A Newsletter of AGC Texas Building Branch

June 2, 2009

Odd, All the Way to the End

The official end to the regular session of the 81^st Texas Legislature came yesterday.  Yes, it was an odd and unusual legislative session. 

The legislature adjourned and headed home leaving two key state agencies up in the air.  If you read the morning paper, you know that the Texas Department of Transportation (TxDOT) and the Texas Department of Insurance (TDI) will go out of business on September 1, 2009 – if the governor does not call a special session to restore these agencies.  Both agencies were under sunset review by the legislature and their operations and functions needed to be renewed.  They weren’t. 

Again, it was strange.  The legislature always passes a bill called the Sunset Safety Net Bill that extends the life of agencies for another couple of years.  This gives the legislature another shot at the agencies in the Safety Net Bill in two years.  This bill got killed this year.  The Texas Department of Insurance (TDI) was included in the Safety Net Bill.  The bill to extend TxDOT had more problems and in the end it also got killed. 

One agency that was put out of business on purpose was the Texas Residential Construction Commission.  It became apparent late in the session that a compromise on extending the agency was not going to happen.  The Sunset Safety Net Bill included a provision to allow for the commission to be phased out over a 5 month period, but that phase-out went up in smoke with the death of the Safety Net Bill.

What’s likely to happen?  Most expect a special session to iron out the details on TxDOT.  The governor is also likely to ask the legislature to pass a sunset safety net bill for the other agencies including TDI.  There is a lot of speculation on the Voter ID Bill and it could also be a part of a special session.
 

For Another Day

We had two bills that were scheduled to be taken up by the house during this last ten days that were caught up in the house delay over the voter ID issue and the bills died.  SB 555 was the Anti-indemnification Bill that was agreed to by AGC, TCA and the Texas Civil Justice League.  It was three bills away from consideration when the deadline passed last Tuesday.  SB 1110 – the Alternative Delivery Bill also died last Tuesday.  It was about fifteen bills back on the Major State Calendar.
 

Left on the Field

As always, there were bills introduced that were a concern to AGC.  We are pleased to report that these bills did not make it.  The short list of these issues is: state OSHA; illegal immigration; registration of crane operators; and the registration of disaster remediation contractors.

A large number of green building bills were introduced this session and it appears that all of them were left in the legislature.

The Consolidated Insurance Program legislation was introduced but never went any further and was left in committees.
 

Other Bills of Interest Passed

The Windstorm Insurance issue had much debate during the session and in the end a compromise was reached in the last days and the language was included as a part of HB 4409 by Representative Taylor/Senator Jackson.

The Trust Fund Bill, HB 1513 by Representative Smith/Senator Jackson, passed and is also headed to Governor Perry.

The issue of school district bonds not covered under the state’s existing bond guarantee program was addressed initially in SB 1255 by Senator Shapiro and then was included in the final passage of HB 3646 by Representative Hochberg.  Passage of this measure creates a bond backing guarantee using the Foundation School Program.
 

All of the tort reform measures passed in recent years were under attack in the legislature this year.  The battle on these issues was one of the most difficult taking place under the dome.  In the end, the business community and tort reform groups were able to beat back all the measures that were filed.
 

Waiting for the Fat Lady to Sing

As Yogi, would say, “It ain’t over until its over” or until the fat lady sings.  We are now in the veto period of the legislative process.  Governor Rick Perry has until Sunday, June 20^th to take action on the legislation passed by the Legislature.  He can sign a bill and it becomes law.  He can veto a bill and it is dead.  And last, he can just ignore a bill and it will become law with no action taken on his part.  Most of the bills that become law will become effective September 1, 2009.

 AGC Texas Building Branch will distribute a complete 2009 legislative report in July after the veto period.
 

One More Job

Your job is not finished yet.  In a few days, we are going to send you a VoterVoice email giving you some information and asking you to send a letter to Governor Perry asking him to sign HB 987 which allows for the recovery of attorney fees when a local governmental entity breaches a contract.  AGC staff will meet with the governor’s staff in a few days to review this bill with them.  We all have a little work left to do.

Thanks again to all of you for your support, calls and letters.  Your help is vital to our final success.