year in which the physician or provider received the notice.

Payment of claims. The bill would prohibit an HMO and insurer from denying or reducing payment to a physician or provider for a health care service to which the physician or provider qualified for an exemption from preauthorization requirements based on medical necessity or appropriateness of care. The bill would require the HMO and insurer to promptly notify the physician or provider of this payment information.

Utilization review. The bill would specify that the physician to whom a utilization review agent was required to provide a reasonable opportunity under current law would have to be a physician licensed to practice in the state and who had the same or similar specialty as the physician who ordered, requested, or provided the health care service.

The bill would apply only to a request for preauthorization of health care services made on or after January 1, 2022.

The bill would take effect September 1, 2021, and would apply only to a utilization review requested on or after the effective date.

- 101 - HOUSE (2nd reading) RESEARCH HB 3627 ORGANIZATION bill digest 5/6/2021 Paddie, Raymond

SUBJECT: Limiting catastrophe conditions for suspending public information laws

COMMITTEE: State Affairs — favorable, without amendment

VOTE: 13 ayes — Paddie, Hernandez, Deshotel, Harless, Howard, Hunter, P. King, Lucio, Metcalf, Raymond, Shaheen, Slawson, Smithee

0 nays

WITNESSES: For — Jessica Priest, Fort Worth Report; (Registered, but did not testify: Kelley Shannon, Freedom of Information Foundation of Texas; Laura Prather, Freedom of Information Foundation of Texas and Transparent and Accountable Government Coalition; Joseph Coleman, Hill Country News; Sarah Floerke Gouak, Lower Colorado River Authority; Michael Schneider, Texas Association of Broadcasters; Pamela McPeters, Texas Classroom Teachers Association; Donnis Baggett and Mike Hodges, Texas Press Association; James Quintero, Texas Public Policy Foundation; Carrie Griffith, Texas State Teachers Association; Detrese Harkey)

Against — (Registered, but did not testify:; Trey Salinas, CCARE - Austn's Large Commercial and Industrial Customers; Amber Hausenfluck, City of McAllen; Sarah Murphy)

On — Jaie Avila, WOAI-TV, San Antonio; (Registered, but did not testify: Justin Gordon, Office of Attorney General)

BACKGROUND: Government Code sec. 552.233 allows a governmental body to suspend temporarily the requirements of the Texas Public Information Act if it is impacted by a catastrophe. The initial suspension period cannot exceed seven consecutive days but can be extended one time for an additional period of seven consecutive days that begins on the day following the last day of the initial suspension period.

Concerns have been raised that the use of this authority during the COVID-19 pandemic is not consistent with the intent of the law. Some have reported that governmental bodies are using this authority in

- 102 - HB 3627 House Research Organization page 2

response to the pandemic even though agencies are fully staffed and much of the requested information is available electronically in the remote work environment.

DIGEST: HB 3627 would specify that a catastrophe for which a governmental body could suspend temporarily the requirements of the Texas Public Information Act would not include a period when the physical office of the governmental body was closed but staff was required to work remotely and electronically could access information responsive to a public information request.

The bill also would specify that in order to suspend temporarily the requirements of public information laws, a governmental body would have to be significantly impacted by a catastrophe such that the catastrophe directly caused the inability of a governmental body to comply with the requirements.

Under the bill, a governmental body could suspend public information requirements only once for each catastrophe, and could only initiate a single extension related to the same catastrophe. The combined suspension periods could not exceed a total of 14 consecutive calendar days. Upon the conclusion of any suspension period, the governmental body immediately would have to resume compliance with all requirements of the Texas Public Information Act.

Except for the temporary suspension of public information requirements related to a catastrophe, if a governmental body closed its physical offices but required staff to work, including remotely, the body would have to make a good faith effort to continue responding to public information requests. Failure to respond could constitute a refusal to request an attorney general's decision or a refusal to supply public information.

The bill would take effect September 1, 2021.

- 103 - HOUSE HB 764 (2nd reading) RESEARCH Krause, et al. ORGANIZATION bill analysis 5/6/2021 (CSHB 764 by Dutton)

SUBJECT: Reducing STAAR testing for public school students

COMMITTEE: Public Education — committee substitute recommended

VOTE: 9 ayes — Allen, Allison, K. Bell, Bernal, Buckley, M. González, Meza, Talarico, VanDeaver

3 nays — Dutton, Huberty, K. King

1 absent — Lozano

WITNESSES: For — Ossa Fisher, Istation (Imagination Station); Rick Westfall, Keller ISD; Dallas Kennedy; (Registered, but did not testify: David Anderson, Arlington ISD Board of Trustees; Chloe Latham Sikes, Intercultural Development Research Association; Naomi Miller, Northside ISD; Charles Gaines, Raise Your Hand Texas; Richard Webster, Spring Branch ISD; Grover Campbell, TASB; Kristin Mcguire, TCASE; Theresa Trevino, Texas Advocating for Meaningful Student Assessment; Barry Haenisch, Texas Association of Community Schools; Casey McCreary, Texas Association of School Administrators; Paige Williams, Texas Classroom Teachers Association; Dee Carney, Texas School Alliance; Michelle Cline, Throckmorton ISD; and nine individuals)

Against — (Registered, but did not testify: Madison Yandell, Texas 2036; Gregg Vunderink)

On — (Registered, but did not testify: Eric Marin, Justin Porter, and Monica Martinez, Texas Education Agency)

BACKGROUND: Education Code sec. 39.023 requires the Texas Education Agency (TEA) to adopt and develop appropriate instruments to assess essential knowledge and skills in reading, writing, mathematics, social studies, and science. The current testing program, known as the State of Texas Assessments of Academic Readiness, or STAAR, tests students as follows:

 math and reading, annually in grades 3 through 8;

- 104 - HB 764 House Research Organization page 2

 social studies, in grade 8;  science, in grades 5 and 8; and  any other subject and grade required by federal law.

TEA is required to adopt end-of-course exams for high school courses in Algebra I, biology, English I, English II, and U.S. history.

DIGEST: CSHB 764 would remove requirements for the administration of statewide standardized tests in writing in grades 4 and 7, in social studies in grade 8, and in any additional subject and grade required by federal law.

The bill would remove requirements that the Texas Education Agency (TEA) adopt end-of-course tests for Algebra I, biology, English I, English II, and U.S. history. TEA instead would be required to provide tests for each federally required secondary-level subject, including English language arts, mathematics, and science. The commissioner would have to identify a procedure for a school district to select as a secondary-level test the SAT, the ACT, or any other nationally recognized, norm-referenced test designated by the commissioner of education. A district would have to select one or more tests. A district that selected more than one test would have to administer the same test uniformly to students in the district to satisfy the requirement for the same subject.

The district-selected secondary test would have to be a secured test. The commissioner would have to contract with a vendor to administer the test, complete the scoring of the test, and distribute the results to TEA and the relevant results to each district. A district would have to distribute the relevant results to each of its campuses and to provide written notice to the student and the person standing in parental relation to the student.

If changes were made to the federal Every Student Succeeds Act that reduced the number or frequency of assessment instruments required to be administered to students, the State Board of Education would have to adopt rules reducing the number or frequency of required state exams. The commissioner would have to ensure that students were not assessed in subject areas or in grades that were no longer required to meet the federal minimum requirements.

- 105 - HB 764 House Research Organization page 3

Alternative assessments. CSHB 764 would require TEA to adopt alternative adaptive assessment instruments that a school district could administer to satisfy state or federal law requirements. The alternative assessments would have to be administered electronically and meet certain requirements as specified in the bill. The alternative assessments would have to be adopted as soon as practicable after the effective date of the bill.

TEA could contract for services to develop or administer alternative adaptive assessments. School districts would have to be reimbursed for all costs associated with the administration of an alternative adaptive assessment.

Transition plan. The commissioner would be required to adopt a transition plan to implement the requirements of CSHB 764 regarding end-of-course exams beginning with students enrolled in grade 9 for the first time during the 2021-2022 school year.

Except for the requirements for TEA to adopt the alternative adaptive assessment instruments, the bill would apply beginning with the 2022- 2023 school year.

The bill would take immediate effect if finally passed by a two-thirds record vote of the membership of each house. Otherwise, it would take effect September 1, 2021.

SUPPORTERS CSHB 764 would reduce the burden of STAAR tests currently SAY: administered to students in grades 3 through 8 by eliminating the 4th and 7th grade writing and 8th grade social studies exams. The exams that would be eliminated are not federally required. The bill also would reform high school end-of-course exams and comply with federal reporting standards by instead administering post-secondary exams such as the SAT or ACT.

Texas has spent considerable time and money administering STAAR exams, which have not proved to be a valid method for assessing student's learning. The high-stakes nature of STAAR is stressful for students and teachers. In April, thousands of Texas students experienced technical - 106 - HB 764 House Research Organization page 4

difficulties taking their STAAR exams online. Students in districts across the state were kicked out of the exams and unable to log back in.

CSHB 764 would create alternative adaptive assessments that would be shorter in length and given at regular intervals throughout the school year as opposed to STAAR exams given near the end of the school year. Teachers could use the real-time data they would get from the adaptive assessments to provide remediation to students throughout the school year.

Eliminating STAAR exams would improve campus culture by eliminating the steps schools must take to prevent cheating and requirements that students remain at their desks during the duration of the hours-long exam. The bill also would reduce time that teachers spend preparing students for STAAR exams.

For high school students, there are more dependable exams for assessing college readiness such as the ACT and SAT. Those exams meet federal requirements for assessing secondary students and many already take the SAT or ACT for college admission.

Many Texas parents and teachers have been voicing concerns about STAAR exams for years. CSHB 764 would provide an opportunity to walk away from STAAR testing and try a new way of measuring student's academic progress.

CRITICS By reducing state testing requirements, CSHB 764 could diminish the SAY: ability of educators to accurately diagnose student achievement gaps and address identified needs. The results of STAAR exams provide vital information to students, parents, educators, and policymakers about student learning. The exams are an important factor in grading school districts and charter schools, allowing taxpayers and policymakers to see if investments in public education are making a difference in student outcomes. This information is particularly helpful in seeing if Texas schools are making progress in closing achievement gaps for low-income and minority students, a growing portion of public school students.

- 107 - HB 764 House Research Organization page 5

School closures and disruptions to education caused by the COVID-19 pandemic make this an important time to take stock of learning losses that some students may have suffered. The Legislature made a significant investment in public education during the 2019 session, and STAAR data could show if higher per-student spending and spending that targets certain student populations is paying off.

Texas students have not compared favorably to students in other states on certain national tests. According to the Nation's Report Card, between 2005 and 2019 Texas dropped from 36th to 46th among states in fourth- grade reading proficiency on a national assessment. Now is not the time to retreat in efforts to improve student achievement.

NOTES: According to the Legislative Budget Board, the bill would have a negative impact of $68.3 million to general revenue through fiscal 2023.

- 108 - HOUSE HB 4437 (2nd reading) RESEARCH Walle ORGANIZATION bill digest 5/6/2021 (CSHB 4437 by Lopez)

SUBJECT: Allowing Harris County to use a local preference policy for contracts

COMMITTEE: County Affairs — committee substitute recommended

VOTE: 6 ayes — Coleman, Stucky, Anderson, Lopez, Spiller, J. Turner

1 nay — Cason

2 absent — Longoria, Stephenson

WITNESSES: For — DeWight Dopslauf, Harris County Purchasing Department; (Registered, but did not testify: Tammy Narvaez, Harris County Commissioners Court)

Against — (Registered, but did not testify: Perry Fowler, Texas Water Infrastructure Network)

BACKGROUND: It has been suggested that Harris County would benefit from the ability already held by some counties to use a local preference policy with respect to contracting and purchasing.

DIGEST: CSHB 4437 would allow a county with a population of more than 3.3 million (Harris County) to award a contract for services or for the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property to a bidder whose principal place of business was in the county if:

 the bid or proposed price submitted by the bidder was within 3 percent of the lowest bid or proposed price received by the county from a suitable bidder from outside the county; and  the commissioners court determined that the bid or proposal offered the county the best combination of price, ability to perform the contract, and additional economic development opportunities for the county.

The bill would not prohibit a county from rejecting all bids.

- 109 - HB 4437 House Research Organization page 2

The bill would take effect September 1, 2021, and would apply only to a contract for which the county first advertised or otherwise solicited bids on or after that date.

- 110 - HOUSE HB 1501 (2nd reading) RESEARCH Dean, et al. ORGANIZATION bill analysis 5/6/2021 (CSHB 1501 by Paddie)

SUBJECT: Prohibiting regulations restricting use of natural gas or propane appliances

COMMITTEE: State Affairs — committee substitute recommended

VOTE: 12 ayes — Paddie, Hernandez, Deshotel, Harless, Hunter, P. King, Lucio, Metcalf, Raymond, Shaheen, Slawson, Smithee

1 nay — Howard

WITNESSES: For — (Registered, but did not testify: Amy DeWeese, Atmos Energy Corp; Jason Ryan, CenterPoint Energy; Michael Lozano, Permian Basin Petroleum Association; David Cagnolatti, Phillips 66; Kyle Jackson, Texas Apartment Association; J.D. Hale, Texas Association of Builders; Ryan Paylor, Texas Independent Producers & Royalty Owners Association (TIPRO); William Van hoy, Texas Propane Gas Association; Shana Joyce, TXOGA; Detrese Harkey)

Against — Cyrus Reed, Lone Star Chapter, Sierra Club; (Registered, but did not testify: Jason Sabo, Environment Texas)

DIGEST: CSHB 1501 would prohibit a governmental entity from adopting or enforcing a rule, charter provision, ordinance, order, or other regulation that prohibited or restricted the use of an appliance or other system or component fueled by natural gas or propane in the construction, renovation, maintenance, or alteration of a residential or commercial building.

A regulation adopted by a governmental entity that conflicted with this bill would be void.

The bill would take effect September 1, 2021.

SUPPORTERS CSHB 1501 would protect natural gas and propane appliances in new SAY: construction, renovations, and existing buildings for residential and commercial property owners. A growing number of cities have begun to restrict or prohibit natural gas or propane appliances in new buildings and construction, removing energy options that may be more reliable,

- 111 - HB 1501 House Research Organization page 2

economical, and environmentally friendly than options like all-electric appliances. CSHB 1501 would preempt these misguided local regulations to protect customer choice in home or business appliances.

CRITICS CSHB 1501 could have a chilling effect on programs that promote energy SAY: efficiency if they were interpreted as restricting certain appliances or systems. It could limit the authority of political subdivisions to educate consumers about cleaner energy choices or to promote electrification out of concern for the potential effects of climate change.

- 112 - HOUSE HB 3418 (2nd reading) RESEARCH Fierro ORGANIZATION bill digest 5/6/2021 (CSHB 3418 by Paddie)

SUBJECT: Requiring information on state preference for purchasing recycled goods

COMMITTEE: State Affairs — committee substitute recommended

VOTE: 12 ayes — Paddie, Hernandez, Deshotel, Harless, Howard, Hunter, P. King, Metcalf, Raymond, Shaheen, Slawson, Smithee

0 nays

1 absent — Lucio

WITNESSES: For — (Registered, but did not testify: Fred Shannon, HP; Bill Kelly, Mayor's Office, City of Houston)

Against — None

On — Robert Wood, Texas Comptroller of Public Accounts

BACKGROUND: Government Code sec. 2155.445 requires the comptroller and state agencies to give preference to recycled, remanufactured, or environmentally sensitive products in purchases if the product meets state specifications regarding quantity and quality and the average price of the product is not more than 10 percent greater than the price of comparable nonrecycled products. The comptroller must regularly review its procurement procedures regarding the purchase of these types of products.

Concerns have been raised that certain companies wishing to capitalize on consumer preferences for sustainably sourced products may provide information regarding the sourcing of their products that is not accurate. Because the state's procurement rules give a preference to recycled products, some have called for the state to require that information on the sustainability of goods purchased by state agencies be independently verified in order to qualify for the procurement preference.

DIGEST: CSHB 3418 would require that any information regarding the recycled, remanufactured, or environmentally sensitive nature of a product that was

- 113 - HB 3418 House Research Organization page 2 used as the basis for a purchasing preference by the comptroller or a state agency be certified as accurate by an entity approved by the comptroller.

A state agency would be required to provide notice of the preference for recycled, remanufactured, or environmentally sensitive products in all solicitation documents for purchases by the agency of goods for which the preference could be given, including the method the agency would use to evaluate, apply, and award the preference.

The bill would take effect September 1, 2021.

- 114 - HOUSE HB 3351 (2nd reading) RESEARCH Pacheco, et al. ORGANIZATION bill digest 5/6/2021 (CSHB 3351 by C. Turner)

SUBJECT: Establishing the Texas Commission on Community College Finance

COMMITTEE: Higher Education — committee substitute recommended

VOTE: 8 ayes — Murphy, Pacheco, Cortez, Frullo, Ortega, Raney, C. Turner, J. Turner

0 nays

3 absent — P. King, Muñoz, Parker

WITNESSES: For — Todd Williams, Commit Partnership; Robert Glaser, Community College Association of Texas Trustees; Jacob Fraire, Texas Association of Community Colleges; (Registered, but did not testify: Ben Stratmann, Dallas Regional Chamber; Mike Meroney, Texas Association of Manufacturers; Justin Yancy, Texas Business Leadership Council; Gilbert Zavala, The Greater Austin Chamber of Commerce; Molly Weiner, United Ways of Texas; Susana Carranza; Sarah Garcia; Vanessa MacDougal; Suzanne Mitchell)

Against — None

On — (Registered, but did not testify: Priscilla Camacho, Alamo Colleges District)

BACKGROUND: Interested parties have noted that funding formulas for public junior colleges in Texas have not been updated in nearly 50 years. Some have called for a commission to be established to study the issue and make recommendations to the Legislature on funding for these institutions.

DIGEST: CSHB 3351 would establish the Texas Commission on Community College Finance. The commission would make recommendations for consideration by the 88th Legislature regarding the state funding formula and funding levels for public junior colleges in Texas that would be sufficient to sustain junior college education and training offerings throughout the state and improve student outcomes in alignment with the state's postsecondary goals.

- 115 - HB 3351 House Research Organization page 2

The commission would be composed of 12 members, including:

 four members appointed by the governor;  three members appointed by the lieutenant governor;  three members appointed by the House speaker;  one member appointed by the board of the Texas Association of Community Colleges; and  one member appointed by the board of the Community College Association of Texas Trustees.

One of the members appointed by the governor would have to be a faculty member at a public junior college, and the other members appointed by the governor must be representatives of junior college leaders, business leaders, or other stakeholders with knowledge of junior colleges' missions, instructional programs, and finances.

The lieutenant governor and House speaker each would select two members of the Senate and House of Representatives, respectively, and each would select one administrator from a public junior college.

In making appointments, the governor, lieutenant governor, and House speaker would be required to ensure that the membership of the commission reflects, to the extent possible, the geographic diversity of Texas public junior colleges and the ethnic diversity of the communities served by those junior colleges.

The commission must examine trend and forecast data, seek stakeholder input, and account for equity in student outcomes. Based on its findings, it must make recommendations on:

 the components of state funding for public junior colleges, including contact hour funding formulas established for public junior colleges; and  the feasibility of establishing shared service agreements or interinstitutional collaborations through which institutions of higher education could perform administrative services, other than

- 116 - HB 3351 House Research Organization page 3

direct instruction and student support services, for other institutions of higher education for a fee or other consideration.

The commission could seek resource support, including data analyses and technical assistance, from the Texas Higher Education Coordinating Board, the Texas Association of Community Colleges, and research organizations. The commission could accept gifts, grants, and donations from any source to carry out a commission function.

The commission would be required to convene no later than October 15, 2021, and must continue its activities until completion of a final report, which it must submit to the governor, lieutenant governor, and both houses of the Legislature no later than November 1, 2022.

The bill's provisions would expire January 1, 2023.

The bill would take effect September 1, 2021.

- 117 - HOUSE HB 3662 (2nd reading) RESEARCH Buckley, et al. ORGANIZATION bill digest 5/6/2021 (CSHB 3662 by Frank)

SUBJECT: Expanding mandated contracts under the Medicaid managed care program

COMMITTEE: Human Services — committee substitute recommended

VOTE: 7 ayes — Frank, Hinojosa, Hull, Klick, Meza, Neave, Shaheen

1 nay — Noble

1 present not voting — Rose

WITNESSES: For — Jeff Ingrum, Scott and White Health Plan; (Registered, but did not testify: Marisa Finley, Baylor Scott & White Health; Troy Alexander and Dan Finch, Texas Medical Association; Susan Burek)

Against — (Registered, but did not testify: Lawrence Collins, Amerigroup (Anthem); Patricia Kolodzey, Blue Cross Blue Shield of Texas; Kandice Sanaie, Cigna; Allen Horne, CVS Health; Jessica Boston, Molina Healthcare Inc; Karen Cheng, Superior Heath Plan; Leah Rummel, UnitedHealthcare)

On — Stephanie Stephens, Health and Human Services Commission; Kay Gharamani, Texas Association of Health Plans

BACKGROUND: Government Code sec. 533.004 requires that the Health and Human Services Commission (HHSC) contract with certain managed care organizations (MCOs) in health care service regions to provide health care to Medicaid recipients in that region. The MCOs contracted with must be wholly owned or operated by a hospital district in the health care service region or otherwise have some arrangement with a hospital district in the region.

Concerns have been raised regarding the potential limitations imposed by the hospital district association required for Medicaid mandatory contracts. Interested parties have contended that requiring HHSC to contract with MCOs offering community-based health plans that lack a hospital district with which to partner could create more choice for Medicaid recipients in a region lacking a hospital district.

- 118 - HB 3662 House Research Organization page 2

DIGEST: CSHB 3662 would expand mandatory contracts in Medicaid to require the Health and Human Services Commission (HHSC), if there was no existing mandatory contract with a managed care organization (MCO) in a health care service region on September 1, 2021, to contract with an MCO wholly owned by a provider-sponsored health organization that owned and operated:

 two Level I trauma facilities located in different trauma service areas; and  a licensed hospital located in the health care service region (Scott and White Health Plan for the Central Medicaid Region).

The bill would take immediate effect if finally passed by a two-thirds record vote of the membership of each house. Otherwise, it would take effect September 1, 2021, and would apply only to the award of a contract by HHSC on or after the effective date.

- 119 - HOUSE (2nd reading) RESEARCH HB 1423 ORGANIZATION bill digest 5/6/2021 Campos

SUBJECT: Allowing HHSC to conduct follow-up inspections of nursing facilities

COMMITTEE: Human Services — favorable, without amendment

VOTE: 9 ayes — Frank, Hinojosa, Hull, Klick, Meza, Neave, Noble, Rose, Shaheen

0 nays

WITNESSES: For — Cissy Sanders; (Registered, but did not testify: Amanda Fredriksen, AARP; Thomas Parkinson)

Against — (Registered, but did not testify: Roland Leal, Independent Coalition of Nursing Homes; George Linial, LeadingAge Texas)

BACKGROUND: Health and Safety Code ch. 242, subch. B governs inspections for convalescent and nursing facilities and related institutions. Sec. 242.043(a) authorizes the Department of Aging and Disability Services (DADS) or the department's representative, to make any inspection, survey, or investigation that it considers necessary and may enter an institution's premises at reasonable times to make an inspection, survey, or investigation in accordance with department rules. Sec. 242.044(a) allows DADS to conduct at least two unannounced inspections of each institution for each licensing period.

The 84th Legislature in 2015 enacted SB 200 by Nelson, which abolished certain agencies and transferred their functions to the Health and Human Services Commission (HHSC). On September 1, 2017, DADS was abolished and its functions were transferred to HHSC. After September 1, 2017, HHSC began regulating long-term care facilities.

Concerns have been raised that some long-term care facilities struggle with maintaining proper facility standards and adequate staffing capacity. Suggestions have been made to improve oversight of long-term care facilities, ensuring those facilities are properly maintained and have enough staff to care for vulnerable Texans.

- 120 - HB 1423 House Research Organization page 2

DIGEST: HB 1423 would authorize the Health and Human Services Commission (HHSC) or the commission's representative to conduct a follow-up inspection of a convalescent or nursing facility after conducting an inspection, survey, or investigation of the institution under current law to:

 evaluate and monitor the findings of the initial inspection, survey, or investigation; and  ensure the commission was citing and punishing institutional deficiencies consistently across the state.

If an institution corrected a deficiency cited during a follow-up inspection within the time specified by executive commissioner rule, the commission could not impose additional punitive actions for the deficiency.

By January 31 of each year, HHSC would be required to evaluate its capacity to regulate convalescent and nursing institutions and formulate a strategy to effectively perform licensing duties, enforcement activities, and complaint investigations for that year.

The bill would require the commission to regularly evaluate its capacity to regulate convalescent and nursing institutions and implement corrective measures as necessary. The bill also would require the commission to monitor its staffing of employees who performed inspections, surveys, or investigations of institutions and fill any vacant positions as soon as possible.

By January 1 of each year, the commission would be required to evaluate its compliance with the bill's provisions in the previous year.

The bill would make certain conforming changes under current law.

The bill would take effect September 1, 2021.

- 121 - HOUSE HB 3669 (2nd reading) RESEARCH Dean ORGANIZATION bill digest 5/6/2021 (CSHB 3669 by Paddie)

SUBJECT: Allowing a public junior college library to donate certain materials

COMMITTEE: State Affairs — committee substitute recommended

VOTE: 13 ayes — Paddie, Hernandez, Deshotel, Harless, Howard, Hunter, P. King, Lucio, Metcalf, Raymond, Shaheen, Slawson, Smithee

0 nays

WITNESSES: None

BACKGROUND: Interested parties note that it is currently difficult for public junior college libraries to donate old books or library materials with nominal value because of restrictions in place under state law governing the disposal of state surplus property. As a result, some books have been thrown away rather than given to persons who would accept the donation and could put the materials to use. Some have called for the state to allow public junior college libraries to donate certain old or duplicative library materials.

DIGEST: CSHB 3669 would allow a public junior college library to donate periodicals, books, e-books, tapes, and other media to any person or organization if the library materials duplicate materials that are a part of the library collection or are no longer appropriate for inclusion in the collection due to age, condition, or obsolete content and have little or no monetary value, as determined by library staff.

The bill would take effect September 1, 2021.

- 122 - HOUSE HB 1676 (2nd reading) RESEARCH Goodwin, et al. ORGANIZATION bill digest 5/6/2021 (CSHB 1676 by Klick)

SUBJECT: Child water safety requirements for certain organizations

COMMITTEE: Public Health — committee substitute recommended

VOTE: 9 ayes — Klick, Guerra, Allison, Coleman, Jetton, Oliverson, Price, Smith, Zwiener

0 nays

2 absent — Campos, Collier

WITNESSES: For — Alissa Magrum, Colin's Hope; Kimery Duda, The Expedition School; Brian Buster; Juan DelaPena; Korina Delapena; Kim Tyson; (Registered, but did not testify: Courtney Hoffman, Camping Association for Mutual Progress; Lulu Jones, Sam's Adventure Camp; Clayton Travis, Texas Pediatric Society; Kara Swinney, The Arc of the Capital Area; and 11 individuals)

Against — None

On — (Registered, but did not testify: Kevin Veal, Department of State Health Services)

BACKGROUND: Health and Safety Code ch. 341 establishes minimum standards of health protection measures that are regulated by the Department of State Health Services.

Human Resources Code sec. 42.002 defines "child-care facility" as a facility licensed, certified, or registered by the Department of Family and Protective Services to provide assessment, care, training, education, custody, treatment, or supervision for a child who is not related by blood, marriage, or adoption to the facility owner or operator for all or part of the 24-hour day, regardless of whether the facility operates for profit or charges for offered services.

- 123 - HB 1676 House Research Organization page 2

Health and Safety Code sec. 141.002(5) defines "youth camp" as a facility or property, other than a facility required to be licensed by the Department of Family and Protective Services.

Concerns have been raised that drowning is the number one cause of unintentional injury-related deaths for children under 4 and a leading cause up to age 14. It has been suggested that requiring organizations to supply lifejackets for children at risk of drowning would decrease preventable drowning deaths.

DIGEST: CSHB 1676 would establish water safety requirements for certain child- care organizations that provide a child under 18 years of age access to a body of water. The bill would not apply to a youth camp.

Under the bill, "body of water" would mean an artificial or natural body of water, including a swimming pool, lake, or river, typically used for recreational swimming, bathing, or play. The term would exclude a wading pool.

"Wading pool" would mean a pool, including a pool that contained a public interactive water feature and fountain as defined by Department of State Health Services rule, with a maximum water depth of 18 inches.

Safety requirements. Specified organizations, including a licensed child- care facility, that provided a child access to a body of water would have to:

 require the child's parent or legal guardian to affirm in writing whether the child was able to swim or was at risk of injury or death when swimming or otherwise accessing a body of water; and  if the organization did not own or operate the body of water, provide the owner or operator of the body of water a disclosure that clearly identified each child who was unable to swim or was at risk of injury or death when swimming or accessing a body of water.

The bill would require an organization to provide certain personal flotation devices to a child who was unable to swim or at risk of injury or death when swimming or accessing a body of water when the child was - 124 - HB 1676 House Research Organization page 3 within a fenced-in area around a body of water or within 100 feet of a body of water without a fenced-in area. The organization would have to ensure the child was wearing the appropriate personal flotation device and that the device was properly fitted and fastened.

Exception. The bill would not require an organization to provide a child with a flotation device if the child was actively participating in swim instruction and the organization ensured that each child was closely supervised during the instruction.

Other provisions. Organizations that violated the bill's provisions would be subject to disciplinary action, including the imposition of an administrative penalty, by any state regulatory agency with the power to take such action.

The executive commissioner of the Health and Human Services Commission could adopt rules to implement the bill's provisions.

The bill would take effect September 1, 2021.

- 125 - HOUSE (2nd reading) RESEARCH HB 3927 ORGANIZATION bill analysis 5/6/2021 Hefner

SUBJECT: Revising database access, classification of temporary motor vehicle tags

COMMITTEE: Transportation — favorable, without amendment

VOTE: 12 ayes — Canales, E. Thompson, Bucy, Davis, Harris, Landgraf, Lozano, Martinez, Ortega, Perez, Rogers, Smithee

1 nay — Ashby

WITNESSES: For —Jose Escribano and Michael Bradburn, Travis County Constable Precinct 3; David Kohler; (Registered, but did not testify: Jennifer Szimanski, CLEAT)

Against — Robert Braziel, Texas Automobile Dealers Association; (Registered, but did not testify: Mark Borskey, Texas Recreational Vehicle Association)

On — (Registered, but did not testify: Corrie Thompson, Texas Department of Motor Vehicles)

BACKGROUND: Transportation Code sec. 503.0626 governs a database on information on vehicles to which dealers and converters have affixed temporary tags. The Texas Department of Motor Vehicles (TxDMV) may not deny access to the database to any dealer with a general distinguishing number or license or any licensed converter.

Sec. 503.0631 governs a database of information on persons to whom temporary buyer's tags are issued. TxDMV may not deny access to the database to any dealer with a general distinguishing number or license.

Sec. 503.067 governs the unauthorized reproduction, purchase, use, or sale of temporary tags. A person cannot sell or distribute a temporary tag or item represented as such unless the person was a dealer or a printer or distributor in the business of selling tags for authorized uses.

- 126 - HB 3927 House Research Organization page 2

DIGEST: HB 3927 would remove a prohibition for the Texas Department of Motor Vehicles to deny access to a database on temporary tags to dealers or converters.

The bill would include temporary motor vehicle tags in the definition of a "governmental record" for purposes of Penal Code ch. 37, which governs perjury and other falsification.

HB 3927 would specify that a person could not operate a vehicle that displayed a temporary tag in violation of laws governing vehicle registration or dealers' and manufacturers' vehicle license plates. The bill also would remove the ability of a printer or distributor to engage in the business of selling temporary tags.

The bill would take effect September 1, 2021, and apply only to an offense committed on or after that date.

SUPPORTERS HB 3927 would address the fraudulent use of temporary tags in the state SAY: for masking certain criminal activity, including stolen vehicles, kidnappings, and other crimes. The bill would prevent the unauthorized use of the WebDealer database to distribute fraudulent temporary tags and clarify that temporary tags qualified as governmental records in the Penal Code, which would bring serious consequences for tampering with tags. These additional tools would help law enforcement and TxDMV prevent and suppress criminal behavior and reduce damages to the state and localities.

Concerns that the bill would reduce access to the WebDealer system for legitimate dealers are unfounded, since the target of the bill is denying access for unauthorized criminal entities with no legitimate business. Any process or rules developed by TxDMV to remove access would be well thought out and would not affect legitimate dealers.

CRITICS While there is a problem with fraudulent use of temporary tags in this SAY: state, HB 3927 would grant TxDMV unilateral authority to deny access to legitimate dealers to the WebDealer system without justification.

- 127 - HOUSE HB 2633 (2nd reading) RESEARCH A. Johnson, et al. ORGANIZATION bill digest 5/6/2021 (CSHB 2633 by Hinojosa)

SUBJECT: Creating a trafficked persons grant program for children, youths

COMMITTEE: Human Services — committee substitute recommended

VOTE: 8 ayes — Frank, Hinojosa, Hull, Klick, Meza, Neave, Noble, Shaheen

0 nays

1 absent — Rose

WITNESSES: For — Linda Nuno, Dem District Chair #268; Kelly Barron, Harris County Juvenile Probation Department; Emilee Whitehurst, Houston Area Women’s Center; Dennis Mark, Human Trafficking Rescue Alliance; James Dixon and Frances Meyers, No Trafficking Zone; Jacquelyn Aluotto, RBRW/Break The Cycle USA; (Registered, but did not testify: Jim Pitts, Baylor Scott White; Jamey Caruthers, Children at Risk; Justin Wood, Children's Advocacy Centers of Texas; Stacy Wilson, Children's Hospital Association of Texas; M. Paige Williams, for Dallas Criminal District Attorney John Creuzot; Gregg Knaupe, Dell Children’s Medical Center; Traci Berry, Goodwill Central Texas; Thamara Narvaez, Harris County Commissioners Court; Jessica Anderson, Houston Police Department; Annalee Gulley, Mental Health America of Greater Houston; Maggie Luna, Statewide Leadership Council; Leonard Aguilar, Texas AFL-CIO; Jamie McCormick, Texas Alliance of Child and Family Services; Sarah Crockett, Texas CASA; Shannon Jaquette, Texas Catholic Conference of Bishops; Olivia Chriss, Texas Childrens Hospital; Dan Finch, Texas Medical Association; Clayton Travis, Texas Pediatric Society; Suzi Kennon, Texas PTA; Molly Weiner, United Ways of Texas; Knox Kimberly, Upbring; and six individuals)

Against — None

On — Steve Glazier and Meaghan Lightbody-Warner, UTHealth Houston (Registered, but did not testify: Blanca Denise Lance, Department of Family and Protective Services; Crystal Starkey, Health And Human Services Commission; Nickie Yee, Secretary of State)

- 128 - HB 2633 House Research Organization page 2

BACKGROUND: Concerns have been raised that Texas does not have standalone facilities for the recovery and protection of children, youths, and young adults who are victims of human trafficking.

DIGEST: CSHB 2633 would establish the trafficked persons grant program to give grants to applicants to provide dedicated housing and treatment facilities for certain human trafficking victims. The bill would establish an account to fund the grant program and establish provisions for making and administering the grants.

Trafficked persons program account. The purpose of the trafficked persons program account would be to provide money:

 to substantiate the state's interest in publicly operated and funded shelter and treatment for victims of certain offenses related to human trafficking;  to prevent the recruitment of human trafficking victims within mixed-status child, youth, and young adult shelters;  for consistent and recurring funding of long-term solutions for treatment and safe and secure shelter to child, youth, and young adult victims of human trafficking;  for financial stability of local governments, private partners, and medical facilities in planning, building, and maintaining dedicated housing and recovery programs for victims of human trafficking; and  to raise awareness of the account among businesses and philanthropists and to strengthen public and private partnerships established to end the practice of human trafficking.

The bill would establish the trafficked persons program account as a dedicated account in the general revenue fund. The account would consist of contributions made under provisions in the bill; fees for the specialty license plates established under the bill; gifts, grants, and donations; and interest, dividends, and other income. Requirements that interest on certain accounts be available as general revenue would not apply to the new fund.

- 129 - HB 2633 House Research Organization page 3

Money in the account could be appropriated only to:

 the grant program;  the sex trafficking prevention and victim treatment programs established under the bill;  a trafficked persons program established by a juvenile board under the Family Code; and  the administration of programs under the Family Code that would be established by the bill for children and youths who were victims of human trafficking.

The Health and Human Services Commission (HHSC) would administer the account and establish guidelines for distributing money from the account. The commission would be required to distribute money from the account to the grant program until the commission determined that the grant program's purposes were satisfied. After that, the commission could distribute money from the account to other programs listed in the bill.

Trafficked persons grant program. The commission would have to establish the trafficked persons grant program to provide grants to applicants for dedicated housing and treatment facilities provided to human trafficking victims.

The commission would have to develop eligibility criteria for the grant program applicants and require them to provide specific types of support, services, and shelter. A grant applicant would have to provide to the commission plans that included specific items, including information on their strategy for addressing the needs of human trafficking victims and a statement on the applicant's provision of shelter, services, and treatment.

When awarding grants, the bill would require the commission to prioritize applicants that met certain criteria in the bill. CSHB 2633 also would establish requirements for contracts with grant recipients, including requiring recipients to repay the grant if they did not comply with the standards and rules established under the bill and prohibiting the use of grant funds for administrative or overhead expenses.

- 130 - HB 2633 House Research Organization page 4

The HHSC could distribute money from the account to itself to provide services described by the bill if the commission determined it had the resources and personnel necessary to provide those services.

The HHSC would be authorized to use funds appropriated from the trafficked persons program account to establish, maintain, and operate facilities to provide care and to ensure the general well-being of children and youth who were victims of a human trafficking offense.

Contributions to the account. The bill would amend several statutes to give individuals the opportunity to contribute to the trafficked persons program account.

The Department of Information Resources (DIR) would have to provide an opportunity for a individuals accessing the state internet portal to submit a payment to the state to make a contribution to the account. DIR would be required to collaborate with the Texas Department of Motor Vehicles, the Department of Public Safety, and any other state agency to maximize donations to the account.

The Texas Department of Motor vehicles would be required to direct individuals registering or renewing motor vehicle registrations to the opportunity to donate to the account and to issue specialty license plates to support the account.

The Department of Public Safety would have to direct individuals applying for driver's licenses or identification cards and those applying for commercial driver's licenses to the opportunity to donate to the trafficked persons program account.

The secretary of state would be required to inform the public of the opportunity to support the account.

Study. HHSC would be required to use funds appropriated to it from the account to conduct a study to determine the needs and best practices of establishing permanent, safe, and secure housing for child and youth victims of human trafficking offenses. HHSC would have to report on the

- 131 - HB 2633 House Research Organization page 5

study to the governor and certain legislative committees by December 1, 2022.

Other provisions. Other provisions in the bill include ones:

 expanding the goals of the secretary state's human trafficking prevention business partnership to include informing participating corporations and other private entities of the opportunity to support the trafficked persons program account; and  expanding who could be served by a juvenile board's trafficked person's program and allowing these facilities to apply for grants established under the bill to provide certain shelter and treatment services to human trafficking victims.

The bill would take effect September 1, 2021.

NOTES: According to the Legislative Budget Board, the bill would have a $700,000 negative impact to general revenue related funds through the fiscal 2022-23 biennium.

- 132 - HOUSE (2nd reading) RESEARCH HB 4612 ORGANIZATION bill digest 5/6/2021 Vasut

SUBJECT: Creating the Brazoria County Management District No. 2

COMMITTEE: County Affairs — favorable, without amendment

VOTE: 6 ayes — Coleman, Stucky, Anderson, Lopez, Spiller, J. Turner

1 nay — Cason

2 absent — Longoria, Stephenson

WITNESSES: For — (Registered, but did not testify: Howard Cohen, The Cardon Group, LLC)

Against — None

BACKGROUND: It has been suggested that an area within Brazoria County would benefit from the creation of a management district.

DIGEST: HB 4612 would create the Brazoria County Management District No.2 and establish its purposes, structure, and powers.

Purposes. The district would:

 promote the health, safety, and general welfare of residents, employers, employees, and the general public;  provide needed funding to preserve and enhance the economic health and vitality of the district's territory as a community and business center;  promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways, transit and parking facilities, and public art objects, and by landscaping and developing for scenic beauty purposes; and  provide for water, sewer, road, and recreational facilities.

The district would be created to serve a public use and benefit, and would not act as the agent or instrumentality of any private interest.

- 133 - HB 4612 House Research Organization page 2

Board of directors. The district would be governed by a board of five directors serving staggered four-year terms. Directors would be entitled to receive fees of office and reimbursement for expenses.

On or after the bill's effective date, the owners of a majority of the assessed value of real property in the district would be able to submit a petition to the Texas Commission on Environmental Quality naming five persons to be appointed by the commission as temporary directors for the district. The temporary directors or their successors would have to hold an election to elect permanent directors. Temporary directors would serve until permanent directors were elected or the fourth anniversary after the bill's effective date, whichever was earlier. If permanent directors had not been elected before the temporary directors' terms expired, successor temporary directors would be appointed following the same procedure as for the initial appointment. Successor temporary directors' terms would expire upon election of permanent directors or four years after appointment, whichever was earlier.

The election and compensation of directors would be conducted in accordance with provisions governing general law districts under the Water Code.

Powers and duties. The district would have the powers and duties necessary to accomplish its purposes, including the power to:

 provide, operate, or finance an improvement project or service;  develop or finance recreational facilities;  own, operate, maintain, construct, and finance roads and convey roads to the state or a political subdivision;  establish a nonprofit corporation to assist the district in implementing a project or providing a service;  contract for or employ its own peace officers with power to make arrests under certain circumstances;  join a charitable or nonprofit organization that performed a service or provided an activity consistent with a district purpose;

- 134 - HB 4612 House Research Organization page 3

 engage in economic development activities, including the establishment of programs to make loans and grants of public money and provide district personnel and services;  negotiate and enter into a strategic partnership or regional participation agreement with a municipality;  acquire, lease, construct, and operate parking facilities;  add or exclude land in the manner provided for by general law district provisions of the Water Code;  establish procedures for a disbursement or transfer of district money; and  complete an annual financial report in lieu of an annual audit under certain conditions.

The district expressly would not have the power of eminent domain.

Assessments. The district board by resolution could impose and collect an assessment for any purpose authorized for the district. The board could not finance a service or improvement project with assessments unless a written petition signed by the owners of a majority of the assessed value of real property in the district subject to assessment had been filed with the board requesting that service or improvement.

Property taxes and bonds. The district could impose an operation and maintenance tax on property in the district for any district purpose. Before imposing such a tax the district would have to hold an election in accordance with current law and obtain voter approval. The board would determine the tax rate, which could not exceed that approved at the election.

The district would be able to borrow money on terms determined by the board, and could issue bonds or other obligations payable from property taxes, assessments, and other district money to pay for any authorized district purpose. Bonds secured by revenue other than property taxes could be issued without an election. If authorized at an election, the board could issue bonds payable from property taxes, but the board could not issue its first bonds payable from property taxes until each municipality in whose limits or extraterritorial jurisdiction the district was located had

- 135 - HB 4612 House Research Organization page 4 consented to the creation of the district and to the inclusion of land in the district.

Sales and use tax. The district would be able to adopt a sales and use tax if authorized by a majority of district voters at an election held for that purpose. The board could call an election to authorize the adoption of such a tax. After election results were declared, the board would have to determine and adopt by resolution or order the rate of the tax. The rate could not exceed a maximum rate set by the voters at the election or a rate that, when added to the rates of all sales and use taxes imposed by other political subdivisions with territory in the district, would result in the maximum rate allowed by current law at any location in the district. Revenue from the sales and use tax could be used for any district purpose.

Hotel occupancy tax. The district also could impose a hotel occupancy tax for specified purposes, including to promote tourism and the convention and hotel industry. The board could abolish the imposed hotel occupancy tax without an election, but the board could not abolish the tax if doing so would impair the repayment of an outstanding debt secured by the tax.

Dissolution. The board would have to dissolve the district on written petition filed by the owners of at least two-thirds of the assessed value of the property subject to assessment or taxation by the district based on the most recent certified county property tax rolls. The board also could dissolve the district by majority vote at any time. The district could not be dissolved if it:

 had any outstanding bonded indebtedness;  had a contractual obligation to pay money; or  owned, operated or maintained public works, facilities, or improvements, unless the district contracted with another person for the ownership, operation, or maintenance of the works, facilities, or improvements. Other provisions. The bill would specify the territory initially included in the Brazoria County Management District No. 2.

- 136 - HB 4612 House Research Organization page 5

The bill would take immediate effect if finally passed by a two-thirds record vote of the membership of each house. Otherwise, it would take effect September 1, 2021.

- 137 - HOUSE (2nd reading) RESEARCH HB 546 ORGANIZATION bill digest 5/6/2021 Pacheco

SUBJECT: Extending eligibility for certain student loan repayment programs

COMMITTEE: Higher Education — favorable, without amendment

VOTE: 10 ayes — Murphy, Pacheco, Cortez, Frullo, P. King, Muñoz, Ortega, Parker, Raney, J. Turner

0 nays

1 absent — C. Turner

WITNESSES: For — Kimberly Kelly-Cortez, Western Governors University Texas; (Registered, but did not testify: Joshua Massingill, LeadingAge Texas; Gilbert Zavala, The Greater Austin Chamber of Commerce)

Against — None

On — (Registered, but did not testify: Priscilla Camacho, Alamo Colleges District)

BACKGROUND: Calls have been made to extend the eligibility of certain financial assistance programs currently available to schools accredited by the Southern Association of Colleges so that other students at certain nonprofit, tax-exempt, regionally accredited colleges or universities could benefit from those programs.

DIGEST: HB 546 would extend eligibility for certain educational loan repayment assistance programs to a student at a nonprofit, tax-exempt, regionally accredited college or university operating in accordance with a memorandum of understanding with the state under an executive order of the governor.

The extension of eligibility would apply to the following state programs:

 repayment assistance for certain mental health professionals;  the professional nursing shortage reduction program;

- 138 - HB 546 House Research Organization page 2

 the Texas hospital-based nursing education partnership grant program; and  the nursing faculty loan repayment assistance program.

The bill would require the Texas Higher Education Coordinating Board to adopt any rules necessary to administer the bill's provisions.

The board could not award grants under the bill's provisions related to the professional nursing shortage reduction program before June 1, 2023.

The bill would take immediate effect if finally passed by a two-thirds record vote of the membership of each house. Otherwise, it would take effect September 1, 2021.

- 139 - HOUSE HB 211 (2nd reading) RESEARCH Thierry, et al. ORGANIZATION bill analysis 5/6/2021 (CSHB 211 by Shine)

SUBJECT: Taxing e-cigarettes and alternative nicotine products; reducing other taxes

COMMITTEE: Ways and Means — committee substitute recommended

VOTE: 11 ayes — Meyer, Thierry, Button, Cole, Guerra, Martinez Fischer, Murphy, Noble, Rodriguez, Sanford, Shine

0 nays

WITNESSES: For — Jay Maguire, Texas Vapor Coalition; (Registered, but did not testify: Matt Burgin, Texas Food and Fuel Association)

Against — Charlotte Owen, American Vaper Manufacturers Association; James Hubbard, SFATA; Suzi Kennon, Texas PTA; Micah Sanchez; (Registered, but did not testify: Joel Romo, American Heart Association; Troy Alexander, Texas Medical Association; Betty Hubbard; Kellen Kruk)

On — Tom Currah, Comptroller of Public Accounts; Maria Monge, Texas Medical Association, Texas Pediatric Society, and Texas Public Health Coalition; Dale Craymer, Texas Taxpayers and Research Association; Steve Kelder, University of Texas Health Science Center at Houston, School of Public Health; (Registered, but did not testify: Shannon Brandt and Tetyana Melnyk, Comptroller of Public Accounts; Mia McCord, Texas Conservative Coalition)

DIGEST: CSHB 211 would impose additional sales and use taxes on e-cigarette vapor products and alternative nicotine products and would reduce by half the taxes imposed on modified risk tobacco products.

E-cigarette vapor product tax. The bill would impose sales and use taxes of 7 cents for each milliliter of a vapor product sold or used in the state.

"Vapor product" would mean a consumable nicotine liquid solution or other material containing nicotine suitable for use in an e-cigarette.

- 140 - HB 211 House Research Organization page 2

Alternative nicotine product tax. The bill would impose sales and use taxes of $1.22 for each ounce of an alternative nicotine produce sold or used in the state. The computation of such taxes would be based on the net weight of the product as listed by the manufacturer.

"Alternative nicotine product" would mean a noncombustible product containing nicotine, but not containing tobacco leaf, that was intended for human consumption, whether chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means. The term would not include an e-cigarette, vapor product, drug or device regulated by the U.S. Food and Drug Administration, or tobacco product.

Administration of taxes. The taxes imposed by this bill would be in addition to the state sales and use taxes and would be administered, imposed, collected, and enforced in the same manner as those existing taxes.

The comptroller would deposit the proceeds of the taxes in the general revenue fund.

Reports. A person required to collect or pay a tax imposed by the bill would have to file with the comptroller a report stating the amount of products sold or used, the amount acquired by a purchaser who did not pay use tax to a retailer, the amount of taxes due, and any other information required by the comptroller. The report would be due on the same date the tax payment for that period was due.

Records. The person required to collect or pay a tax and file a tax report would have to keep a complete record of the amount of products sold or used in the state, the amount of products purchased, taxes collected, and any other information required by the comptroller.

Modified risk tobacco product tax reduction. The bill would reduce by one-half the rates of taxes imposed on a federally approved modified risk tobacco product, including cigarette, cigar, and tobacco product taxes and taxes under this bill.

- 141 - HB 211 House Research Organization page 3

The bill would take effect September 1, 2021, and would not affect tax liability accruing before that date.

SUPPORTERS CSHB 211 would impose additional sales and use taxes on e-cigarette SAY: vapor products to disincentivize customers, especially young Texans, from buying harmful products. The popularity of e-cigarettes among the youth has skyrocketed in recent years, leading to higher rates of nicotine addiction and harming brain development. The e-cigarette industry has not been taxed or regulated like the traditional cigarette industry, even though e-cigarettes may contain even higher levels of nicotine and are often marketed to youth. The bill would impose a fair tax on e-cigarette products based on their associated risks that would be in line with rates recently imposed by other states.

CSHB 211 also would clarify the tax rate on alternative nicotine products that contain nicotine but do not contain tobacco leaf. The tax rate on those products would follow the rates on similarly packaged tobacco products. By reducing taxes imposed on modified risk tobacco products, the bill would encourage cigarette users to transition to less harmful products and incentivize the market to produce more of them. The products receive designation by the federal government by proving that they significantly reduce harm and risk of tobacco-related disease and benefit the health of the population.

While some may be concerned that the tax rates on e-cigarettes under the bill would be too high or not high enough, CSHB 211 would establish effective and fair rates in the middle ground.

CRITICS CSHB 211 would impose burdensome excise taxes on e-cigarette vapor SAY: products. Many people use e-cigarettes, vape pens, or similar products to transition away from traditional cigarettes by gradually reducing their nicotine intake. E-cigarette taxes would increase costs for customers and eliminate cost or health savings they receive for choosing less harmful products over smoking traditional tobacco products like cigarettes. This would be burdensome to Texas businesses and punish adults trying to overcome a nicotine addiction.

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OTHER CSHB 211 would not go far enough to tax harmful e-cigarette vapor CRITICS products. The tax rate should be higher and more on par with taxes on SAY: traditional cigarettes to properly discourage use by young Texans. Further, the bill would impose taxes per milliliter of product but would not take into account products that contain small amounts of liquid but high concentration of nicotine. The tax should be imposed by nicotine concentration or on the price, rather than amount or weight, to discourage the most harmful products and protect youths.

NOTES: According to the Legislative Budget Board, the bill would cost about $41.7 million in general revenue related funds and about $5.6 million from the Property Tax Relief Fund in fiscal 2022-23, due primarily to the reduction in modified risk tobacco product tax rates. The loss to the Property Tax Relief Fund would have to be made up with an equal amount of general revenue to fund the Foundation School Program.

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