Legislative Happenings

 

The state's 87th regular legislative session got underway on Jan. 4, 2021 and adjourned May 31, 2021. The governor called three special sessions. TEXPERS, along with the association's Legislative Committee and legislative consultant, is monitoring the sessions, especially for any actions regarding public employee pensions. TEXPERS staff will regularly update this blog page with the latest happenings that may be of interest to trustees and administrators of public employee retirement systems.

 

UPDATED 10/21/2021 AT 11:39 A.M. CST - Gov. Greg Abbott called for three special sessions after the 87th Regular Session. Below is an overview compiled by associates of TEXPERS. Keep in mind that little directly impacted pensions, however, trustee, administrative, and investment management members of the association should still be aware of legislative action. 

 

The First Called Special Session began on July 8th and while the Senate was able to conduct business, the House did not have a quorum so ultimately no legislation passed both chambers during that session. The House achieved quorum for the Second Called Special Session which began on August 7th and the Third Called Special Session which began on September 20.

 

Of note, the vaccine mandate legislation that was called for in the 3rd Special Session was not passed or taken to the floor in either chamber.

 

Legislation in the Senate (SB 51) and similar legislation in the House (HB 155) met with opposition from certain Texas business groups. On the Senate side, businesses echoed concerns of costly litigation and the enforcement mechanism in bill language. In the House, members heard concerns that HB 155 could expose businesses to broad civil liability and complicate established vaccine exemptions for health care providers.

 

 

Both chambers heard concerns during public testimony on how the bills would interact with potential federal regulations and laws.

 

The list below includes bills or constitutional amendments resolutions that passed both chambers and were sent to the Governor.

 

Upon receiving a bill, the governor typically has 10 days in which to sign or veto the bill. However, if the Legislature has adjourned sine die, or if the bill was sent to the governor less than 10 days prior to final adjournment, the Governor has 20 days after the final day of the session to sign or veto the bill. If neither action is taken, the bill becomes law without the Governor's signature.

 

ARPA Funding 

On the call for the 3rd Special Session was legislation relating to the $16 billion in funding flowing to the state through the American Rescue Plan Act (ARPA). The funding was subject to certain restrictions, including requirements to spend dollars only on state entities or established state accounts.

 

The House chamber moved three bills to address the funding but after conference committee negotiations on SB 8, the bill became the vehicle for moving all the APRA funding flowing to the state. As SB 8 was moving bill author and Finance Chair Jane Nelson asked members to consider if funding would be one time or ongoing expenses as well if there were federal funds in another bucket that was available. SB 8 was passed by both chambers hours before Sine Die.

 

The fiscal note addresses there would be a cost of $13.3 billion to the Coronavirus Relief Fund 325. The bill would appropriate the following funds:

 

TEXAS WORKFORCE COMMISSION

  • $7.2b for unemployment compensation fund to pay back outstanding advances and to bring the balance of the fund to the statutory floor. 

OFFICE OF THE GOVERNOR

  • $180m for tourism & hospitality, to implement a new tourism, travel, and hospitality grant program for a two-year period. Priority will be given to potential grantees that have not received direct federal aid and it is intended that each authorized grant awarded does not exceed $20k.
  • $160m for crime victims funds and programs.
  • $1.2m for new IT system for children’s advocacy centers.

BROADBAND INFRASTRUCTURE

  • $500.5m for broadband infrastructure, $75.0 million of which is to be used for the Texas broadband pole replacement program.

HEALTH COSTS

  • $2b for reimbursement for hospital surge staffing, purchasing therapeutic drugs, and operation infusion centers; will be available through the end of 2022.
  • $380m for critical staffing for nursing facilities, assisted living, etc., establishing HHSC to administer one-time grants and report annually on these grants.
  • $21.7m to DSHS for the purpose of providing funding for emergency medical response service staffing which includes recruiting & training EMS personnel in rural & underserved areas.
  • $75m for grants from HHSC to support rural hospitals affected by COVID-19.
  • $25m for creating a consolidated internet portal for CHIP and provide technology upgrades for Medicaid eligibility systems.
  • $16.7m for medical lab capacity in South Texas.
  • $20m for use during a two-year period for the Federally Qualified Health Center Incubator Program. 

HIGHER EDUCATION RESEARCH INITIATIVES

  • $40m for Texas Epidemic Public Health Institute.
  • $1m for Disaster Resiliency Institute at Texas A&M University.

BEHAVIORAL HEALTH INITIATIVES

  • $113m appropriated to the Texas Higher Education Coordinating Board (THECB) for purposes of supporting the operations and expansion of the Texas Child Mental Health Care Consortium. Funding is also included for enhancements and expansion of the Child Psychiatry Access Network, Texas Child Access through Telemedicine program, expansion of the child and adolescent mental health workforce and an additional $3.2m to the Consortium for oversight and evaluation of initiatives.
  • $237m for constructing the Dallas State Mental Health Hospital.
  • $15m for expanding capacity at Sunrise Canyon Psychiatric Hospital.
  • $40m for Permian Basin Behavioral Health Center.

STATE FACILITIES

  • $300m for Texas Department of Emergency Management (TDEM) to acquire land and construct a State Operations Center.
  • $25m for State Preservation Board facilities.
  • $100m for the Bob Bullock Museum.
  • $35m to upgrade ventilation at veteran’s homes. 

OFFICE OF THE ATTORNEY GENERAL

  • $54m for the Crime Victim Compensation Fund.
  • $16m to address court fees revenue shortfall.
  • $52m to replenish the sexual assault fund.

TEXAS HIGHER EDUCATION INVESTMENTS

  • $325m for debt service for over $3b in capital construction assistance projects at institutions of higher education.
  • $20m to establish a performance-based funding for at-risk students at comprehensive regional universities.
  • $15m to operate the Texas Reskilling and Upskilling (TRUE) program.
  • $100m in institutional enhancements for Texas Tech University and the University of Houston (split evenly).

DEPARTMENT OF AGRICULTURE

  • $95m to provide supplemental funding to foodbanks during a two-year period.
  • $5m to provide funding for home-delivered meals.

CYBERSECURITY AND OTHER TECHNOLOGY UPDATES

  • $200m for cybersecurity projects funded through the Department of Information Resources.
  • $150m for Next Generation 9-1-1 Services.

PROTECT TEXAS RETIRED TEACHERS

  • $286m to TRS to cover COVID-related healthcare claims, avoids premium increases due to COVID & allows premium holiday for retired teachers. 

COMPENSATION FOR CRIMINAL JUSTICE EMPLOYEES

  • $359m to the Department of Criminal Justice for the purpose of providing compensation for agency employees; these federal funds replace state funds appropriated for this purpose in the regular session.

Property Taxes 

Governor Abbott put on all three calls legislation that would provide additional property-tax relief. It was also Lt. Governor Patrick’s top priority for the 3rd Special Session.

As such during the 3rd Special Session both chambers had different approaches to property tax relief. The Senate proposed reducing the MCR tax rates for one year in tax year 2022 and the House proposed sending checks to homeowners. Both chambers came to a compromise on how to offer some property tax relief by permanently increasing the mandatory homestead exemption for school districts from the current $25,000 to $40,000. If the constitutional amendment set for the May ballot passes, this will take effect beginning in 2022 tax year. The legislature also stated they provided for a hold harmless for taxes lost on both the M&O and the I&S side.

Specifically, the bill would amend the Education Code to entitle districts to additional state aid (ASAHE) to the extent that a district's combined state and local revenue used to service eligible debt after the homestead exemption increase would be less than the state and local revenue that would have been available for debt service had the homestead exemption not increased.

The bill would further entitle districts to ASAHE to the extent that combined state and local FSP revenues for maintenance and operations (M&O) with the increased homestead exemption would be less than the district's combined state and local revenue for M&O had the homestead exemption not increased.

The Comptroller of Public Accounts assumes the provisions of the bill would result in a statewide decrease of $52.3 billion in taxable property values for fiscal year 2023, a decrease of $53.3 billion for fiscal year 2024, increasing to a reduction of $55.5 billion for fiscal year 2026. Applying these property value decreases to the FSP model results in an estimated cost to Foundation School Fund No. 193 (General Revenue) of $355.3 million in fiscal year 2023, $386.4 million in fiscal year 2024, increasing to $436.6 million in fiscal year 2026. Additionally, the model projects Recapture Payments­ Attendance Credits would be reduced by $84.0 million in fiscal year 2023, $79.7 million in fiscal year 2024, increasing to $116.8 million in fiscal year 2026.

 

During floor discussion on SB 1, the enabling legislation for SJR 2, bill author Sen. Paul Bettencourt said this tax relief taken with additional tax relief provided during the 2nd Called legislature is more than property tax relief, the legislature “has provided property tax cuts.”

 

During the 2nd Called Special Session the legislature passed:

SB 8 (Bettencourt) relating to a residence homestead ad valorem tax exemption was passed during the 2nd Special Session. The bill amends the Tax Code to authorize a person who acquires property after January 1 of a tax year to receive a residence homestead property tax exemption, other than an exemption for an adult who is disabled or 65 years of age or older, for the applicable portion of that tax year immediately on qualification for the exemption if the preceding owner did not receive the same exemption for that tax year. Among other provisions, the bill requires that a person who qualifies their property for an exemption after paying the taxes due on the property be refunded any amount of taxes paid that exceeded the tax due after accounting for the exemption.

 

Additionally, the bill amends the Education Code to provide for how the amount of taxes refunded factor in with respect to the public school financial accountability rating system and the tier two allotment and to entitle a school district to state aid for each school year in an amount equal to the amount of all of the tax refunds.

 

SB 8 was signed by the Governor on 9/17 and will be effective January 1, 2022.

 

SB 12 is enabling legislation for SJR 2. The bills taken together amend the Education Code, Government Code, and Tax Code to provide for the reduction of the amount of the limitation on the total amount of property taxes that may be imposed by a public school district on the residence homestead of an elderly or disabled individual to reflect any reduction from the preceding tax year in the district's maximum compressed tax rate. Among other provisions, the bill entitles a district that is not fully compensated through state aid or the calculation of excess local revenue as part of the foundation school program based on the determination of the district's taxable value of property to additional state aid in the amount necessary to fully compensate the district for the property tax revenue lost due to the reduction. The bill takes effect January 1, 2023, but only if Senate Joint Resolution 2 is approved by voters.

 

SB 12 and SJR 2 were signed by the Governor on 9/17.

 

Redistricting

Governor Abbott put Redistricting along with a number of items on the initial 3rd Special Session call. Redistricting takes place every ten years after the Census Bureau releases population data in order for states to account for changes during their redistricting processes. Starting in the 87(R), both the House and Senate Redistricting Committees held hearings to receive input from the State Demographer and the public concerning population changes and communities of interest in different parts of the state. Due to the delays in the Census count due to the Pandemic in 2020, the Census Bureau was unable to send the data as it would normally during the 87th Regular Session. The data was sent to Texas and was accessible for use on September 1. The House and the Senate were responsible for drawing district maps for their respective chambers. The Senate was additionally tasked with drawing new maps for the members of the State Board of Education and the U.S. Congressional Delegation. As noted by both chairs of the House and Senate Redistricting committees, the House and the Senate do not typically put amendments on each other’s district maps.

 

HB 1 (Hunter) (PLANH2316), the House’s redistricting plan, passed out of its initial chamber after 17.5 hours of debate and 39 additional amendments. The current partisan breakdown of the House is 83 Republicans and 67 Democrats. The new map creates 85 districts that would have favored Trump in 2020 and 65 that would have favored Biden. 

 

The plan pairs the following incumbents:

  • HD7 - Reps. Jay Dean (R-Longview) and Chris Paddie (R-Marshall) - Paddie is retiring
  • HD9 - Reps. Trent Ashby (R-Lufkin) and James White (R-Hillister) - White is running for statewide office
  • HD12 - Reps. Kyle Kacal (R-College Station) and Ben Leman (R-Iola) - Leman is retiring
  • HD19 - Reps. Kyle Biedermann (R-Fredericksburg) and Terry Wilson (R-Marble Falls) 
    • Biedermann has indicated he will not run in HD73 and “whatever public service position I run for next will be close to my home (in Gillespie County)”
    • Wilson said he would run in reconfigured HD20, which sits entirely within Williamson County 
  • HD26 - Reps. Jacey Jetton (R-Angleton) and Phil Stephenson (R-Wharton)
  • HD61 - Reps. Phil King (R-Weatherford) and Glenn Rogers (R-Graford) - King is running for Senate
  • HD63 - Reps. Michelle Beckley (D-Carrollton) and Tan Parker (R-Flower Mound) - both are seeking other offices
  • HD77 - Reps. Claudia Ordaz-Perez (D-El Paso) and Lina Ortega (D-El Paso)
  • HD108 - Reps. Morgan Meyer (R-Dallas) and John Turner (D-Dallas) - Turner is retiring 

The plan places the following incumbents into districts that would be friendlier to the other party: 

  • Ryan Guillen (D-Rio Grande City) - 59% Republican
  • James Talarico (D-Round Rock) - 56% Republican
  • Jeff Cason (R-Bedford) - 38% Republican

SB 4 (Huffman) (PLANS2168) is the Senate’s redistricting plan. Huffman noted redistricting maps were drawn blind to race and after they were drawn, they underwent a legal overview to check compliance with current law. One of the bigger changes to the plan is the addition of seven rural and exurban counties to SD10, which is currently contained entirely in Tarrant County and is currently represented by Sen. Beverly Powell (D-Fort Worth). This would shift the partisan makeup from its current 18 Republican 13 Democrat split to 19 Republican and 12 Democrat. The map only pairs two incumbents, Sens. Dawn Buckingham (R-Lakeway) and Donna Campbell (R-New Braunfels). Sen. Buckingham is running for another statewide office. Sens. Sens. Chuy Hinojosa (D-McAllen), Eddie Lucio Jr. (D-Brownsville) and Judith Zaffirini (D-Laredo) voted in favor of the plan while Sen. Kel Seliger (R-Amarillo) voted against the plan.

SB 6 (Huffman) (PLANC2193), the Congressional redistricting plan, incorporates the two new congressional seats in the Houston and Austin areas. The current delegation consists of 23 Republicans and 13 Democrats. The new map increases the number of districts that would have voted for Trump in 2020 from 22 to 25.

The conference committee report for SB 6 made some compromises between the House and Senate versions of the bill. The CCR removes an amendment added in the House that would have impacted CDs 10, 15, 27, 28 and 35. It retains an amendment put on in the House which realigns CD18 closer to its current configuration and unpairs U.S. Reps. Sheila Jackson Lee (CD18) and Al Green (CD9). The plan retains a House amendment which draws U.S. Rep. Vicente Gonzalez’ (CD15) residence into CD34. The CCR made a compromise between the House and Senate drawings concerning Ft. Bliss. A portion of Ft. Bliss remains in CD16 as it currently stands, and another portion has been split into CD23. The conference report additionally retains the following House amendments:

  • Moves some neighborhoods including White Lake Hills back into CD33, where they are currently;
  • Includes changes to Northeast Texas;
  • Draws Rep. Toth’s residence into CD8;
  • Makes Brazos County whole in CD10 rather than CD17 taking a portion out; and
  • Draws Rep. Martinez Fischer’s residence into CD35.

SB 7 (Huffman) (PLANE2106), the SBOE redistricting plan, adjusts the board’s partisan breakdown. Currently the 15-member board is made up of 9 Republicans and 6 Democrats. However, 7 of those districts voted for Biden in 2020. Under the new proposal, Biden would have only won 6 of those districts. While it was on the floor, the House added an amendment onto this Senate-drawn proposal that would have moved Friendswood into SBOE District 7. However, before the bill was sent back to the Senate, the amendment was stripped off.

The bills and their corresponding plans have been sent to the Governor and upon his signature, the maps will be effective December 2, 2021.

During floor and committee debate on all of the redistricting plans, Democrats argued that the plans do not capture the population growth of people of color in the state. On October 18, before the CCR for SB 6 was adopted, the League of Latin American Citizens and other plaintiffs filed a federal lawsuit challenging the redistricting plans on the basis that they “unlawfully dilute the voting strength of Latinos.”

Education

Civics Instruction 

During the 87th Regular Session HB 3979 passed out of the regular session requires The bill prohibited compelling a teacher for any social studies course in the required curriculum to discuss a particular current event or widely debated and currently controversial issue of public policy or social affairs but requires a teacher who chooses to do so to strive to explore the topic from diverse and contending perspectives without giving deference to any one perspective. The bill set out additional prohibitions relating to social studies curriculum and instruction.

When Governor Abbott signed the bill in June he noted it was a strong move to abolish critical race theory in Texas but more must be done – so he added the item to a special session agenda. The item was on the 1st Special Session but since bills did not pass out of that session, the item came back for the 2nd Special Session.

SB 3 was passed out of the 2nd Special Session and amends the Education Code to require the State Board of Education, in adopting state curriculum standards for kindergarten through grade 12 social studies, to include specified essential knowledge and skills that develop each student's civic knowledge. Also required is the commissioner of education to establish civics training programs for teachers and administrators with the assistance of a civics training program advisory board created by the bill. The agency estimated the cost to develop and implement the training program would be approximately $14.625 million annually beginning in fiscal year fiscal year 2023.

The bill prohibits for all grades and courses “inculcation” in certain concepts. It prohibited compelling a teach to discuss a widely debated and controversial issue of public policy or social affairs but now it applied to a teacher in any course and requires a teacher who chooses to do so to explore the issue objectively and in a manner free from political bias.

SB 3 was signed by the Governor on 9/17 and will be effective December 2, 2021.

TRS Payments 

During the 1st and 2nd Special Session there was focus on a 13th check. SB 7 was finally passed during the 2nd Called Session which provides a one-time supplemental payment of benefits under the Teacher Retirement System of Texas. Specifically, it would provide a one-time supplemental payment to certain Teacher Retirement System (TRS) annuitants as of December 31, 2020. The payment would be the lesser of the annuitant's current monthly benefit or $2,400 and would be payable not later than January 2022.

SB 7 was signed by the Governor on 9/09.

School Bus Drivers 

SCR 3 was passed out of the 3rd Special Session and would urge Congress to pass legislation that would grant licensing authority for public school bus drivers to the states. The concurrent resolution notes that students rely on school buses for safe transportation, and many school districts have experienced difficulty in keeping up with this demand due to federal licensing requirements that have exacerbated the shortage of school bus drivers. It further states that many school districts consider CDL requirements to be a major factor in their ability to recruit and retain bus drivers.

SCR 3 was sent to the Governor for signature on 10/18.

UIL Athletic Biological Sex 

On all three calls issued by Governor Abbott was a call for legislation that would disallow a student from competing in University Interscholastic League athletic competitions designated for the sex opposite to the student’s sex at birth.

HB 25 was passed during the 3rd Special Session. The House version had a definition for biological sex which meant the “physical condition of being male or female as determined by the sex organs, chromosomes, and endogenous profile of the individual at birth but in Senate floor discussions an amendment was offered to remove the definition.

HB 25, as finally passed, would prohibit interscholastic athletic teams sponsored or authorized by school districts or open-enrollment charter schools from allowing a student to compete in a competition designated for the biological sex opposite to the student's as correctly stated on the student's official birth certificate, or if the birth certificate was unobtainable, another government record. The birth certificate's statement of biological sex would be considered correct if it had been entered at or near the person's birth, or changed to correct a clerical error. Such teams could allow female students to compete in an athletic competition designated for male students if a corresponding competition for female students was not offered or available. The University Interscholastic League (UIL) would have to adopt rules to implement the bill, subject to approval by the education commissioner.

The bill was sent to the Governor on 10/19. 

Virtual Learning 

SB 15 amends the Education Code to authorize a public school district or open‑enrollment charter school to provide off-campus electronic courses or an off‑campus or hybrid instructional program and to authorize, subject to certain conditions, the continued operation of a full-time virtual program that was operated during the 2020‑2021 school year. The bill provides for the inclusion of students enrolled in such courses and programs in the district's or charter school's average daily attendance count for state funding purposes.

The bill authorizes a district or charter school that meets a specified performance rating threshold to operate a local remote learning program. The bill sets out requirements for the program and for program courses. SB 15 provides for the satisfaction of internship requirements for educator certification through a local remote learning program or the state virtual school network and requires the commissioner of education to establish an asynchronous progression funding method for certain special-purpose districts. The bill's provisions expire September 1, 2023.

Violence 

SB 9, passed during the 2nd Special Session, amends the Education Code to require a local school health advisory council to recommend appropriate grade levels and curriculum for instruction regarding child abuse, family violence, dating violence, and sex trafficking, provided that the recommendations do not conflict with state curriculum standards. The bill provides for the manner in which a public school district must make all curriculum materials used in or proposed for the instruction available to parents and to the public, as applicable. The bill requires a district board of trustees to adopt a policy establishing the adoption process for the curriculum materials and sets out related requirements. The bill requires a district to provide certain written parental notification of the district's decision regarding the provision of the instruction and makes prior parental consent a condition of the instruction.

The bill was signed by the Governor 9/17 and is effective December 2, 2021.

Dog Restraint Legislation 

Gov. Abbott vetoed SB 474 which has passed out of the 87th Regular session arguing that Texans want to outlaw true animal cruelty but listed several objections on bill language with concern of over-criminalization. However, Abbott did place this issue on the 3rd Special Session calling for a bill that addressed the concerns expressed in his original veto language.

SB 5 seeks to revise dog restraint requirements to ensure that dogs are restrained in a humane manner while minimizing the burden of compliance on owners. It was implied that the bill had multiple stakeholders who agreed to the legislation before it was brought to the House floor. The bill did pass out of the House with one amendment by Rep. Schaefer which allowed for a chain restraint of a certain dog as long as the weight and gauge does not harm the dog. However, the Senate refused to concur with the added amendment and went to conference with the House. The conference committee report removed the added amendment and brought it back to both chambers where the bill was finally passed.

The bill was sent to the Governor on 10/19.

Elections

During the Regular Session, discussions on the omnibus elections bill, SB 7, were halted after a loss of quorum in the House on May 30th. Governor Abbott then included election integrity legislation in the 1st and 2nd Special Session agendas, and Senator Bryan Hughes filed SB 1 during the 2nd Special Session on August 6th. After the House regained quorum on August 19th, SB 1 proceeded to move through both chambers.

SB 1 included many of the provisions originally in SB 7, including increased access and protections for poll watchers, defined hours for early voting, requiring employers to provide leave for employees to vote in certain situations, prohibiting 24-hour and drive-thru voting, expanding election code violations for ballot harvesting, and establishing new violations for certain actions by election officials. SB 1 was signed by the Governor on September 7th and is set to be effective on December 2nd, 2021.

On September 30th, the Governor added increasing penalties for illegal voting to the 3rd Special Session agenda, referencing a penalty for illegal voting that had been reduced in SB 1. During a Senate State Affairs hearing on October 4th, Senator Hughes filed SB 10 which reverted the illegal voting penalty and removed an offense for attempted election fraud. SB 10 passed the Senate on October 5th and was referred to House Constitutional Rights & Remedies on October 6th, but ultimately did not pass.

Bail

During the 87th Regular Session, the House and Senate discussed bail reform package filed by Representative Andrew Murr in HB 20 and Senator Joan Huffman in SB 21. HB 20 was passed by both the House and Senate and was sent to conference, but the House lost quorum before a vote was taken to adopt the conference committee report. Bail reform was then included by Governor Abbott in the 1st and 2nd Special Session agenda items and Senator Huffman filed SB 6.

SB 6 by Senator Huffman was passed by the Senate in the opening days of the 2nd Special Session on August 9th and by the House on August 30th after a quorum was present in the House. SB 6 establishes a list of offenses for which personal recognizance bonds are denied, directs the Office of Court Administration (OCA) to develop a public safety report system, and requires magistrates to consider the public safety report before setting bail. SB 6 also establishes timelines for setting bail, establishes an affidavit process for defendants unable to post bail, and directs OCA to develop a training program on magisterial duties. SB 6 is set to be effective on January 1, 2022.

Senator Huffman also filed SJR 3 during the 2nd Special Session, a related constitutional amendment proposal that would have authorized judges or magistrates to deny bail for certain sexual, violent, or trafficking offenses, as well as require the least restrictive conditions when setting bail. SJR 3 was adopted by the Senate during the 2nd Special Session, but failed to meet the required 100 vote threshold in the House. A refile of the proposal, SJR 1, also failed to meet the vote threshold during the 3rd Special Session.

Border Security

Governor Abbott made border security funding a priority for the 1st and 2nd Special Sessions. The Governor launched Operation Lone Star in March 2021 to "help secure the border and combat the smuggling of people and drugs in Texas." The Governor expanded the mission shortly after its launch to include anti-human trafficking efforts. Governor Abbott's plan to secure the border also includes strategic fencing, barriers, and the construction of a border wall.

During the 2nd Special Session the legislature passed HB 9 (Bonnen) which provides an additional $1.8 billion in state funding for border security over the next two years. The bill includes reporting requirements and would appropriate the following funds:

  • $32.5m to the Office of Court Administration for court costs
  • $301.0m to the Texas Military Department for additional personnel
  • $154.8m to the Department of Public Safety for Operation Lone Star surge costs, replacement tactical marine units, and additional intelligence personnel; $273.7 million to the Texas Department of Criminal Justice for increased corrections costs
  • $214,785 to the Texas Commission on Jail Standards for employee overtime and travel costs
  • $1.02b for barrier construction, local grants, and establishing processing centers
  • $3.75m for Border Prosecution Unit funding; and
  • $16.4m to the Texas Department of State Health Services for contracted ambulance services.

HB 9 was signed by the Governor on 9/17 and was effective immediately.

Radioactive Waste

Governor Abbott put legislation that further limits the ability to store and transport high-level radioactive materials in the state as an agenda item in the 1st and 2nd Special Sessions after similar legislation failed to pass during the 87th Regular Session.

During the 2nd Special Session the legislature passed HB 7 (Landgraf) which amends current law by prohibiting the Texas Commission on Environmental Quality from issuing a permit for the construction or operation of a facility that is licensed for the storage of high-level radioactive waste. HB 7 amends the Health and Safety Code by adding a prohibition of disposing or storing high-level radioactive waste. The bill provides for an exception for a facility located at the site of currently or formerly operating nuclear power reactors and currently or formerly operating nuclear research and test reactors operated by a university.

HB 7 was signed by the Governor on 9/9 and was effective immediately.

Higher Education 

HB 133 was brought up in the 3rd Special Session, relating to education benefits at public institutions of higher education for certain survivors of public servants. The bill was read for the first time on 10/15, passed off the House floor on 10/17, and passed out of the Senate chamber on 10/18.

State law provides tuition benefits for surviving spouses and children of certain public servants but surviving children who may be college students over 18 years of age are ineligible for these benefits, this bill will address the issue by amends current law relating to education benefits at public institutions of higher education for certain survivors of public servants.

The bill was sent to the Governor on 10/19.

SB 52 by Senator Brandon Creighton authorized the issuance of $3.3 billion in capital construction revenue bonds for higher education institutions. SB 52 was filed on October 12th, eight days before the final deadline of the 3rd Special Session, and was voted out of Senate Higher Education on October 14th. Governor Abbott added higher education improvements to the 3rd Special Session agenda on October 15th, and SB 52 continued through the Senate floor, House Appropriations, and the House Floor within a five-day period before the House and Senate adjourned on October 19th.

Senate and House debate on SB 52 focused in part on needing to comprehensively look at capital construction and higher education finance in general during the interim. As part of these discussions, the House adopted an amendment creating a capital project oversight commission and requiring institutions to seek approval to use funds in excess of $40 million on alternative projects; this limit was reduced to $25 million in conference. Amounts designated for each institution are listed in SB 52.

SB 52 was sent to the Governor on October 19th.

Social Media Censorship

The Governor named social media censorship legislation as an agenda item for the 1st and 2nd Special Sessions. The Governor called for “legislation safeguarding the freedom of speech by protecting social-media and email users from being censored based on the user’s expressed viewpoints, including by providing a legal remedy for those wrongfully excluded from a platform.” Sen. Bryan Hughes carried SB 5 and SB 90 under this agenda item, but HB 20 ultimately made it through the process due to it covering censorship on social media platforms and through electronic mail messages.

During the 2nd Special Session the legislature passed HB 20 (Cain) which amends the Business & Commerce Code and prohibits social media companies with more than 50 million monthly users from banning users based on their political viewpoints. The law requires several consumer protection disclosures and processes related to content management on the social media sites to which the bill applies. The bill states sites must disclose their content management and moderation policies and implement a complaint and appeals process for content they remove, providing a reason for the removal and a review of their decision. HB 20 requires these companies review and remove illegal content within 48 hours. Additionally, the bill prohibits email service providers from impeding the transmission of email messages based on content. Enforcement under this law is provided by the attorney general, who can bring suit on behalf of a user or group of users.

HB 20 was signed by the Governor on 9/9 and will be effective on December 2, 2021.

Abortion-Inducing Drugs

During the 87th Regular Session, Senator Lucio filed SB 394 which required physicians to comply with existing informed consent and physical examination statutes before providing abortion-inducing drugs to a patient. SB 394 passed the Senate on March 30th and was voted out of House Public Health on April 15th, but was not set on a House calendar during the Regular Session.

During the 2nd Special Session, SB 394 was refiled by Senator Eddie Lucio as SB 4 in response to Governor Abbott’s 1st and 2nd Special Session calls. SB 4 was passed by the Senate and House along party lines and is effective as of September 17th, 2021. 

UPDATED 8/5/2021 AT 7:37 P.M. CST - Texas Gov. Greg Abbott called on Aug. 5 another special legislative session, the second special session he has called since the regular legislative session ended May 31.

 

The special session is to start on Saturday, Aug. 7, the day after the current special session ends on Friday, Aug. 6. Read the proclamation announcing the special session by clicking here.

 

In a tweet, the governor said he is calling the 30-day session "to reform our broken bail system, uphold election integrity, and pass other item Texans demand and deserve." 

 

A Texas governor may call a special session at any time and for any reason. According to the state constitution, governors must state their purposes in proclamations calling legislators to special sessions. Items directly related to public employee retirement systems are not among the topics outlined in Abbott's latest special session proclamation. 

 

In July, the governor's legislative priorities failed to gain traction in the state's House of Representatives during the current special session after more than 50 state Democrats departed Austin for Washington, D.C., violating the Texas Constitution's two-thirds quorum requirement to conduct business, according to a report by NBC News. In total, there are 17 items on in the governor's proclamation, which is expanded from the current special session's agenda, according to a report by The Dallas Morning News.

 

For additional coverage:

 

Houston Public Media

FOX News

CNN

The Texas Tribune

 

UPDATED 7/15/2021 AT 5:14 P.M. CST - A Texas-based law firm, Jackson Walker LLP, recently posted a presentation offering an overview of the Texas 87th regular legislative session's impact on public pension plans. Access the document online: http://bit.ly/3hF2LG9

 

UPDATED 5/17/2021 AT 8:51 P.M. CST - The governor of Texas has signed a labor-backed bill allowing retired state employees to run for a seat on the Employees Retirement System board.

 

Gov. Greg Abbott signed House Bill 917 by Rep. Ana Hernandez, D-Houston, which allows a retiree to run but does not automatically allocate the seat to retirees. Sen. Eddie Lucio, Jr., D-Brownsville, sponsored the bill.

 

Unions representing state employees, including AFSCME and the Texas State Employees Union, actively worked to extend direct representation to retirees on the board. The bill won overwhelming approval in the Texas House and unanimous approval in the Senate.

 

 

UPDATED 5/14/2021 AT 7:57 P.M. CST - The Texas House and Senate will reconvene on Monday, May 17 at 1 p.m. and 2 p.m. CST respectively.

 

Important links:

End of Session Deadlines: Calendar 

Upcoming House Committee Meetings of Note: 

UPDATED 5/13/2021 AT 10:10 P.M. CST - Legislators in the Texas House face a midnight deadline on Thursday, May 13, the 122nd day of the legislative session, to pass all House Bills and House Joint Resolutions on second reading - this does not include local and consent bills that have a later deadline. 

The House took up all the bills on their Monday calendar leaving a total of Tuesday, Wednesday, and Thursday's Daily House Calendars to tackle for the 14 hours remaining until their calendar deadline. Missing the midnight deadlines means those House bills not taken up may be considered in large part dead; however, the language of a bill can still hitch a ride on another bill as an amendment.

 

UPDATED 5/6/2021 AT 4:41 P.M. CST - Texas House Bill 867, relating to the issuance of a qualified domestic relations order for the payment of spousal maintenance and child support obligations passed the Senate on May 6. 

 

The bill, passed the Senate with a 30-0 vote. The bill, authored by Rep. Senfronia Thompson, D-Houston, previously passed the House on March 25. 

 

UPDATED 4/27/2021 AT 4:27 A.M. CST - The House Committee on Pensions, Investments and Financial Services, or PIFS, is holding a public hearing at 8 a.m. CST on Wednesday, April 28 in room E2.030 of the Capitol. 

 

Proposed legislation related to pensions in line-up for the hearing includes the following House Bills:

  • HB 2741, relating to the eligibility for a service retirement annuity of members of the elected class of the Employees Retirement System of Texas
  • HB 4643, relating to a pilot program to study the implementation of a pension revenue enhancement plan for the Employees Retirement System of Texas
  • SCR 17, urging congress to repeal the Government Pension Offset and the Windfall Elimination Provision of the Social Security Act

The full hearing notice, including additional bills on the agenda, is located here

Those wishing to testify in-person, witness registration is located here. A live video broadcast of the hearing is available here.

UPDATED 4/15/2021 AT 10:37 A.M. CST - House Bill 1585, relating to the operations and functions of the Teacher Retirement System of Texas, passed out of the Texas House on April 14.

 

The bill includes a requirement for the state retirement system to respond in a similar timeline to appeals, an ombudsman's appointment. It also requires the retirement system to make improved efforts to return benefits to inactive members before forfeiture. 

 

The bill passed 148-0 with no amendments out of the House and now moves over to the Senate for further deliberation.

 

UPDATED 4/14/2021 AT 2:55 P.M. CST - Here are a couple of deadlines trustees and administrators of public employee pension systems should be aware of.

 

April 15 is the first day a senator may place up to five bills or resolutions on the Senate Notice of Intent Calendar.

April 22 is the target date for the budget bill, SB 1, as substituted, (General Appropriations Act) to be deliberated on the House floor.

Additional wind-down dates can be found at the following link.

 

UPDATED 4/9/2021 AT 5:59 P.M. CST - The Texas House Pensions, Investments, & Financial Services committee is hosting a public hearing on Wednesday, April 14 at 8 a.m. CST.

 

A notice can be accessed here. In its notice, the committee has requested testimony on 14 bills. None of the listed bills are currently being tracked by TEXPERS.

 

For those persons who will be testifying, information for in-person witness registration, can be found hereFor those who cannot attend the hearing, a live video broadcast of this hearing will be available here.

 

UPDATED 4/9/2021 AT 4:53 P.M. CST - TEXPERS has updated its Legislative Bill Tracker, which indicates bills the association are watching this session. 

 

Click here to visit the Legislation page of our website and click the Bill Tracker link.

 

UPDATED 4/9/2021 AT 4:30 P.M. CST - On Tuesday, April 6, the Senate unanimously passedthe budget bill, Senate Bill 1, as substitutedout of the Senate. 

Senate Bill 1 is the appropriations bill that covers the State budget and funds all State programs and agencies including the Pension Review Board. 

It also includes the contributions that the state gives to Employees Retirement System and the Teachers Retirement System.

 

"In all, the budget approved by the Senate will spend $250.7 billion in state, federal and other funds, and slightly increases state revenue spending by 2.6 percent - well within constitutional spending limits," said Finance Committee Chair Jane Nelson.

The bill will now move over to the House where they will continue deliberations. The House Committee on Appropriations has posted they will take up CSSB 1 on Monday, April 12th.

House Appropriations will also meet this Thursday, April 8th to consider the following three bills:

  • HB 2 (Bonnen) Relating to making supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.
  • HB 2021 (Bonnen) Relating to state budget execution authority for certain federal funds.
  • HB 2896 (Bonnen) Relating to the creation and re-creation of funds and accounts, the dedication and rededication of revenue and allocation of accrued interest on dedicated revenue, and the exemption of unappropriated money from use for general governmental purposes.

UPDATED 4/5/2021 AT 5:25 P.M. CST - Several pension-related bills are listed in upcoming public hearings.

The House Committee on Pensions, Investments & Financial Services (PIFS), is hosting a public hearing at 8 a.m. on Wednesday, April 7 in room E2.030 of the Capitol. On the agenda are several bills that are being watched by TEXPERS' Legislative Committee (Click the bill numbers to read about each legislation): 

 

 

  • HB 571 - Relating to the establishment of a bundled-pricing program to reduce certain health care costs in the state employees group benefits program.
  • HB 672 - Relating to cost-of-living increases applicable to benefits paid by the Teacher Retirement System of Texas.
  • HB 1124 - Relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas, including a related study.
  • HB 1846 - Relating to benefits paid by the Teacher Retirement System of Texas.
  • HB 2022 - Relating to enrollment of certain retirees in the Texas Public School Employees Group Insurance Program.
  • HB 2109 - Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service.
  • HB 2936 - Relating to an optional service retirement annuity of the Employees Retirement System of Texas. 
  • HB 3207 - Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service during a declared disaster.
  • HB 3214 - Relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas. 
  • HB 3507 - Relating to a one-time supplemental payment of benefits under the Teacher Retirement System of Texas.
  • HB 3787 - Relating to the loss of benefits by and the payment of certain employer contributions for certain retirees of the Teacher Retirement System of Texas who resume service.
  • HB 4534 - Relating to a study by the Employees Retirement System of Texas of certain state pension and retirement reforms.
Click here to find out how to submit testimony or how to access a live video broadcast of the haring.
 
Over in the Senate, the Finance committee is holding a public hearing at 9 a.m. CST on Wednesday, April 7 in room E1.036. 
 
Bills being watched by TEXPERS' Legislative Committee include (click the bill number to access a link offering additional details about each legislation):
  • SB 202Relating to the payment of certain employer contributions for employed retirees of the Teacher Retirement System of Texas.
  • SB 288 - Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service.
  • SB 1605 - Relating to the evaluation and reporting of investment practices and performance of certain public retirement systems.
Click here to access the committee's hearing notice and for details on testimony.

 

 

 

UPDATED 4/2/2021 AT 12:02 P.M. CST - When the Texas Legislature reconvenes on Tuesday, April 6, the Senate will take up a funding bill that could impact the state's pension industry.
 

Senate Bill 1, an 883-page appropriations bill, covers the state budget and funds all state programs and agencies for fiscal years 2022 and 2023. Among the funded agencies, the budget bill would support the Pensions Review Board, which is mandated to oversee all Texas public retirement systems at the state and local levels regarding their actuarial soundness and compliance with state law. The bill will also include contributions the state gives to the Employees Retirement System and the Teachers Retirement System.

 

SB 1 was voted out of the Senate Finance Committee on March 30 and placed on the Senate's Intent Calendar on March 31. 

 

More Action to Be Aware Of

 

Also in the works for April 6, the Senate Local Government Committee will host a public hearing on Senate Bill 10, which would stop local governments from using taxpayer funds to hire lobbyists. The bill, authored by Sen. Paul Bettencourt, R-Houston, seeks to restrict counties and municipalities from using public money to "directly or indirectly influence or attempt to influence the outcome of any legislation pending before the legislator." 

 

Bettencourt is chair of the Local Government Committee, which is scheduled to host a public hearing at 11 a.m. CST on April 6 in the Betty King Committee Room, 2E.20. Click here for more information about the hearing.

 

If passed by the Texas Legislature, the bill would prevent retirement plan sponsors from hiring lobbyists to influence issues that could impact public pensions either negatively or positively. The bill, however, provides a few provisions that would allow officers, employees, and elected officials to provide information requested by a legislative committee or member of the committee or Legislature. 

 

Elected officials and officers of local governments would also be allowed to advocate for or against pending legislation as long as the actions would not require them to register as a lobbyist. According to the state's compensation threshold, a person does not have to apply as a lobbyist as long as their efforts do not exceed 40 hours in one calendar quarter, including preparatory activities, regardless if the person receives compensation or reimbursement to lobby.

 

 

UPDATED 4/1/2021 AT 8:47 P.M. CST - The Texas Legislature adjourned for an extended Easter weekend.

 

Both the Senate and House won't be back in session until Tuesday, April 6. 

Here are a couple of additional dates you should be aware of:

 

  • Thursday, April 15 is the first day a senator may place up to five bills or resolutions on the Senate Notice of Intent Calendar.
  • Monday, May 10 is the last day for House committees to report House bills and House joint resolutions. 

Additional deadlines for action in May.

 

UPDATED 3/22/2021 AT 12:20 P.M. CST - Here are a few important dates coming up in the Texas legislative session:

 

The House will reconvene at 4 p.m. CST on Monday, March 22.

The Senate will reconvene at 2 p.m. CST on Monday, March 22.
Video Broadcasts (Committee hearings and floor discussions): House | Senate

Upcoming Senate Committee Meetings TEXPERS Members Should Know About

State Affairs – 3/22/2021
Time: 9 a.m. CST, Location: Senate Chamber

Business & Commerce – 3/23/2021
Time: 8 a.m. CST, Location: Senate Chamber

Finance – 3/24/2021
Time: 9 a.m. CST, Location: E1.036 (Finance Room)

Finance – 3/25/2021
Time: 9 a.m. CST, Location: E1.036 (Finance Room)

For a complete list of scheduled Senate committee meetings, click here.

Upcoming House Committee Meetings TEXPERS Members Should Know About

Appropriations – S/C on Articles I, IV & V – 3/22/2021
Time: 8 a.m. CST, Location: E2.016

Appropriations – S/C on Article II – 3/22/2021
Time: 9 a.m. CST, Location: REJ Conference Center, Central Room

Appropriations – S/C on Article III – 3/22/2021
Time: 9 a.m. CST, Location: E1.030

Juvenile Justice & Family Issues – 3/22/2021
Time: 10 a.m. CST, Location: E2.014

Ways & Means – 3/22/2021
Time: 10 a.m. CST, Location: JHR 140

Appropriations – S/C on Articles VI, VII & VIII – 3/23/2021
Time: 8 a.m. CST, Location: E1.010

Business & Industry – 3/23/2021
Time: 8 a.m. CST, Location: E2.028

Appropriations – S/C on Article II – 3/23/2021
Time: 11 a.m. CST or upon final adjourn./recess or bill referral if permission granted, Location: REJ Conference Center, Central Room

State Affairs – 3/23/2021
Time: Noon CST or upon final adjourn./recess or bill referral if permission granted, Location: E1.030

Appropriations – S/C on Articles I, IV & V – 3/23/2021
Time: 1 p.m. CST or upon final adjourn./recess or bill referral if permission granted, Location: E2.016

Appropriations – S/C on Article III – 3/23/2021
Time: 2 p.m. CST or upon final adjourn./recess or bill referral if permission granted, Location: E2.036

Appropriations – S/C on Articles VI, VII & VIII – 3/24/2021
Time: 8 a.m. CST, Location: E1.010

International Relations & Economic Development – 3/24/2021
Time: 8 a.m., Location: E2.012

Pensions, Investments & Financial Services – 3/24/2021
Time: 8 a.m. CST, Location: E2.036

State Affairs – 3/25/2021
Time: 8:00 AM, Location: Capitol Extension Auditorium, E1.004

For a complete list of scheduled House committee meetings, click here.

 

UPDATED 3/11/2021 AT 2:53 P.M. CST - Friday, March 12, is the 60-day bill filing deadline for the 87th legislative session. 

 

This site offers insight into when bills need to be out of committees to pass.

 

Also, the House will reconvene at 4 p.m. CST on Monday, March 15. The Senate is expected to adjourn today, Thursday, March 11, and reconvene on Tuesday, March 16.

UPDATED 3/08/2021 AT 7:55 P.M. CST - TEXPERS executive director Art Alfaro testifies TEXPERS' neutrality on Texas House Bill 867 (87th legislative session) during a public hearing on March 8, 2021 hosted by the Texas Committee on Juvenile Justice & Family Issues.

 

 


The bill is related to the issuance of a qualified domestic relations order for the payment of spousal maintenance and child support obligations. View Alfaro's statements at the 12:45 mark in the recording.

 

 

UPDATED 3/08/2021 AT 6:53 P.M. CST - The Texas Pension Review Board is presenting its biennial Pension Basics Legislative Seminar for anyone wanting to learn about public pensions at 2 p.m. CST on Monday, March 15. 

 

The PRB is presenting the program via the online video presentation platform Zoom. A PRB notice offers this link to register. After the training, the PRB will post the session to its YouTube channel. Click here to access the channel.

 

In a notice from the PRB, the "presentation covers the landscape and financing structure of public retirement systems" in the state and outlines the "PRB's role in providing actuarial impact statements for bills affecting those systems." Although the PRB says the educational program is beneficial for new legislative staff, the webcast is "open to others wishing to enhance or refresh their knowledge of public pensions."

 

During the session, PRB Executive Director Anumeha Kumar; the agency's deputy director, Michelle Downie Kranes; and the PRB's staff actuary, Kenny Herbold, will make presentations. The webcast's content includes:

 

  • Information about the PRB.
  • The basics of pension funding.
  • The landscape of public pensions in Texas.
  • The current financial and actuarial condition of plans in the state.
  • Actuarial impact statements.

 

 

The Pension Review Board is state-mandated to oversee the actuarial soundness of all Texas state and local government public retirement systems.

 

UPDATED 03/08/2021 AT 2:53 P.M. CST - There are a few dates our members should be aware of as the 87th legislative session continues. 

 

Both the Texas House and Senate Chambers will reconvene on Tuesday, March 9 at 2 p.m. and 3 p.m. CST, respectively.

 

March 12 is the 60th day of the 87th Session and it also marks the deadline for unrestricted filing of bills and joint resolutions other than local bills, emergency appropriations, and emergency matters submitted by the governor. Click the link above to see a more in-depth list of dates.

 

The House Pension, Investments and Financial Services committee is set to hold an organization hearing at 8 a.m. CST on March 10 in room E2.036 of the Capitol building. The committee is to meet to hear invited testimony from the state's Employees Retirement System, Teacher Retirement System, Emergency Services Retirement System, Municipal Retirement System, County and District Retirement System, and Pension Review Board. Click here for the meeting notice, as well as details on public access to the Capitol, public comment, and how to watch the hearing online.

 

UPDATED 03/02/2021 AT 8:12 P.M. CST - On March 10, it will be up to Texans to decide if they want to stop wearing masks during the COVID-19 pandemic. That's because Texas Gov. Greg Abbott says his state is lifting health safety protocols enacted last year to help slow the spread of the disease attributed to the deaths of more than 40,000 Texans. 

 

"With the medical advancements of vaccines and antibody therapeutic drugs, Texas now has the tools to protect Texans from the virus," Abbott said in a press release issued on March 2. "We must now do more to restore livelihoods and normalcy for Texans by opening Texas 100 percent.

 

The governor issued executive order GA-34, which rescinds most of previous executive orders issued during the course of the pandemic, including ending the statewide mask mandate and allowing businesses to open at 100 percent capacity on Wednesday, March 10. 

 

Abbott gave a public announcement regarding the executive order on March 2 at Montelongo's Mexican Restaurant in Lubbock during an address to the Lubbock Chamber of Commerce. The governor is reminding Texans that although the sate is relaxing health protocols, it doesn't mean the pandemic is over. 

 

"Make no mistake, COVID-19 has not disappeared ... ," he said. Abbott points to the issuance of vaccines in the state, increased recoveries from the virus that causes the disease, reduced hospitalizations, and adoption of safety practices by Texans as motivating factors in his decision to lift the emergency protections. 

 

"Today's announcement does not abandon safe practices that Texans have mastered over the past year," he said. "Instead, it is a reminder that each person has role to play in their own safety and the safety of others."

 

The executive order, he said, ensures that businesses and families in the state "have the freedom to determine their own destiny." 

 

According to Abbott, nearly 5.7 million vaccines against COVID-19 have been administered in the state. By next week, he says roughly 7 million shots will have been administered in Texas and more than half of the state's senior citizens will have received a vaccine shot. 

 

"By the end of March, every senior who wants a vaccine should be able to get one," Abbott said. "The vaccine supply continues to increase so rapidly that more and more Texans will soon be eligible to receive a vaccine."

 

According to data from The New York Times, as of March 1, there were more than 2.6 million cases of COVID-19 in Texas. More than 44,100 deaths in the state have been attributed to the disease. During the previous week, there has been an 18-percent decrease from the average cases per day from two weeks prior. 

 

Despite the decrease from the average per day cases of COVID-19, Texas is averaging more than 200 reported deaths a day over the last week. While Abbott is hopeful about vaccination rates increasing, according to The Texas Tribune, less than 7 percent of Texas have been fully vaccinated as of the weekend of Feb. 27 and 28. Some health officials urged Abbott not to lift the COVID-19 protocols, including Houston Mayor Sylvester Turner and Harris County Judge Lina Hidalgo. In a joint statement, Turner and Hidalgo, called the lifting of the making mandate "premature and harmful." 

 

"Taking away critical public health interventions that we know are working won't make our community safer, nor will it hasten our return to normalcy," Hidalgo stated on her website. "Quite the opposite, every time public health measures have been pulled back, we've seen a spike in hospitalizations. If we start the climb now, we'd be starting from the highest starting point ever when it comes to our hospital population, an unacceptable and dangerous proposition." 

 

Although vaccines are being distributed, she said it is too early to rescind COVID-19 safety protocols and referred to Abbott's announcement as "wishful thinking." 

 

UPDATED 03/01/2021 AT 3:05 P.M. CST - The Texas House of Representatives' Committee on Pensions, Investments and Financial Services is set to meet at 8 a.m. CST on Wednesday, March 3.

 

The committee is holding an organizational hearing and will receive testimony from representatives of several state agencies, according to a hearing notice. The Pension Review Board of Texas is not among the state boards, commissions, offices, and other organizations listed for this meeting.

 

The state agencies include the Finance Commission of Texas, Credit Union Commission, Office of Consumer Credit Commissioner, Office of Banking Commissioner, Texas Department of Banking, Department of Savings and Mortgage Lending, Texas Treasury Safekeeping Trust Company, Texas Public Finance Authority, Bond Review Board, and the State Securities Board.

 

A live video feed of the hearing will be available here.

 

Click the hearing notice above to find a links pertaining to those invited to testify. The notice also includes a link for Texas residents who would like to electronically submit comments related to the hearing agenda without having to testify in person.

 

UPDATED 02/23/2021 AT 6:12 P.M. CST - Trustees and administrators of public employee retirement plans in Texas have online resources to keep track of proposed legislation that could potentially impact their systems and membership. 

 

The Texas Legislature Online is a one-stop source of information on legislation, committees, and the state House and Senate. You can use the site to determine which legislators represent your city, find video broadcasts of legislative activity you may have missed, access meeting calendars, and research legislation.

 

A useful tool for public pension plan trustees and administrators is the site's House and Senate committees' list. The Senate State Affairs Committee and the House Pensions, Investments & Financial Services Committee are two committees TEXPERS' staff track for activity related to pensions and investments. The two committees identify issues that require review and gather and evaluate information and make legislative recommendations to the full House or Senate. 

 

During Texas' current legislative session, various House and Senate committees are looking for insights from the public on a wide range of topics. As trustees and administrators of retirement systems, it is essential that you are part of that public participation. 

 

On the Texas Legislature Online site, dropdown menus allow visitors to select House, Senate, Joint, or Conference committees to access meetings by date and committee. The meeting schedules tell you when and where a committee will gather. 

 

The public may download hearing notices from the site to find out what topics a committee will hear testimony on and if solicited testimony is public or invited only. The announcements also feature a web address where you can access a video broadcast if you cannot attend the hearing in person. A hearing notice also features a web address where you can submit comments related to a committee agenda electronically without having to testify in person.

 

That isn't the only way you can communicate your opinions on pension- and investment-related topics. Visit the Texas Legislature Online portal to look up the names and emails of committee members. 

 

You can provide comments directly to each committee member, whose contact information is available on the state legislature's website. Click on the "Committee" dropdown menu for the House or Senate, select the committee you'd like to provide comments to, and select the member names to find their contact information.

 

TEXPERS' website is also an excellent resource for pension system trustees and administrators to keep up with legislative activity. Click on the Legislation link to access Texas Legislation and Government Affairs information. TEXPERS monitors pension and investment legislative issues that impact state and local pension plans. Our association's Legislative Committee also tracks proposed bills that could positively or negatively affect public employees' secure retirements and the plans that manage their benefits.

 

Visit our Legislation page to download a list of bills TEXPERS' Legislative Committee is tracking. The page will include any supplemental materials such as letters TEXPERS may submit related to proposed legislation.

 

TEXPERS' experts are often called on to provide testimony to the state agency mandated to oversee state and local public pension plans for their actuarial soundness, legislative committees, and other official groups. You can visit our Government Affairs page to access videos and written remarks made by our association's staff and board members.

 

Don't forget to regularly visit this blog page to find out the latest happenings at the Texas Capitol.

 

Follow TEXPERS on Facebook and Twitter and visit our website for the latest news about the public pension industry in Texas.

 

UPDATED 02/11/2021 AT 5:45 P.M. CST - As Texas lawmakers begin to draft the state budget this legislative session, the Texas Pension Review Board hopes to obtain $2.1 million to fund the agency's operations for the 2022-23 biennium.

 

The Pension Review Board oversees state and local public retirement systems regarding their actuarial soundness. The $2.1 million request is the same as the agency's 2020-21 base budget. If approved, the funding comes from the state's general revenue.

 

Legislators are currently reviewing state agency budget requests. The House and Senate alternate starting the budgeting process each session. This session, the budget bill begins in the Senate. The Texas Senate Committee on Finance examined the Pension Review Board's budget request this week. 

 

Click here to access the PRB's full budget request.

 

TEXPERS' legislative consultancy firm provided the following summary of the discussion:

 

John Posey, Legislative Budget Board (LBB) Staff

 

1. Recommendation for all funds total $2.1 million, same as the agency's 2021 base; all funding comes from general revenue

2. Item 1 legislation passed last session, which requires the majority of Texas Public Pension Systems to report information on their investment practices to the PRB
    A. Board publishes a report summarizing this information to the legislature and governor; the last report was published in November

3. Item 2 exceptional item request; fill one full-time equivalent (FTE) left vacant as part of the 5% reduction, $112,875

Stephanie Liebe Chair of the Texas PRB

1. 91% of the budget is allocated for staff salaries; a 5% reduction would hinder growth

2. Senate Bills 322 and 2224 required new reports and information; the agency created 200 recommendations and best practices

3. Conducted a thorough review of all statutory requirements engaged with stakeholders to help improve responsible funding

4. Continued to enhance online data center

5. Sen. Joan Huffman, R-Houston – SB 322 and SB 2224, supporting the adoption of another FTE to be specialized for this work

6. Senate Finance Committee Chair Jane Nelson, R-Flower Mound – All agencies had a 5% reduction, need to reanalyze

7. Sen. Royce West, D-Dallas – Are we having problems with the funding soundness for restoration plans?
    A. Working to lower the amortization period below 40 years, though that is our current benchmark, to ensure that there are sufficient funds to pay the promised pension benefits

8. Sen. Paul Bettencourt, R-Houston – What other best practices do you have after two intensive reviews?
    A. Retirement systems and sponsors to work together for a more proactive plan for policymaking
    B. Evaluate investment program on a more comprehensive level; focus on investment manager performances, investment fees, etc.

9. Bettencourt – Who got those recommendations?
    A. Invited retirement system and sponsor to either board or committee meetings to discuss in a public forum; broadcasted to be available to stakeholders

10. Bettencourt – Did you send those best practices to our board?
    A. Yes, the Investment Performance Report was included in the biennial report to the legislature

11. Bettencourt – It doesn't seem like you made more progress on SB 322
    A. We are a small state agency; the challenge is trying to implement all of our mandates simultaneously.

UPDATED 02/09/2021 AT 5:18 P.M. CST - Lawmakers in the Texas Senate's Committee on Finance met on Feb. 8 to review the first draft of the state's biennium budget, which includes an estimated $946 million shortfall. According to a report on kxan.com, some legislators are looking to make up that loss by legalizing gambling at casinos and gaming facilities. Rep. Joe Deshotel, D-Beaumont, and Sen. Roland Gutierrez, D-San Antonio, have filed bills that would allow casinos to operate in Texas. Currently, all forms of casino gambling are illegal in the stateHJR 26, filed by Deshotel, would amend the state constitution to authorize the operation of casino gaming. Gaming would be allowed only "in state coastal areas to provide additional money for residual windstorm insurance coverage and catastrophic flooding assistance in those areas," according to the proposed legislation. Deshotel's bill also would authorize the Kickapoo Traditional Tribe of Texas to conduct casino gambling by executing a gaming compact with the state." Gutierrez's bill, SB 616, would allow the "operation of 12 casinos in the state by licensed persons in counties that have approved casino gaming, ... ," according to the text of the proposed legislation.

 

UPDATED 02/08/2021 AT 5:40 P.M. CST - The Texas legislature reconvenes at 2 p.m. Tuesday, Feb. 9 and the Senate returns at 3 p.m. that day. 

 

UPDATED 02/05/2021 AT 4:51 P.M CST - On Feb. 5, Texas Gov. Greg Abbott unveiled his budget for the next biennium, highlighting several crucial initiatives such as school finance, tax reform, public safety, the state economy, and education loss due to the COVID-19 pandemic.

 

According to the introductory letter to the 34-page budget proposal posted to the governor's website, Abbott says the state will meet its needs and meet taxpayers' expectations into the 2022-2023 biennium.

 

"We must also look toward the future as our economy moves beyond the pandemic," he says in the letter. "We will take action so the state can remain a model for the rest of the nation by providing for a healthier, safer, freer, and more prosperous Texas."

 

According to a report from ArkLaTexHomepage.com, Abbott claims that his budget addresses the essential needs he's laid out without raising taxes on residents.

 

The governor says his budget proposal will:

 

  • Ensure access to COVID-19 vaccines and monoclonal antibody therapeutics
  • Ensure healthcare access for Texans with preexisting conditions
  • Increases the availability of teleservices and expanding access to broadband
  • Ensures compliance with the federal foster care lawsuit (background information on the suit is available here.)
  • Provides law enforcement access to training
  • Provides additional body cameras for law enforcement
  • Enhances security at the state Capitol
  • Reforms the state's bail program
  • Ensures election integrity
  • Addresses learning loss due to the COVID-19 pandemic
  • Establishes a Foundation for Civics Knowledge
  • Attracts jobs to Texas

TEXPERS’ legislative consulting firm provided the following category overview of the governor’s budget recommendations.

 

COVID Response

 

  • Fully utilize federal funds available for administering COVID-19 therapeutics and vaccine doses.
  • Support DSHS’ Infectious Disease Infrastructure request and strategically allocate federal funds to improve public health IT and laboratory infrastructure.
  • Address the critical storage need to ensure the future availability of PPE.

Health Care

  • Support and expand foster care initiatives, including Community-Based Care and utilizing federal dollars available for preventative services.
  • Continue to make investments in the state’s behavioral health programs, including the Texas Child Mental Health Care Consortium. Continue efforts to improve the state’s mental health infrastructure.
  • Fund 1115 waiver initiatives continuing through the 10-year extension. The Delivery System Reform Incentive Payments and Charity Care Pool will provide financial stability to our publicly owned and operated health departments and districts.
  • Find opportunities to increase the use of telehealth services.
  • Invest in high-speed broadband to expand access in unserved areas of the state.

Public Safety

  • Appropriate a total of $150 million to the Disaster Fund for state disaster response.
  • Support and fund law enforcement, including IT, training, and public safety equipment purchasing.
  • Demonstrate the state’s commitment to border security by maintaining the assets provided by the Legislature.
  • Fund Capitol security, authorize the Capitol Complex Safety Zone, and fund DPS enhancements for threat detection and investigation.
  • Continue to invest in innovative cybersecurity solutions that help protect the state and its residents from cybersecurity threats.

State Operations/Fees, Taxes, and Elections

  • Examine the fees associated with professional licenses and prevent any increased cost.
  • Authority to exceed the voter-approval rate should only be available to cities, counties, and special districts that have suffered physical damage due to a disaster.
  • Continue and expand the use of county election security trainers. Provide additional funding to the SOS to expand the election day inspector program to the early voting period.

Education

  • Invest in high-speed broadband to expand access in unserved areas of the state.
  • Build upon the initiatives included SB 11 and SB 500 to continue to provide a safe environment for our students
  • Fully fund the initiatives from last session’s school finance bill, HB 3, and continue the progress that began last session.
  • Strategically utilize federal funds to approve programs and initiatives that will help fill the gaps in learning experienced by students due to COVID-19, provide opportunities for parents to advocate for their student’s educational needs, and further invest in our Texas teachers.
  • Approve the creation of instructional resources to ensure our schools teach students the civics knowledge they need to be engaged, productive citizens.
  • Preserve the progress made by SB 12, the TRS bill, and not take any action that will increase the pensions system’s unfunded liability.
  • For higher education; prioritize need-based financial aid.
  • Strategically utilize federal funding to engage individuals with some college and no degree to complete a high-quality credential or degree.
  • Strategically utilize federal funding to create industry-recognized, registered apprenticeship programs through public institutions of higher education.
  • Work to put the strategies outlined in the most recent Tri-Agency Workforce Initiative into action to support our students and working Texans, and to continue building strong links between industry and education

Economic Development

  • Fund the Texas Enterprise Fund at $150 million including unexpended balance authority.
  • Appropriate the dedicated state hotel occupancy tax revenues to Economic Development & Tourism in the Office of the Governor.
  • Maintain funding for Film and Music Marketing to continue attracting businesses and lucrative job opportunities.

 

 

 

Click here to view the report in its entirety. 

 

The governor's budget proposal is not the House and Senate base budgets that have already been filed. The governor's budget serves as a guiding policy statement.

 

Follow TEXPERS on Facebook and Twitter and visit our website for the latest news about the public pension industry in Texas.

 

 

UPDATED 02/04/2021 AT 7:46 P.M. CST - Speaker of the Texas House, Rep. Dade Phelan, R-Beaumont, announced on Feb. 4 the committee assignments for the 87th legislative session, including those serving on the Pensions, Investments and Financial Services Committee.

 

The announcement was made via a news release posted to the speaker's webpage.

“The State of Texas has arrived at a pivotal moment in its history – one that requires us as lawmakers to work with one another, build consensus, and leverage the diverse strengths and backgrounds of those within our chamber to confront the unique challenges ahead,” Phelan said in the news release. “I have dedicated my speakership to creating a member-driven process that affords each of my colleagues a seat at the decision-making table, and have made these committee assignments to reflect their preferences, talents, and where I believe they will have the greatest impact on the issues to come before this body.”

Among the 34 committees, trustees and administrators of public pension plans at the state and local level will monitor the Pensions, Investments and Financial Services Committee. Nine members serve on the committee.

 

Rep. Rafael Anchia, D-Dallas, is chair of the committee, which considers bills and issues and oversee agencies, programs and activities within their jurisdictions. Anchia is serving his eighth term as a legislator. He also serves on the Energy Resources, House Administration, and Redistricting committees.

 

The Pensions, Investments and Financial Services Committee's jurisdictions include matters pertaining to pensions and investments. Among the state agencies the committee oversees are the Texas Public Finance Authority, the Bond Review Board, the Texas Emergency Services Retirement System, the Board of Trustees of the Teacher Retirement System of Texas, the Board of Trustees of the Employees Retirement System of Texas, the Board of Trustees of the Texas County and District Retirement System, the Board of Trustees of the Texas Municipal Retirement System, the State Pension Review Board, and the State Securities Board.

 

The other committee members include:

 

Click here to access a full list of committee assignments by member. Click here to access a full list of committee assignments by committee.

Insights into the House and its committees:

  • The current makeup of the Texas House is 82 Republicans and 67 Democrats (with one vacant seat)
  • Including the Speaker Pro Tempore, a leadership position equivalent to a chair, 21 chairs are Republicans and 14 are Democrats
  • Twelve members are chair committees for the first time
  • Each legislative session, standing committees are established consistent with House Rules, which are adopted by members during the first week of the session
  • Of this session's named committees, 5 chairs and 14 vice chairs are women; 14 chairs and 21 vice chairs are Black, Hispanic, or Asian-American; 11 chairs and 7 vice chairs represent rural areas of the state; and 24 chairs and 27 vice chairs represent urban areas of the state
  • Speaker Phelan elected not to form Select Committees, committees created for a limited time period to perform a particular study or investigation, thereby giving deference to the committee structure approved by members in the House Rules
  • The speaker didn't appoint chairs of other committees to simultaneously serve on the House Calendars.

 

UPDATED 02/03/2021 AT 1:27 P.M. CST - Gov. Greg Abbott outlined his priorities during a State of the State speech on Feb 1, during which he said "normalcy is returning to Texas."

 

The governor spoke from Visionary Fiber Technologies in Lockhart. It is the first time Abbott has delivered the address outside of the Texas State Capitol.

 

Abbott listed five “emergency items," which means lawmakers can take up this issue in the first 60 days of the session. Those items for the 87th Session are:

  • Expanding Broadband Access
  • Discourage cities from defunding the police. “To keep Texans safe and to discourage cities from going down this dangerous path, we must pass laws that prevent cities from defunding police. This issue is so urgent, I am making it an emergency item this session”
  • Bail Reform. “To fix our flawed bail system and keep dangerous criminals off our streets, I am making the Damon Allen Act an emergency item this session.”
  • Election Integrity
  • COVID-related Civil Liability Protections
You can read an analysis on The Texas Tribune as well as watch the address on kxan.com. The full text of his speech is available here

 

UPDATED 01/28/2021 AT 3:36 P.M. CST - The 87th legislature's base budgets are out and already are being compared to previous spending limits. 

 

The Texas Senate and House filed base budgets for the 2022-23 biennium. State governments use a base budget to develop spending limits for future years. Current spending levels are used as a baseline to establish future funding requirements. 

 

To determine appropriations for the upcoming biennium, the legislature adheres to Article VIII of the state constitution, which requires a spending limit, or cap. Lawmakers also must adhere to Article III, the so-called "pay-as-you-go" provision. The Biennial Revenue Estimate and the Legislative Budget Board spending limits have been provided. The House and the Senate base budgets also have been published. Senate Bill 1, the chamber's budget bill, has already been referred to the Senate Finance Committee, which is to start meeting on Feb. 8.

 

Key budget comparisons with the 86th and 85th legislative sessions:

 

 

Spending Limit*
85th - 8% ($99.9 billion)
86th - 9.89% ($100.2 billion)
87th- 7.06% ($105.8 billion)

Biennial Revenue Estimate*
85th - $104.9 billion
86th - $119.1 billion
87th- $112.5 billion

ESF/ Rainy Day Fund balance*
85th - $11.9 billion**
86th - $15.4 billion**
87th – $11.6 billion**

*These figures are based on details given at the start of each session.

** The balance stated is absent any additional appropriations that might be made by the Legislature. A supermajority vote is required to utilize the fund. This amount is below the constitutional limit of $19.7 billion.

Filed Budgets Comparisons

87th Session - General Revenue/All Funds
Senate: $119.7 billion /$251.2 billion
House: $119.7 billion/$251.5 billion

86th Session - General Revenue/ All Funds
Senate: $112.20 billion/$242.87 billion
House: $115.45 billion/$247.23 billion

85th Session - General Revenue/All Funds
Senate: $103.60 billion/$213.37 billion
House: $108.89 billion/$221.38 billion

 

UPDATED 01/28/2021 AT 3:24 P.M. CST - The state Senate Committee on Finance has posted notices for upcoming hearings. Click the links below to access the agendas:

 


Finance – 2/8/2021 (Org Hearing)
Time: 10:00 AM, Location: E1.036 (Finance Room)

Finance – 2/9/2021 (Article I - General Government)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/10/2021 (Article I - General Government)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/11/2021 (Article IV - The Judiciary)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/12/2021 (Pending Business, if any)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/16/2021 (Article V - Public Safety & Criminal Justice)
Time: 10:00 AM, Location: E1.036 (Finance Room)

Finance – 2/17/2021 (Article VI - Natural Resources)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/18/2021 (Article VII - Business and Eco Dev & VIII - Regulatory)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/19/2021 (Pending Business, if any)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/22/2021 (Article III - Education)
Time: 10:00 AM, Location: E1.036 (Finance Room)

Finance – 2/23/2021 (Article III - Education)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/24/2021 (Article III - Education)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/25/2021 (Article II - Health & Human Services)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 2/26/2021 (Pending Business, if any)
Time: 9:00 AM, Location: E1.036 (Finance Room)

Finance – 3/1/2021 (Article II - Health & Human Services)
Time: 10:00 AM, Location: E1.036 (Finance Room)

Finance – 3/2/2021 (Article IX - Special Provisions)
Time: 9:00 AM, Location: E1.036 (Finance Room)

UPDATED 01/22/2021 AT 3:31 P.M. CST - TEXPERS' Legislative Committee met Jan. 22 to discuss a variety of state legislation filed so far during the 87th legislative session, which began Jan. 12.

 

The TEXPERS' committee tracks state Senate and House bills that have some connection to defined benefits, public pensions, or retirement. The committee currently is tracking nearly 30 bills, the majority of which are simply being watched to see if they progress through the session. 

 

Click here to access the bill tracker. 

 

 

UPDATED 01/21/2021 AT 6:11 p.m. CST - The Texas Senate and House filed base budgets for the 2022-23 biennium.

 

A base, or baseline, budget is used by the state government to develop a budget for future years. Current spending levels are used as a baseline to establish future funding requirements. The documents generally assume future estimates will equal the current budget multiplied by the inflation rate and population growth. Consider it a proposal that prioritizes the allocation of funds for the next two years.

 

Sen. Jane Nelson, R-Flower Mound, filed Senate Bill 1, the Senate's version of the base budget, on Jan. 21. The bill appropriates $251.2 billion in all funds and $119.7 billion in general revenue. The legislation reflects a 4 percent growth in general revenue, is within population and inflation, and includes the 5 percent reductions legislators asked agencies to make in the current biennium. The legislation is just the beginning of the legislative process for developing the state's 2022-23 biennial budget, Nelson says in a press release

 

"Texas' economic strength — and the work we did to scrutinize agency budgets — puts us in a better than anticipated position to keep our commitment to education, defeat the coronavirus and invest in our economic recovery," Nelson says. "SB 1 funds essential services, keeps up with growth, and meets our obligations to vulnerable citizens. It is a starting point. We have many tools available to balance this budget, which will require us to re-establish our priorities, stretch every dollar and find more efficient ways to deliver services."

 

On Jan. 21, the Texas House also published its base budget on the Legislative Budget Board website. The House's base budget recommends allocating $119.7 billion in general revenue, a 3 percent decrease adjusted for population and inflation. The estimate is $3.2 billion below the spending limit of 7.06 percent adopted by the Legislative Budget Board in November 2020 and maintains a majority of the 5 percent reductions identified by state agencies that year.

 

In a news release, Speaker of the House Dade Phelan, says the budget proposal "prioritizes the needs of Texans" and "advances the legislature's commitment to the historic public education and school finance and property tax reforms passed" during the 86th legislative session in 2019. 

 

"The decisions we make during the 87th legislative session will have lasting effects on the future of our state, which is why the House will work to improve our business climate, foster economic prosperity, and do what's right for our students," Phelan says. "I am grateful to the members of the House Appropriations Committee and the hardworking committee staff for their efforts throughout this process."

 

Senate Base Budget Highlights

 

SB 1 highlights include:

  • Funding for the full Foundation School Program entitlement, reflecting changes made the last session to the school finance formula; including $3.1 billion to fund enrollment growth for public education, based on an estimated 36,000 additional students per year; and $1 billion in other state aid related to property tax compression in the 2022-23 biennium;
  • $5 billion, an increase of $452.8 million, for payroll growth and continued reforms to the Teacher Retirement System (TRS) passed the last session through Senate Bill 12;
  • $897.6 million, an increase of $39.5 million, for statutorily required contributions to TRS-Care to maintain current health insurance premiums and benefits for our retired teachers;
  • $8.1 billion to fund higher education institution formulas;
  • Maintained funding for Graduate Medical Education formulas;
  • Funding to cover projected caseloads for the Medicaid program;
  • Combined projected funding of $8 billion for mental health across 24 state agencies, including an increase of $19.5 million to maintain operations for the Texas Child Mental Health Care Consortium; over $1 million in new funding for Senator Nelson's Senate Bill 64, to create a peer-to-peer counseling network and increase access to licensed mental health providers for Texas Law Enforcement Officers; and $145 million to continue community mental health grant programs;
  • $352.6 million, an increase of $10.2 million, for women's health programs, including the continuation of the Healthy Texas Women program's enhanced post-partum care services implemented by the legislature last session;
  • Lower target caseloads for conservatorship workers at Child Protective Services;
  • $589 million to continue funding for Community Based Care catchment areas authorized by the legislature;
  • $7 million to maintain funding for Maternal Mortality and Morbidity safety initiatives as well as public awareness and prevention activities;
  • Funding for priority victims assistance programs, including $29.7 million for Rape Crisis Centers and $1.8 million for the Sexual Assault Nurse Examiners program;
  • $57.6 million across all articles to continue fighting human trafficking through prevention, detection, victim services and the justice system;
  • $1.3 million to perform necessary maintenance on the Texas Election Administration Management System, which manages voter registrations in Texas;
  • $271.2 million to meet the contractual obligations of the Guaranteed Tuition Plan for Texas college students, providing a more affordable college experience for Texas families;
  • $128.5 million to fund Department of Public Safety Crime Lab services, including maintaining prioritization and timely testing of sexual assault kits;
  • $39.1 million in new appropriations to fortify security at the Texas Capitol, including additional troopers and enhanced safety measures;
  • $30.4 billion to the Texas Department of Transportation to address the state's transportation needs, including $26.4 billion dedicated for highway planning, design, construction, and maintenance;
  • 100 percent appropriation of estimated available sporting goods sales tax, totaling $332.3 million to support state parks and historical sites;
  • $10.2 million for the Surplus Agricultural Products Grant Program at the Texas Department of Agriculture, a continuation of 2020-21 appropriated levels to support Texas food banks;
  • Maintained $36.9 million to address structural repair, operation, and maintenance of earthen flood control dams;
  • Increase of $19.2 million for air quality and monitoring, water quality and monitoring, and operations at the Texas Commission on Environmental Quality; and
  • $21.5 million in capital budget authority for Phase II of the Texas Railroad Commission's Mainframe Transformation IT Project, which will replace aging technology to allow for a more efficient and secure application process.
  • Maintains the legislature's commitment to House Bill 3, the school finance reform legislation passed last session, by funding the Foundation School Program at $53 billion in all funds and $41.2 billion in general revenue, an increase of $3.8 billion; adds $3.1 billion in general revenue to fund enrollment growth, an additional $992 million in general revenue for tax compression; and $1.1 billion in general revenue to replace one-time CARES Act funding provided in 2020.
  • Provides $5.9 billion in general revenue at the Teachers Retirement System with an increase of $838 million to fund the increased state contribution rate adopted last legislative session.
  • Appropriates $74.2 billion in all funds for the Texas Medicaid program, including $27.4 billion in general revenue with an additional $920 million to address projected caseload growth.
  • Appropriates $3.3 billion in general revenue for behavioral and mental health services, an increase of $26 million from the last session.
  • Maintains border security funding across multiple agencies at $800 million in general revenue.
  • Does not tap into the state's Economic Stabilization Fund, more commonly known as the "Rainy Day Fund."

 

House Base Budget Highlights

Significant provisions of the House base budget include: 

 

  • Maintenance of the legislature's commitment to House Bill 3, the school finance reform legislation passed last session, by funding the Foundation School Program at $53 billion in all funds and $41.2 billion in general revenue, an increase of $3.8 billion; adds $3.1 billion in general revenue to fund enrollment growth, an additional $992 million in general revenue for tax compression; and $1.1 billion in general revenue to replace one-time CARES Act funding provided in 2020.
  • The provision of $5.9 billion in general revenue at the Teachers Retirement System with an increase of $838 million to fund the increased state contribution rate adopted last legislative session.
  • Appropriation of $74.2 billion in all funds for the Texas Medicaid program, including $27.4 billion in general revenue with an additional $920 million to address projected caseload growth.
  • Appropriation of $3.3 billion in general revenue for behavioral and mental health services, an increase of $26 million from the last session.
  • Maintenance of border security funding across multiple agencies at $800 million in general revenue.

Also significant, the House base budget does not tap into the state's Economic Stabilization Fund, more commonly known as the "Rainy Day Fund."

A summary of the House's base budget is available here.

UPDATED 01/18/2021 at 4:54 p.m. CST - On Sunday, armed protestors gathered at the Texas State Capitol despite the building and grounds being closed through Wednesday, Jan. 20 due to public safety concerns.

 

The Texas Capitol and its grounds are closed due to online threats of armed protests and claims of "violent extremists," according to a Texas Department of Public Safety news release. State Capitols in all 50 states have been on high-alert due to various online postings urging armed protests inspired after insurrectionists stormed the U.S. Capitol on Jan. 6 in an attempt to prevent Congress from courting electoral college votes.

 

"The Texas Department of Public Safety is aware of armed protests planned at the Texas State Capitol this week and violent extremists who may seek to exploit constitutionally protected events to conduct criminal acts," commented DPS Director Steven McCraw in a news release issued before Sunday's protests. "As a result, DPS has deployed additional personnel and resources to the Capitol and are working closely with the Federal Bureau of Investigation and the Austin Police Department to monitor the vents and enforce the rule of law."

 

Demonstrators at the Texas Capitol Sunday were advocating for the second amendment rights and were largely libertarian, according to a FOX 29 reportThe news station reports that most of the protestors were self-proclaimed members of the "boogaloo" movement. Adherents are loosely organized far-right political extremists, according to the Southern Poverty Law Center, which tracks hate groups in the U.S. Adherents are often referred to as "boogaloo boys" or "boogaloo bois" and are largely white nationalists and have antigovernment views. 

 

Various online groups have encouraged gathering at U.S. Capitols to protest the upcoming inauguration of president-elect Joe Biden and vice president-elect Kamala Harris on Jan. 20. The election has stoked passions in those who feel the millions of illegal ballots were cast for the democrats, despite a lack of evidence indicating wide-spread fraudulent ballots were cast during the election.

 

UPDATED 01/14/2021 at 8:10 p.m. CST - Lawmakers in both chambers on Jan. 13 and 14 passed resolutions, established and modified committees, as well as adopted rules and health protocols, among other action. 

 

Senate Highlights

 

The Senate adopted a resolution changing its voting threshold to five-ninths. On Jan. 13, the Senate adopted Senate Resolution 2, which lowers the voting threshold in the Senate from three-fifths to five-ninths. This means that if 31 senators are present, 18 senators' votes are needed to bring legislation to the floor, make special orders, and suspend business/rules. SR 2 contains additional rule changes, but the change to the voting threshold was voted on separately from the rest of the resolution with a vote of 18 ayes and 13 nays.

 

SR 2 didn't just focus on changing the voting threshold. The resolution also modifies the operating rules for the chamber and its committees for the legislative session. 

 

The resolution:

  • Stipulates that committee reports for local and general bills will be printed and made available to the Senate for at least 24 hours before consideration in the full Senate
  • Alters media access rules a designated an area for press news media
  • Modifies committees by rolling Senate Agriculture into Senate, Water, Agriculture, and Rural Affairs; establishes Senate Jurisprudence with five members; creates Senate Local Government with nine members; decreases number of members on the Senate Natural Resources and Economic Development from 11 to 9; increases the numbers of members on Senate Nominations to 9, from 7; strikes Senate Property Tax
 
Also, on Jan. 13, the Senate adopted Senate Resolution 4, which creates a Redistricting Committee and the committee's operational rules for the legislative session. The committee is now able to hold regional hearings to receive public testimony via videoconference. 
 
State and federal officials represent population districts, which are redrawn every 10 years as a means of creating equal voter representation through equivalent population counts, according to a redistricting primer on the Texas Comptroller's website. The population counts are based on US Census Bureau figures, which Sen. Joan Huffman, R-Houston, expects to arrive early this summer.  
 
The size and shape of the districts can change as populations grow or decline. The Texas Senate is allotted 31 seats and the state House has 150 seats. The legislative districts may change, but the number of legislators will not.
 
Senators also unanimously approved Senate Resolution 1, which establishes COVID-19 protocols that are in place for the first 60 days of the legislative session. 
 
According to the resolution:

 

  • Public seating in the gallery will be limited to ensure social distancing in accordance with COVID-19 guidelines.
  • A wristband demonstrating a negative COVID-19 test is required for entry to the gallery or a committee hearing.
  • No personal data will be collected from persons who are tested to enter the Capitol. However, aggregate data indicating the number of persons tested each day and the number of positive tests shall be available to the members of the senate.
  • Each senator may have one staff member on the floor at a time while the senate is in session. No additional staff for committees will be allowed, except that the chair of the Administration Committee may allow additional staff for members handling extraordinary matters.
  • To enter the senate floor or attend a committee hearing, a member must have had a negative COVID-19 test result that day.
  • Members' staff must be tested the first day of the week they enter the Capitol. All senate staff must be tested before accessing the Senate Chamber or attending a committee hearing.
  • All central staff must be tested twice each week and a record must be kept to ensure that the testing schedule is being followed.
  • A person who demonstrates proof of vaccination against COVID-19 shall be treated for all purposes the same as a person who has tested negative for COVID-19 and shall be entitled to a wristband. Its up to each member’s office to determine whether to require a wristband for entry into their office.
  • Masks:
    • Members and employees of the senate shall wear masks in common areas
    • Members are not required to wear masks while seated at the dais
    • The Senate may take appropriate measures to address if the House approves a different standard of COVID-19 procedures

House Highlights

On Jan. 14, representatives unanimously approved House Resolution 4, which alter operating rules for the chamber and its committees as well as implement special emergency rules covering COVID-19 prevention policies. However, the House did not adopt a testing requirement for their rules. 
 
Of interest to retirement systems, the resolution reduces the number of members on House Pensions from 11 to 9. Committee appointments for this legislative session have yet to be posted to the Texas House of Representatives' committees webpage.

The resolution also:

  • Clarifies duties of the Speaker Pro Tempore and allows Speaker to designate a priority list of members who may call the House to order in the Speaker’s absence
  • Directs House Appropriations to hold at least one interim hearing on Legislative Appropriations Requests for state agencies with greater than $40 million in appropriations
  • Revises media access procedures and credentialing operations through House Administration
  • Modifies committees by:
    • Establishing that the Chair of House Ways an Means may not serve on any other substantive committee
    • Placing restrictions on the number of substantive committees the Speaker Pro Tempore may serve
  • Creates special rule provisions that:
    • Require special rules to be activated or deactivated by the House (special rules were initially activated upon adoption of HR 4)
    • Establish masking and distancing requirements for the House floor and committee chambers
    • Establish where members may vote -- the floor, the House gallery, and adjoining rooms
    • Require committee members to be present to vote on bills, but only two members are required in the committee room to fulfill quorum requirements and take testimony
    • Specify several methods for the public to participate in committee hearings digitally in addition to in-person participation

The Texas House and Senate reconvenes at 1 p.m. and 3 p.m. CST, respectively, on Tuesday, Jan. 26.

     >> Video Broadcasts: House | Senate

 

Follow TEXPERS on Facebook and Twitter and visit our website for the latest news about the public pension industry in Texas.

Apologies for such late notice on something you may already know, but this is the line-up tomorrow for House PIFS. Please know it is late in the session any a House bill being heard in committee this late likely has a very challenging path forward.

 

HOUSE OF REPRESENTATIVES

NOTICE OF PUBLIC HEARING

 

COMMITTEE:    Pensions, Investments & Financial Services 

TIME & DATE:  8:00 AM, Wednesday, April 28, 2021 

PLACE:       E2.030 
CHAIR:       Rep. Rafael Anchia 

 

HB 2284        Toth
Relating to the physical presence of a borrower at the closing of a home equity loan.

HB 2741        Raymond | et al.                                       
Relating to eligibility for a service retirement annuity of members of the elected class of the Employees Retirement System of Texas.

HB 4643        Stephenson                                            
Relating to a pilot program to study the implementation of a pension revenue enhancement plan for the Employees Retirement System of Texas.

HJR 100        Parker | et al.                                        
Proposing a constitutional amendment relating to the right to own, hold, and use any mutually agreed-upon medium of exchange.

HJR 104        Toth                                                  
Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan is closed only at the office of the lender, an attorney at law, or a title company.

SB 186         Perry                                                 
Relating to the authority of a county to issue bonds to restore or maintain a county courthouse.

SCR 17         Hughes | et al.                                        
Urging Congress to repeal the Government Pension Offset and the Windfall Elimination Provision of the Social Security Act.

The House is staring down a midnight deadline tonight to pass all HBs/HJRs on second reading.* The House took up all the bills on their Monday calendar as of yesterday evening leaving a total of Tuesday, Wednesday, and Thursday's Daily House Calendars to tackle for the 14 hours remaining until their calendar deadline.

 

Missing the midnight deadline means those house bills not taken up may be considered in large part dead; however, the language of the bill can still hitch a ride on another bill as an amendment. As deadlines loom, HillCo will continue to watch the progress of legislation and provide key updates.

 

*this does not include local/consent bills which have a later deadline

Upon receiving a bill, the governor typically has 10 days in which to sign or veto the bill. However, if the Legislature has adjourned sine die, or if the bill was sent to the governor less than 10 days prior to final adjournment, the Governor has 20 days after the final day of the session to sign or veto the bill. If neither action is taken, the bill becomes law without the Governor's signature.

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