SINE DIE UPDATE. 85 th Legislative Session Special Session Update. August 16, 2017

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1 August 16, th Legislative Session Special Session Update SINE DIE UPDATE Special Session Adjourned Sine Die - The House adjourned the Special Session Sine Die shortly before 7:00 p.m. on Tuesday, August 15, 2017, one day before the 30-day session was set to expire. Before adjourning, the House adopted the Senate versions of the tree ordinance bill (HB 7); public school finance reform (HB 21); and the school finance and TRS-Care funding mechanism (HB 30). But, the House did not appoint conferees on the property tax reform bill (SB 1). House Ways and Means Committee Chairman Dennis Bonnen said, I m trying to keep the bill alive. If we appointed conferees now it would kill the bill because we are out of time. Speaker Joe Straus commended the House s work saying, The House was thoughtful, respectful and decisive in its solution-oriented approach. Two hours later, the Senate adjourned Sine Die after adopting the House versions of the do-notresuscitate orders bill (SB 11); and the bill expanding the Maternal Mortality and Morbidity Task Force (SB 17). They did not agree to House changes on the property tax reform bill (SB 1). SB 1 bill sponsor Senator Paul Bettencourt said, We are not going to accept the take-it-or-leave-it proposal from the House and are going to fight another day. Texas taxpayers will be furious. I hope the governor calls us back as soon as possible. After the Senate adjourned, Lt. Governor Dan Patrick held a press conference criticizing the House and specifically Speaker Joe Straus for failing to pass several of the bills on the special session call. He said, In almost every case, it was because of the speaker s personal politics. Patrick concluded by saying, The Texas Senate didn t quit early. The Texas Senate didn t go home without the job getting done. Thank goodness Travis didn t have the speaker at the Alamo. He might have been the first one over the wall. On Tuesday night, Governor Greg Abbott s spokesperson John Whittman said, Our office believes this special session has produced a far better Texas than before. In an interview on Wednesday morning, Governor Abbott said, I m disappointed that all 20 items that I put on the agenda did not receive the up-or-down vote that I wanted but more importantly that the constituents of these members deserved. They had plenty of time to consider all of these items, and the voters of the state of Texas deserved to know where their legislators stood on these issues. There is a deep divide between the House and Senate on these important issues. So, I m going to be making decisions later on about whether we call another special session, but in the meantime, what we must do is work to get more support for these priorities and to eliminate

2 or try to dissolve the difference between the House and the Senate on these issues so we can get at a minimum an up-or-down vote on them. Special Session Issues that Passed: Texas Medical Board and behavioral health licensing agency sunset extension; Teacher Retirement System TRS-Care funding; School finance reform, establishing a statewide commission to recommend public school finance improvements and extending additional state aid for tax reduction (ASATR); Restricting local regulation of trees on private land; Prohibiting health insurance plan coverage for elective abortions; Requiring additional reporting by health care providers on abortion complications; Requiring additional reporting by health care providers on abortions provided to minors; Instituting patient protections on do-not-resuscitate orders; Cracking down on mail-in ballot fraud; Extending the Maternal Mortality and Morbidity Task Force; and Municipal annexation reform. Special Session Issues the DID NOT Pass: Teacher pay increase; School choice for special needs students; Property tax reform; Caps on state and local spending; Expedited local permitting; Preventing local governments from changing rules midway through construction projects; State pre-emption of local regulation of mobile communication devices while driving; Privacy/prohibiting local regulation of multi-occupancy showers, locker rooms, restrooms, and changing rooms; Prohibiting public entities from collecting union dues; and Prohibiting local taxpayer funding for abortion providers. GOVERNOR: Reporting Abortion Complications On Tuesday, Governor Greg Abbott signed HB 13 expanding reporting requirements for complications resulting from abortion procedures. Governor Abbott said, The health and safety of women is of the utmost importance, and we must have the most accurate data available in order to create good policy. This bill is an important step toward providing Texas with critical information when abortions are performed. I would like to thank the legislature for ensuring this important legislation reached my desk during the special session. Municipal Annexation Also on Tuesday, Governor Abbott signed SB 6, which will reform and restrict the municipal annexation process. Governor Abbott said, Under the new law Texans will now be able to vote on whether a city can annex areas outside of its limits. This legislation was a key priority for me during the special session, and with its passage, Texans will now have a voice when it comes to the annexation practices of local governments. In Texas, of all places, property rights matter. Residents from across the state that have expressed their concerns about feeling abused by the annexation process have had their voices heard. I m proud to sign legislation ending forced annexation practices, which is nothing more than a form of taxation

3 without representation, and I thank the legislature for their attention to this important issue during the special session. Prohibiting Insurance Coverage for Elective Abortion And, on Tuesday, Governor Abbott signed HB 214, which limits insurance coverage for abortion procedures. Governor Abbott said, Under HB 214 Texans will not be forced to pay for elective abortions through their insurance plans. This legislation is an important piece of my pro-life agenda. As a firm believer in Texas values I am proud to sign legislation that ensures no Texan is ever required to pay for a procedure that ends the life of an unborn child. This bill prohibits insurance providers from forcing Texas policyholders to subsidize elective abortions. I am grateful to the Texas legislature for getting this bill to my desk, and working to protect innocent life this special session. BUDGET: Comptroller s Revised Revenue Estimate On Tuesday, Comptroller Glenn Hegar sent a letter to the governor and legislators revising his revenue estimate upward by $196 million. The letter said, Based on changes in forecasted economic conditions, I am revising my estimate of revenue available for general-purpose spending in the biennium. Projected revenue available for fiscal 2017 remains unchanged from the estimate I provided in July for the 85th Legislature, First Called Session. Despite what you may have read elsewhere, July General Revenue collections do not warrant any adjustments to the fiscal 2017 ending balance. In fact, those collections almost exactly matched projections used for the revenue estimate prepared for the First Called Session. Recent improvements to the economic outlook, however, do warrant upward revisions to some revenue streams for fiscal 2018 and fiscal Unfortunately, improved projections for collections of our largest revenue source, sales tax, do not increase revenue available for general-purpose spending. Additional projected sales tax revenue will be allocated to the State Highway Fund in fiscal Any increases in sales tax revenue projections for fiscal 2019 will reduce the expected amount due to the State Highway Fund in September Revisions to other revenue streams, however, will affect revenue available for general-purpose spending. In particular, revised projections for the franchise tax have improved the overall revenue outlook. I now project an additional $195.7 million available for general-purpose spending in fiscal in addition to the $41.5 million available as of my July 2017 estimate. Thus, I now estimate a total of $237.2 million available for general-purpose spending in the biennium remains unappropriated. FINAL STATUS OF SPECIAL SESSION ISSUES: The bills that passed are noted in blue below. Sunset legislation The specific call said, Legislation amending sections , , , , and of the Texas Occupations Code to extend the expiration dates applicable to the Texas Medical Board, the Texas State Board of Examiners of Psychologists, the Texas State Board of Examiners of Marriage and Family Therapists, the Texas State Board of Examiners of Professional Counselors, and the Texas State Board of Social Worker Examiners.

4 SB 20 by Van Taylor (R-Plano) and Larry Gonzales (R-Round Rock), which extends the sunset dates to September 1, 2019, was signed by the governor on August 11, 2017 and took immediate effect. SB 60 by Van Taylor (R-Plano) and Larry Gonzales (R-Round Rock), which repeals appropriations contingency riders for Texas Medical Board and Board of Examiners of Psychologists and allowing continued funding for those agencies, was signed by the governor on August 11, 2017 and took immediate effect. HB 1 by Larry Gonzales (R-Round Rock), which extends the sunset dates to September 1, 2019, passed the House and was referred to the Senate Business and Commerce Committee, HB 2 by Larry Gonzales (R-Round Rock), which repeals appropriations contingency riders, passed the House and was referred to the Senate Business and Commerce Committee. SB 28 by Van Taylor (R-Plano), which would change the sunset dates for several agencies to help the Sunset Advisory Commission to manage its workload, passed the Senate but was not referred to committee in the House. Teacher pay increase of $1,000 The specific call said, Legislation to increase the average salary and benefits (including TRS-Care) of Texas teachers; and legislation to provide a more flexible and rewarding salary and benefit system for Texas teachers. HB 198 by Travis Clardy (R-Nacogdoches), which establishes an average $1,000 pay raise by creating new teacher distinctions, establishes a Teacher Quality Allotment, and provides funding for teacher pay raises and retention, was reported favorably as substituted from the House Public Education Committee on August 10, SB 19 by Jane Nelson (R-Flower Mound) and John Zerwas (R-Fulshear), which provides bonuses for teachers and addresses the Texas Public School Employees Group Insurance Program, passed the Senate and was on the House calendar for August 15, 2017 but was not taken up. HB 20 by Trent Ashby (R-Lufkin), which would appropriate $150 million from the Economic Stabilization Fund to the retired school employees group insurance fund (TRS-Care) to be used to decrease premiums and deductibles, passed the House but was not referred to committee in the Senate. HB 24 by Drew Darby (R-San Angelo), which would increase the minimum salary schedule for teachers and full-time school librarians, counselors and nurses, was been reported favorably from the House Appropriations Committee on July 28, HB 80 by Drew Darby (R-San Angelo) and Joan Huffman (R-Houston), which would provide a cost-of-living adjustment to Texas retired teachers to help them afford increasing health insurance premiums if the funds are available, passed the House, was heard in the Senate State Affairs Committee on August 12, 2017 and was left pending. Note: The teacher payraise issue is dead; however, provisions addressing the Teacher Retirement System and TRS-Care are included in HB 21. School finance reform The specific call said, Legislation establishing a statewide commission to study and recommend improvements to the current public school finance system; and other legislation relating to school finance, including Additional State Aid for Tax Reduction (ASATR). SB 16 by Larry Taylor (R-Friendswood) and Phil King (R-Weatherford), which would establish a commission to recommend improvements to the public school finance system, passed the

5 Senate and passed to Third Reading in the House on August 14, 2017 but was not taken up for final passage. HB 191 by Phil King (R-Weatherford), the House companion to SB 16, was heard in the House Public Education Committee on August 1, 2017 and left pending. HB 21 by Dan Huberty (R-Humble) and Larry Taylor (R-Friendswood), which is the school finance reform bill, passed the House and Senate. The House concurred in Senate amendments and it is on its way to the governor. HB 30 by John Zerwas (R-Fulshear) and Jane Nelson (R-Flower Mound), which appropriates money to implement HB 21, passed the House and Senate. The House concurred in Senate amendments and it has been sent to the governor. School choice for special needs students The specific call said, Legislation to empower parents of children with special needs or educational disadvantages to choose an educational provider that is best for their child. SB 2 by Larry Taylor (R-Friendswood) and Gary VanDeaver (R-New Boston), which establishes a tax credit scholarship and educational expense assistance program, passed the Senate and was reported favorably as substituted from the House Public Education Committee on August 8, HB 52 by Ron Simmons (R-Carrollton), which would give parents choice of the school for their special needs child, including public, private, or homeschool, was referred to the House Public Education Committee on July 20, HB 58 by Ron Simmons (R-Carrollton), which would allow a taxable entity to take an insurance premium tax credit for making a contribution to an educational assistance organization to be used to pay educational expenses for special education or disabled students to attend a public or private school, was referred to the House Public Education Committee on July 20, Note: HB 21 contains additional funding for supplemental programs for students with autism and dyslexia in public schools. Property tax reform The specific call said, Legislation reforming the laws governing ad valorem property taxes. SB 1 by Paul Bettencourt (R-Houston) and Dennis Bonnen (R-Angleton), which is the Texas Property Tax Reform and Relief Act of 2017, passed the Senate and House and the Senate appointed conferees. The House did not appoint conferees. HB 3 by Dennis Bonnen (R-Angleton), which reforms the appraisal appeal process and strengthens taxpayer rights and information, was heard in the House Ways and Means Committee and left pending. HB 4 by Dennis Bonnen (R-Angleton), which reduces the rollback rate from 8 percent to 6 percent, was reported favorably as substituted from the House Ways and Means Committee on July 26, HB 32 by Dennis Bonnen (R-Angleton) and Paul Bettencourt (R-Houston), which would be the Property Tax Payer Empowerment Act of 2017, passed the House and was reported favorably as substituted from the Senate Government Reform Committee on Friday, August 11, 2017.

6 Caps on state and local spending The specific call said, Legislation using population growth and inflation to establish a spending limit for state government; and legislation using population growth and inflation to establish a spending limit for political subdivisions. SB 9 by Kelly Hancock (R-North Richland Hills) and Tan Parker (R-Flower Mound), which sets the constitutional spending cap on population growth and inflation, passed the Senate and was reported favorably as substituted from the House Appropriations Committee on August 12, HB 208 by Tan Parker (R-Flower Mound), which limits the growth in state spending to population growth and inflation, was on the House calendar on Saturday, August 12, 2017 but was sent back to the House Appropriations Committee on a point-of-order. HB 41 by Mike Schofield (R-Katy), a House companion to SB 9, was filed on July 10, 2017 and was referred to the House Appropriations Committee. SB 18 by Craig Estes (R-Wichita Falls), which sets a spending limit for local governmental entities, was on the Senate calendar on Thursday, July 26, 2017, but was not been taken up by the full Senate. Preventing cities from regulating what property owners do with trees on private land The specific call said, Legislation protecting the private property rights of land owners from political subdivision rules, regulations, or ordinances that interfere with, delay, or restrict private property owners ability to use or enjoy their property. SB 14 by Bob Hall (R-Canton), which would prohibit political subdivision rules, regulations and ordinances that interfere with a private property owner s right to plant, transplant, and remove trees and vegetation from their own property, passed the Senate but was not referred to committee in the House. HB 70 by Paul Workman (R-Austin), the House companion for SB 14, was heard in the House Urban Affairs Committee on Tuesday, July 25, 2017 and was left pending. HB 7 by Dade Phelan (R-Port Neches) and Lois Kolkhorst (R-Brehnam), which would require a municipality that imposes a fee for tree removal to allow the person to apply for a credit for tree planting to offset the amount of the fee, passed the House and the Senate and the House concurred in Senate amendments. It has been sent to the governor. Speeding up local government permitting process The specific call said, Legislation expediting the issuance of permits by political subdivisions and reforming the laws governing the issuance of permits by political subdivisions. SB 13 by Konni Burton (R-Colleyville), which limits the time for municipalities and counties to approve or deny a building permit, passed the Senate, was heard in the House State Affairs Committee on August 9, 2017, and was left pending. HB 164 by Paul Workman (R-Austin), the House companion to SB 13, was referred to the House State Affairs Committee. Preventing local governments from changing rules midway through construction projects The specific call said, Legislation preventing political subdivisions from imposing on private property additional or enhanced regulations that did not exist at the time the property was acquired.

7 SB 12 by Dawn Buckingham (R-Lakeway), which would prohibit cities and counties from enforcing an order or regulation adopted by the city or county that prohibits or restricts the use or development of real property that has been platted if the ordinance was not in effect on the date the owner acquired title to the property, was heard in the Senate Business and Commerce Committee on Saturday, July 22, 2017 and was left pending. HB 188 by Cecil Bell, Jr. (R-Magnolia), the House companion to SB 12, was heard in the House Land and Resource Management Committee on August 9, 2017 and was left pending. Texting while driving preemption The specific call said, Legislation preempting local regulation of the use of hand-held mobile communication devices while driving. SB 15 by Don Huffman (R-Dallas), which preempts local regulation of the use of a wireless communication device while operating a motor vehicle, passed the Senate but was not referred to committee in the House. HB 171 by Craig Goldman (R-Fort Worth), the House companion to SB 15, was heard in the House Transportation Committee on July 27, 2017 and left pending. Privacy The specific call said, Legislation regarding the use of multi-occupancy showers, locker rooms, restrooms, and changing rooms. SB 3 by Lois Kolkhorst (R-Brenham), which prohibits local regulation of bathrooms and changing facilities, passed the Senate but was not referred to committee in the House. HB 46 by Ron Simmons (R-Carrollton), which would prohibit political subdivisions from creating a protected class over and above what state or federal law provides, was referred to the House State Affairs Committee on July 20, HB 50 by Ron Simmons (R-Carrollton), which would specify that no school district may create a protected class above what state or federal law provides, was referred to the House State Affairs Committee on July 20, Prohibition of taxpayer dollars to collect union dues The specific call said, Legislation prohibiting state or local government entities from deducting labor union or employee organization membership fees or dues from the wages of public employees. SB 7 by Bryan Hughes (R-Mineola), which would prohibit payroll deductions for state and local government employee organizations, passed the Senate but was not referred to committee in the House. HB 156 by Jason Isaac (R-Dripping Springs), the House companion to SB 7, was referred to the House State Affairs Committee on July 20, Prohibition of taxpayer funding for abortion providers The specific call said, Legislation prohibiting financial transactions between a governmental entity and an abortion provider or affiliate of the abortion provider. SB 4 by Charles Schwertner (R-Georgetown), which prohibits governmental entities from providing funding to an abortion provider or affiliate, passed the Senate but was not referred to committee in the House.

8 HB 163 by Drew Springer (R-Muenster), the House companion to SB 4, was filed on July 14, 2017 but was not referred to a committee in the House. Pro-life insurance reform The specific call said, Legislation restricting health plan and health benefit plan coverage for abortions. SB 8 by Brandon Creighton (R-Conroe), which would prohibit health plans from providing coverage for elective abortions unless it is provided through supplemental coverage, passed the Senate but was not referred to committee in the House. HB 214 by John Smithee (R-Amarillo) and Brandon Creighton (R-Conroe), the House companion to SB 8, passed the House and Senate. It was signed by the governor and takes effect on December 1, Strengthening abortion reporting requirements when health complications arise The specific call said, Legislation strengthening the laws applicable to the reporting of abortions and abortion complications to the Department of State Health Services. Bills/Status SB 10 by Donna Campbell (R-New Braunfels), which requires health care facilities to report complications from abortions, passed the Senate but was not referred to committee in the House. HB 13 by Giovanni Capriglione (R-Keller) and Donna Campbell (R-New Braunfels), the House companion to SB 10, passed the House and Senate. It was signed by the governor and takes effect on November 15, HB 215 by Jim Murphy (R-Houston) and Bryan Hughes (R-Mineola), which requires physicians who perform an abortion on a woman younger than 18 years old to report information in her medical record regarding whether the woman obtained parental consent, was granted a judicial bypass, or was in an emergency situation, passed the House and Senate and has been sent to the governor. Strengthening patient protections relating to do-not-resuscitate orders The specific call said, Legislation enhancing patient protections contained in the procedures and requirements for donot-resuscitate orders. SB 11 by Charles Perry (R-Lubbock) and Greg Bonnen (R-Friendswood), which would revise procedures and requirements for do-not-resuscitate orders, passed the Senate and the House. The Senate concurred in House amendments and it has been sent to the governor. HB 12 by Greg Bonnen (R-Friendswood), the House Companion to SB 11, was heard in the House State Affairs Committee on August 3, 2017 and left pending. Cracking down on mail-in ballot fraud The specific call said, Legislation enhancing the detection, prosecution, and elimination of mail-in ballot fraud. SB 5 by Kelly Hancock (R-North Richland Hills) and Craig Goldman (R-Fort Worth), which would increase the criminal penalties for election fraud, passed the Senate and House. It has been signed by the governor and takes effect December 1, HB 184 by Craig Goldman (R-Fort Worth), the House companion to SB 5, was reported favorably as substituted from the House Elections Committee on August 8, 2017.

9 Extending maternal mortality task force The specific call said, Legislation continuing the operation and expanding the duties of the Maternal Mortality and Morbidity Task Force to ensure action is taken to reduce the maternal mortality rate in Texas. Bills/Status SB 17 by Lois Kolkhorst (R-Brenham) and Cindy Burkett (R-Sunnyvale), which expands the Maternal Mortality and Morbidity Task Force, passed the Senate and House. The Senate concurred in House amendments and it has been sent to the governor. HB 9 by Cindy Burkett (R-Sunnyvale), the House companion to SB 17, passed the House and was referred to the Senate Health and Human Services Committee. Three similar bills HB 10 by Armando Walle (D-Houston), HB 11 by Shawn Thierry (D-Houston), and HB 28 by Lina Ortega (D-El Paso), which also expand the task force, passed the House but were not referred to a Senate committee. Municipal annexation reform The specific call said, Legislation reforming the authority of municipalities to annex territory, to exert control over territory, or to regulate the use of annexed land or land in a municipality s extraterritorial jurisdiction. SB 6 by Donna Campbell (R-New Braunfels) and Dan Huberty (R-Humble), which is the Texas Annexation Right to Vote Act, passed the Senate and the House. It was signed by the governor and takes effect on December 1, HB 6 by Dan Huberty (R-Humble), the House companion to SB 6, was heard in the House Land and Resource Management Committee on August 2, 2017 and left pending. Texas Economic Development Council 1601 Rio Grande Street, Suite 455 Austin, TX