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LEGISLATIVE UPDATE: FEBRUARY 13, 2015

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LEGISLATIVE UPDATE: FEBRUARY 13, 2015

DRC ACTIVITIES

Dale Petroskey, President & CEO of the DRC, Jay Barksdale, Senior Vice President of Public Policy, and

Virginia Schaefer, Director of Public Policy, attended meetings with Metro 8 Chamber of Commerce colleagues. The group shared the Metro 8 legislative priorities with the Governor’s staff, Speaker Straus, and key legislators. Virginia also attended the TTARA Legislative and Property Tax Meeting.

STATEWIDE

Border Security

On Tuesday, Lieutenant Governor Dan Patrick held a press conference where he announced an update on border security priorities in the senate. Patrick said, "Since deploying the National Guard and increasing our Department of Public Safety (DPS) troopers on the border last summer, we have seen a significant decline in the number of apprehensions. However, the latest intelligence from our law enforcement clearly states our border is still not secure. Our National Guard troops must stay to protect our border. I did not support removing the guard in March and we cannot afford to pull back now. We have identified $12 million to keep the guard funded until the end of May. This will give us time to work on getting a supplemental bill to further and permanently fund our law enforcement along the border. While securing the border is a responsibility of Washington, D.C., it is still a Texas problem. That's why the Senate budget that was put forth earlier this session will continue to fund the guard for the next two years and provide funding for DPS at the highest levels in history to protect our border."

Senator Juan “Chuy” Hinojosa Response: Senator Juan “Chuy” Hinojosa (D-McAllen), Vice-Chair of the Senate Finance Committee, announced that he will release a Border Security Proposal in the coming days to work in collaboration with current budget recommendations. Senator Hinojosa indicated that his proposal will not include extending the deployment of the National Guard Troops

DRC President & CEO Dale Petroskey and

Fort Worth Chamber of Commerce President & CEO Bill Thornton met with other leadership from

the Metro 8 Chambers of Commerce while they were in Austin visiting with the Texas legislators.

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along the state's border. Senator Hinojosa said, “The deployment of 1,000 troops, which cost tens of millions of dollars, was set to end in March. To fund the Guard through May will cost an additional $12 million and does not adequately address the needs of our communities in the border area. In

December 2014, the Legislative Budget Board approved an additional $86.1 million to continue the state's border security efforts through August 2015. The funding was to be used to wind down the National Guard presence along the Rio Grande Valley border, a presence I have opposed from the very beginning. Utilizing the National Guard creates an image of militarization of the border and sends the wrong message. We can make better use of our money on border security by investing funds in a DPS training facility in the Valley so that troopers will become acclimated and familiar with our Valley culture and communities. We can also invest in providing additional funding to our local communities who need more resources to hire more police officers and deputies as well as additional funding to hire more Texas Rangers, Game Wardens, and DPS troopers. It is my priority to ensure the safety and security of our families living along the border and to support cost effective and carefully crafted border security measures."

Speaker Joe Straus Response: After Lt. Governor Dan Patrick’s Tuesday press conference on border security, Speaker Joe Straus said, “I appreciate Lieutenant Governor Patrick’s remarks, but Governor Abbott is the commander in chief, and he will decide whether to extend the National Guard’s

deployment.”

GOVERNOR

Keystone XL Pipeline

On Thursday, Governor Greg Abbott joined a coalition of 24 governors in sending a letter to President Barack Obama encouraging the President to reconsider his threat to veto legislation approving the Keystone XL pipeline. The letter said, “We would ask that you reconsider your decision to veto the Keystone XL pipeline in light of the significant economic and energy security benefits this project would provide for those states along the route of the pipeline, and for the entire nation. According to the State Department’s own analysis, the Keystone XL pipeline will create an estimated 42,000 American jobs. Given the number of jobs at stake, it is no surprise that the project has garnered the support of many of our nation’s largest labor unions, including the AFL-CIO Building & Construction Trades Department, the International Brotherhood of Teamsters, and the Laborers’ International Union of North America. But the real economic impact extends far beyond numbers on a page. The pipeline would not only constitute a boon for our economy, but also for our energy security. Many of our states are at the forefront of America’s energy boom, producing more alternative energy, oil and natural gas than ever before. Yet even as we make strides toward improved energy security, we

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continue to rely on hostile energy sources to meet our needs, and we remain vulnerable to global disruptions that can send prices skyrocketing for hardworking families. With one stroke of a pen, you have the power to give thousands of Americans the shot at a good-paying job that will help them provide for their families and get ahead in a tight economy. Approval would also demonstrate a sincere interest from your Administration in building bipartisan support for a truly all-of- the-above energy policy, and strengthen our economic relationship with Canada.”

SENATE

This week, the Senate was in session Monday through Wednesday conducting routine business. On Thursday, the Senate Nominations Committee took up the nominations of Carlos H. Cascos for Secretary of State and Stuart Waddington Bowen to the Office of Inspector General at the Health and Human Services Commission. The committee recommended confirmation of both nominees. Also on Thursday, the Senate State Affairs Committee took almost nine hours of testimony on SB 11 by Brian Birdwell (R-Granbury) allowing concealed handgun license holders to carry handguns on the

campuses of institutions of higher education; and SB 17 by Craig Estes (R-Wichita Falls), allowing concealed handgun license holders to openly carry a holstered handgun. SB 11 was voted out favorably as substituted and SB 17 was voted out favorably.

Next Week: The Senate adjourned until Tuesday, February 17, 2015 at 10:30 a.m.

HOUSE

This week, the House was in session Monday through Thursday conducting routine business. On Tuesday, the House Administration Committee held a brief meeting to adopt committee budgets. Chairman Charlie Geren (R-Fort Worth) also appointed the Subcommittee on House Policy

Procedures: Representative Marisa Marquez, Chair, and Representatives Ken King and John Raney.

Next Week: The House adjourned until 2:00 p.m. on Monday, February 16, 2015.

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BUDGET

Senate Finance Committee

The Senate Finance Committee met Monday through Thursday this week.

On Monday, the committee received an overview of public education funding from John McGeady of the Legislative Budget Board. Education Commissioner Michael Williams

discussed the Texas Education Agency budget. The committee also took up agencies in Article III (education) including Texas School for the Deaf, Texas School for the Blind and Visually Impaired, Windham School District, the Available University Fund, the Higher Education Fund, the Available National Research University Fund, and the Permanent Fund Supporting Military Veterans Exemptions. The committee also heard from representatives of Texas School

Coalition, Texas PTA, Texas Classroom Teachers Association, American Federation of Teachers, Association of Texas Professional Educators, Texas Association of School

Administrators, Texas Association of School Boards, League of Women Voters-Texas, Disability Rights Texas, Fast Growth School Coalition, Save Texas Schools, Texas Charter Schools

Foundation and Texans Care for Children.

On Tuesday, the Senate Finance Committee took up agencies from Article III (education) including Midwestern State University, Stephen F. Austin State University, Texas Southern University, Texas Woman’s University, the Texas A&M University System and its component institutions, and University of Texas system and its components.

On Wednesday, the Senate Finance Committee took up additional agencies from Article III including the Teacher Retirement System, Optional Retirement System, Higher Education Group Insurance, Texas State Technical College, and the Texas Higher Education Coordinating Board. On the teacher retirement issue, the committee heard from representatives of Texas American Federation of Teachers, Texas Association of School Administrators, Association of Texas Professional Educators, and Texas State Teachers Association. Regarding higher education issues, additional testimony was provided by representatives of the Center for Public Policy Priorities, Texas Association of Business, Independent Colleges and Universities of Texas, and Texas Medical Association.

On Thursday, the Senate Finance Committee took up the budget for Texas State University System and its component institutions, Texas Tech University System and its components, and University of North Texas System.

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House Appropriations Committee

The House Appropriations Committee met Monday, Tuesday, and Wednesday this week.

On Monday, the committee heard a presentation on the state’s fiscal outlook from Tom Currah, Chief Revenue Estimator for the Comptroller’s office. Ursula Parks, Director of the Legislative Budget Board discussed provisions of HB 1, the House version of the

appropriations bill. Jeremiah Jarrell, Manager of the LBB’s Agency Performance Review Team discussed general revenue dedicated accounts.

On Tuesday, the House Appropriations Committee heard LBB staff presentations on the Foundation School Program, Employees Retirement System, Teacher Retirement System, and Medicaid. The committee also heard from Sunset Advisory Commission staff regarding sunset recommendations on Health and Human Services agencies and programs.

On Wednesday, the committee discussed funding for border security and received testimony from representatives of the Department of Public Safety and the Texas State Guard. The committee also discussed graduate medical education and veterans’ access to higher education. The committee then took up state procurement and contracting issues. Jennifer Wiederhold of the State Auditor’s Office discussed contract audit procedures. And, the committee considered transportation funding issues and options.

House Appropriations Committee’s Subcommittees

On Thursday, House Appropriations Committee Chairman John Otto (R-Dayton) announced subcommittees.

Senator Van Taylor’s Limited Government Legislative Package

On Monday, Senator Van Taylor (R-Plano) announced a new series of bills in his limited government legislative package. Senator Taylor filed SB 403, The "Cap Government Growth Act," and SB 404, the "One, Five, Ten Percent Cut Act." The package also includes SJR 9, The "Texas REINS Act"

(Regulations from the Executive In Need of Scrutiny), which was filed previously. It would allow the Legislature to oversee and reject new rules or regulations proposed by state agencies that are made contrary to legislative intent. Senator Taylor said, "The growth in state government, fueled by greater spending of taxpayers' dollars, is a clear and present danger to personal freedom and individual liberty. The more government spends, or expands its reach by intrusive and unnecessary regulations, the more freedom it takes away from the people it serves. Limiting the size and reach of government

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is a top priority of mine for this legislative session and these bills will have a significant impact to that end." The "Cap Government Spending Act" would expand the criteria for limiting state spending hikes to include the state's population growth plus inflation, or the rate of growth of the state's gross domestic product instead of the current practice of capping spending increases to an amount equal to economic growth. And, it would require that budget writers use the lowest estimate when

calculating spending increases. The "One, Five, Ten Percent Cut Act" would require each state agency to submit a detailed report every two years that identifies measures the agency can reduce biennial expenditures by 1%, 5%, and 10%.

Local Government Debt

On Tuesday, Representative Ron Simmons (R-Carrollton) filed HB 1283 to require propositions

resulting in the issuance of bonds or other debt to be submitted to voters on the uniform election date in November. Representative Simmons said, "At the state level, Texas has the second lowest state debt per capita among the ten most populous states in the nation. However, growing local debt has become a major concern in Texas. Part of the concern is that many bond and debt propositions are presented to voters in May elections, when voter turnout is low. While appropriate debt instruments for long-term infrastructure projects are sometimes necessary and financially sound, we must have debt elections when the largest possible turnout is expected - which is in November." Local

governments in Texas issue debt to finance construction and renovation of government facilities, public infrastructure and various other projects authorized by law. Over the past decade, Texas’ total local government debt outstanding increased by 74.6 percent from $117.66 billion to $205.33 billion. During this period debt for public school districts increased 78.2 percent from $38.13 billion to $67.96 billion.

Next Week:

Senate Finance Committee – The Senate Finance Committee has posted hearings for Tuesday through Friday next week:

Tuesday, February 17, 2015 – The Senate Finance Committee will meet at 9:00 a.m. in E1.036 of the capitol extension to take up Article III agencies including Texas State Technical

College’s component institutions, the health science centers, Texas A&M System agencies, public community colleges, and the University of Houston System.

Wednesday, February 18, 2015 – The Senate Finance Committee will meet at 9:00 a.m. in E1.036 of the capitol extension to take up Article II, Health and Human Services agencies.

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Thursday, February 19, 2015 – The Senate Finance Committee will meet at 9:00 a.m. in E1.036 of the capitol extension to take up additional agencies from Article II (Health and Human Services).

Friday, February 20, 2015 - The Senate Finance Committee will meet at 9:00 a.m. in E1.036 of the capitol extension to take up Article VI (Natural Resources) agencies including the General Land Office, Department of Agriculture, Railroad Commission, Parks and Wildlife Department, Animal Health Commission, Texas Commission on Environmental Quality, Soil and Water Conservation Board, Water Development Board, and the Low-level Radioactive Waste Disposal Compact Commission.

House Appropriations Committee – The House Appropriations Committee’s subcommittees have posted meetings for Monday, Tuesday and Wednesday of next week.

Monday, February 16, 2015

• Subcommittee on Article II (Health and Human Services) at 7:30 in Room 120 of the John H. Reagan Building

• Subcommittee on Articles VI (Natural Resources), VII (Business and Economic Development), and VIII (Regulatory) at 7:30 a.m. in E1.026 of the capitol extension • Subcommittee on Article III (Education) at 7:30 a.m. in E1.030 of the capitol extension • Subcommittee on Articles I (General Government), IV (Judiciary), and V (Public Safety

and Criminal Justice) at 10:00 a.m. in E2.036 of the capitol extension

Tuesday, February 17, 2015

• Subcommittee on Article III (Education) at 7:30 a.m. in E1.030 of the capitol extension • Subcommittee on Article II (Health and Human Services) at 7:30 a.m. in Room 120 of

the John H. Reagan Building

• Subcommittee on Articles VI (Natural Resources), VII (Business and Economic Development), and VIII (Regulatory) at 7:30 a.m. in E1.026 of the capitol extension • Subcommittee on Articles I (General Government), IV (Judiciary), and V (Public Safety

and Criminal Justice) at 8:00 a.m. in E2.030 of the capitol extension

Wednesday, February 18, 2015

• Subcommittee on Article II (Health and Human Services) at 7:30 a.m. in Room 120 of the John H. Reagan Building

• Subcommittee on Articles VI (Natural Resources), VII (Business and Economic Development), and VIII (Regulatory) at 7:30 a.m. in E1.026 of the capitol extension

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• Subcommittee on Article III (Education) at 7:30 a.m. in E1.030 of the capitol extension • Subcommittee on Articles I (General Government), IV (Judiciary), and V (Public Safety

and Criminal Justice) at 8:00 a.m. in E2.030 of the capitol extension

ECONOMIC DEVELOPMENT

Events Trust Funds

Last Friday, Governor Greg Abbott and Comptroller Glenn Hegar announced a joint proposal to transfer the state’s four events trust fund programs from the Comptroller’s office to the Governor’s Economic Development and Tourism Division. Comptroller Hegar said, “Since being sworn into office, I have been conducting a top-down review of this agency to ensure Texas taxpayers can trust the Comptroller’s office to be a model of efficiency, transparency and accountability. My top priority is protecting Texas taxpayers. To achieve that goal, I believe this agency must renew its focus on the core functions of the Comptroller and reform programs that fall outside that focus. Governor Abbott and I both believe these programs, including the Major Events Trust Fund and Events Trust Fund would operate more efficiently, more effectively and with greater accountability to taxpayers within the Governor’s Economic Development and Tourism Division.” Governor Abbott added, “As part of our broader efforts to maximize efficiency and accountability in state government, Comptroller Hegar and I have identified weaknesses in Texas’ economic development programs and provided a roadmap for reform that will optimize our state’s economic development strategy. The transfer of these programs to the Governor’s Economic Development and Tourism Division will leverage our existing economic resources and promote Texas as a world-class commercial destination nationally and globally.”

Emerging Technology Fund

Last Friday, The state of Texas awarded Austin Community College (ACC) $4.9 million through the Emerging Technology Fund to develop a highly specialized biotechnology research lab known as a wet lab to address a critical shortage of research space in the region. As the first community college in the state to build a wet lab, ACC will serve as a resource for Central Texas’ growing biomedical

industry, which will:

• Allow ACC faculty and students to work in state-of-the-art facilities;

• Provide incubation and contract services for industry partners to test new products; and • Help grow a skilled workforce for the region.

ACC president and CEO Dr. Richard Rhodes said, “This is an exciting opportunity for our students and our community partners. ACC has a long history of providing Central Texas industries the workforce

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and tools they need to prosper. This lab will take that commitment to a new level.” ACC is the first two-year institution to apply for and receive funding from the Texas Emerging Technology Fund (TETF) Research Award Matching program and the only community college contract service organization (CSO) with cGMP (current Good Manufacturing Practices) and wet lab space in the nation. ACC is working in partnership with the Texas Life-Sciences Collaboration Center, the Austin Technology Incubator at the University of Texas, and the city of Georgetown.

Defense Base Closure and Realignment

On Wednesday, Senator Charles Perry (R-Lubbock) announced the filing of SB 503, which would increase the maximum loan from the Texas Military Value Revolving Loan Account from $2 million to $5 million and delete the 50 percent matching requirement. Senator Perry said “This will allow for better opportunities to invest in communities that have or could be affected by Defense Base Closure and Realignment Commission (BRAC) with loans or grants given out by the Texas Military

Preparedness Commission. This will give communities in Texas better access to available funds that can be invested in infrastructure or job training programs.”

Small Business Advisory Task Force

Also on Wednesday, Senator Juan "Chuy" Hinojosa (D-McAllen) filed SB 522 relating to the procedure for adoption by a state agency of rules that may have an adverse economic effect on small businesses and micro-businesses. SB 522 reflects a legislative recommendation made by the Small Business Advisory Task Force which was created last session to identify barriers that hurt Texas job creators, review difficulties encountered by small businesses with regard to the regulatory system and make recommendations to the legislature to improve small business creation in Texas.

Senator said, "Small businesses are the backbone of the Texas economy. Our recipe of low taxes, tort reform, and predictable regulation has made Texas the place to do business. However, state

regulatory bodies still adopt burdensome rules without understanding the economic impact on start-up businesses and current small businesses. I filed SB 522 to give a voice to small business owners who are negatively impacted by agency rules. This bill will give agencies a better understanding of the economic impact and regulatory flexibility its rules have on Texas businesses. SB 522 would require state agencies to prepare an economic impact statement and regulatory flexibility analysis if a state agency is made aware that a proposed rule may have an adverse economic effect on small

businesses."

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Senate Veteran Affairs and Military Installations

The Senate Committee on Veteran Affairs and Military Installations held an organizational meeting on Wednesday. Major General John Nichols, Adjutant General of the Texas National Guard discussed activities of the Texas Guard. Texas Workforce Commission Chairman Andres Alcantar discussed the commission’s outreach to veterans. The committee also heard from representatives of the Veterans Land Board, the Texas Veterans Commission and the Texas Military Preparedness Commission.

Next Week: The House Culture, Recreation and Tourism Committee will meet on Tuesday, February 17, 2015 at 10:30 a.m. in E1.010 of the capitol extension for an organizational meeting and to hear testimony from agencies under the committee’s jurisdiction.

The House Economic and Small Business Development Committee will meet on Thursday, February 19, 2015 at 8:00 a.m. in E2.010 of the capitol extension for an organizational meeting and to hear invited testimony.

ENVIRONMENT

EPA’s Waters of the US Rules

Recently, the Environmental Protection Agency and the U.S. Army Corps of Engineers (Corps) announced the withdrawal of their waters of the U.S. interpretive rule. On Tuesday, the Texas Farm Bureau commented on the rule withdrawal saying, “The rule would have required federal permits for normal farming activities in and around newly defined ‘waters,’ unless strict USDA-Natural Resources Conservation Service practices were followed. However, the Environmental Protection Agency (EPA) will move forward with a vast expansion of the agency’s regulatory power with changes in the Clean Water Act.” Texas Farm Bureau President Russell Boening said, “This is a step in the right direction, but only a tiny one. The EPA is still pursuing the much more invasive ‘Waters of the U.S.’ rule.’
That rule greatly expands federal jurisdiction to include very small water bodies, flood plains and land that is not even wet most of the time. These newly classified ‘waters’ are not currently subject to federal regulation. The Texas Farm Bureau remains opposed to this breathtaking overreach of federal authority.” Pete Bonds, President of Texas and Southwestern Cattle Raisers Association also

commented saying, “While I am pleased the EPA withdrew this component of their flawed water rule proposal, it doesn’t address the overall issue and it actually wasn’t their decision to take this action. Instead, Congress had to pass a bill and force their hand to scrap this small part of the larger

overreaching EPA water rule proposal. Ranchers and landowners across the country continue to speak loud and clear in opposition to EPA’s attempt to control every drop of water on their land.”

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State Water Implementation Fund Advisory Committee

On Tuesday, Comptroller Glenn Hegar announced his appointment of Lisa Craven, the Comptroller’s Chief of Staff, to the State Water Implementation Fund’s (SWIFT) advisory committee. Comptroller Hegar said, “Lisa has a strong background on issues relating to water, environmental regulation, rural development and agriculture. During my tenure as vice-chairman and chairman of the Sunset

Advisory Commission, she spent significant time working on issues relating to the state’s

environmental agencies, which were under review. She provides a historical perspective on water issues, having served as legislative staff during consideration of key water legislation.” The committee will oversee $2 billion in investments and spending by the Texas Water Development Board. Under state law, Hegar is authorized to designate a person to serve on the committee. The committee is also made up of three state senators and three state representatives.

Lower Brazos River Coalition

On Monday, a group of individuals, organizations, municipalities, ranchers and farmers,

environmentalists and conservationists and businesses and industries announced that they have formed the Lower Brazos River Coalition. The coalition was formed in response prolonged drought conditions and upstream efforts to limit water flowing downstream. Brazoria County Judge Matt Sebesta, who chairs the coalition said, “We must harmonize our voices if we are to be heard in Austin. Our aim is to explain to lawmakers and regulators why it’s essential to keep water flowing in the Brazos River, especially if legislative efforts are made to stop the flows.” At 840 miles, the Brazos River is the longest river inside Texas. It sustains communities, businesses and agriculture from the high plains of the Llano Estacado to the Gulf of Mexico. Coalition goals include ensuring sound

management of the river and responding to proposals that would hold water in upstream reservoirs rather than releasing it for beneficial use downstream. In addition, the Coalition advocates for more water conservation, enforceable drought management and enhanced water supplies.

Sunset Review of River Authorities

On Tuesday, Senator Brian Birdwell (R-Granbury) and State Representative Jim Keffer (R-Eastland) filed SB 523 and HB 1275 to increase oversight of river authorities by requiring the review of all Texas river authorities by the Sunset Advisory Commission. It specifically requires review of each entity’s governance, management, operating structure, and compliance with legislative requirements. Under this 'Sunset' process, the legislature may require the authority to make specific changes as

recommended by the Commission, but the companion bills provide that a river authority cannot be eliminated in order to preserve the bond and credit ratings of the various authorities. River authorities would be reviewed at a rate of 3-4 per biennium and in alphabetical order, beginning immediately

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with the Bandera, Brazos and Central Colorado River Authorities. Senator Birdwell said, “The Texas Legislature has created - and given significant power to - a growing number of river authorities over the years, yet we have failed to establish an ongoing, citizen-centric mechanism for reviewing and evaluating these entities. Especially in a drastic era of drought such as this, it is imperative that the people’s elected representatives have explicit oversight of the river authorities and their management of Texas water. This is about good governance, and it’s long overdue." Representative Keffer added, "Ensuring legislative oversight of river authorities increases accountability and transparency of entities created by the Legislature. The efficient use of our water resources is critical to our state's continued economic growth and quality of life. The Sunset review process will aid in that effort and will help keep Texas working for generations to come.” Senators Craig Estes (R-Wichita Falls), Troy Fraser (R-Horseshoe Bay), Lois Kolkhorst (R-Brenham) and Charles Perry (R-Lubbock) have signed onto SB 523 as joint authors.

Meteorological Evaluation Towers

On Wednesday, Senator Charles Perry (R-Lubbock) filed SB 505, which would require Meteorological Evaluation Towers (METs) to be painted and marked in accordance with Federal Aviation

Administration and National Transportation Safety Board guidelines. MET’s are thin, portable towers made from galvanized tubing and secured with guy wires used to measure wind speed and direction to identify locations for future wind turbines. Senator Perry said, “SB 505 improves safety for crop duster and other low altitude pilots. It would apply immediately to METs erected in the future and current METs starting in September 2016.”

HEALTH

House Human Services Committee

On Monday, the House Human Services Committee held an organizational meeting. Colonel Quinton Arnold, Inspector General in the Office of the Attorney General gave the committee an overview of his office’s review of Medicaid and the CHIP program.

Commitment to Care Initiative

On Tuesday, the Texas Health Care Association (THCA) announced its statewide Commitment to Care Initiative which is designed to bring together nursing home providers, community leaders,

stakeholders and advocates to establish Texas as a leader in eldercare. Kevin Warren, president and CEO of the THCA said that the initiative strategically charts a course for ongoing, consistent quality care improvement, enhanced facility survey performance results and the promotion of public policy

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that facilitates the ability of providers to deliver the best long term care possible to Texas seniors. The Commitment to Care Initiative is anchored by four core principles that include:

• Improving workforce stability; • Improving clinical outcomes;

• Improving survey performance results; and

• Promoting policies that enhance the quality care needs of the frail elderly


The THCA Commitment to Care initiative will provide education and training resources to its members designed to improve quality care performance. Participants will be invited to take quarterly surveys focusing on priority areas for improving care, and challenges providers face in elevating the quality of care in nursing homes. The results are intended to serve as a measure for progress and feedback for partners and stakeholders.

Senate Health and Human Services Committee

On Wednesday, the Senate Health and Human Services Committee took up:

SB 97 by Juan “Chuy” Hinojosa (D-McAllen) would prohibit the sale of e-cigarettes to persons younger than 18 years of age; would allow local regulation of the sale, distribution, or use of e-cigarettes; and would prohibit smoking e-cigarettes in schools, elevators, enclosed theaters, libraries, museums, hospitals, and in busses, airplanes or trains, except in designated areas. In laying out the bill, Senator Hinojosa said, "Regulation at the state level is necessary. Many cities in Texas as well as 41 other states have already banned the sale of e-cigarettes to minors because of the potentially harmful health consequences and the addictive nature of the nicotine in cigarettes. Teens now use e-cigarettes more than any other tobacco product, including conventional tobacco e-cigarettes. It is imperative that we take the steps to protect our teens from these federally unregulated, potentially addicting products." Representatives of the Vape Shop and Vapor Essence testified in support of the bill. Representatives of All About Vapor and the Texas E-cigarette and Vapor Association testified “on” the bill. It was left pending.

SB 133 by Charles Schwertner (R-Georgetown) would provide voluntary mental health first aid training to school counselors, nurses, teacher’s aides, school bus drivers, principals, assistant principals, and school resource officers. In support were representatives of Texans Care for Children and Mental Health America of Texas. It was left pending.

SB 197 by Charles Schwertner (R-Georgetown) would require the Cancer Prevention and Research Institute of Texas to develop a financial self-sufficiency plan to operate without state

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funding. In support were representatives of the Cancer Prevention and Research Institute of Texas, American Cancer Society, and American Lung Association. It was left pending.

SB 424 by Charles Schwertner (R-Georgetown) would allow the Department of State Health Services to place an emergency suspension on a hospital license holder if the license holder’s actions place the public health and safety in immediate jeopardy. Representatives of Texas Medical Association, Texas Hospital Association, and Texas Association of Large and Rural Hospitals testified. It was left pending.

Graduate Medical Education

On Wednesday, Senator Jane Nelson (R-Flower Mound) filed SB 18, to address Texas' medical

workforce needs by expanding graduate medical education (GME). Senator Nelson said, "Texas needs to grow its health care workforce in order to keep up with the needs of our growing population. Access to quality health care depends on a strong workforce. This bill will establish a permanent endowment to support graduate medical education today and in the future, and will bring us closer to our goal of one residency spot for every Texas medical school graduate as well as attract physicians from other states to Texas." SB 2, the Senate's proposed budget filed by Senator Nelson, increases funding for GME by $60 million over the biennium. Those funds will be spent in accordance with the priorities laid out in SB 18 as follows:

Critical Shortage Physician Program – It would create a new program at the Higher Education Coordinating Board to incentivize teaching hospitals to create and maintain residency programs for physicians in high demand across the state. Experts would recommend which areas are "critical shortages."


Family Care and Primary Care Residency Programs – It would increase funding of existing programs at the Higher Education Coordinating Board to increase the number of family and primary care doctors in the state, especially in rural and high need communities.

Teaching Health Center GME Program – It would create a new program to establish community-based primary care training programs, which will help address physician shortfalls in rural and underserved areas.

Planning Grants Partnership – It would expand the planning grant program so that community health clinics and rural health centers can create new residency programs, with guidance from established residency programs.

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Family Practice Development Center – It would establish the Family Practice Development Center to ensure proper training so we have qualified faculty to teach residents.

GME Endowment – It would create an endowment of $300 million to continue supporting graduate medical education. The funds would come through the dissolution of the Texas Medical Liability Joint Underwriting Association, as recommended in a report released by the Legislative Budget Board.

Infectious Diseases

On Wednesday, Senator Charles Schwertner (R-Georgetown) and members of the Senate Health and Human Services Committee held a press conference to announce SB 538, legislation that would make a number of key reforms to the way the state of Texas manages and responds to dangerous infectious disease outbreaks. Chairman Schwertner said, "SB 538 was developed to address some of the

weaknesses in our public health response and ensure that the state of Texas is better prepared to protect its citizens moving forward. This bill represents the next step in protecting Texans against deadly infectious disease threats like Ebola, and we're not going to rest just because the crisis of the moment has abated. While the disease was ultimately contained and a large-scale infection was avoided, the event sparked a new debate about the adequacy of the state's public health response measures and its preparedness to respond to similar infectious disease outbreaks in the future.”

SB 538 was developed based upon recommendations of the Texas Task Force on Infectious Disease Preparedness and Response, a team of experts assembled by then-Governor Rick Perry to study the efficacy of Texas' public health infrastructure. The legislation establishes a clear command structure in future public health emergencies and guarantees hospitals, medical workers, and first responders have the necessary tools to effectively handle the next infectious disease outbreak.

Supplemental Nutrition Assistance Program and State Supported Living Centers

On Wednesday, Representative Susan King (R-Abilene) filed legislation to reform the Supplemental Nutrition Assistance Program (SNAP). HB 1258 would disqualify an individual from receiving SNAP Benefits if the person is delinquent on their child support payments. Benefits would be restored once a person is back on track with their child support payments. It would permanently ban a person who fails to meet the program’s work requirements for the third time without good cause. The bill would only apply to able-bodied adults without dependents and who are required to work in order to receive food stamps. Representative King said, “Both of these bills will better ensure that taxpayer dollars are spent on individuals who are working hard to support their families and take care of their children. It is important for our state to set good policy to encourage personal responsibility when receiving an entitlement.” Representative King also filed HB 1260, which would require the Department of Aging

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and Disability Services (DADS) to set up a fee schedule for the payment of services that a state

supported living center could provide. And, it would establish a mechanism to allow for these services to be available in the broader community. Representative King concluded, “State supported living centers across the state excel in specialty areas like custom designed mobility and body support devices at the Abilene State Supported Living Center. I believe opening up these centers to provide a wider array of services to the community as well would be the most effective and efficient use of taxpayer dollars."

Next Week: The House Human Services Committee will meet on Monday, February 16, 2015 at 2:00 p.m. in E2.030 of the capitol extension to hear agency overview presentations from the Department of Aging and Disability Services and the Department of Assistive and Rehabilitative Services.

The House Public Health Committee will meet on Tuesday, February 17, 2015 at 8:00 a.m. in E2.012 of the capitol extension for an organizational meeting and to hear invited testimony.

HIGHER EDUCATION

Impact of Higher Education on the Texas Economy

Last Friday, Economic Modeling Specialists International released a report, “Demonstrating the Collective Economic Value in Texas Added by Colleges and Universities.” It indicates that three sectors - public universities, community and technical colleges, and independent universities in Texas have a combined economic impact equivalent to nearly 11 percent of the state’s gross state product. For every dollar spent associated with colleges and universities in Texas, students gain $3.50 in their lifetime income, while the state’s income and social savings see a gain of $13.30. It also found that taxpayers realize a gain of $6.40 in added tax revenue and public sector savings for every dollar spent in the higher education sector. Dr. Brian McCall, Chancellor of the Texas State University System and Chair of the Council of Public University Presidents and Chancellors said, “This report confirms what many previous studies have shown – higher education institutions in Texas impact not only the lives of our students but also the state’s economy in a very meaningful way.” Dr. Richard Rhodes,

President of Austin Community College and Chair of the Texas Association of Community Colleges added, “It is important to recognize that the added income produced by the state’s higher education institutions support the equivalent of nearly 2.26 million jobs.”

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Senate Higher Education Committee

The Senate Higher Education Committee met briefly on Tuesday to adopt committee rules.

Next Week: The House Higher Education Committee will meet on Wednesday, February 18, 2015 at 8:00 a.m. in E2.014 of the capitol extension for an organizational meeting and to hear invited testimony on issues related to higher education.

PRIVACY

Driver License Fingerprinting Process

On Monday, the Texas Department of Public Safety (DPS) announced that based on concerns and questions raised by a number of legislators regarding the statutory authority of DPS to collect all 10 fingerprints in order to obtain a driver license (DL) or identification (ID) card, effective Monday, February 9, 2015, the department will cease collecting all 10 fingerprints in order to obtain a DL or ID card. The department will continue to comply with Texas Transportation Code, Section 521.059, passed by the Texas Legislature in 2005, which requires the department to collect “an applicant’s thumbprints or fingerprints.”

PROCUREMENT

Local Government Contracts

On Wednesday, Senator Charles Perry (R-Lubbock) announced the filing of SB 506, which would expand public notice requirements for local governmental entities entering into procurement contracts. Senator Perry said, “This bill will help promote transparency with local government contracts (over $25,000) by requiring municipalities and counties to provide notices of the time and place set for the approval of the contract, the purpose and estimated cost of the contract, and the manner in which the cost of the contract will be paid (taxes, revenues or a combination of funds). The bill also allows for citizen recourse by allowing the matter to go before the voters if 5 percent of registered voters sign a petition.”

Next Week: The House Government Transparency and Operation Committee will meet on Tuesday, February 17, 2015 at 2:00 p.m. in E1.014 of the capitol extension to discuss state contracting and procurement and hear invited testimony from the Comptroller of Public Accounts, Department of Information Resources, Health and Human Services Commission, Legislative Budget Board, Sunset Advisory Commission, and State Auditor’s Office.

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PROPERTY

Eminent Domain Authority

On Monday, Senator Charles Schwertner (R-Georgetown) filed SB 479, which he says will protect the rights of private property owners by increasing the requirements on governmental entities that exercise eminent domain authority. Current law allows a governing body to use its eminent domain authority to take private property for a public use, so long as they provide the property owner with adequate compensation. SB 479 would strengthen the requirements that a governmental entity must comply with in order to prove "actual progress" towards its stated public use. If the entity fails to do so within 10 years, the landowner is entitled to repurchase the land for the original purchase price. Senator Schwertner said, "I believe governments should only use their eminent domain authority as a last resort, but the truth is, it's a power rampant with abuse and misuse. Texas has a storied history of defending private property rights, and this legislation will preserve that proud tradition by holding government more accountable." In 2011, the Legislature required any entity exercising eminent domain authority to make "actual progress" towards its stated public use and permitted a landowner to repurchase the land after 10 years if actual progress had not been made. Senator Schwertner added, “Unfortunately, the law's definition of ‘actual progress’ is unnecessarily broad and does not provide adequate protection from abuse.” Under SB 479, the definition of "actual progress" would require a governmental entity exercising its eminent domain authority to complete at least three of the following property development actions: (1) perform significant labor on the property;

(2) purchase materials for development; (3) procure the services of an architect, engineer, or surveyor in preparation for development; (4) apply for state or federal funds for development; or (5) apply for a state or federal permit needed for development.

Windstorm Insurance Coverage

On Tuesday, Senator Larry Taylor (R-Friendswood) filed SB 498 to help coastal residents have access, affordability and availability to windstorm insurance coverage. SB 498 would continue access to a Texas Windstorm Insurance Association (TWIA) program that would otherwise expire at the end of the year. The program authorizes a "waiver" from certain TWIA eligibility requirements when a coastal resident's windstorm coverage is cancelled, or non-renewed in the private market through no fault of their own. Senator Taylor said, "The process for a homeowner to prove after the fact that their home meets eligibility standards is unnecessarily cost prohibitive in many cases. Extending the waiver program is essential to maintaining economic stability on the Coast." As filed, SB 498 would removes an arbitrary expiration date that was added during the last legislative session and allow the program to continue indefinitely. The waiver program represents over 40,000 of TWIA policyholders.

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PUBLIC EDUCATION

School Finance Review

On Thursday, Senator Sylvia Garcia (D-Houston) filed SB 556 which would require the Texas

Education Agency (TEA) to conduct a comprehensive review of weights, allotments, and adjustments under the public school finance system. The study would examine the effectiveness of current elements, as well as the need for any new ones. Senator Garcia said, "As the Legislature awaits a decision by the Texas Supreme Court on the most recent lawsuit involving our public school finance system, we should study what actions can be taken in the future to avoid yet another lawsuit. Many of the elements used in our school finance system have not been updated in decades and this creates an inaccurate representation of the funding challenges facing our local school districts. SB 556 would provide the Legislature with current data about our school finance system, along with recommended changes the Legislature should consider. Undoubtedly, incorporating the most up-to-date

information and recommendations into any future reform of the school finance system would go a long way to avoiding future lawsuits on this subject."

Next Week: The House Public Education Committee will meet on Tuesday, February 17, 2015 at 2:00 p.m. in E2.036 of the capitol extension for an organizational meeting and to hear invited testimony.

TAX

Property Tax Relief for Homeowners and Businesses

On Wednesday, Senator Paul Bettencourt (R-Houston) filed two tax relief bills – SB 515, which would double the homestead exemption from school taxes from the current $15,000 to $30,000; and SB 516, which would increase the duration of the Freeport property tax exemption from 175 to 365 days. Senator Bettencourt, who is a former Harris County Tax Assessor-Collector, said, “Property tax relief is needed for both home and business owners as they both have been paying ever higher property tax bills due to a record 8.6% increase in total 2014 property values around the state. Doubling the statewide homestead exemption from $15,000 to $30,000 a year will save homeowners nearly $200 every year on their property tax bills. This is immediate and permanent property tax relief. SB 516 will allow Texas to operate on a more equal footing compared to other states. Some states do not tax business inventory at all. Increasing the duration of the Freeport exemption will make the state more attractive to businesses when they are deciding where to locate their operations. Doubling the length of the Freeport exemption will provide immediate tax relief to business taxpayers, and make the state more attractive to potential new businesses looking to relocate. Finally, Texas is one of the few states in the Union that still heavily taxes business inventories used in manufacturing. My district alone has

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26,000 announced layoffs in the energy industry and any tax relief for these businesses will be helpful for future job creation.”

Next Week: The House Ways and Means Committee will meet on Tuesday, February 17, 2015 at 8:30 a.m. in E2.010 of the capitol extension for an organizational meeting and to hear invited testimony from the Legislative Budget Board, Comptroller of Public Accounts, Texas Public Policy Foundation, Center for Public Policy Priorities, and Texas Taxpayers and Research Association.

TRANSPORTATION

Senate Transportation Committee

On Wednesday, the Senate Transportation Committee received invited testimony regarding the Texas Department of Transportation and the TxTag System. Lt. General J. F. Weber, executive director of Texas Department of Transportation and deputy executive director John Barton discussed highway safety. James Bass, CFO of TxDOT discussed the TxTag tolling system. The committee also heard from Xerox representatives.

Repair of Private Roads

Also on Wednesday, Senator Charles Perry (R-Lubbock) announced the filing of SJR 17, which would propose a constitutional amendment expanding the number of rural counties that have the ability to assist in the repair of private roads. Senator Perry said, “In small counties there are rarely private contractors available, so private roads are often poorly maintained, creating public safety hazards for citizens and emergency services. For years, counties have relied on this provision to maintain these roads and make them safe and navigable. To utilize this provision, private landowners must not only consent, but they must pay for this service as well.”

Next Week: The Senate Transportation Committee will meet on Wednesday, February 18, 2015 at 8:00 a.m. in E1.016 of the capitol extension to receive an overview and update from the Texas Department of Transportation, the Texas Department of Motor Vehicles, and the Texas Department of Public Safety.

References

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