Interim Report to the 85th Texas Legislature House Committee on State Affairs January 2017 HOUSE COMMITTEE ON STATE AFFAIRS TEXAS HOUSE OF REPRESENTATIVES INTERIM REPORT 2016 A REPORT TO THE HOUSE OF REPRESENTATIVES 85TH TEXAS LEGISLATURE BYRON COOK CHAIRMAN TONI BARCELLONA CHIEF COMMITTEE CLERK JULIA CONNER ASSISTANT COMMITTEE CLERK Committee On State Affairs January 4,6, 2017 Byron Cook P.O. Box 2910 Chairman Austin, Texas 78768-2910 The Honorable Joe Straus Speaker, Texas House of Representatives Members of the Texas House of Representatives Texas State Capitol, Rm. 2W.13 Austin, Texas 78701 Dear Mr. Speaker and Fellow Members: The Committee on State Affairs of the 84th Legislature hereby submits its interim report including recommendations and drafted legislation for consideration by the 85th Legislature. Respectfully submitted, ______________________ ______________________ Byron Cook, Chairman Helen Giddings, Vice Chair _______________________ ________________________ ______________________ Tom Craddick Marsha Farney Jessica Farrar _______________________ ________________________ ______________________ Charlie Geren Patricia Harless Dan Huberty _______________________ ________________________ ______________________ Jarvis Johnson John Kuempel Ina Minjarez _______________________ ______________________ René Oliveira John Smithee Helen Giddings Vice-Chair Members: Tom Craddick, Marsha Farney, Jessica Farrar, Charlie Geren, Patricia Harless, Dan Huberty, Jarvis Johnson, John Kuempel, Ina Minjarez, René Oliveira, and John Smithee TABLE OF CONTENTS STATE AFFAIRS ........................................................................................................................... 6 INTERIM CHARGES .................................................................................................................... 8 NATURAL DISASTER PREPAREDNESS ................................................................................ 10 Introduction ................................................................................................................................... 10 Background ............................................................................................................................... 10 State Office of Risk Management (SORM) .......................................................................... 11 Texas Department of Transportation (TxDOT) .................................................................... 11 Public Utility Commission of Texas (PUC) ......................................................................... 11 Energy Reliability Council of Texas (ERCOT) .................................................................... 11 Department of Information Resources (DIR) ....................................................................... 12 Texas General Land Office (GLO) ....................................................................................... 12 Texas American Water Works Association (Texas AWWA) .............................................. 12 Recommendations ..................................................................................................................... 13 STATE CONTRACT MONITORING ......................................................................................... 14 Introduction ................................................................................................................................... 14 Background ............................................................................................................................... 14 Texas Ethics Commission (TEC).......................................................................................... 14 Health and Human Services Commission (HHSC) .............................................................. 15 State Auditor’s Office (SAO) ............................................................................................... 15 Texas Comptroller of Public Accounts ................................................................................. 16 Texas Conservative Coalition Research Institute ................................................................. 16 Texas Department of Public Safety (DPS) ........................................................................... 17 Texas Department of Information Resources (DIR) ............................................................. 18 IT Alliance for Public Sector ................................................................................................ 18 CompTIA .............................................................................................................................. 18 Recommendations ..................................................................................................................... 19 3 ECONOMIC DISASTER PREPAREDNESS .............................................................................. 20 Introduction ................................................................................................................................... 20 Background ............................................................................................................................... 20 Cybersecurity ........................................................................................................................ 20 Banking ................................................................................................................................. 21 The Texas Banking System .................................................................................................. 21 Effects of the Oil and Gas Industry ....................................................................................... 22 Recommendations ..................................................................................................................... 24 BIOETHICS OF FETAL TISSUE RESEARCH .......................................................................... 26 Introduction ................................................................................................................................... 26 Background ............................................................................................................................... 27 Bioethics ............................................................................................................................... 27 Texas Department of State Health Services (DSHS) ............................................................ 28 Researchers ........................................................................................................................... 28 Recommendations ..................................................................................................................... 29 Enclosure: Consent Form .......................................................................................................... 30 Enclosure: OIG October 2015 Letter ........................................................................................ 31 Enclosure: OIG December 2016 Letter .................................................................................... 36 UNIVERSAL SERVICE FUND .................................................................................................. 42 Introduction ................................................................................................................................... 42 Background ............................................................................................................................... 42 Recommendations ..................................................................................................................... 43 UTILITY RATEMAKING PROCESS ......................................................................................... 44 Introduction ................................................................................................................................... 44 Background ............................................................................................................................... 44 Recommendations ..................................................................................................................... 45 UTILITY METERING AND BILLING ...................................................................................... 46 4 Introduction ................................................................................................................................... 46 Background ............................................................................................................................... 46 Recommendations ..................................................................................................................... 47 IMMIGRATION REFORM ......................................................................................................... 48 Introduction ................................................................................................................................... 48 Background ............................................................................................................................... 48 State Legislation.................................................................................................................... 50 Border Security ..................................................................................................................... 50 Texas Department of Public