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A Newsletter of AGC-Texas Building Branch

                                                                                                        June 3, 2011

Regular Session Ends-Special
Session Starts

The 82nd Texas Legislature was set to finish up its business last weekend, and then a short filibuster in the Senate crashed the party.  Senator Wendy Davis, D – Fort Worth, filibustered the fiscal matters bill (SB 1811) in the last hour and fifteen minutes of the session on Monday night.  The fiscal matters bill with its public education funding component is needed to make the budget for the next biennium workable.

So with the job not complete, Governor Perry immediately issued a call for a Special Session to start on Tuesday.  Thus far, the fiscal matters legislation and the congressional redistricting legislation are the only items the Governor has approved for the Special Session.  The Texas Windstorm Insurance Association issue could also be added to the 30 day special session.
 

Indemnification Legislation
Finds New Life

The TCA/AGC indemnification legislation (SB 361 by Senator Duncan) had been stalled in the House Insurance Committee.  The votes to pass the legislation out of the committee just were not there.  The bill sponsors began looking for other legislation to which the indemnification language could be attached as an amendment.

Senator Duncan identified HB 2093 by Representative Senfronia Thompson as a possible vehicle for an amendment – this was the Consolidate Insurance Program bill.  Senator Duncan worked with Senator Leticia Van de Putte (Senate sponsor of HB 2093) to add the indemnification language to HB 2093.  The Senate passed the bill with the Duncan amendment on a 23 to 8 vote.

The bill was sent back to the House to either concur with the amendment or go to a conference committee for changes.  Representative Thompson asked the House to send the bill to a conference committee, which it did.  The conference committee made one minor change in the bill.  The bill then went back to the House and the Senate for final consideration of the amended conference committee version of the bill.  The House approved the bill on a 121 to 21 vote and the Senate approved it with a 26 to 5 vote.

The indemnity amendment still has the  carve out for third-party over actions for injured employees.   There were additional carve outs for (1) residential projects, (2) municipal projects, and (3) joint defense agreements entered into post-claim, that were part of the amendment.   The amended HB 2093 was passed in the Senate and the House.  Key AGC Leaders reviewed Duncan’s proposed amendment and decided it was narrower than the bill (SB 361) that TBB supported.  The amendment will continue to allow the use of broad form indemnification clauses on municipal projects.  The bill has been sent to Governor Perry for his consideration.
 

AGC Supported Bills Sent to Governor

Below is the list of AGC supported bills that have been sent to Governor Rick Perry.  The Governor has until midnight June 19th to veto the bills.  The Governor can do one of three things – sign a bill, veto a bill, or let it become law without his signature.

  • HB 1390 by Representative Deshotel – TCA/ABC/AGC compromise retainage notice bill.
     

  • SB 764 by Senator Williams – SE Texas AGC bill prohibits use of school funds to build a hotel.
     

  •  HB 628 by Representative Callegari – the alternative delivery legislation.
     

  • SB 1048 by Senator Mike Jackson – the Public Private Partnership legislation.
     

  • HB 398 by Representative Jim Jackson and SB 1042 by Senator Glenn Hegar – the school background checks legislation.  Both bills (they are identical) are on the Governor’s desk.  These bills both passed on local calendars within a short time of each other.  These non-controversial bills were getting caught up in the annual Senate vs. House arguments about the other side holding up its bills – so it was decided to keep both bills moving, just in case there was a last minute hiccup on one of the calendars.
     

Breach of Contract Amendment Stripped From Fiscal Matters Bill

The language from HB 1041 by Representative Paul Workman on the breach of state contracts issue that was added as an amendment to SB 1811 was stripped out the conference committee final version of this bill. 
 

Immigration Bills

The two key immigration bills both died during the regular session.  HB 12 was the Sanctuary City bill and SB 9 was the Border Security bill.  Either or both of these bills could be added at some time to a special session agenda.
 

State Budget Bill Sent to Governor

The appropriations bill, HB 1 by Representative Pitts, was passed by the Legislature and it has been sent to Governor Perry.

The bill will appropriate $172.3 Billion from all funding sources for the 2012-2013 biennium.  This is a $15.2 Billion (8.1% decrease) from the current state budget.  The bill appropriates the following:

            Health & Human Services - $40.6 Billion

            Public Education - $38.6 Billion

            Higher Education - $21.8 Billion

            Transportation - $19.8 Billion

            Criminal Justice - $4.9 Billion

            Business & Economic Development - $4.1 Billion

            Natural Resources - $3.2 Billion

            Regulatory - $512.9 Million

            Border Security - $219.5 Million
 

Final AGC Legislative Report Available After Veto Period

A final AGC Texas Building Branch Legislative Report will be available near the end of the month after the veto period has expired.
 

AGC Board & Staff Thank You for
Your Support

AGC wants to thank all of its members for your calls, letters, faxes and general support during the 82nd Regular Texas Legislative Session.

The job is not finished and we ask you to prepare and send letters to Governor Perry in support of the AGC backed legislation that has been passed and is waiting on his desk for his consideration.

Letters to Governor Perry can be sent to:

  The Honorable Rick Perry
Office of the Governor
P O Box 12428
 Austin, TX 78711