SAFE-D 2013 Last Monday Webinar - Legislative Update

2705 Bee Cave Road, Suite 200
Austin, Texas 78746
(512) 614-0901
www.carltonlawaustin.com
©2013
Legislative Update
SAFE-D
Last Monday Webinar
March 25, 2013

Austin, Texas 78746
(512) 614-0901
©2013
Important Legislative Dates
• Session Began Tuesday, January 8, 2013
• Approx. 5,500 Bills Filed
• Only local bills, emergency appropriations,
and bills that have been declared an
emergency by the governor can be filed
now.

Austin, Texas 78746
(512) 614-0901
©2013
• Monday, May 6, 2013 (119th day)
Last day for House Committees to report
House Bills and House Joint Resolutions
• Thursday, May 9, 2013 (122nd day)
Last day for House to consider Second
Reading for House Bills and House Joint
Resolutions on Daily Calendar

Austin, Texas 78746
(512) 614-0901
©2013
• Friday, May 10, 2013 (123rd day)
Last day for House to consider Third
Reading for House Bills and House Joint
• Friday, May 16, 2013 (130th day)
and Third Reading for Local House Bills

Austin, Texas 78746
(512) 614-0901
©2013
• Saturday, May 18, 2013 (131st day)
Last day for House Committees to report
Senate Bills and Senate Joint Resolutions
• Tuesday, May 21, 2013 (134th day)
Reading for Senate Bills and Senate Joint

Austin, Texas 78746
(512) 614-0901
©2013
• Wednesday, May 22, 2013 (135th day)
Last day for House to consider Third Reading
for House Bills and House Joint Resolutions
on Daily Calendar and to consider Second
and Third Reading for Local House Bills
• Session Ends, Monday, May 27, 2013
(140th day)
Last day of 83rd Regular Session; corrections
only in house and senate

Austin, Texas 78746
(512) 614-0901
©2013
• Sunday, June 16, 2013 (20th day following
final adjournment)
Last day governor can sign or veto bills
passed during the regular legislative session
• Monday, August 26, 2013 (91st day
following final adjournment)
Date that bills without specific effective dates
(that could not be effective immediately)
become law

Austin, Texas 78746
(512) 614-0901
©2013
SAFE-D Legislative Agenda

Austin, Texas 78746
(512) 614-0901
©2013
SAFE-D Legislative Agenda
• Seek Tax Cap Relief
• Resolve Unappropriated Special Funds
• Maintain Education Requirements
• Address City Issues
– Clarify Sales Tax Sharing Agreements
– Oppose Unilateral City Removal
• Clarify Ownership of Assets
• Audit Exemption for Small ESDs
• Clarify TCFP Existing Authority

Austin, Texas 78746
(512) 614-0901
©2013
SAFE-D LEGISLATIVE AGENDA
FOR 2013
• Tax Cap
– The Association will take a long-term approach to
giving Texans more local control over their
support for emergency services.
– In the tax-sensitive 2013 Session, the Association
will removal of the tax cap
from the Constitution, to conform with most other
special districts in the state, with accompanying
legislation that will retain the cap at the 10 cent
level in the statutes (Chapter 775).

Austin, Texas 78746
(512) 614-0901
©2013
Tax Cap Relief
• HJR 149 and HB 3799
– Joint Resolution to Amend Art. III, Section 48-
e by removing $0.10 cap and enabling Bill to
place $0.10 cap in Chapter 775
• Referred to House Way & Means
• Hilderbran (C), Otto (VC), Bohac, Button, Eiland,
N. Gonzalez, Martinez Fischer, Ritter, Strama

Austin, Texas 78746
(512) 614-0901
©2013
Tax Cap Relief
• HJR 148 and SJR 62
– Joint Resolution to Add New Constitutional
provision to create type of district to provide
emergency services without tax cap
– Referred to House County Affairs
– Referred to Senate Finance
• Williams (C), Hinojosa (VC), Duell, Duncan, Eltife,
Estes, Hegar, Huffman, Lucio, Nelson, Patrick,
Seliger, West, Whitmire and Zaffirini

Austin, Texas 78746
(512) 614-0901
©2013
FOR 2013
• Unappropriated Special Funds
– The Association will a
coalition of interests pressing the Legislature
to appropriate funds that were placed in
special accounts from fees raised, i.e. 9-1-1
fees from phone bills and rural volunteer
firefighter insurance fees on fireworks sales.
• SJR 26 and HJR 89

Austin, Texas 78746
(512) 614-0901
©2013
Unappropriated Funds
• HB 6 by Otto and HB 7 by Darby
– Referred to the House Appropriations
Subcommittee on Budget Transparency and
Reform.
– Both bills were heard today for the first time
and will remain pending for a while, especially
HB 6.
– These are the leading dedicated funds bills for
this session.

Austin, Texas 78746
(512) 614-0901
©2013
• Other bills have been filed by other
members and we will watch them, but do
not anticipate much movement.
• There are three critical bills to watch in the
funds dedication reform effort: SB 1
(Appropriations), HB 6 and HB 7.

Austin, Texas 78746
(512) 614-0901
©2013
• HB 6 by Otto
– traditional funds consolidation bill, with some new
additions from the reform effort.
• Exception #1: caps the amount that the CPA and Legislature
can use to balance the budget from General Revenue
Dedicated Accounts at $4.8 billion.
– Essentially, this $4.8 billion is the historic amount of unappropriated
balances that the Legislature has used to certify the budget.
• Exception #2: In its current form, this bill will prohibit future
revenue growth in dedicated accounts from being used to
balance the general budget (because there's a cap)
– will move at the end of session so we anticipate major
changes to the content of the bill by May. These
changes are dependent up on SB 1 decisions and HB
7 decisions.

Austin, Texas 78746
(512) 614-0901
©2013
• HB 7 by Darby
– Pertains to the 15 largest General Revenue
Dedicated Accounts (System Benefit Fund and
Municipal Solid Waste Fund, for example)
– Focuses on adjusting the revenue side of the
equation for GRD accounts.
– Industry with specific interest in the large funds
need to pay very close attention to HB 7.
– This bill is very likely to become quite large as the
subject matter is broad and pertains to all GRD
accounts.

Austin, Texas 78746
(512) 614-0901
©2013
• HB 7 by Darby
– Allows use of 9-1-1 Service Fee to be used to
assist Volunteer Fire Departments through
Texas Forest Service
– Directs Legislative Budget board to look at
reducing reliance on these funds for budget
– Pending in House Appropriations S/C

Austin, Texas 78746
(512) 614-0901
©2013
FOR 2013
• SB 917 Education Requirements
– Effective June 17, 2011, ESD Commissioners
must obtain
and may carry forward not more
than three hours from one period to the next.
• No activity on this issue to date.

Austin, Texas 78746
(512) 614-0901
©2013
FOR 2013
• City Issues
– The Association will legislation that will
enable ESDs and municipalities to work out
mutually beneficial agreements to share sales tax
revenues as municipalities annex into areas
where the sales tax is at the state maximum.
– The Association will legislation that
allows a city council, on its own motion, to
withdraw from an ESD, leaving the city's
residents unprotected and putting the ESD's
residents in a financial vise.

Austin, Texas 78746
(512) 614-0901
©2013
City Issues
• HB 3763 by Coleman
– Lowers threshold for petition to request
service from City if consent denied in ESD
creation process to 10% from 50% of qualified
voters and landowners
• Referred to House County Affairs

Austin, Texas 78746
(512) 614-0901
©2013
City Issues
• HB 3159 by Isaac
– Provides that and ESD and a city may agree to
sales tax sharing arrangement upon annexation
of territory by city
– Provides that if an ESD and a city cannot reach
agreement, sales tax of both is reduced by 50%
of the amount the combined sales tax would
exceed 2%
• Referred to House Ways and Means
• No hearing set yet

Austin, Texas 78746
(512) 614-0901
©2013
City Issues
• No legislation to date relating to City
Removal
• But legislation has been filed regarding
consent by City in ESD Annexation
Process
• HB 1798 by Goldman
– Requires City Consent to Annex Territory
• No hearing set yet

Austin, Texas 78746
(512) 614-0901
©2013
FOR 2013
• Other Issues
– The Association will legislation to
clarify ownership of assets purchased with
taxpayer funds.
– HB 3798 by Coleman, Relating to
expenditures by emergency services Districts.
• Addresses process for disbursing funds, and
• Ownership of assets purchased with ESD funds

Austin, Texas 78746
(512) 614-0901
©2013
FOR 2013
• Other Issues (cont.)
– The Association will legislation
to exempt smaller ESDs (with annual revenues of
less than $100,000) from audit requirements.
– HB 3764 by Coleman, relating to audit
requirements of certain emergency services
districts
• provides alternative financial reporting requirement for
ESDs with less than $250,000 in revenue or funds on
hand.

Austin, Texas 78746
(512) 614-0901
©2013
FOR 2013
• Other Issues (cont.)
– The Association will continue to and
participate in discussions regarding the
TCFP's attempts to expand its authority over
volunteer fire personnel.
– In any legislation dealing with the TCFP, the
Association will amendment of the
Commission selection criteria to require a
SAFE-D-nominated representative.

Austin, Texas 78746
(512) 614-0901
©2013
TCFP Legislation
• Appropriations Bills (HB 1 and SB1)
propose moving TCFP functions to
Department of Insurance
– If TCFP functions not moved, then only
$150,000 per year appropriated to TCFP
– HB 3660 by Simmons proposes to transfer
TCFP to Department of Insurance

Austin, Texas 78746
(512) 614-0901
©2013
TCFP Legislation
• HB 2971 by Alonzo
– Provides authority for Commission on Fire
Protection to regulate wildland fire fighters.
• SB 766 by Hegar
– Prohibits a requirement that a volunteer
firefighter obtain a license or certification
• Referred to Senate Intergovernmental Relations

Austin, Texas 78746
(512) 614-0901
©2013
Other Legislation

Austin, Texas 78746
(512) 614-0901
©2013
Legislation Affecting
Chapter 775
• HB 685, by Marquez, and SB 332, by
Rodriguez,
– Imposes extensive oversight of El Paso
County ESD operations by County
Commissioners Court
• Voted but Pending Report in House County Affairs
• Hearing Scheduled for March 27 in Senate
Intergovernmental Relations

Austin, Texas 78746
(512) 614-0901
©2013
Chapter 775
• HB 272 by Larson
– Amends notice publication requirements for
ESDs
• Pending in House County Affairs
• HB 3257 by Schaffer
– Provides for election of ESD Commissioners
in Smith County
• Referred to House Elections
• Morrison (C), Miles (VC), Johnson, Klick, R. Miller,
Simmons and Wu

Austin, Texas 78746
(512) 614-0901
©2013
Chapter 775
• HB 2171 By Rodriguez
– Clarifies that a city is not required to remove
territory from an ESD upon annexation
• HB 2170 By Rodriguez (Amends Local Gov’t
Code Chapter 43)
– Clarifies that a city may provide for fire service in
an annexation plan using an ESD

Austin, Texas 78746
(512) 614-0901
©2013
Chapter 775
• SB 1425 by Hinojosa
– Clarifies services that may be provided by a
former RFPD
• HB 3510 by Ritter
• SB 1265 by Nichols
– Provides for election of Orange County ESD
Boards

Austin, Texas 78746
(512) 614-0901
©2013
Fire Issues
• HB 2517 by Springer
– Authorizes County to require notification of
Fire Department of Outdoor Burning
• Needs to be amended to include ESD in definition
of Fire Department

Austin, Texas 78746
(512) 614-0901
©2013
EMS Issues
• HB 521 by Kuempel
– Authorizes direct payment of insurance benefits
to EMS providers
• HB 1960 by Cortez
– Provides reciprocity for individual with EMT
certifications from US Military
• SB 8 by Nelson
– Requires EMS Provider to employ a medical
director

Austin, Texas 78746
(512) 614-0901
©2013
EMS Issues
• HB 1342 by Raymond
– Adds requirement for certificate of local need
from County and/or cities to obtain EMS Provider
License
– CS Exempts ESDs from this requirement
• Hearing Set for March 28 in House Public Health at
8am
• HB 1656 by Eiland
– Establishes dedicated account for emergency
medical air transportation funding for
reimbursement to providers

Austin, Texas 78746
(512) 614-0901
©2013
Open Government
• HB 2414 by Button
– Expands applicability of video conferencing for open
meetings
• SB 1297 by Watson
– Provides exemption for certain online message
postings by board members from open meetings act
requirements
– Heard today in Senate Open Government
• HB 2934 by Hunter
– Creates an offense for electronic communications by
board members during an open meeting

Austin, Texas 78746
(512) 614-0901
©2013
Open Government
• HB 14 by Pitts
• SB 14 by Williams
– Requires preparation of annual financial report for
all political subdivisions
– Requires special districts to conduct a
comprehensive review every three years to
determine whether they should continue in
existence
• Pending in House Appropriations
• Pending in Senate Finance

Austin, Texas 78746
(512) 614-0901
©2013
Legislation Related
to Taxes
• SB 489 and SJR 32 by Paxton
– Allows Petition and Election to force Over 65
Exemption
• SB 102 by Patrick
– Reduces Rollback Rate to 5% and requires
election to exceed that rate

Austin, Texas 78746
(512) 614-0901
©2013
House Committee
on County Affairs
• Current Members
– Garnet Coleman,
Chairman
• Southeast Houston
– Joe Farias, Vice-Chair
• Bexar County
– Mary Gonzalez,
• El Paso County
– Ana Hernandez Luna
• Harris County
– Todd Hunter
• Nueces County
– Lois Kolkhorst
• Austin, Burleson,
Colorado, Fayett,
Grimes, Lavaca and
Washington Counties
– Matt Krause
• Tarrant County
– David Simpson
• Gregg, Upshur Counties
– Jonathan Strickland
• Tarrant County

Austin, Texas 78746
(512) 614-0901
©2013
Senate Intergovernmental
Relations
• “Chuy” Hinojosa,
Chairman
– Brooks, Hidalgo, Jim Wells
and Nueces Counties
• Robert Nichols, Vice
Chair
– Smith (part),Henderson,
Anderson, Cherokee,
Nacogdoches, Shelby,
Angelina, San Augustine,
Sabine, Montgomery (part),
San Jacinto, Polk, Tyler,
Jasper, Newton and Hardin
Counties
• Ken Paxton
– Collin and Dallas County
• Larry Taylor
– Brazoria, Galveston and
Harris Counties
• Sylvia Garcia
– Harris County

Austin, Texas 78746
(512) 614-0901
©2013
John J. Carlton
The Carlton Law Firm, P.L.L.C.
2705 Bee Cave Road
Suite 200
Austin, Texas 78746
(512) 614-0901 (w)
(512) 785-8355 (m)
john@carltonlawaustin.com

SAFE-D 2013 Last Monday Webinar - Legislative Update

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (11)

Similar to SAFE-D 2013 Last Monday Webinar - Legislative Update

Similar to SAFE-D 2013 Last Monday Webinar - Legislative Update (18)

More from John Carlton

More from John Carlton (9)

Recently uploaded

Recently uploaded (20)

SAFE-D 2013 Last Monday Webinar - Legislative Update