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AGC Texas Building Branch Legislative Update

May 30, 2007

The 80th Regular Legislative Session finished last night at midnight. The legislature passed 1,753 bills and resolutions during the session. Governor Perry has until midnight on June 17 to sign, veto or let a bill become law without his signature.

It was a good legislative session for AGC Texas Building Branch. We will send you a final report near the end of June, but in the meantime, here is an update on where things stand.

Passed and Awaiting
the Governor's Action
Contingent Payment - an AGC Priority Bill
SB 324 by Deuell/Chisum -  The Senate concurred with a minor change made by the House, and the bill is on the Governor’s desk. We ask you to write to the Governor in support of this bill.

Public Alternative Delivery - an AGC Priority Bill
HB 447 by Callegari/Jackson -  As expected, this bill went to a Conference Committee where several amendments were removed. Both chambers approved the new version, and we are hopeful that this bill will become law. HB 447 is an important bill for our industry, and we ask you to write letters to the Governor asking for his signature on this bill.

Condominium Construction Defects Claims - an AGC Priority Bill
HB 3147 by Solomons/Carona -  On May 23, the Senate passed this bill by a vote of 31 to 0. We expect that this bill will become law.

Equal Treatment on Attorney’s Fees in Disputes with Governmental Entities
HB 1268 by Van Arsdale/Ellis -  AGC supported this bill which clears up some issues regarding a prevailing party receiving attorney’s fees in disputes with governmental entities.

“Safe School” Bill
SB 9 by Shapiro/Branch -  As you know, AGC worked with bill sponsors to amend this bill so that construction employees responding to emergency service calls would not be subject to the bill’s criminal background check and fingerprinting requirements. AGC Texas Building Branch also had it read into the official record of the House of Representatives that these requirements would not extend to construction personnel working in a secured area not in direct contact with students.

Penalties for Theft of Wire/Cable
HB 1766 by Pena -   AGC has supported this bill which sets penalties ranging from a misdemeanor to a state jail felony for the theft of wire or cable that is at least 50% aluminum, bronze or copper. We expect this bill to become law.

Support for Small Contractors
SB 704 by Lucio -   AGC supported this bill to provide additional assistance to small contractors for their safety programs and in obtaining bonds.

Dead Bills
 Anti-Indemnification
SB 346 by Duncan; HB 1152 and HB 2262 by Eiland - Although passed by the Senate, SB 346 died in House committee. HB 1152 and HB 2262 likewise died in House committee. AGC opposed these bills.

Consolidated Insurance Programs (CIPs)
SB 354 by Carona; HB 2014 by Smithee -  AGC opposed these bills initially but was able to agree to compromise language with TCA as the session drew to a close. This issue will be back in two years.

Also of Interest
Technical Corrections to the New Franchise Tax/Margins Tax
HB 3928 by Ogden - Some changes allow for discounts from the tax for those businesses under $900,000 after determining their taxable margin. The discounts are as follows: 20% for those in the $700,000 to $900,000 bracket; 40% for those in the $500,000 to $700,000 bracket; 60% for those in the $400,000 to $500,000 bracket; and 80% for those in the $300,000 to $400,000 bracket.

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