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A Newsletter of AGC-Texas Building Branch

April 8, 2011

House Holds Hearing on State Breach of Contract

The House State Affairs Committee held a hearing this past week on HB  1041 by Representative Paul Workman.  This is a top bill for AGC Texas Building Branch that deals with the issue of breaches of contract by state government and its use of sovereign immunity.  AGC Chairman Tom Vaughn and Legislative Co-Chairman Steve Nelson testified on behalf of AGC.  Testimony was also provided by the Texas Construction Association and ABC of Texas.  The Committee was very interested in the issue and asked pertinent  questions.  Representative Workman and AGC will continue to work with committee members to seek passage of the bill by the Committee.

The Senate version of the legislation – SB 562 by Senator Wentworth is in the Senate State Affairs Committee and has not been scheduled for a hearing to date.
 

Senate Committee Passes P3 Legislation-House Committee Holds Two Hearings on Legislation

The Senate Economic Development Committee passed out a Committee Substitute for SB 1048 by Senator Mike Jackson, Chairman of the Economic Development Committee.  The Senate version of the bill will move to the Texas Senate for consideration.

The House Economic and Small Business Development Committee held hearings on HB 2432 by Chairman John Davis both last week and again this week.  The first hearing was pushed up by a day when it became apparent that House Committees would not be able to hold meetings last week due to the House floor schedule.  Rodney Moss with Balfour Beatty Construction testified in favor of the legislation a week ago on March 30th.  Corbin Van Arsdale testified for  AGC Texas Building Branch on the bill also on March 30th.  The hearing on this legislation was originally posted for the morning of March 31st, but the House voted on March 30th to cancel its hearings scheduled for that day.  The rules were suspended and Chairman Davis announced that the bill would be heard later in the day upon adjournment of the House.  AGC asked Chairman Davis to repost the bill for a hearing the week of April 4th in order to accommodate those AGC members from out of town who had planned to testify on March 31st.  The bill was reposted and heard again in Committee last night.  The Committee started its hearing at 8 AM yesterday and recessed at 10 AM so the House could go into Session.  The Committee reconvened at 6 PM last night and heard testimony on the bill again with Chairman John Davis rolling out a committee substitute for HB 2432.  Dick Lindsay from Satterfield and Pontikes testified for the bill.  There have been numerous conversations regarding the legislation, with AGC staff working with the legislative offices of the bill sponsors as well as the other interested parties.  There were a couple of people who showed up in opposition to the legislation last night for the first time.  At the end of the evening, HB 2432 was left in Committee as pending business. 
 

Senate Education Committee Passes School Background Check Legislation

The Senate Education Committee held a hearing on SB 1042 by Senator Hegar.  This bill will clean up the state law regarding school background checks.  The bill is now headed to the Texas Senate for their consideration.  The House version of this bill HB 398 has had its hearing and is still in the House Public Education Committee as pending business.
 

House Insurance Committee to Hold Hearing on Indemnification Bill

HB 2010 by Chairman Smithee (TCA/AGC Indemnification legislation) will be heard in Chairman Smithee’s House Insurance Committee next Tuesday (April 12th).  The Senate version of the bill (SB 361) has been referred to the Committee. 
 

Update on Other AGC Bills

HB 628 by Representative Callegari – Alternative Delivery Methods – a committee substitute has been worked out with several interested groups and the committee is expected to consider the bill again next week.

HB 958 by Representative Workman – Statute of Repose – this bill is still in the House Business & Industry Committee.  Representative Workman has visited with the opposition groups on their concerns and said he is working on a committee substitute.
 

Other Bills of Interest

HB 800 by Representative “Doc” Anderson – Interlocal Co-ops & Roofing Contracts – was heard yesterday in the House Government Efficiency & Reform Committee.  It would ban the use of an Interlocal contract for the purchase of roofing construction services.  The bill is pending in the committee.

HB 1390 by Representative Deshotel deals with retainage notices has been passed by the House Business & Industry Committee and is now in the Calendars Committee.

HB 1860 by Representative Deshotel, which deals with liens for removables is still in the House Business & Industry Committee as pending business.

HB 1987 by Representative Workman – HB 1739 by Representative Walle – SB 938 by Senator Lucio – Mandatory Workers Comp for Construction – These bills have not been set for a committee hearing.
 

Texas House Passes $164.5 Billion Budget Bill

The House has finished with its proposed budget for the next two years.  The end result is a budget that at $164.5 Billion will be 12.3% smaller than the current budget.  It was passed late last week on a 98 to 49 vote that fell mostly along the party lines.

The ball is now in the Senate’s court.  The conversations in the Senate have generally been about a budget number that is a bit higher than what the House has sent them.  At this time, there are efforts under way in the Senate to try to identify sources that could help raise additional revenue for the lawmakers without increasing taxes. 

The House did pass a supplemental spending bill that will take care of the current projected $4.3 Billion shortfall on the current budget by making budget cuts and using money from the rainy day fund.
 

Here Come the Maps

It is almost the middle of April and the maps are on the way to their debut.  You will be reading a lot in the next few weeks about the U.S. Congressional maps including the addition of 4 more Texas congressional districts.  The Texas Senate and House maps discussion will reflect the continuing population shift in Texas from the rural areas to the urban areas.  This is the time when legislators can easily lose their focus on other issues while being consumed by what their new district is going to look like.
 

AGC Web Site Has Legislative Information

Don’t forget that the AGC TBB website – www.agctbb.org has information about bills that are being followed by AGC.  The state’s Texas Legislature Online website - http://www.capitol.state.tx.us/ is another good source for AGC members to keep track of all the issues that the 82nd Texas Legislature is dealing with this session