May 1, 2009

Senate Passes Windstorm Insurance Plan

The Texas Senate passed a compromise measure (HB 14 by Senator Fraser) yesterday to address the Texas Windstorm Insurance Association (TWIA) issue.  This insurance program was decimated by last year’s hurricanes.  The TWIA program would be insufficient to fund another exposure on the Texas Gulf Coast.  The measure passed the Senate on a 27 to 4 vote, with Senator Joan Huffman, R, Houston; Senator Juan Hinojosa, D, McAllen; Senator Eddie Lucio, Jr., D, Brownsville; and Senator Judith Zaffirini, D, Laredo in opposition.  It is estimated that the legislation would increase the windstorm insurance rates 5% a year for three years to help pay for the insurance rescue plan.  The Texas insurance industry is not happy with the measure and says it has concerns about a potential $400 million charge in the event of another hurricane strike. 

 The windstorm fund was created in 1971 to serve as an insurer of last resort where windstorm and hail insurance was not available.  TWIA provides coverage to homeowners and businesses in 14 coastal counties and a part of Harris County. According to Senator Fraser, TWIA has $68 billion in coverage written along the Texas coast with zero money in the reserve fund.

 SB 14 is headed to the Texas House of Representatives, where it will be referred to the House Insurance Committee – chaired by Representative John Smithee, R, Amarillo.
 

Alternative Delivery Legislation (SB1110) Set for Hearing Tuesday in House State Affairs Committee

The House State Affairs Committee will hold a hearing on SB 1110 by Senator Jackson (Representative Geren is House sponsor) on Tuesday, May 5^th.  The bill was passed by the Senate on April 16^th.  This legislation will consolidate the state’s alternative delivery procurement laws for construction into a single statute in the Government Code.  AGC has worked with the Texas Society of Architects and ABC of Texas on this legislation.  The group is keeping the Governor’s office informed of the bill.
 

Compromise Indemnification Legislation in House Calendars Committee

HB 818 by Representative Eiland was reported from the House Judiciary & Civil Jurisprudence Committee this week and is now in the House Calendars Committee.  It will be held in this committee until its Senate companion – SB 555 by Senator Duncan catches up with the House version.  The Senate bill is the one that will move through the legislative process.  SB 555 is in the House Judiciary & Civil Jurisprudence Committee and is expected to move out of that committee in a short time.  This legislation is a compromise bill that was worked out in the interim by AGC, the Texas Construction Association and the Texas Civil Justice League.  The House Calendars Committee has been asked to place the legislation on the Major State Calendar.
 

Local Bidder Preference Bill Passes House

The Texas House of Representatives passed HB 2082 by Representative Isett this past Tuesday.  This legislation by Representative Isett will place a $100,000 limitation on the state’s current law which allows cities under 250,000 population and school districts located in those cities to use a 5% local bidder preference when awarding purchasing contracts.  The language making this change in state law has also been included in HB 987 which has also passed the House and is in the Senate.
 

Get Latest Legislative Reports
on AGC Website

AGC Texas Building Branch is keeping track of more than 1,300 bills that have been filed during the 81^st Legislative Session.  It has been a record year with more than 7,800 bills being filed this year.

AGC has placed the bills it is following into one of five categories.  The priority list is as follows:

Category 1 – AGC Bills; Category 2 – Top Bills; Category 3 – General Interest Bills; Category 4 – Bills to Watch; and Category 5 – Bills to Review.  Click on the following link www.agctbb.org to go to the AGC website where you can review the latest reports on the bills that are in the five categories being used this legislative session.
 

House and Senate Budget Conferees Appointed and Working to Reconcile Differences

Here’s the task – go through the more than 1,800 page state budget bill that has been passed by the Senate and the House of Representatives and reach an agreement on the state’s budget bill for the next two years starting on September 1, 2009.  There is a $4.8 billion dollar difference between the House version and the Senate version of the state’s budget.  The Senate budget bill would spend a little over $182 Billion and the House would spend $178 Billion.   The Senate and the House each appointed five members to work to iron out the differences.  Those who have been appointed to this conference committee are: Representative Jim Pitts, R, Waxahachie; Representative Richard Raymond, D, Laredo; Representative John Otto, R, Dayton; Representative Ruth Jones McClendon, D, San Antonio; Senator Steve Ogden, R, Bryan; Senator Juan Hinojosa, D, McAllen; Senator Florence Shapiro, R, Plano; Senator Tommy Williams, R, The Woodlands; and Senator Royce West, D, Dallas. 
 

Watch the Headlines for Stories
on Voter ID and Sunset Bills

As of today there is one month left in the regular session and a whole lot of work to still be done.  Officially, the Legislature only has to pass a budget bill each session.  If that’s all there was to do, we wouldn’t have had over 7,800 bills filed. 

The next big category of bills the legislature works on are the sunset bills.  Each state agency, board or commission undergoes a sunset review process on a periodic timeframe.  Each is generally renewed for a 12 year period, although they can be reapproved for a shorter time.  Occasionally, a state agency, board or commission is put out of business either entirely or its responsibilities may be rolled into another agency, board or commission.  There are some real biggies this time and you are likely to read about them in the news.

The list starts with the Texas Department of Transportation and the discussion agenda is a full platter for this agency.  Next in line is the Texas Residential Construction Commission, which was put in place by the Legislature in 2003 and given six years to operate before being reviewed and what a review it has been and will continue to be.  These first two are in the proverbial “frying pan”.  The Texas Department of Public Safety is next in line and they have had to answer a lot of questions and it hasn’t just been about the Governor’s mansion.  The Texas Department of Insurance discussions always attract a crowd and that is the case again this year.  The odds are that while each will be renewed, some may get a short rest before another review – one would have to guess that the Residential Commission may well fall into this category.

The big partisan issue that will be debated is the proposed Voter ID law.  The Senate waived its 2/3’s rule to tackle this issue and it passed the bill (SB 362 by Senator Fraser) back in mid-March.  The House will debate its version of Voter ID (HB 3948 by Representative Todd Smith) and is expected to begin making its move in the House Elections Committee next week.
 

The Stall – Another Way to Stop Legislation

Do you remember the four corners offense used by North Carolina in the 70’s?  The legislative version of the four corners is taking place right now in the Texas Legislature.  Some bills are being allowed some movement, but they really aren’t getting close to the hoop.

The crane operator registration bill (HB 1807 by Representative Giddings) falls into this category.  The House Licensing & Administrative Procedures Committee voted a substitute for this bill out of committee on Thursday afternoon.  It took one step toward the basket, but before it gets reported as a substitute the committee staff will have to redo its paperwork and check to see if the new version will have a fiscal impact on the state.  This is also the time when committee staffs are getting a little overburdened.  HB 1807 has a long way to go before it even gets close to the basket.

The disaster remediation and OSHA state agency bills are still in their respective committees and can be considered to be on life support at this time.  The machines will begin shutting down next week, so the prognosis for these is morbidity.