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Dwayne Bohac Chairman 85(R) - 79 HOUSE RESEARCH ORGANIZATION • TEXAS HOUSE OF REPRESENTATIVES P.O. Box 2910, Austin, Texas 78768-2910 (512) 463-0752 • http://www.hro.house.state.tx.us Steering Committee: Dwayne Bohac, Chairman Alma Allen, Vice Chairman Rafael Anchia Ken King Andrew Murr Angie Chen Button John Frullo Brooks Landgraf Eddie Lucio III Joe Pickett Joe Deshotel Donna Howard J. M. Lozano Ina Minjarez Gary VanDeaver HOUSE RESEARCH ORGANIZATION daily floor report Tuesday, May 23, 2017 85th Legislature, Number 79 The House convenes at 10 a.m. Part Five Seventy-three bills and three joint resolutions are on the daily calendar for second-reading consideration today. Bills on the General State Calendar that are digested in Part Five of today's Daily Floor Report are listed on the following page. Today is the last day for the House to consider Senate bills and joint resolutions, other than local and consent, on second reading on a daily or supplemental calendar.

RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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Page 1: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

Dwayne Bohac

Chairman

85(R) - 79

HOUSE RESEARCH ORGANIZATION • TEXAS HOUSE OF REPRESENTATIVES P.O. Box 2910, Austin, Texas 78768-2910

(512) 463-0752 • http://www.hro.house.state.tx.us

Steering Committee: Dwayne Bohac, Chairman Alma Allen, Vice Chairman

Rafael Anchia Ken King Andrew Murr Angie Chen Button John Frullo Brooks Landgraf Eddie Lucio III Joe Pickett Joe Deshotel Donna Howard J. M. Lozano Ina Minjarez Gary VanDeaver

HOUSE RESEARCH ORGANIZATION

daily floor report

Tuesday, May 23, 2017

85th Legislature, Number 79

The House convenes at 10 a.m.

Part Five

Seventy-three bills and three joint resolutions are on the daily calendar for second-reading

consideration today. Bills on the General State Calendar that are digested in Part Five of today's

Daily Floor Report are listed on the following page.

Today is the last day for the House to consider Senate bills and joint resolutions, other than

local and consent, on second reading on a daily or supplemental calendar.

Page 2: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE RESEARCH ORGANIZATION

Daily Floor Report

Tuesday, May 23, 2017

85th Legislature, Number 79

Part 5

SB 1664 by Huffman Changing TRS service credits, payments, and deposits 121 SB 1665 by Huffman Continuing TRS board authority to contract with external fund managers 124 SB 1680 by Lucio Establishing a task force of border health officials 126 SB 1780 by Zaffirini Allowing certain counties to increase compensation of a county auditor 129 SB 1805 by Lucio Using the multiuse training facility as an operations center 130 SB 1090 by Lucio Removing and replacing the offense of unlawful restraint of a dog 131 SB 26 by Estes Continuing and amending the Texas Emissions Reduction Plan 134 SB 1834 by Buckingham Redirecting liquidated damages to their original transportation districts 140 SB 1854 by Uresti Reviewing required public school district paperwork 141 SB 1897 by Perry Declaring a local state of disaster 143

Page 3: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1664

RESEARCH Huffman

ORGANIZATION bill digest 5/23/2017 (Flynn)

- 121 -

SUBJECT: Changing TRS service credits, payments, and deposits

COMMITTEE: Pensions — favorable, without amendment

VOTE: 6 ayes — Flynn, Alonzo, Hefner, Huberty, Paul, J. Rodriguez

0 nays

1 absent — Anchia

SENATE VOTE: On final passage, April 19 — 31-0, on Local and Uncontested Calendar

WITNESSES: On House companion bill, HB 4075:

For — (Registered, but did not testify: Timothy Lee, Texas Retired

Teachers Association; Thomas Parkinson)

Against — None

On — Brian Guthrie, Teacher Retirement System

BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas

Retirement System of Texas who retire based on service or a disability to

claim service credit for accumulated personal or sick leave. Sections

823.403(c) and (d) allow members to convert their unused personal or sick

leave into increased retirement benefits by paying for the credit based on

rates adopted by the TRS board of trustees. Interested parties have

observed that changes in service credit requirements could improve the

efficient delivery of TRS benefits.

DIGEST: SB 1664 would revise service credit, payments, and deposits administered

by the Teacher Retirement System of Texas (TRS).

Service credit. The bill would remove a provision establishing that an

increase in an annuity payment for a TRS member's unused accumulated

state personal or sick leave begins with the first payment due after

employer certification and specified payment to TRS. Unless a member

declined to purchase service credit for personal or sick leave, an annuity

Page 4: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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payment could not begin until TRS was paid the full cost of the service

credit. The bill would require TRS to receive the payment for service

credit within 90 days after the date TRS issued a cost statement for the

purchase of service credit. The bill would allow TRS to grant a member a

one-time extension of no more than 30 days to complete the purchase of

the service credit if the purchase was made by:

a rollover distribution from another eligible retirement plan; or

a direct trustee-to-trustee transfer of funds.

A member who failed to purchase the service credit within the prescribed

timeframe could:

decline to purchase service credit and maintain the member's

effective date of retirement; or

revoke the member's retirement and select a later retirement date

that provided the member with sufficient time to complete the

service credit purchase.

The bill would amend the deadline by which a member applying for

service credit could reinstate withdrawn contributions, make deposits for

military service and equivalent membership service, and receive service

credit to be:

no later than two months after the later of the member's retirement

date or the last day of the month in which the member submitted a

retirement application; and

before the later of the due date for the member's first monthly

annuity payment or the date on which TRS issued the first monthly

annuity payment to the member.

Payments. The bill would amend the deadline by which payments for

military service, out-of-state service, developmental leave, work

experience in a career or technological field, and service transferred to

TRS from the Employees Retirement System of Texas would have to be

completed to be:

Page 5: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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no later than two months after the later of the member's retirement

date or the last day of the month in which the member submitted a

retirement application; and

before the later of the due date for the member's first monthly

annuity payment or the date on which TRS issued the first monthly

annuity payment to the member.

Deposits. The bill would require TRS to deposit in the individual account

of a member's saving account the portion of a deposit to establish

Uniformed Services Employment and Reemployment Rights Act credit,

among other deposits specified in the bill.

Contributions. By November 2 of each even-numbered year, the bill

would require the Texas Higher Education Coordinating Board, rather

than the TRS board of trustees, to certify to the comptroller for review and

adoption an estimate of the amount necessary to pay the state's

contributions to TRS for the following biennium.

Other provisions. When determining whether an individual was an

employee or independent contractor of an employer, TRS would be

required to use the test applied under common law and any guidance

issued by the Internal Revenue Service.

The bill would take effect September 1, 2017.

NOTES: A companion bill, HB 4075 by Flynn, was left pending in the House

Committee on Pensions on May 1.

Page 6: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1665

RESEARCH Huffman

ORGANIZATION bill digest 5/23/2017 (Flynn)

- 124 -

SUBJECT: Continuing TRS board authority to contract with external fund managers

COMMITTEE: Pensions — favorable, without amendment

VOTE: 6 ayes — Flynn, Alonzo, Hefner, Huberty, Paul, J. Rodriguez

0 nays

1 absent — Anchia

SENATE VOTE: On final passage, April 19 — 31-0, on Local and Uncontested Calendar

WITNESSES: For — Timothy Lee, Texas Retired Teachers Association

Against — None

On — (Registered, but did not testify: Ken Welch, Teacher Retirement

System)

BACKGROUND: Government Code, sec. 825.301(a-1) allows the Teacher Retirement

System board of trustees to buy and sell certain futures contracts and

options to efficiently manage and reduce the risk of the overall investment

portfolio. Sec. 825.301(a-2) allows the TRS board to contract with private

professional investment managers to invest and manage up to 30 percent

of TRS assets. The board's authority expires on September 1, 2019.

Interested parties have noted that it would be desirable to continue the

board's authority to contract with private investment managers beyond the

2019 expiration date.

DIGEST: SB 1665 would make permanent the authority for the Teacher Retirement

System board of trustees to delegate discretionary investment authority to

external investment managers to invest and manage a maximum of 30

percent of the total assets held in trust by TRS. It would repeal a similar

provision set to expire on September 1, 2019.

The bill also would amend the definition of securities to include any

Page 7: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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derivative investment and any other investment commonly used by

institutional investors to manage institutional investment portfolios.

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, 2017.

Page 8: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1680

RESEARCH Lucio, et al.

ORGANIZATION bill digest 5/23/2017 (Raymond)

- 126 -

SUBJECT: Establishing a task force of border health officials

COMMITTEE: Human Services — favorable, without amendment

VOTE: 8 ayes — Raymond, Frank, Keough, Klick, Miller, Rose, Swanson, Wu

0 nays

1 absent — Minjarez

SENATE VOTE: On final passage, May 3 — 30-1 (Nelson)

WITNESSES: No public hearing

BACKGROUND: Concerned parties have suggested that collaboration between local and

state health officials should be strengthened to maximize local resources

and address the unique challenges of addressing the health care needs of

the border region.

DIGEST: SB 1680 would add a new chapter to the Health and Safety Code to

establish and govern a task force of border health officials.

Task force duties. The Department of State Health Services (DSHS)

would establish the Task Force of Border Health Officials to advise the

commissioner of state health services on policy priorities addressing

major issues affecting border region residents' health and increasing

awareness of health issues impacting the border region, including:

barriers to accessing health care;

specific health problems affecting the region;

surveillance and tracking of factors negatively influencing health;

standardization of health data to ensure compatibility with data

collected by border states on both sides of the U.S.-Mexico border;

public health infrastructure that included education and research

institutions;

establishment of local and regional public health programs that

maximized the use of public funds to address the needs of the

Page 9: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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indigent population; and

collaboration and cooperation with Mexican counterparts at the

state and federal level and collaboration with federal U.S.

counterparts.

Border health improvement plans. By November 1 of each even-

numbered year, the task force would submit a report to the commissioner

with recommendations for short- and long-term border health

improvement plans. The short-term plan would have to identify health

objectives proposed to be accomplished within four years. The long-term

plan would identify those to be accomplished within nine years. The

initial short- and long-term plans would have to include initiatives to be

implemented by September 1, 2018, and September 1, 2020, respectively.

The commissioner would recommend short- and long-term plans to the

Health and Human Services (HHSC) executive commissioner, who would

direct DSHS to implement the portions of the plans that could be

accomplished under existing law. DSHS would have to implement the

initiatives in the initial short- and long-term plans by September 1, 2022,

and September 1, 2027, respectively.

By September 1 of each even-numbered year, the HHSC executive

commissioner would submit a report detailing actions taken by the task

force that included the status of all projects, the funding for expenditures,

and recommendations for necessary legislation.

Composition. The task force would be composed of the following

members to be appointed by October 1, 2017:

the local health department directors from each county in the

border region and each municipality in the border region that had a

sister city in Mexico;

two ex officio nonvoting members from the Legislature who would

serve three-year terms, with one each appointed by the lieutenant

governor and the House speaker; and

additional members appointed by the commissioner.

Members would not be entitled to compensation or reimbursement.

Page 10: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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DSHS's Office of Border Health would provide staff support and any

other assistance as needed to the task force.

Meetings. The task force would meet at least quarterly each fiscal year.

Meetings could be held by conference calls and through video conference.

The task force would be exempt from certain requirements for meetings

held by conference call under open meetings laws.

Applicability of current law. The task force would be subject to the

Texas Sunset Act and would be abolished on September 1, 2029, unless

continued in statute.

Laws regulating state agency advisory committees would not apply to the

task force.

Effective date. 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, 2017.

Page 11: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1780

RESEARCH Zaffirini

ORGANIZATION bill digest 5/23/2017 (Guillen)

- 129 -

SUBJECT: Allowing certain counties to increase compensation of a county auditor

COMMITTEE: County Affairs — favorable, without amendment

VOTE: 6 ayes — Coleman, Springer, Neave, Roberts, Thierry, Uresti

2 nays — Biedermann, Stickland

1 absent — Hunter

SENATE VOTE: On final passage, April 27 — 26-5 (Burton, Creighton, Hall, Kolkhorst,

V. Taylor)

WITNESSES: No public hearing

BACKGROUND: Local Government Code, sec. 152.032(a) requires that a county auditor,

with certain exceptions, not be compensated more than the county's

highest paid elected official. Sec. 152.032(d) allows a county auditor in

certain counties to be paid more than the compensation limits imposed by

sec. 152.032(a) if the greater compensation is approved by the

commissioners court of the county.

Concerns have been raised that in certain communities when the highest

paid elected official leaves office, the county auditor could face a

significant pay cut as the county auditor's pay is reduced to match the

salary of the next highest-paid elected county official. This could hinder a

county's ability to attract a highly qualified county auditor.

DIGEST: SB 1780 would allow a county with a population of more than 11,000 and

less than 11,650 (Live Oak County) to compensate its county auditor at an

amount greater than its highest paid elected official with the approval of

the county's commissioners court.

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, 2017.

Page 12: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1805

RESEARCH Lucio

ORGANIZATION bill digest 5/23/2017 (Lucio)

- 130 -

SUBJECT: Using the multiuse training facility as an operations center

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

VOTE: 7 ayes — P. King, Nevárez, Burns, Hinojosa, J. Johnson, Metcalf, Wray

1 nay — Schaefer

1 absent — Holland

SENATE VOTE: On final passage, April 19 — 31-0

WITNESSES: For — (Registered, but did not testify: Ramiro Gonzalez, City of

Brownsville)

Against — None

BACKGROUND: In 2015, the 84th Legislature provided for the construction of a multiuse

training facility to be used by the Department of Public Safety, the Texas

military forces, county and municipal law enforcement agencies, and any

other state or federal military or law enforcement agencies. Observers

have noted that greater flexibility might be needed in regard to the use and

development of the facility.

DIGEST: SB 1805 would redesignate the multiuse training facility as a multiuse

training and operations center facility and expand its use to include

housing law enforcement assets and equipment and supporting and

initiating tactical operations and law enforcement missions.

A navigation district, in addition to a county or municipality, could donate

real property to the Department of Public Safety for the facility.

The bill would take effect September 1, 2017.

Page 13: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1090

RESEARCH Lucio (S. Davis, et al.)

ORGANIZATION bill digest 5/23/2017 (CSSB 1090 by Price)

- 131 -

SUBJECT: Removing and replacing the offense of unlawful restraint of a dog

COMMITTEE: Public Health — committee substitute recommended

VOTE: 8 ayes — Price, Sheffield, Arévalo, Burkett, Guerra, Klick, Oliverson,

Zedler

0 nays

3 absent — Coleman, Collier, Cortez

SENATE VOTE: On final passage, April 10 — 28-3 (Birdwell, Buckingham, Hancock)

WITNESSES: On companion bill, HB 1156:

For — Alexandra Johnston, Denton County Sheriff's Office; Nancy

Bellows, Society for Animal Rescue and Adoption (SARA); Art Munoz,

SPCA of Texas; Jamey Cantrell, Texas Animal Control Association;

Shelby Bobosky, Texas Humane Legislation Network; Jeff Honea, Wolfe

City Police Department; Linda Halpern; (Registered, but did not testify:

Donna Warndof, Harris County; Katie Jarl, the Humane Society of the

United States; Laura Donahue, Karen Roberts, and Skip Trimble; Texas

Humane Legislation Network; Shanna Igo, Texas Municipal League;

Elizabeth Choate, Texas Veterinary Medical Association; and 65

individuals)

Against — None

BACKGROUND: Health and Safety Code, ch. 821, subch. D defines and establishes an

offense for the unlawful restraint of a dog. A person whom a peace officer

or animal control officer believes is in violation of the law must receive a

written warning and 24 hours to comply. Those who fail to comply

commit a class C misdemeanor (maximum fine of $500). Subsequent

offenses are a class B misdemeanor (up to 180 days in jail and/or a

maximum fine of $2,000).

Some have raised questions about whether the state should revise the

current statute prohibiting the tethering of dogs in response to concerns,

Page 14: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

SB 1090

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including concerns about the requirement that owners be given 24 hours

notice before a citation is issued.

DIGEST: CSSB 1090 would repeal Health and Safety Code, ch. 821, subch. D and

create a new subchapter defining and establishing an offense for the

unlawful restraint of a dog.

The bill would prohibit an owner from leaving a dog unattended and

restrained outside unless the owner provided the dog with water, along

with adequate shelter and shade from direct sunlight in an area where the

dog could avoid standing water.

An owner could not restrain a dog unattended outside with a restraint that:

was a chain;

had weights attached;

was shorter than the greater of five times the dog's length or 10

feet;

was not attached to a properly fitted collar or harness; or

caused injury to the dog.

The bill would not apply to a restraint attached to a pulley or trolley

system that allowed the dog to move along a running line equal to or

longer than the restraint length requirement described above.

The bill would not apply to a dog restrained while:

in a public camping or recreation area in compliance with that

area's policies;

the owner and dog were engaged in an activity associated with the

dogs and related to a valid state license;

shepherding or herding cattle or livestock;

engaged in an activity related to cultivating agricultural products;

left in an open-air truck bed for no longer than necessary while the

owner completed a temporary task;

taken by its owner, or another person with the owner's permission,

from the owner's residence and restrained for the owner or person

Page 15: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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to engage in an activity that required the dog to be temporarily

restrained; or

engaged in or training for hunting or field trials.

The bill also would not prohibit a person from walking a dog with a

handheld leash.

A violation of the bill would have to be committed knowingly and would

be a class C misdemeanor. Each dog restrained in violation of the bill

would be a separate offense.

The bill would not preempt a local regulation related to the restraint of a

dog and would not prevent a municipality or county from further

regulating the care of a dog, under certain conditions. The local

regulations would have to be compatible with and equal to or more

stringent than the requirements in the bill or relate to an issue not

specifically addressed by the bill.

The bill would take effect September 1, 2017.

NOTES: CSSB 1090 made several changes to the Senate-passed version, including

adding to the exceptions for the offense and eliminating a higher penalty

for repeat offenses.

The companion bill, HB 1156 by S. Davis, et al., was placed on the April

26 General State Calendar and returned to the Public Health Committee

on May 1.

Page 16: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 26

RESEARCH Estes, et al. (Landgraf, et al.)

ORGANIZATION bill digest 5/23/2017 (CSSB 26 by Pickett)

- 134 -

SUBJECT: Continuing and amending the Texas Emissions Reduction Plan

COMMITTEE: Environmental Regulation — committee substitute recommended

VOTE: 9 ayes — Pickett, E. Thompson, Cyrier, Dale, Kacal, Landgraf, Lozano,

Reynolds, F. Rodriguez

0 nays

SENATE VOTE: On final passage, March 14 — 27-4 (Burton, Creighton, Hall, V. Taylor)

WITNESSES: On House companion bill, HB 1979:

For — Bob Baldwin, CNG 4 America; Susan Shifflett, Greater Houston

Natural Gas Vehicle Alliance; Cyrus Reed, Lone Star Chapter Sierra

Club; Stephen Minick, Texas Association of Business; (Registered, but

did not testify: Caleb Troxclair, Alphabet Energy; June Deadrick,

CenterPoint Energy; Bill Kelly, City of Houston Mayor's Office; Robert

Peeler, Ford Motor Company; John Athin, Freedom CNG, Woodfuel,

NOVUS Woodgroup, and AACO Investments; Dan Lefevers, Gas

Technology Institute; and Neftali Partida, Gulf States Toyota; Mike

Meroney, Huntsman Corporation, and BASF Corporation; Ben Shepperd,

Permian Basin Petroleum Association; Russ Keene, Plug-In Texas

Alternative Fuels Coalition; Mark Mendez, Tarrant County; Suzanne

Bertin, Texas Advanced Energy Business Alliance; Katherine Carmichael,

Texas Alliance of Energy Producers; Donald Lee, Texas Conference of

Urban Counties; Riley Stinnett, Texas Gas Service; Lindsey Miller, Texas

Independent Producers and Royalty Owners Association; Michelle

Romero, Texas Medical Association; William Van Hoy, Texas Propane

Gas Association; Chloe Lieberknecht, The Nature Conservancy; Jennifer

Allmon, The Texas Catholic Conference of Bishops; Chris Shields,

Toyota; Danny Smith, UPS; Shawna Russell, VIA Metropolitan Transit)

Against — Adrian Shelley, Public Citizen

On — Hector Rivero, Texas Chemical Council; David Brymer and Steve

Dayton, TCEQ; Brian Ragland, Texas Department of Transportation;

Mari Ruckel, Texas Oil and Gas Association; (Registered, but did not

Page 17: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

SB 26

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testify: Joe Walton, TCEQ)

BACKGROUND: In 2001, the 77th Legislature created the Texas Emissions Reduction Plan

(TERP) to provide financial incentives to eligible individuals, businesses,

and local governments to reduce emissions from vehicles and equipment

and help the state achieve federal Environmental Protection Agency air

quality standards. TERP, which is scheduled to expire August 31, 2019,

provides incentives through a variety of programs.

TERP is funded from certain fees and surcharges on obtaining vehicle

titles, purchase or lease of heavy-duty vehicles and equipment, and

registration and inspection of commercial vehicles. The TERP account is

anticipated to have a balance of $1.4 billion at the end of fiscal 2017, and

revenue collections in the upcoming biennium are expected to be about

$215 million during each fiscal year.

Some observers suggest that TERP should be continued past 2019 to

continue helping Texas achieve the benefits of reduced air pollution in

major cities.

DIGEST: CSSB 26 would continue the Texas Emissions Reduction Plan (TERP),

including TERP programs, fees, and surcharges, until the end of the

biennium in which the state attained compliance with the federal ambient

air quality standards for ground-level ozone. The bill also would amend

the provisions of certain TERP programs and funding mechanisms.

Governmental Alternative Fuel Fleet Grant Program. The Texas

Commission on Environmental Quality (TCEQ) would establish and

administer a governmental alternative fuel fleet grant program to assist an

eligible state agency, county, municipality, or political subdivision

purchase or lease new alternative fuel motor vehicles or refueling

equipment. A state agency, county, or municipality would be eligible for a

grant if the entity operated a fleet of more than 15 vehicles, excluding

vehicles owned and operated by a private company or other third-party

under contract. A mass transit or school transportation provider would be

eligible, but law enforcement or emergency vehicles would not be eligible

for this program.

Page 18: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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The bill would require a motor vehicle lease agreement paid for with

money from a grant under this program to have a term of at least three

years. A lease or service agreement for refueling infrastructure,

equipment, or services paid for by a grant also would have to have a term

of at least three years.

A grant under this program could be combined with funding from other

sources, except for another TERP grant. When combined with other

funding, a grant could not exceed the total cost to the grant recipient.

Light-Duty Motor Vehicles Incentive Program. The bill would require

TCEQ to develop a purchase or lease incentive program for new light-

duty motor vehicles. A person would be eligible for incentives if he or she

agreed to operate a light-duty vehicle powered by compressed natural gas,

liquefied petroleum gas, or hydrogen fuel cell or other electric drives for a

minimum period of time. Only one incentive would be provided per

vehicle.

A vehicle powered by compressed natural gas or liquefied petroleum gas

that met certain requirements would be eligible for a $5,000 incentive.

The bill would limit this incentive to 1,000 vehicles per fiscal biennium.

Vehicles powered by an electric drive that met certain requirements would

be eligible for a $2,500 incentive. This incentive would be limited to

2,000 vehicles per fiscal biennium.

No later than July 1 of each year, a manufacturer of motor vehicles, an

intermediate or final state vehicle manufacturer, or a manufacturer of

compressed natural gas or liquefied petroleum gas systems would have to

provide to TCEQ a list of the new vehicles or systems intended for sale

which meet the incentive requirements. TCEQ would publish that list on

the commission's website on August 1 of each year.

Texas Alternative Fueling Facilities Program. TCEQ would be required

to provide grants for strategically placed fueling facilities in the clean

transportation zone to enable a vehicle to travel in those areas relying only

on the alternative fuel.

Page 19: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

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The clean transportation zone would include counties:

containing a portion of an interstate highway connecting Houston,

San Antonio, Dallas, and Fort Worth;

containing a portion of an interstate highway connecting San

Antonio to Corpus Christi or Laredo, or the most direct route

between Corpus Christi and Laredo;

included in a nonattainment area; and

designated as affected counties with deteriorating air quality.

Grants awarded under the program could not exceed $400,000 for a

compressed or liquefied natural gas facility or $600,000 for a facility

providing both. TCEQ could not award a grant to an entity that did not

agree to make the facility accessible to the public.

Clean Transportation Triangle Program. The bill would repeal the

Clean Transportation Triangle Program, a part of the Texas Natural Gas

Vehicle Grant Program that awarded grants to support the development of

a network of natural gas vehicle fueling stations along the interstate

highways connecting Houston, San Antonio, Dallas, and Fort Worth, and

in nonattainment areas and affected counties.

Clean School Bus Program. The list of projects eligible for a grant under

the Clean School Bus Program would be expanded to include the

replacement of a pre-2007 model year school bus. A bus proposed for

replacement would have to be of model year 2006 or earlier, operated for

at least two years, in good operational condition, and used on a regular

daily school route. An applicant for a grant would have to agree to own

and operate the school bus for at least five years.

A school bus replaced under this program would be rendered permanently

inoperable by crushing the bus, making a hole in the engine block and

destroying the frame, or by permanent removal. The bill would specify

that "permanent removal" meant the export of the bus or engine to a

destination outside of the United States, Canada, or Mexico.

New Technology Implementation Grant Program. The bill would

expand the projects eligible for a grant under the New Technology

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Implementation Grant Program to include new technology projects that

would reduce emissions from upstream and midstream oil and gas

production and other activities.

Texas Clean Fleet Program. CSSB 26 would amend program eligibility

to allow an entity that placed 10 or more qualifying vehicles in service in

the state during the year to be eligible to participate in the Texas Clean

Fleet Program.

Drayage Truck Incentive Program. The bill also would re-name the

program as the Seaport and Rail Yard Areas Emissions Reduction

Program. Vehicles classified as cargo handling equipment would be

eligible for the incentive program.

Natural Gas Vehicle Grant Program. A grant under the Natural Gas

Vehicle Grant Program could be used to pay the incremental costs of the

vehicle repower, as well as vehicle replacement.

TERP Fund. The bill would amend the amount of funds authorized to be

appropriated by TCEQ for certain purposes. Certain allocations would be

limited to:

no more than $1.5 million for a regional air monitoring program in

commission regions 3 and 4;

10 percent of the fund for the Natural Gas Vehicle Grant Program;

no more than $6 million for the Alternative Fueling Facilities

Program;

6 percent of the fund for the Seaport and Rail Yard Areas

Emissions Reduction Program; and

up to $8 million for administrative costs.

Money allocated from the TERP Fund to a particular program could be

used for another program under the plan based on demand for grants for

eligible projects.

The bill would amend the amount of funds remitted from the Department

of Transportation to the comptroller for deposit to the TERP Fund, and

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would extend the remittance until August 31, 2021.

Administration. TCEQ could streamline the process to apply for a grant

under the diesel emissions reduction incentive program by reducing data

entry and the copying of applications and developing, maintaining, and

periodically updating a system to accept applications electronically.

The executive director of TCEQ would have the ability, rather than being

required, to waive any eligibility requirements for TERP grants on a

finding of good cause.

Effective date. CSSB 26 would take effect August 30, 2017, and would

apply only to a TERP grant awarded or fee collected on or after that date.

NOTES: CSSB 26 differs from the Senate-passed version in certain ways,

including by:

renaming the Drayage Truck Incentive Program and allowing cargo

handling equipment to be eligible for the program;

amending requirements for allocations of the TERP Fund; and

extending the fees and surcharges that fund TERP.

Page 22: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1834

RESEARCH Buckingham, et al.

ORGANIZATION bill digest 5/23/2017 (Cosper)

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SUBJECT: Redirecting liquidated damages to their original transportation districts

COMMITTEE: Transportation — favorable, without amendment

VOTE: After recommitted:

8 ayes — Morrison, Martinez, Y. Davis, Israel, Minjarez, Pickett, E.

Thompson, Wray

3 nays — Burkett, Goldman, Simmons

2 absent — Phillips, S. Thompson

SENATE VOTE: On final passage, May 3 — 31-0

WITNESSES: None

BACKGROUND: The Texas Department of Transportation (TxDOT) oversees 25 districts,

each of which oversees a specific geographical area across the state.

TxDOT deducts liquidated damages from payments on some contracts

which are not delivered on time, and some have suggested that those

savings should be redirected to affected districts for their use.

DIGEST: SB 1834 would require the Texas Department of Transportation (TxDOT)

to establish a system to track liquidated damages assessed on delayed

construction contracts.

TxDOT also would be required to determine the amount of money

received in liquidated damages from each of TxDOT's 25 districts with

this system and correspondingly return those damages back to the district

in which the contract originated.

This bill would take effect September 1, 2017.

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HOUSE SB 1854

RESEARCH Uresti

ORGANIZATION bill digest 5/23/2017 (Allen)

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SUBJECT: Reviewing required public school district paperwork

COMMITTEE: Public Education — favorable, without amendment

VOTE: 10 ayes — Huberty, Bernal, Allen, Bohac, Deshotel, Gooden, K. King,

Koop, Meyer, VanDeaver

0 nays

1 absent — Dutton

SENATE VOTE: On final passage, May 1 — 29-2 (Nichols, V. Taylor)

WITNESSES: For — (Registered, but did not testify: Mark Wiggins, Association of

Texas Professional Educators; Dwight Harris, Texas AFT; Paige

Williams, Texas Classroom Teachers Association)

Against — (Registered, but did not testify: David Anderson, Arlington

ISD Board of Trustees)

On — (Registered, but did not testify: AJ Crabill, Texas Education

Agency)

BACKGROUND: Under Education Code, sec. 11.251, the school board of each independent

school district is required to establish a district- and campus-level

planning and decision-making process that will involve professional staff

in the district, parents, and community members in establishing and

reviewing district and campus educational plans, goals, performance,

objectives, and major classroom instructional programs.

Concerns have been raised regarding the amount of time public school

teachers spend on certain paperwork and reporting requirements. Some

have suggested a review of certain administrative paperwork requirements

be conducted in order to reduce the administrative burden on teachers.

DIGEST: SB 1854 would require each district-level planning and decision-making

committee, at least once per year, to review paperwork requirements

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imposed on classroom teachers. Each district-level planning and decision-

making committee also would be required to make recommendations to

their respective school boards regarding the transfer to existing non-

instructional staff of a reporting task that could be reasonably

accomplished by that staff.

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, 2017.

Page 25: RESEARCH ORGANIZATIONOn — Brian Guthrie, Teacher Retirement System BACKGROUND: Government Code, sec. 823.403(a) allows members of the Texas Retirement System of Texas who retire

HOUSE SB 1897

RESEARCH Perry

ORGANIZATION bill digest 5/23/2017 (Frullo)

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SUBJECT: Declaring a local state of disaster

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

VOTE: 6 ayes — Gutierrez, Blanco, Arévalo, Cain, Lambert, Wilson

1 nay — Flynn

SENATE VOTE: On final passage, April 19 — 31-0, on Local and Uncontested Calendar

WITNESSES: No public hearing

BACKGROUND: Government Code, sec. 418.108 allows the presiding officer of the

governing body of a political subdivision to declare a local state of

disaster. A declaration immediately activates the appropriate recovery and

rehabilitation aspects of all applicable local or interjurisdictional

emergency management plans and authorizes the furnishing of aid and

assistance.

Concerns have been raised that the provisions governing the declaration of

a state of disaster by the governor and the declaration of a local disaster by

a political subdivision are not a uniform as they could be.

DIGEST: SB 1897 would allow the presiding officer of the governing body of a

political subdivision to declare a local state of disaster if the officer found

that a disaster had occurred or that the occurrence or threat of disaster was

imminent.

An order or proclamation declaring, continuing, or terminating a local

state of disaster would have to include a description of the nature of the

disaster, a designation of the threatened area, and a description of the

conditions that brought about the state of disaster or its termination. The

political subdivision to which the order or proclamation applied would

have to post a copy of it on the subdivision's website, if available.

On request of the presiding officer, the governor could waive or suspend a

deadline imposed by statute or orders of a state agency on the political

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subdivision, including one related to a budget or property tax, if the

waiver or suspension was reasonably necessary for the subdivision to cope

with a local state of disaster.

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, 2017.