This Week in Texas: Legislative Advocate Updates

June 2011

SPECIAL SESSION – Most of the bills in the governor's call for the special session passed.  The exceptions were the anti-sanctuary cities legislation and the Transportation Safety Administration intrusive touching bill.  Below is the final outcome of issues in the governor's call.  Expanded bill summaries are in the issue categories below. 

Fiscal Matters – The governor's call said, "Legislation relating to fiscal matters necessary for the implementation of HB 1 passed by the 82^nd Legislature, including measures that will allow school districts to operate more efficiently."  SB 1, the fiscal matters bill; SB 2, the supplemental appropriations bill; SB 6, establishing the instructional materials fund; SB 8, giving school districts flexibility on personnel and other matters; and HB 79, the fiscal matters bill streamlining operations of the judiciary, all passed. 

Healthcare Cost Containment – The governor's call said, "Legislation relating to healthcare cost containment, access to services through managed care, and the creation of economic and structural incentives to improve the quality of Medicaid services."  SB 7, which makes several changes that improve efficiencies in health and human services delivery, passed.

Congressional Redistricting – The governor's call said, "Legislation relating to congressional redistricting."  SB 4, the congressional redistricting bill, passed. 

Texas Windstorm Insurance Association – The governor's call said, "Legislation relating to the operation of the Texas Windstorm Insurance Association."  HB 3, which makes changes to the Texas Windstorm Insurance Association, passed. 

Abolish Sanctuary Cities – The governor's call said, "Legislation relating to the abolishment of sanctuary cities, the use of the federal Secure Communities Program by law enforcement agencies, and the issuance of driver's licenses and personal identification certificates."  SB 9 by Tommy Williams (R-The Woodlands), the sanctuary cities bill, passed the Senate but died in the House State Affairs Committee.  HB 9 by Burt Solomons (R-Carrollton), the House version of the bill, also died in the House State Affairs Committee.  There was a last minute effort to add anti-sanctuary cities language into SB 1, but that was not accomplished.  On the failure of anti-sanctuary cities legislation in the special session, Speaker Joe Straus said, "The Texas House passed anti-sanctuary cities legislation during the regular session, which the Senate failed to pass or even bring up.  During the special session, the Governor, Lt. Governor and I reached consensus to attach compromise anti-sanctuary cities language to a broad government funding bill, SB 1.  Unlike SB 9, the Senate's version, this compromise language would have withstood both a constitutional challenge and a Senate filibuster.  Unfortunately, the Senate failed to fulfill its commitment."  Governor Rick Perry also commented on the failure of anti-sanctuary cities legislation saying, "As the special session appears to be winding down, I am disappointed the legislature did not address sanctuary cities.  Working with legislative leaders last weekend, we worked to include sanctuary city legislation in SB 1.  Unfortunately, SB 1 Conference Committee Chairman Robert Duncan ultimately refused to allow language related to the ban of sanctuary cities into the final version of SB 1.  Because of this action, the special session will not provide our peace officers with the discretion they need to adequately keep Texans safe from those that would harm them."  Senator Robert Duncan issued a response to the governor's comments, "I am a joint author of SB 9, the sanctuary cities legislation that the Senate passed on June 15^th.  This was comprehensive legislation that dealt with the issue of enforcement of state and federal laws and prohibition of ... click here to read the rest of the update.

OF SPECIFIC INTEREST – SB 7, the special session's omnibus healthcare bill, has gone to a 10 member conference committee (5 senators and 5 house members); the conference committee report, i.e., what the final bill is likely to include, DELETES the chiropractors' amendment that would have allowed for physicians and chiros to form business associations but MAINTAINS the amendment that allows chiros to use the billing codes of PTs.

GOVERNOR – Governor Rick Perry renewed his emergency disaster proclamation for the sixth time since it was originally issued on December 21, 2010, due to the ongoing threat of wildfires across the state.  The renewed proclamation covers all 254 counties in Texas and directs all necessary resources to be made available to aid response efforts.  Since the beginning of wildfire season, local and state firefighters have responded to more than 11,600 fires that have destroyed more than 460 homes and burned more than 2.8 million acres, an area the size of Rhode Island and Delaware combined.  Governor Perry said, "I urge the federal government to quickly grant Texas the assistance we have requested – and that Texans deserve – to fight these fires.  In the meantime, Texas will continue providing all resources possible to respond to one of the worse wildfire seasons in our state's history."

On Sunday, Governor Rick Perry spoke at a United for Life event in Los Angeles.  At that event, he said, "It is good to be here in California with so many friends – men and women of faith who value human life as a sacred gift from God.  I may be a thousand miles from Austin, Texas, but I feel right at home with you celebrating the gift of life and strengthening one another to fight another day in the defense of the unborn.  Nearly 40 years have passed since the tragedy of Roe v. Wade was decided by the U.S. Supreme Court.  Faced with this scar on our national conscience, in Texas we have pursued policies to protect unborn children whenever possible.  Over the past 10 years we've passed laws requiring both parental notification and parental consent to their daughter's abortion ensuring parents will be involved and ready to provide much-needed guidance and advice at the most critical of moments.  We've funded and promoted alternatives to abortion, providing counseling for women on the other options.  I'm especially proud to say that just weeks ago, I signed into law a bill that will not allow any child to be aborted in Texas without the mother first having a sonogram because we believe that unborn children deserve the respect of recognition before their lives are tragically cut short.  I also firmly believe that an informed decision must include knowledge of a better option:  adoption.  Many children are born into difficult circumstances, but there is no such thing as an unwanted child because no life is trivial in God's eyes. . . Every life must be given a chance to realize its full potential because every life is precious."

SENATE – The Senate met Monday, Tuesday, and Thursday of last week.  On Monday, they passed SB 30 by Senator Florence Shapiro (R-Plano), which makes changes to the state virtual school network; and SB 31, also by Shapiro, which would establish the Charter District Bond Guarantee Reserve Fund.

On Tuesday, the Senate passed SB 9 by Senator Tommy Williams (R-The Woodlands), the sanctuary cities bill, after a lengthy and emotional debate that lasted until after midnight.  In laying out the bill, Senator Williams said, "SB 9 incorporates the sanctuary cities language passed by the Texas House in the recent regular session and also includes elements essential for the prohibition of sanctuary cities to work. . . Forty-seven other states require lawful presence to obtain a license to drive, and two others are in the process of adopting this requirement.  The Texas driver's license has become more than just a ... click here to read the rest of the update.

Tuesday, June 7, 2011
OF SPECIFIC INTEREST:  SB 7 is on the House's calendar for floor debate on Wednesday, June 8^th, and there is no calendar rule on it, meaning that amendments do not have to be prefiled (which would allow us to know what's coming, to a degree).  That means that there is the possibility that the ever-present chiropractor and imaging amendments may be offered; however, those amendments were not tacked on in the Senate, so at a minimum, the issue would likely be resolved in a conference committee.

SPECIAL SESSION – These are the issues that the Governor has included in the call of the special session:   

·         Legislation relating to fiscal matters necessary for the implementation of HB 1 as passed by the 82^nd legislature, regular session, including measures that will allow school districts to operate more efficiently.

·         Legislation relating to healthcare cost containment, access to services through managed care, and the creation of economic and structural incentives to improve the quality of Medicaid services.  

·         Congressional redistricting.

·         Legislation relating to the operation of the Texas Windstorm Insurance Association.  Governor Perry said, "It is imperative for coastal Texans that lawmakers address the operation of TWIA during this special session, especially now that we are in the midst of a hurricane season that's expected to be above average.  I expect lawmakers to take quick action on this issue to ensure that Texas trial lawyers do not continue to put their personal enrichment ahead of coastal homeowners and Texas taxpayers." 

GOVERNOR – Governor Perry vetoed HB 2403, the so called "Amazon bill," which requires remote sellers to collect sales tax if they use a website to sell digital goods or they are affiliated with (50% control test) an entity in Texas which performs sales related to activities for the retailer or sells products similar to the retailer under a similar business name.  In his veto message, the governor said, "I have serious concerns about the impact and appropriateness of HB 2403.  In particular, I believe this legislation risks significant unintended consequences.  My strong preference is to conduct a thorough policy discussion with Texas lawmakers, consumers, retailers and technology experts – and with other states and even the federal government – about interstate commerce and the structure of state sales taxes in the 21^st century.  That conversation is underway, and I believe that a consensus can and should be reached that balances the competing interests, respects federalism, and is fair and equitable.  I call on the legislature to review this issue further while we reach out to our federal delegation and our friends in other states to build a consensus."

Also on Friday, Governor Perry commented on the Fifth Circuit Court overturning a federal judge's order prohibiting public prayer at a Texas high school graduation ceremony.  He said, "I'm proud that the Fifth Circuit Court has overturned the lower court's order that banned prayer at a Texas high school graduation.  I'm thankful for Attorney General Abbot's leadership in ensuring the First Amendment, which prohibits governments from interfering with American's rights to freely express their religious beliefs, is protected.  Texas will continue to fight for the rights of all those who wish to pray in our state." 

SENATE – The Senate was in session Tuesday, Thursday and Friday of last week.  As the special session was kicked off on Tuesday morning, Lt. Governor David Dewhurst said, "This special session is a golden opportunity to build on all that we've accomplished.  Texas is a great state, and this is our chance to make it even better.  We're not going to retreat from ... click here to read the rest of the update.

Friday, June 3, 2011
OF SPECIFIC INTEREST:  When the House sine died (adjourned) on Monday night at midnight, per the House rules, they were in the middle of considering SB8, a bill that had become a Christmas tree for various items, such as the chiropractors' and radiologists' language that we've been fighting all session.  As a reminder, though these provisions were not nearly as offensive as they were at the beginning of session, they definitely mark "camel's nose under the tent," and no doubt provide an open door for scope expansion and unnecessary and duplicative regulation for next session.  The last version of the chiropractors' language was deemed (by the chiros and Sen. Carona) a fix to "billing discrimination" because it would allow chiropractors to use the billing codes of the PTs, and the radiologists' language would allow a study of the utilization of imaging and a feasibility study of collecting data in regard to the same.  The bill died because the Democrats "chubbed" it, i.e., talked on the bill for about 40 minutes until the clock ran out (NOT over these provisions), and a move by Republicans to continue to work after midnight failed.  That said, parts of SB 8 have been resurrected in special session and are now in SB 7, which the Senate Finance Committee voted out of committee WITHOUT either the chiro or imaging language in it.  Sen. Nelson is carrying the bill in the Senate (and she carried SB 8 in the regular session), but Dr. Zerwas is now carrying the bill in the House, not Rep. Kolkhorst.  One additional note:  Drs. Schwertner and Zerwas were on the SB 8 conference committee and did great work, and the imaging language was NOT in the conference committee report that died, but the chiro language was – and not b/c Zerwas and Schwertner didn't fight it.  I expect that there will ultimately be a conference committee on SB 7, and I expect that Drs. Zerwas & Schwertner will both be on the committee.  Will keep you abreast of SB 7's progress.

The Texas Senate adjourned sine die around 5:00 p.m. on Monday, May 30^th, and the House followed around 5:30 p.m.  Some of the major issues of the session were still unresolved when the final gavel fell - primarily SB 1811, the omnibus fiscal matters bill containing public education formula changes, which is necessary to balance the budget.  Governor Perry has called a special session to address those issues, and the special kicked off at 8:00 am on Tuesday, May 31^st…no rest for the weary…or the wicked.

His announcement said, "The special session will consider the following issues:

• Legislation relating to fiscal matters necessary for the implementation of HB 1 as passed by the 82^nd Legislature, Regular Session, including measures that will allow school districts to  operate more efficiently; and

• Legislation relating to healthcare cost containment, access to services through managed care, and the creation of economic and structural incentives to improve the quality of Medicaid services." 

• He later added congressional redistricting to the call. 

The Texas legislature headed into the final week of the session looking like they were on track to finish their business, but things started to fall apart on Monday when the public and higher education fiscal matters bill was killed on a point of order.  Legislative leaders regrouped and managed to get a public school finance agreement negotiated and added to SB 1811, the omnibus fiscal matters bill.  In the final hours before Sunday's midnight deadline for the Senate to adopt conference committee reports, Senator Wendy Davis (D-Fort Worth) used a short filibuster to kill the bill.  Although the House managed to adopt the conference committee report on SB 1811 through a rules suspension earlier on Sunday, the clock also ran out on them before they could pass SB 23, a health and human services reform bill bringing $1.5 billion to the budget deal, SB 8, which would have established the Texas Institute of Health Care Quality and Efficiency to support innovative health care collaborative payment and delivery systems, and HB 6 which would have combined the ... click here for the rest of the update!

May 2011

Friday, May 20, 2011
OF SPECIFIC INTEREST:  At this point in time, the scope bills for the podiatrists and physical therapists are dead, and only the chiropractor's bill has any legs at all; to pass, it MUST be put on a calendar for consideration THIS SUNDAY, May 22^nd, so I'm re-working the Calendars committee against the bill.  The imaging bills have died as well.  THAT SAID, the bills themselves have died, but as I said last week, this is the sneaky time of session, when members with dead bills look for potential "vehicles," i.e., bills that are making their way through the process, to which they can attach their dead bills.

More over the weekend.  The House is in session on both Saturday and Sunday, and we are still hashing out a deal on the budget.

KEEP THE FAITH!
MICHELLE WITTENBURG

Click here for the rest of the update that came in over the weekend.

Friday, May 13, 2011

OF SPECIFIC INTEREST:  The good news is that the 2 imaging bills in the House that we have been fighting are dead, as the full House did not consider either of them prior to a critical deadline on May 12th.  That said, there are potential "vehicles," i.e., bills that are making their way through the process, that proponents of the imaging bills could seek to add their dead bills to as amendments; I will be watching these carefully because in these last 15 days, we are in the really sneaky time of session.  None of the scope bills have moved or are moving, but I'll be taking the same cautionary measures to not allow any of them to be amended to a bill that is headed toward passage.  The primary bill that we oppose that still has legs on its own is SB 1001, the chiropractors' bill that will allow physicians and chiropractors to enter into professional relationships with one another, effectively giving chiros prescriptive authority.  The bill also allows chiropractors to use the same billing codes as physical therapists, which makes one wonder whether this is the beginning of an attempt to usurp the PTs' scope of practice.

Only 17 days remaining … Click here to view the rest of the update that came in over the weekend

Monday, May 9, 2011
OF SPECIFIC INTEREST:  The list of house bills that House Public Health is going to vote out came out, and absent from those bills being considered were the scope bills for the physical therapists and 2 of the nurse practitioners' bills (though HB 1266 by Coleman wasn't on the "vote out" list, it was vote out); the PT and other nurse bills couldn't gain the votes to get out of committee.  The battles we face now are 2 imaging bills that are out of committee – HB 1809 by Senfronia Thompson that has been referred to the Local & Consent Calendar and HB 1621 by Vicki Truitt, which was voted out of Public Health on a 6-4 vote.  We are working to remove 1809 and have it re-referred to the General Calendar, as it faces opposition and is not a consent bill.  Obviously, HB 1621 is hotly contested, as evidenced by the vote, but Truitt is on the Calendars committee and may push to set it.  Please see the list of important deadlines at the bottom of this report, as these bills face obstacles due to deadlines.  Another battle we face is SB 1001, the bill that would allow physicians and chiropractors to form professional associations together (and thereby give chiros access to prescriptive authority) and to use the same billing codes as physical therapists.  This bill is in Calendars but has additional time because it is a senate bill in the House. 

GOVERNOR – Governor Rick Perry criticized the Obama Administration for its denial of the state's April 16^th request for a federal Major Disaster Declaration to assist with the ongoing wildfire season, which has burned more than 2.2 million acres.  FEMA has determined that there is not a need for additional support at this time, saying that over the past few months, FEMA has awarded over 20 fire management grants to the state, which cover 75% of Texas's costs for emergency response work, such as evacuations, equipment, field camps and meals for firefighters, police barricading and traffic control.

On Friday, Governor Perry received recommendations from the Task Force on Unfunded Mandates, which he appointed in February to identify burdensome, unfunded mandates that have been passed down from the state to local governments.  The governor's office will review the report and work with lawmakers and state agencies to determine which recommendations should be implemented.  Comprised of nine local government officials from across the state, the task force identified mandates in areas including education, public safety, transportation, jails, public health, retirement systems, human resources, public information, state judiciary, environmental regulation, licensing and elections.  The task force recommended:

          Public Education – Provide student-teacher ratio flexibility; repeal expenditure restrictions on compensatory education funds; provide block grants for public education instead of telling school districts exactly what they must spend for each type of student and how to spend it; and require a periodic sunset review of the Texas Education Code. 

          Public Safety – Provide flexibility for purchase of firefighting equipment; align firefighting statutes and rules to ensure clear, consistent standards; provide flexibility to ensure basic water supply in emergencies; and county elected representatives should govern county employee compensation.

          Transportation – Allow local governments to retain proceeds from red light cameras; and allow county governments to recover a higher portion of overweight vehicle costs or repeal the mandate that Texas Department of Transportation overweight permits apply to county roads and state roads. 

          Jails – Align state and county jail standards; shorten duration a county jail must hold inmates; reimburse counties for holding parole violators or allow them to be sent to state facilities; and reimburse counties for housing defendants found incompetent to stand trial or send them to state facilities; and provide staff-offender ratio flexibility for juvenile detention facilities.  ...

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Monday, May 2, 2011

OF SPECIFIC INTEREST – At this time, bills that we oppose (scope bills for podiatrists, physical therapists and imaging bills) are not moving, and we are at the point in session where time is truly of the essence; for any House bill to have a chance, the bill must be reported from committee by May 9^th and be put on a Calendar by May 12^th.

GOVERNOR – On Thursday, Governor Rick Perry thanked first responders and emergency management officials for their efforts to protect fellow Texans' lives, property and livelihood from the threat of natural disasters.   In addition to ensuring the state has a thorough plan in place to address potential threats, the governor noted that maintaining the state's Rainy Day Fund is important to keeping Texas financially prepared to address any unforeseen emergencies. 

Bills passed both houses and sent to the governor this session:                 43

Bills sent to the governor this week:                                                                  21

SENATE – On Wednesday, the Senate was debating SB 5 by Senator Judith Zaffirini (D-Laredo), which would make several changes to the administrative functions of institutions of higher education, when Senator Jeff Wentworth (R-San Antonio) tried to add an amendment allowing guns on college campuses.  Senator Zaffirini withdrew her bill, and the Senate retreated to a private caucus meeting that lasted most of the rest of the day.  Much of the discussion revolved around the budget, where Chairman Steve Ogden is trying to strike a balance between conservative Republicans who do not want to spend the Rainy Day Fund and Democrats who believe the proposed cuts in public education and human services are too severe.  Ultimately, Republicans and Democrats caucused separately to continue discussions.

On Thursday, the Senate passed SB 23 by Senator Jane Nelson (R-Flower Mound), which implements statutory changes to save $467.8 million in healthcare spending.  It would expand Medicaid managed care, moving the prescription drug benefit into managed care and expanding managed care in south Texas, would abolish the State Kids Insurance program and move the children into the Children's Health Insurance Program drawing down more federal dollars, and make changes to personal attendant services, electronic visit verification, and other fund changes.

On Friday the Senate spent several hours debating SB 1811 by Robert Duncan (R-Lubbock), the fiscal management bill that identifies around $4 billion in revenue, which Senate Finance committee chairman Steve Ogden announced was necessary to fund the appropriations bill.  Senator Ogden said, "If this bill dies for some reason, we really have to start over on the budget."  Before the bill passed, Senator Duncan removed two provisions that would have taxed little cigars in the same way as cigarettes and that would have eliminated the hotel/motel tax exemption for permanent residents.  He also clarified that the accelerated payments of the franchise tax provisions would only apply to businesses with more than $10 million in revenue.  Democrats proposed but pulled down amendments that would have eliminated the sales tax exemptions on contract computer programming services and high cost gas and would have eliminated the sales tax timely-filer discount.  The Senate rejected an amendment moving unexpended balances in the Emerging Technology Fund and the Enterprise Fund into general revenue.  The Senate also rejected amendments by Senator Jane Nelson to institute a temporary state employee hiring freeze, eliminate longevity pay for state employees for two years, and reduce the salary of state employees making more than $200,000 by 10%.  SB 1811 was ultimately approved by the Senate by a vote of 21-10.  The "no" votes came from Republican Senators John Birdwell, John Carona, Troy Fraser, Glenn Hegar, Joan Huffman, Mike Jackson, Jane Nelson, Dan ...

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Monday, April 25, 2011
OF SPECIFIC INTEREST:  Dr. Seade did TOA & TMA proud by testifying against HB 637, a bill that proposes to expand the scope of practice for physical therapists.  The PTs witnesses did not, respectfully, help them gain any ground; under questioning by Dr./Rep. Schwertner (an orthopaedic surgeon) and others, they couldn't describe why PTs with master's and doctoral degrees should be afforded the same responsibilities, nor did they distinguish between the qualities of the two degrees.  They said they did not seek the ability to "diagnosis" but rather "evaluate."  The PTs said that, typically, they currently don't receive a real diagnosis from physicians but rather a script to treat and evaluate; there was some concern from the legislators that doctors should be more specific…especially if they are arguing that PTs shouldn't have the right to diagnosis.  The PTs used the argument that they are less expensive than an additional and unnecessary co-pay to a referring physician, and they had a rural PT testify as well as to the shortage of care in those areas.  The bill has a worthy author in Rep. Craig Eiland (D-Galveston), but the committee members do not seem persuaded to open the PTs scope.

Rep. Truitt has an imaging bill, HB 1621, that we do not favor up this week in Public Health; its companion, SB 401 by Sen. Shapiro has not yet received a hearing.  The bills were initially marketed as a device to get an accurate count of all imaging equipment in the state, but later information has emerged that folks who own freestanding imaging facilities want registration and accreditation for imaging equipment.  Chairman Truitt is a worthy author, as is Shapiro, but this bill is receiving a very late hearing, and Shapiro's bill is not up for hearing in the Senate this week.

GOVERNOR – On Tuesday, Governor Rick Perry called on leaders in higher education and technology to continue working to make Texas the nation's next hub for innovation, collaboration and competition in technology development and manufacturing.

Bills passed both houses and sent to the governor this session:                 22
Bills sent to the governor this week:                                                                  14

SENATE – The Senate was in session Monday through Wednesday of this week.  On Thursday they had a Local and Uncontested calendar, but unlike their House colleagues, Senate members do not have to be present in the chamber for passage of bills on the Local and Uncontested calendar.

The Senate gave approval to SB 1420 by Juan "Chuy" Hinojosa (D-McAllen),the sunset bill for the Texas Department of Transportation.  It preserves the current five member governing structure with members reflecting the regional and demographic makeup of the state, with at least one member being from a rural area.  It also requires TxDOT to publish a comprehensive development plan that sets out priorities and costs of transportation projects.  The Senate adopted another sunset bill, SB 661 by Robert Nichols (R-Jacksonville), which continues the Public Utility Commission until 2023.  It also continues the Office of Public Utility Counsel and the Electric Reliability Council of Texas (ERCOT).  The Senate passed SB 7 and SB 8 by Jane Nelson (R-Flower Mound), designed to control rising health care costs and improve patient outcomes.  SB 7 restructures the payment system for Medicaid and the Children's Health Insurance Program to focus on healthy outcomes and to reduce costs associated with waste, inefficiency and preventable medical errors.  SB 8 develops a statewide plan for improving health care ...
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Friday, April 15, 2011

OF SPECIFIC INTEREST & ARTICLES OF INTEREST:  Below are a a couple of articles that I thought you would find interesting in re: SB 1001, a bill that started as an expansive chiropractor (and podiatrist, acupuncturist, et al…) scope bill but from which all scope language was removed prior to passage in the Senate; the bill must still pass the House, and SB 1001's companion, HB 3441 by Rep. Chisum, as heard in the House Licensing & Administrative Procedures Committee this week, where it was awkwardly received, as this is NOT the typical committee of jurisdiction for scope bills. As a reminder, this bill would have allowed the chiropractors' governing board to establish its own scope of practice by rule and would have precluded the Texas Medical Board from taking action to prevent a chiropractor violating the Medical Practice Act.  As it passed the Senate, that verbiage has been removed, and the bill now provides that (1) chiros may use billing codes previously reserved for PTs and (2) allows doctors and chiropractors to enter into joint practices/ownership together.  These provisions are still considered problematic but not as problematic as the various boards determining their own scope.

Also heard this week was HB 1809, an imaging bill by Rep. Senfronia Thompson that would require duplicative accreditation and reporting with what is required under federal law (as of Jan. 1, 2012).  There is no Senate companion to this bill, which militates against passage…but it is still in play.

NEXT WEDNESDAY, APRIL 20^TH, is rumored to be "scope of practice" day in Public Health; the agenda has not yet been posted, but we expect that we might hear podiatry, PT, ANP and other scope bills.  We need physicians to be here and testify in regard to these bills.  We may (stress "may") have a negotiated bill with the podiatrists that will allow Reconstructive Rearfoot/Ankle ("RRA") and Foot and Ankle Surgeons ("FAS") who pass the RRA exam to obtain a certificate from the Texas Medical Board that allows them to work on the ankle (anatomic definitions are contained in the bill).

ARTICLES OF INTEREST:

Doctors, Chiropractors Square Off Over Bill (April 13)

The state's leading physician groups are fiercely fighting a bill - backed predominantly by Texas chiropractors - that could, as drafted, prevent one health care licensing agency from challenging the ruling of another in court.

SB 1001 by Sen. John Carona, R-Dallas, which is expected to come up for a vote in the Senate today, is designed to let health care practitioners operating under Texas' Occupations Code - from midwives to acupuncturists - create business partnerships with practicing physicians. Right now, podiatrists and optometrists, for example, can, but chiropractors cannot.

But the bill, as originally drafted, would also prohibit one health care licensing agency - say, the Texas Medical Board - from suing a practitioner overseen by a ...

Click here to view the rest of the update.  Click here to view a larger update received Sunday, April 17, 2011.

Monday, April 11, 2011
SENATE – The Senate was in session Monday through Thursday of this week.  The Senate  passed SB 655 by Senator Glenn Hegar (R-Katy), the Railroad Commission Sunset bill.  It would abolish the Railroad Commission and transfer its duties to a new Texas Oil and Gas Commission governed by one elected commissioner.  The Senate passed SB 142 by Royce West (D-Dallas), which would permit homeowners to pay assessments levied by home owners associations in installments and would require any foreclosures initiated by a home owner's association to be conducted through the courts.

The Senate adjourned until 1:30p.m. on Monday, April 11, 2011.

Total number of bills reported out of Senate Committees this week:   132
Total number of bills passed by the Senate this week:                            123
Total number of bills passed on the Local and Uncontested calendar: 75

HOUSE – The House was in session Monday through Friday of this week.   The House passed two public education bills by Representative Rob Eissler -  HB 6 combines the Technology Allotment Fund and the Textbook Fund into a new Instructional Materials Allotment, and HB 500 which makes changes to end-of-course exams and graduation requirements.  The House gave preliminary approval to HB 1201 by Representative Lois Kolkhorst, which would strike from state statutes all references to the Trans-Texas Corridor.  On Thursday, the House debated HB 243 by Representative Tom Craddick which would prohibit a driver from text messaging while driving.  On Friday, the House took up two sunset bills, HB 2271 by Representative Rafael Anchia (D-Dallas), continuing the Texas Racing Commission, and HB 1808 by Byron Cook (R-Corsicana), continuing the State Soil and Water Conservation Board.  The House also gave preliminary approval to HB 362 by Burt Solomons (R-Carrollton) which would prohibit a property owners' association from restricting a homeowner from installing a solar energy device.

The House adjourned until 1:00p.m. on Monday, April 11, 2011.

Total number of bills reported out of House Committees this week:   217
Total number of bills passed by the House this week:                            135
Total number of bills passed on the Local and Consent calendar:       101 

BUDGET – The Senate Finance Committee met on Monday and Thursday to hear bills.  Their Subcommittee on Articles 6 and 7 met on Tuesday; the Subcommittee on Higher Education  met on Tuesday; the Subcommittee on Public Education Funding met on Thursday; and the Subcommittee on Fiscal Matters had scheduled a meeting for Thursday, but it was cancelled after their decision document was leaked to the press and other organizations.  It included items such as: 

• selling state properties (approximately $53 million);
• using unexpended balances in the Enterprise Fund and Emerging Technology Fund to help certify the budget ($200 million); 
• strengthening the sales tax enforcement related to customs brokers ($6.3 million);
• repealing the economic development tax refund ($6.7 million);
• eliminating the hotel permanent resident exception ($16 million);
• reducing the dormancy period on unclaimed property and speeding up escheat transfer ($294 million);
• temporarily suspending the sales tax holiday ($112 million);
• offering a tax amnesty program ($50 million);
• using money in the Court Personnel Training Fund to certify the budget ($5.8 million);
• continuing the petroleum products delivery fee ($59 million);
• delaying tax transfers, speeding up tax collections, and tax audit changes ($582 million);
• overturning the Blue Cross sales tax case ($200 million);
• collecting sales taxes from e-retailers with physical nexus to Texas ($16 million);
• eliminating the sales tax exemption for contract computer programming ($325 million);
• eliminating the 20% sales tax discount for data processing services ($60 million);
• liquidating the tobacco permanent health funds and moving the funds into a general revenue designated account ($590 million);

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Friday, April 8, 2011
BRIEF UPDATE & A COUPLE OF ARTICLES OF INTEREST: 
The House is in session today, so you will receive your regular report tomorrow.  Below are a a couple of articles that I thought you would find interesting about the budget (the House, immediately upon passing the budget, is looking for ways to better what it passed), and the Senate has recognized that the margins tax is not producing what was expected of it and is floating a few fixes; in re: taxes, the House will hear bills this week to keep the $1 million threshhold on the margins tax instead of allowing it to be reduced to $600k. 

Items of specific interest that occurred this week include a meeting with the podiatrists the authors of the podiatry scope bill or their staff.  While the discussion was fruitful and there is agreement regarding allowing the RRAs and the FASes who pass the RRA exam to do ankle work, there is little agreement beyond that point, which doesn't make passage of a bill easy or likely.  Additionally, SB 1001 by Sen. Carona passed out of Business & Commerce (the committee that he chairs) this week; this is not a good bill, as it – amongst other things – allows the chiropractors' governing board to establish its scope of practice by rule.  We are fighting this one tooth and nail.  We also had a meeting w/ Sen. Shapiro's staff and the radiologists about SB 401, an imaging bill that is awkwardly written so as not to completely reveal precisely what it seeks to accomplish or address; essentially, from what I can gather, the bill seeks to provide a licensure process for imaging facilities that provide out of network or cash only services.  While the meeting was informative, it mostly revealed that there are so many unknowns as to the bill's purpose, approach, potential pitfalls, and whether what it seeks to do is covered by federal law…and unknowns like these at this point in the process do not add up to passage of quality policy. 

Another imaging bill that TOA opposes (and that even the radiologists oppose),  HB 1809 by Senfronia Thompson, is being heard in committee this week; it will receive quite a bit of opposition.  Scope bills have not been heard in the House or Senate (beyond the ones discussed above that were sent to committees that are not the typical jurisdictional committees for these issues), but we have heard that April 20^th may be "scope day" in House Public Health. 

Pitts Talks, Gently, of Adding to Texas Budget – FROM THE TEXAS TRIBUNE.
Less than two days after approving a state budget that cuts $23 billion from current spending, House leaders are already talking among themselves about how much more money they'd be willing to spend.

House Appropriations Chairman Jim Pitts said this afternoon that he's already asked Rep. Larry Taylor of Friendswood, who heads the House Republican Caucus, whether the conservatives in the House would be willing to spend another $5 billion if it can be located.

Click here for the rest of the update.

In laying out the bill, Appropriations Committee Chairman Jim Pitts (R-Waxahachie) spoke to the House saying, "Today we take up HB 1, the state budget for 2012-2013.  This budget does not raise taxes.  It does not rely on any spending and any new tax revenue to pay for programs or services.  This budget does not spend any federal stimulus money.  This budget does not spend any of the rainy day fund on any ongoing programs or services in the next biennium.  Finally, this budget does not grow government.  This budget reflects the economic realities facing our state, and it only spends available revenue.  This bill, combined with the votes we took yesterday on HB 4 and HB 275, fulfills our constitutional responsibility to have a balanced budget.  The budget we drafted would also reflect not only the spending cuts taken in 2010-11, it also reflects the 10% reductions we required in 2012-13 and much more." 

The House budget debate started early in the week when the Legislative Budget Board released its dynamic economic impact statement for HB 1.  It indicated that HB 1 would appropriate $83,840.7 million from all fund sources in FY 2012 and $80,663.4 million in FY 2013.  The biennial total represents a decrease of 12.3% from the 2010-2011 appropriations.  The table in the report indicated a loss of 1.9% total employment or 271,746 jobs in 2012 and 2.3%, including 335,244 jobs in 2013.  However, the report added a caveat saying, "Correct interpretation of the results in Table 1 is essential to properly understand the effects of CSHB1 on the Texas economy.  For instance, the negative 272,000 change in jobs predicted for 2012 does not imply the state will lose that many jobs from our current employment level upon enactment of CSHB1.  Rather, that figure implies Texas will have 272,000 jobs less than a baseline scenario where state expenditures remained constant relative to 2010-11 levels and available revenue matched these spending levels.  Since available revenue for the 2012-13 biennium is predicted to fall well below that amount, in large part due to the national economic recession, many of these job losses can be attributed to the steep downturn of the Texas economy during the past several years."

Speaker Joe Straus expressed concern with the fiscal note.  He said, "Jobs are created when government is efficient and responsible and allows the private sector to flourish.  I question the validity of the assumption that requiring government to live within its means will lead to a downturn in the economy – in fact, the opposite is true.  The best way to jump-start growth is for the Legislature to keep taxes low and regulations reasonable to provide the opportunity for business to grow and thrive in Texas.  Cutting spending to make government live within its means is the fiscally responsible course of action and one that will keep Texas on track for job growth over the long-run."

Dale Craymer of Texas Taxpayers and Research Association, former Chief Revenue Estimator for the Comptroller's office, responded to the fiscal note in a letter to Chairman Jim Pitts.  It said, "You recently received a ‘dynamic economic impact statement' of the committee substitute for HB 1.  I am concerned that the manner in which House rules require this analysis be done renders it meaningless as a tool for evaluating the proposed budget.  Normally, the fiscal analysis in a committee report is a comparison of what will happen if the bill takes effect versus what will happen if it does not.  This gives members a clear understanding of their choice in supporting or opposing the legislation.  That is not what the dynamic analysis for HB 1 is.  It ...

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Friday, April 1, 2011
ITEMS OF SPECIFIC INTEREST:  SB 1001, a chiropractor's scope bill, was heard this week in Senate Business & Commerce.  SB 894, a corporate medical bill that would allow hospitals in rural communities to hire doctors but that contains physician protections approved by the TMA, was voted out of Senate State Affairs. For additional information about both bills, see below.  We expect that House Public Health may have a hearing day in the NEXT TWO WEEKS on either APRIL 6^th OR APRIL 13^th that will focus on SCOPE BILLS, and your assistance in contacting your legislators and/or testifying may be needed.

SENATE – On Thursday, Senator Juan "Chuy" Hinojosa (D-McAllen) and Representative Beverly Woolley (R-Houston) hosted a rally on the South Steps of the capitol in support of video lottery terminal legislation.  They were joined by Texas Association of Business President Bill Hammond and musician Lyle Lovett in support of SB 1118, which would allow for the operation of VLTs at existing racetracks and federally recognized Indian reservations.  Senator Hinojosa said, "Texans are in favor of this proposal and it's clear why.  This proposal will help keep the $2.5 billion a year Texans spend in neighboring states here at home." 

The Senate adjourned until 1:30p.m. on Monday, April 4, 2011. 

Total number of bills reported out of Senate Committees this week:         140
Total number of bills passed by the Senate this week:                                  73
Total number of bills passed on the Local and Uncontested calendar:       32

HOUSE – The House was in session Monday through Thursday of this week and is meeting on Friday to take up the appropriations bill.  On Thursday, the House debated HB 4 by Jim Pitts (R-Waxahachie), which is the supplemental appropriations bill that addresses the revenue shortfall for the current budget cycle.  It would reduce state agency appropriations for Fiscal 2011 by $1.5 billion.  After hours of discussion and 36 amendments considered, the House passed HB 4 to third reading by a vote of 100 to 46, essentially along party lines; Representative Rene Oliviera (D-Brownsville) was the only Democrat to vote for the bill.  About his vote, he said, "HB 4 is necessary to finish the biennium, and to avoid adding to the budget shortfall.  HB 4 in part makes final the cuts we implemented earlier.  These cuts are a little more tolerable because the agencies themselves have developed most of them and minimized the damage to needy Texans.  All day long, I voted to restore the cuts in HB 4 and spend more Rainy Day Fund money.  Because I supported many of the cuts when I was on the LBB, I felt I needed to be consistent.  I have been saying publicly for a year and a half that it is going to take a combination of budget cuts, all the Rainy Day Fund money, closing tax loopholes, and gaming to avoid a devastating state budget." 

After the grueling debate on HB 4, the House spent another five hours debating 21 amendments to HB 275, which would appropriate $3.1 billion from the Rainy Day Fund and deposit it in the general revenue fund for use during fiscal 2011.  It ultimately passed by a vote of 142 to 2.  The two voting against the bill were Representatives Gary Elkins (R-Houston) and Barbara Mallory-Caraway (D-Dallas). 

On Friday, the House will take up HB 1, the general appropriations bill.  I will submit an additional report on HB 1 over the weekend.

Click here to view the complete update.

Friday, March 25, 2011

OF SPECIFIC IMPORTANCE:  The Lieutenant Governor is referring many scope of practice bills to Senate Finance instead of the HHS committee, and I expect that they will then be referred to a subcommittee that is chaired by Sen. Nelson.  I believe that this is being doing for several reasons, but the gist of it is a quest for new $$$.  At this point, I don't see this development as a positive or negative…There continues to be no movement of scope bills at this time.  The budget is up in the House next week, and that will take everyone's attention away from other matters.

SENATE – The Senate passed several bills including SB 647 by Glenn Hegar (R-Katy, which would continue the operation of the Office of Public Insurance Counsel through 2023, and SB 811 by Kirk Watson (D-Austin), which would permit doctors at university hospitals to access the expedited certification process available to other doctors working in managed healthcare plans.

Total number of bills reported out of Senate Committees this week:      71

Total number of bills passed by the Senate this week:                              84

Total number of bills passed on the Local and Uncontested calendar:    45

HOUSE – They had scheduled debate on SB 14, the Voter ID bill for Monday, but a point-of-order sent the bill back to the House Select Committee on Voter Identification and Voter Fraud.  It was kicked out on Monday and was back on the House calendar on Wednesday.  On Wednesday, the House spent 12 hours debating SB 14, the Voter ID bill, which would require a voter to present one form of photo identification to an election officer at the polling place in order to vote.  They considered 62 amendments, 12 of which were adopted (only the ones acceptable to the author).  It received final approval on Thursday by a vote of 101 to 48, essentially along party lines.  Representative Joe Pickett of El Paso was the only Democrat to vote with the Republican majority in support of the bill.  The House Democratic Caucus spoke on behalf of its members who opposed SB 14, saying that, "On the House floor, Republicans made the bill even stricter by removing a provision that would exempt elderly voters from the photo ID requirement.  Republicans refused to work with Democrats on common sense amendments that would help the bill.  Representative Richard Pena Raymond (D-Laredo) offered an amendment that would have made the bill unenforceable if it did not comply with Section 5 of the Voting Rights Act."

Total number of bills reported out of House Committees this week:       93

Total number of bills passed by the House this week:                               3

For the rest of the update, please click here.

BILL FILING STATISTICS
*There are reserved numbers which is why the
total count doesn't match the last number

SENATE – The Senate passed SB 321 by Glenn Hegar (R-Katy), which prohibits employers from restricting their employees from storing legally owned firearms in their locked vehicle in the parking lot of their workplaces.

On Thursday, Lt. Governor David Dewhurst asked Senate Finance Committee Chairman Steve Ogden (R-Bryan) to form a new Subcommittee on Fiscal Matters charged with finding up to $5 billion in savings and non-tax revenue to balance the budget.  The subcommittee, which will be chaired by Robert Duncan (R-Lubbock), will evaluate cost-savings proposals, explore non-tax revenue alternatives, and review unspent fund balances held by governmental entities before making their final recommendations to the Senate Finance Committee.  Lt. Governor Dewhurst said, "We need to conduct a thorough review of the budget and look closely at every cost-saving alternative before there is any further discussion about tapping into the Rainy Day Fund.  Texas taxpayers cannot afford for the Legislature to leave any stone unturned."

Total number of bills reported out of Senate Committees this week:         108

Total number of bills passed by the Senate this week:                                  68

Total number of bills passed on the Local and Uncontested calendar:       47

HOUSE – Election Contest in House District 48 – The House Select Committee on Election Contests held a hearing on Tuesday.  The attorneys for Republican candidate Dan Neil and Representative Donna Howard (D-Austin) made presentations to the committee.  Representative Will Hartnett (R-Dallas), the Master of Discovery, summarized his report on the election contest.  The committee went into executive session to discuss the issues presented.  Upon returning from executive session, Chairman Todd Hunter (R-Corpus Christi), made the motion that the contestant (Neil) failed to establish by clear and convincing evidence that the election contest outcome was not the true outcome.  The motion was unanimously adopted.  Dan Neil, who has now received adverse rulings from Special Master Hartnett and the Select Committee still, has the option to take the matter to the full House of Representatives for a vote.  He has not yet made an announcement on that decision. 

For the rest of the update, please click here.

Friday, March 11, 2011

OF SPECIFIC INTEREST – Bill filing deadline is TODAY, March 11^th, and the bill tracking report reflects what has been filed by 11 am on March 11^th; I will send an updated track this weekend and would ask you to please review the bills and send me your thoughts/comments as to any & all.  Obviously, some directly impact you while others have a more general application.  Sen. Uresti did file the podiatry bill, but do not be alarmed; he does not intend to proceed with it in its current form and is actively seeking our input and advice.  At this time, no one has filed the PT's bill in the Senate; Sen. Rodriguez from El Paso declined to file it.  

GOVERNOR – Governor Rick Perry held a press conference with Representative Brandon Creighton (R-Conroe) and Senator Dan Patrick (R-Houston), sponsors of SCR 50 and SCR 14, which assert states' rights under the 10^th Amendment to the U.S. Constitution.  The resolutions claim sovereignty for Texas under the 10^th Amendment, and assert that the 10^th Amendment limits the scope of federal power to the powers specifically granted by the U.S. Constitution.  The resolutions also call for an end to federal mandates on the states that are beyond the scope of the powers delegated to the federal government by the Constitution.  The resolutions call on the U.S. Congress to prohibit or repeal any legislation that directs states to comply with federal edicts under threat of criminal penalties, or that require states to pass legislation to avoid losing federal funding. 

SENATE – The Senate passed SB 912, which would give school districts and teachers more flexibility in appealing and ruling on proposed layoffs.  Also, Senator Tommy Williams, Chairman of the Texas Senate Transportation and Homeland Security Committee, filed SB 9 proposing a "Texas Tough" package of legislative changes aimed at strengthening Texas's border and homeland security laws.  The bill contains provisions to:

• Require citizenship verification for everyone and anyone arrested and booked in Texas;
• Require an inventory of all criminal aliens in Texas jails;
• Increase penalties and incarceration periods for members of drug cartels and criminal gangs;
• Crackdown on known criminals who apply for a Texas driver's license by referencing the electronically captured fingerprints database;
• Allow the Texas Department of Public Safety to conduct drivers license and insurance checkpoints;
• Allow expanded use of global positioning systems (GPS) by law enforcement in combating gang and cartel investigations;
• Increase monetary fines for drug crimes;
• Create a pilot program for law enforcement to use automated license plate readers in patrol cars; and
• Put more troopers and officers in the field by expanding the use of reserve law enforcement officers. 

Total number of bills reported out of Senate Committees this session:     83

Total number of bills passed by the Senate this session:                               5

HOUSE – The House met Monday through Thursday this week.  On Monday, the House gave final approval to HB 15 by Representative Sid Miller (R-Stephenville), which would require a sonogram to be performed on a pregnant woman between 72 and 24 hours prior to an abortion and require the woman to have the opportunity to view the sonogram, hear the heartbeat and receive a verbal description of the sonogram images.  It passed by a vote of 107 to 42.  One Republican, Sarah Davis of Houston, voted against the bill.  Eight Democrats joined the rest of the Republicans in supporting the bill.  Democrats voting for the bill included Representatives Ryan Guillen of Rio Grande City, Tracy King of Eagle Pass, J.M. Lozano of Kingsville, Eddie Lucio, III of Rancho Viejo, Armando "Mando" Martinez of Weslaco, Sergio Munoz, Jr. of Mission, Joe Pickett of El Paso, and Chente Quintanilla of El Paso.  Representative Sarah Davis (R-Houston) explained her "no" vote saying, "My vote was not an easy one to make, as I am very sensitive to those who work so valiantly for the sake of preserving life.  However, in light of my commitment to work against the expanding role of government and my commitment to protect the doctor-patient relationship from government interference, I simply could not support ‘the sonogram bill.'" 

In regard to the sonogram bill and the other bills designated an emergency by Governor Rick Perry, Speaker Joe Straus said, "Today, the House continued its work on emergency items by passing HB 15 (the sonogram bill) on third reading, by passing CSSB 14 (the Voter ID bill) out of committee, and by taking public testimony on SB 18 (the eminent domain bill)

Total number of bills reported out of House Committees this session:      10

Total number of bills passed by the House this session:                                1

BUDGET – The full Senate Finance Committee met on Monday of this week. 

Their Subcommittee on Medicaid did not meet this week.  The full House Appropriations Committee met on Monday, Tuesday, and Wednesday of this week.  They cancelled the meetings they had scheduled for Thursday and Friday. 

On Monday, Comptroller Susan Combs reminded lawmakers about the importance of taking steps to address the $4.3 billion deficit for the current biennium.  She said, "I urge lawmakers to do what is appropriate and close the deficit for the current biennium while they are in session.  It is vital that they address the state's projected shortfall for the current biennium.  We will of course continue to provide data to the Legislature as they make their decisions."  In a letter to the House Appropriations Committee last week, Combs outlined options lawmakers could take to address the current year shortfall.  Those include spending cuts to agencies, delaying spending or appropriating money from the Rainy Day Fund or some combination of these options.  While the Texas Constitution permits the Comptroller to borrow money from the Rainy Day Fund within a biennium in the case of a deficit for that biennium, it also has a specific repayment provision.  During odd-numbered years, the money must be repaid by Aug. 31 of that year. There is no practical way for the Comptroller to borrow from the Rainy Day Fund this summer and pay it back as the Constitution requires by Aug. 31, 2011.  There will not be sufficient revenue streams within that extremely short time period to make this a realistic option. 

House Appropriations Chair Jim Pitts will ask his Appropriations Committee to vote out a supplemental budget bill on Monday to cover the $4.3 billion deficit in the current biennium, and to fund it with money in the state's Rainy Day Fund.  The Waxahachie Republican and the rest of the management can figure out later how fast they want to take that to the floor of the full House. Gov. Rick Perry told the GOP caucus this week not to use the Rainy Day Fund — yet.  He wants them to look for more cuts before they take the hammer to the piggy bank. But Comptroller Susan Combs gave Pitts a boost, telling the budgeteers that she's not at liberty to spend money that's not in the bank, and to say that the money won't be in the bank sometime this summer if they don't act. The current budget goes through the end of August, but the current flow of cash won't carry that far. Thus, the deficit.  Pitts will need 90 votes in the House to tap the Rainy Day Fund for the deficit, and 100 votes if he tries to tap it later to balance the budget that starts in September. Those are three-fifths and two-thirds votes, respectively, of the members present in the House. On a day with a handful of absent members, the bar could be lower.

Next Week:  The Senate Finance Committee will meet on Monday, March 14, 2011 at 10:00a.m. in the Senate Finance Committee Room (E1.036) to hear several bills including SB 1278 by Steve Ogden (R-Bryan), the Senate's version of the supplemental appropriations bill that should provide for the $4.3 billion shortfall in the current biennium.

HEALTH – The Senate Health and Human Services Committee met on Tuesday and took up: 

SB 193 by Jane Nelson (R-Lewisville) would authorize the Texas Board of Nursing to develop a standardized error classification system for use in nursing peer review committee evaluations.  In support were representatives of Texas Nurses Association, Texas Nursing Students' Association, Texas Hospital Association, and Nursing Legislative Agenda Coalition.  There was no opposition.  It was voted out favorably as substituted. 

SB 228 by Jane Nelson (R-Lewisville) would require institutions of higher education to report the amount of money spent by the institution on human embryonic stem cell research and adult stem cell research and the source of the funding for that research; and would require the Texas Higher Education Coordinating board to annually compile that information and submit it to the legislature.  In support was a representative of Texas Catholic Conference.  There was no opposition.  It was voted out favorably. 

SB 622 by Jane Nelson (R-Lewisville) would:

• prohibit the sale of protected health information;

• increase criminal penalties for theft of medical records, breach of computer security, and health care fraud, including Medicaid fraud, that involves stolen health information;

• increase the civil penalties the Texas Attorney General may assess for violations of the Texas Medical Privacy Act;

• require health care providers to provide a person's health record in an electronic format within five days of the request; and

• require the Texas Attorney General to maintain a website providing information about consumer privacy rights and complaint procedures.

In support were representatives of Texas E-Health Alliance and Texas Medical Association.  In opposition was a representative of Patient Privacy Rights.  Senator Nelson said, "There is a sacred bond between patient and physician, and confidentiality is at the core of that relationship.  Patients will not be forthcoming with their physicians if they believe that information will be shared with unauthorized third parties."  It was left pending.

The House Insurance Committee met on Tuesday and took up: 

HB 1253 by John Smithee (R-Amarillo) would update provisions requiring notice to an enrollee of modifications in a small or large employer health benefit plan.  It was left pending. 

HB 1405 by John Smithee (R-Amarillo) would expand the definition of an enrollee relating to coverage of prescription drugs specified by a drug formulary to include non-group health benefit plans.  It was left pending.

The House Human Services Committee also met on Tuesday and took up: 

HB 710 by Armando Walle (D-Houston) would prohibit the Health and Human Services Commission and other agencies from using electronic fingerprint-imaging or photo-imaging of applicants for financial assistance.  It was left pending. 

HB 1481 by Vicki Truitt (R-Keller) would establish person first language as the preferred set of terms for any law or revision relating to persons with disabilities.  It was voted out favorably.

The Senate Intergovernmental Relations Committee met on Wednesday and took up: 

SB 761 by Royce West (D-Dallas) would authorize the employment of physicians who primarily treat children at hospitals associated with a nonprofit fraternal organization.  In support were representatives of Texas Medical Association, Texas Scottish Rite Hospital for Children, Texas Hospital Association, Texas Organization of Rural and Community Hospitals, Texas Association of Business, and Teaching Hospitals of Texas.  There was no opposition.  It was voted out favorably as substituted. 

On Thursday, the House County Affairs Committee took up:

HB 1565 by Garnet Coleman (D-Houston) would allow hospital districts to directly employ physicians.  It was left pending. 

HB 1568 by Garnet Coleman (D-Houston) would allow Harris County hospital district, and any district with population of 3.3 million or more, to appoint, contract for, or employ doctors.  It was left pending.

On Monday, Representative Lois Kolkhorst (R-Brenham) and Senator Jane Nelson (R-Flower Mound) filed HB 5 and SB 25 which would enter Texas into a Health Care Compact.  The bills have the support of a coalition of organizations that includes Texas Public Policy Foundation, Tea Party Patriots, Texas Conservative Coalition, Americans for Prosperity, King Street Patriots, and Texans for Fiscal Responsibility.  Michael Quinn Sullivan, president of Texans for Fiscal Responsibility said, "The Health Care Compact represents the kind of forward thinking that will serve Texans' interests by taking the federal government out of the health care policy mix.  For a century Washington has tried to ‘fix' health care, but has only managed to make things both worse and exponentially more expensive.  It's time for the states to step up and manage the kind of systems best suited for their needs.  The Health Care Compact would have to be entered into by at least two states and be approved by Congress.  The compact is already under consideration in the legislatures of more than a dozen states, and does not force the states to adopt any particular form of regulation or oversight.  Rather, the states would be responsible for creating systems that best meet their perceived needs – allowing the marketplace of policy ideas to determine which systems work and which don't." 

On Wednesday, the Senate Health and Human Services Committee reported out a substitute for SB 355 by Rodney Ellis (D-Houston) banning smoking in indoor public places, including municipal worksites and private worksites including restaurants and bars.  The vote was 5-3.  Senator Ellis said, "The bottom line is that this bill will save lives.  The vast majority of Texans understand the impact smoking has on our health and our economy.  Senate Bill 355 will improve the health of Texans and save our state billions of dollars in health care costs over time."

Also on Wednesday, members of the House Democratic Caucus held a press conference to speak out against the proposed 33% cuts to nursing homes in HB 1, the proposed budget.  House Democrats talked about the impacts on senior citizens if the cuts were to materialize.  According to the Texas Health Care Association, the state's membership organization for long-term care, 50% of nursing homes across the state would have to close under the proposed cuts, leading to 47,300 seniors forced out of their homes and 60,000 caregivers losing their jobs.

Next Week:  The Senate State Affairs Committee will meet on Monday, March 14, 2011 at 9:00a.m. in the Senate Chamber to take up SB 822 by Kirk Watson (D-Austin), which would include graduates of any UT System Medical, Dental School or Health Science Center among physicians eligible for expedited credentialing. 

GENERAL BUSINESS – On Tuesday, the Senate Business and Commerce Committee took up:

SB 595 by Rodney Ellis (D-Houston) would allow liquor to be sold on Sundays.  In support were representatives of Boo's Beverage Center in Terrell, Texas Hospitality Association, Holiday Wine and Liquor, Austin Wine Merchant, Distilled Spirits Council of the U.S., Diageo, Licensed Beverage Distributors, Republic National Distributing Company, California Wine Institute, and Texas Association of Business.  In opposition were representatives of Star of Texas Liquor and Wine, Texas Package Store Association, National Federation of Independent Business, Twin Liquors, Texas Package Stores Association, Wholesale Beer Distributors of Texas, and Spec's Wines Spirits and Finer Foods.  It was left pending. 

On Wednesday, the House State Affairs Committee took up:

HB 197 by Burt Solomons (R-Carrollton) would require documents that establish employment eligibility to be provided to licensing agencies when applying for or renewing an occupational license.  It was left pending.

Next Week:  The House Business and Industry Committee will meet on Monday, March 14, 2011 at 2:00p.m. in E2.016 of the capitol extension to take up:

HB 897 by Charlie Howard (R-Sugar Land) would require contracts between a seller and a consumer that contain an automatic renewal clause to conspicuously disclose to the consumer the automatic renewal clause and the procedure for canceling the automatic renewal; and would require the seller to allow the consumer to cancel the automatic renewal via facsimile, electronic mail, telephone, or mail.

HUMAN RESOURCES/EMPLOYMENT – On Thursday, Representative Aaron Pena (R-Edinburg) filed HB 2757 to create the Texas Commission on Immigration and Migration to explore the implementation of a guest-worker program in Texas.  It is modeled after legislation that has passed the Utah legislature with bi-partisan support, passing unanimously in the House and with one dissenting vote in the Senate.  The bill would explore the possibility of creating a guest-worker pilot program which would be crafted under current federal worker visa guidelines.  Authority would be granted to the governor to partner with a Mexican state to identify and qualify potential workers.  Representative Pena said, "The federal government has utterly failed to address comprehensive immigration reform.  They have passed the buck and state legislatures all across the nation are responding.  The myriad of bills filed in the Texas House are stop gap measures.  They reflect a high level of frustration of the federal government's inability to offer leadership or practical solutions on the issue of illegal immigration.  This is without a doubt a federal issue but where Washington fails, Texans are demanding a Texas response.  This is a good start." 

Next Week:  SB 321 by Glenn Hegar (R-Katy) which would prohibit an employer from restricting an employee from bringing an handgun into the employer's parking lot, is on the Senate Intent Calendar for Monday. 

PUBLIC EDUCATION – The Senate Education Committee met on Tuesday and took up mandate relief and accountability/efficiency bills.  Committee Chair Florence Shapiro (R-Plano) said, "The current budget crisis means the state must find ways to reduce the financial burden on local districts." Sen. Patrick said, "The current system doesn't work because many school districts apply for waivers that allow them to get around this current ratio standard.  SB 443 would require that districts maintain a 21 to 1 average ratio across all classes, but would prohibit classes that exceed 24 students."  Specifically, the bills heard included: 

SB 443 by Dan Patrick (R-Houston) would:

• require school districts to remove from campus and suspend without pay a person employed by the district that has been convicted of a felony;

• limit class size for kindergarten through fourth grade from 22/1 to a district-wide average of 21/1;

• allow promotion to eighth grade students who pass mathematics or English language arts course work that the student has taken for credit toward high school graduation and that is relevant to the eighth grade mathematics or reading assessment instrument on which the student has failed to perform satisfactorily;

• allow accelerated instruction for students who fail to perform satisfactorily on an assessment a third time to be deferred to the beginning of the next school year;

• would allow rather than require school districts to offer a voluntary program for children of limited English proficiency who will be eligible for admission to kindergarten or the first grade at the beginning of the next school year;  and

• exempt school districts that are recognized (as well as exemplary) from elementary class size limits.  It was left pending. 

SB 3 by Florence Shapiro (R-Plano) is a school mandate relief bill that will return control over personnel matters, operations, and resource allocation to school districts.  It would allow districts to furlough teachers for seven non-instructional days each year; and districts to terminate teachers that do not maintain certification standards; would exempt retired teachers that teach part-time from minimum salary requirements; would give flexibility on how schools use their resources; would remove the 10/1 student/teacher ratio requirement for remedial classes; remove regulations on test management standards; and extend the telecommunications discount provided to schools through 2014.  It was left pending.

On Wednesday, the House Democratic Caucus issued a press release on school district funding.  It said, "Yesterday Governor Rick Perry proposed that Texas school districts spend their undesignated unreserved fund balance before the state looks to spend the Rainy Day Fund.  According to Rick Perry, school districts have nearly $10 billion to spend in their fund balance accounts.  Unfortunately, the governor has fundamentally misinterpreted what the fund balance accounts are for.  These fund balance levels are crucial considerations in long-term financial planning.  As a matter of fact, a school district's fund balance level is a key measure for bond rating agencies.  Without a good bond rating, school districts will end up paying more for the money they borrow.  The Government Finance Officers Association has recommended that school districts have a minimum fund balance equal to two months of operating expenses.  According to the Texas Education Agency, hundreds of school districts have less than two months worth of operative expenses in their fund balances.  If Governor Perry were to get his way, school districts would see their reserve funds depleted, their bond ratings plummet, and would still be on the hook for growth in the classroom." 

HIGHER EDUCATION – On Wednesday, the Senate Higher Education Committee took up:

SB 28 by Judith Zaffirini (D- Laredo) would establish new eligibility criteria for the Texas GRANT program beginning with the 2013-2014 academic year.  It was left pending. 

SB 282 by Judith Zaffirini (D-Laredo) would exempt medical and dental institutions from Texas Higher Education Coordinating Board reporting requirements.  It was voted out favorably as substituted.

Representative Harvey Hilderbran (R-Kerrville) announced that he has filed HB 261 which would freeze public university tuition rates at their 2010-11 level, effectively repealing a law that allows public universities to set their own tuition rates.   Representative Hilderbran's press release said, "In 2003, the Texas Legislature ‘deregulated' tuition, giving college governing boards the power to set their own tuition rates.  Hilderbran, who led strong opposition to the 2003 measure, said that too many schools abused the power."  It quotes Hilderbran as saying, "Within six years, the average cost of tuition at Texas universities has increased 72%.  There are a lot of middle class Texans who don't make enough money to pay for college out of their pocket, but they make too much to qualify for government assistance like the Pell Grant. Skyrocketing tuition rates are pricing these families out of higher education.  According to the Texas Higher Education Coordinating Board, the average cost for tuition and fees increased from $1,934 per semester in fall 2003 to $3,323 per semester in fall 2009.  I know some universities won't be thrilled that they have to maintain their current spending levels, but that's exactly what families and small businesses across the country have to do.  In this economic environment, there is no reason we shouldn't ask our public universities to do the same thing – especially if it means that more students will be able to afford a college degree.  An educated workforce is vital for attracting jobs and keeping Texas competitive, and our public universities have done a great job of providing a world-class education.  We just have to make sure students can afford to get that education." 

PROPERTY - The Senate State Affairs Committee met on Monday and took up:

SB 361 by Robert Duncan (R-Lubbock) would allow parties to a construction contract to agree upon indemnity or additional insured provisions that are not otherwise prohibited by law.  In support were representatives of Higginbotham & Associates, Potter Concrete, Associated Builders & Contractors, Texas Construction Association, Cummings Electrical, Inc, and Independent Insurance Group.  In opposition were representatives of City of Houston, U.S. Hispanic Contractors Association, Texas Civil Justice League, Texas Association of Builders, Texas Apartment Association, Texas Retailers Association, CenterPoint Energy, Texans for Lawsuit Reform, Texas Railroad Association, Texas Chemical Council, Union Pacific Railroad, Zachry Corporation, and Texas Municipal League.  It was reported out favorably.

The House Land and Resource Management Committee also met on Monday and took up SB 18 by Craig Estes (R-Wichita Falls), the eminent domain reform bill designated an emergency by Governor Rick Perry.  In support were representatives of Texas Wildlife Association, Tarrant Regional Water District, Texas Farm Bureau, Gas Processors Association, Texas Pipeline Association, Harris County, National Federation of Independent Business, North Harris County Regional Water Authority, Texas Housing Justice League, Texas Agricultural Cooperative Council, Association of Electric Companies of Texas, Exotic Wildlife Association, Texas Landowners Council, Texas Self Storage Association, Texas Silver-Haired Legislature, South Texans' Property Rights Association, Texas Association of Realtors, Texas Apartment Association, Texas Association of Builders, Texas Pipeline Association, Texas Pest Management Association, Texas Nursery & Landscape Association, Texas Riverside & Land Owners Coalition,  Texas Sheep & Goat Raisers Association, Texas and Southwestern Cattle Raisers Association, Texas Forestry Association, Port of Houston Authority, Texas Ports Association, Texas Poultry Federation, Texas Cattle Feeders Association, and Northeast Texas Water Coalition.  In opposition were representatives of City of San Antonio, Texans Uniting for Reform and Freedom, We Texans, Public Citizen, City of Plano, and four individuals.  It was left pending.

On Thursday, Representative Larry Taylor (R-Friendswood) filed HB 2818, a comprehensive reform of the Texas Windstorm Insurance Agency ("TWIA").  Representative Taylor said, "In order to be adequately prepared for future hurricane seasons, it is imperative that TWIA be operating at maximum efficiency, that the Reserve Trust Fund be solvent and that the agency have adequate management measures in place to protect consumers and ensure that claims are paid in a timely manner.  HB 2818 is an important step in the right direction toward restoring public confidence in TWIA.  In light of the budgetary crisis that confronts the Texas Legislature, all aspects surrounding the payout of hundreds of millions of dollars in insurance losses must be scrutinized if Texas policymakers are to make sound fiscal decisions going forward."  HB 2818 would:

• Require greater transparency of TWIA board meetings and actions;

• Provide premium surcharge discounts for policies that exceed current building code standards;

• Strengthen the process by which difficult claims must be paid by creating an "expert panel" to determine a wind v. water formula;

• Allow Texas Department of Insurance stricter enforcement authority over inspectors determined to be "bad actors" in the system; and

• Protect the association against unnecessary litigation costs. 

Next Week:  The House Insurance Committee will meet on Tuesday, March 15, 2011 at 2:00p.m. in E2.030 of the capitol extension to take up:

HB 272 by John Smithee (R-Amarillo) would institute new regulations and Texas Department of Insurance oversight of the Texas Windstorm Insurance Association. 

TAX - Representative John Otto (R-Dayton) filed HB 2403, which seeks to clarify what constitutes a "physical presence" in Texas for sales tax purposes.  Representative Otto said, "In today's advanced economy, it is imperative that brick and mortar businesses be able to compete on the same level as online retailers. Today, I am filing HB 2403 to ensure an equitable and fair system for all Texas businesses.  The U.S. Supreme Court decision in Quill vs. North Dakota (1992) prohibits states from requiring sellers to collect tax on interstate shipments unless the seller has a physical presence or ‘nexus' in the state where delivery occurs.  As a result of this decision, many companies have elected to use business models such as entity isolation and affiliate advertising.  This exploits the physical presence loophole and avoids state tax responsibilities, despite creating and maintaining markets across state lines through ‘remote' sales.  Since 1992, the number of sellers making remote sales to customers has exploded due to the advent of the Internet and the popularity of e-commerce, creating a significant and growing loss of sales tax revenue for states.  In addition to not collecting the sales tax, online-only retailers are at a competitive advantage in comparison to storefronts that must collect, at minimum, the 6.25% state sales and use tax, and more than likely the 2% local sales tax.  I am authoring this legislation to clarify the meaning of Texas law to prevent Internet retailers from evading tax liability that, to me, is established under current law.  The issue of nexus has recently been in the spotlight due to a disagreement between Texas Comptroller of Public Accounts Susan Combs and Internet retailer Amazon.com, Inc.  Presently, Amazon is disputing a $269 million sales tax assessment that spans a four year period by claiming they do not have a physical presence in Texas.  Amazon maintains a fulfillment center in Irving and claims that this center is a separate entity from Amazon.  If this issue is not addressed, then we are inviting new and existing businesses to structure in avoidance of the collection of our sales tax, even though they may have a physical presence in our state.  We need to be clear to all parties what the rules are and enforce them accordingly."  While Otto's bill would likely require Amazon to pay sales tax, Rep. Linda Harper Brown filed a bill that would not find that Amazon has met the nexus requirement and hence not require them to pay sales tax.

On Tuesday, the Senate Business and Commerce Committee took up: 

SB 762 by John Carona (R-Dallas) would prohibit the charging of a fee for transfer of an ad valorem tax lien on residential property except for interest, and the fees for filing the release of the lien, providing a payoff statement, and providing information regarding the current balance owed by the property owner.  In support were representatives of Texas Property Tax Lenders Association and Homefront Tax Loans.  There was no opposition.  It was reported out favorably as substituted and recommended for the Local and Uncontested calendar.

Also on Tuesday, the Senate Jurisprudence Committee took up:

Representative Jim Landtroop (R-Plainview) filed HJR 124, which proposes a constitutional amendment requiring a 'yes' vote from four-fifths of all House members in order to pass any tax increase.  Representative Landtroop said, "This legislation will help to ensure that lawmakers exhaust all available avenues before increasing rates on taxpayers.  Our constituents demanded that we balance the budget without raising taxes.  This piece of legislation ensures that we deliver on promises made.  In a year where a significant budget shortfall looms over all Texans, the temptation to raise taxes and fees in order to solve our lack of budgeting restraint is being touted by the media and some legislators, but this only results in larger government.  Common sense tells us this growth of government is not only unsustainable but also diametrically opposed to what our constituents want and deserve."

On Wednesday, Texas Comptroller Susan Combs announced the state's sales tax revenue in February was $1.75 billion, which is an increase of 9.7 percent compared to February 2010.

TELECOMMUNICATIONS – On Tuesday, the Senate Business and Commerce Committee took up: 

SB 773 by Judith Zaffirini (D-Laredo) would continue until 2024 the requirement for telecommunications service providers to give schools, libraries, hospitals and telemedicine centers a discount on telecommunications services.  In support were representatives of Texas Computer Education Association, Northside ISD, Abilene ISD, Texas Association of Community Schools, Texas Rural Education Association, Texas Library Association, Texas State University, Cypress-Fairbanks ISD, Independent Colleges and Universities of Texas, Wylie ISD, Texas Association of Community Colleges, Cogdell Memorial Hospital, Texas Association of Local Health Officials, Texas Association of School Boards, Needville ISD, Texas Hospital Association, and Kaufman ISD.  In opposition were representatives of AT&T, Verizon, Windstream Communications, TW Telecom, Texas Conservative Coalition Research Institute, Century Link, Americans for Prosperity, and Young Conservatives of Texas.  It was left pending. 

SB 834 by Bob Deuell (R-Greenville) would extend the telecommunications discount provided to educational institutions, libraries, hospitals, and health centers until 2020 (rather than 2012) and would include federally qualified health center service delivery sites in the discount.  In support were representatives of Texas Association of Community Health Centers, Texas Library Association, Independent Colleges and Universities of Texas, Texas Association of School Administrators, Cogdell Memorial Hospital, Texas Association of Local Health Officials, Texas Association of School Boards, and Texas Hospital Association.  In opposition were representatives of AT&T, Verizon, Windstream Communications, TW Telicom, and Century Link.  It was left pending.

On Wednesday, the House Transportation Committee took up:

HB 37 by Jose Menendez (D-San Antonio) would prohibit the use of a wireless communication device while operating a motor vehicle unless the vehicle is in park or is used with a hands-free device.  It was left pending. 

HB 243 by Tom Craddick (R-Midland) would prohibit the use of a wireless communication device to read, write, or send a text-based communication while operating a motor vehicle unless the vehicle is stopped.  It was left pending.

In conjunction with the committee hearing, Representative Jim Landtroop (R-Plainview) led a press conference in support of HB 243 in the absence of Dean of the House Tom Craddick (R-Midland), the bill sponsor who was briefly in the hospital this week after collapsing in the committee hearing.

WORKERS' COMPENSATION: 

Next Week:  The Senate State Affairs Committee will meet on Monday, March 14, 2011 at 9:00a.m. in the Senate Chamber to take up:

SB 809 by Kel Seliger (R-Amarillo) would allow a party to file for judicial review within 45 days of a division hearing decision sent in a medical contested case; and would align medical contested case appeals to district court with other compensability appeals to district court in that both appeals would be due within 45 days of the division mailing the decision. 

Note that workers' comp bills in the House seem to be diverted from the Business & Industry Committee, chaired by Rep. Joe Deshotel (D-Beaumont), to State Affairs, chaired by Rep. Byron Cook (R-Corsicana). 

See you next week!
MICHELLE WITTENBURG

Friday, March 4, 2011

ITEMS OF SPECIFIC INTEREST:  SB 401 by Florence Shapiro (R-Plano) would create the Texas Diagnostic Imaging Facilities and Fluoroscopy-Guided Pain Management Procedure Centers Licensing Act.  I WILL DROP A CARD ON BEHALF OF TOA AGAINST THIS BILL.  Rep. Laubenberg filed HB 1980 relating to the practice of podiatry…and giving them jurisdiction over the ankle.  BILL FILING DEADLINE IS MARCH 11^TH. 

GOVERNOR –Governor Perry announced the formation of a bipartisan Task Force on Unfunded Mandates, which will identify unfunded mandates that have been passed down from the state to local governments and make recommendations to the governor on how to best alleviate burdens on local entities.  In speaking at the National Federation of Independent Business Texas Small Business Day luncheon, the Governor renewed his call to make permanent the small business tax cut passed last session. 

HOUSE – On Wednesday, the House had its first bill up for debate this session – HB 15 by Sid Miller (R-Stephenville) which would require a sonogram to be performed on a pregnant woman between 72 and 24 hours prior to an abortion and require the woman to have the opportunity to view the sonogram, hear the heartbeat and receive a verbal description of the sonogram images.  A point-of-order was raised having to do with the procedure followed by the committee that heard the bill.  HB 15 ended up being sent back to the State Affairs Committee, which had a new hearing on the bill and reported it out on Wednesday night.   The Calendars Committee put it back on the agenda for House consideration on Thursday.  After over seven hours of debate, the House passed HB 15 to third reading by a vote of 103 to 42 with one present not voting.  The House is expected to give final approval to the bill on Monday. 

BUDGET – On Monday, Representative Jim Pitts (R-Waxahachie), Chairman of the House Appropriations Committee, and Representative John Otto (R-Dayton) filed HB 275 to authorize the use of $4.27 billion from the state's Economic Stabilization Fund (Rainy Day Fund) to cover the shortfall in the current 2010-2011 budget.  The fund has a current balance of approximately $8 billion and is projected to have a balance of $9.4 billion at the end of 2013.  Representative Otto said, "The Rainy Day Fund was designed for times like this.  That is why I support tapping the fund to pay the bills remaining in the current biennium.  The fund, however, was not designed to allow legislators to avoid doing the hard work of aligning spending with revenue and making the hard choices necessary to balance the state budget.  Whether or not experts agree that there is rain in the forecast beyond this biennium, responsible leadership requires that we maintain a balance in the fund for future rainy days.  The Medicaid caseload growth in this state has exceeded estimates contained in the current biennium's budget, and the federal government has tied our hands in terms of what the state can do to address this growth and how we may spend our money on these items.  Until states are granted flexibility within the Medicaid program, we will continue to grapple with this issue.  Further, the decline in property values across the state has necessitated additional state funds to be put toward public education." 

Also on Monday, the Center for Public Policy Priorities released an analysis that shows the county-by-county effects of proposed cuts to state services in public education, higher education, health and human services, and Medicaid spending losses.  Eva DeLuna Castro, senior budget analyst for CPPP said, "Overall the state is short at least $27 billion to write a budget that funds what the state is doing now in these areas.  Our analysis shows roughly how the shortfall would be allocated county by county if the state adopts the proposed budget.  With a revenue shortfall this large, as the county-by-county effects show, the Legislature cannot balance the budget through cuts alone without doing terrible damage to Texas communities.  Texas needs a balanced approach that includes using our $9.4 billion Rainy Day Fund and adding new revenue.  For example, we could increase our cigarette tax by a dollar a pack and raise about $1.5 billion.  Only a balanced approach can protect our communities."  The county-by-county report is on the CPPP website:  www.cppp.org.

On Tuesday, Chairman Jim Pitts (R-Waxahachie) sent a letter to Comptroller Susan Combs saying, "I have filed HB 275 which appropriates $4.3 billion out of the Economic Stabilization Fund to the General Revenue Fund to cover our existing expenses and outstanding obligations.  I am fully aware that passage of HB 275 will require a difficult supermajority vote by the House membership.  Before I ask them to take that vote, it is important that House members have a true picture of our fiscal situation.  I ask you to address the following questions so that they can make an informed decision:

• How does your certification number in May of 2009 compare to the revised estimate in January of 2011?  What were the significant factors that contributed to the deficit?
• What are the specific short-term consequences of the projected budget deficit?  What are the longer-term consequences?  What options are available to the Legislature to minimize or eliminate those consequences?  Are there specific options you would recommend?"

Comptroller Combs responded to Chairman Pitts in writing on Wednesday saying, "When the budget for the 2010-2011 biennium was certified, fiscal 2011 was projected to close with a small surplus of $83.5 million in General Revenue.  My January 10, 2011 biennial revenue estimate shows that fiscal 2011 will close with a balance in General Revenue of negative $4.3 billion.  The most significant factor for this change was the economic recession that our state and nation are now recovering from.  The severe recession had negative effects not only on employment, incomes and business conditions, but on our revenue system as well.  As an illustration:  My certification of the 2010-2011 budget was based, in part, on projected sales tax revenues of $43.6 billion for the 2010-2011 biennium.  One and a half years later, with a state economy battered by the recession, that revenue source is now expected to only generate $39.8 billion for the biennium - $3.8 billion less than originally anticipated during the current biennium.  Other taxes, although smaller, were similarly hard hit by the recession.  Note also that Texas lost over 4% of its payroll employment, or 431,000 jobs, before bottoming in fall 2009.  These losses – as a percent – were more severe than the recession of the early 2000s, the recessions of the 1980s, and in fact more severe than any recession in our state since World War II.  You asked about the consequences of the projected budget deficit for fiscal 2011.  The short-term consequences of the deficit included a cash shortfall in the current year that must be addressed.  Projected cash balances are insufficient to support the appropriations for the remainder of the current biennium.  The options the Legislature has to address the current–year shortfall include reducing appropriations for fiscal 2011 delaying spending, appropriating other available resources such as the Rainy Day Fund or some combination of these options.  Pursuant to the Constitution, I cannot certify new appropriations for the current year until the deficit is addressed.  The longer-term effects of the projected shortfall for 2011 as noted in the biennial revenue estimate is that any shortfall in the current biennium will reduce revenue available for the next budget period.  Consequently, efforts taken to address the ending balance in fiscal 2011 will have a direct effect on available revenue for the 2012-2013 biennium.  

On Thursday, Chairman Pitts gave introductory remarks prior to recognizing Comptroller Combs to address the Appropriations Committee.   He said, "The budget crisis is forcing this committee to make tough decisions about what the true priorities of this state should be.  Part of what we are lacking is a clear description of how we arrived at this point.  What our current challenges are and how we should address them.  We hope the comptroller will be able to shed some light on these issues for us."  Comptroller Susan Combs reviewed the options the committee has in addressing the shortfall in the current biennium.  In response to a question, she listed the times in the past that the legislature has used the Rainy Day Fund:

• In 1990, the Legislature used $29 million (the entire balance of the fund)
• 1n 1993, the Legislature used $125.8 million (most of the fund)
• In 1994, the Legislature used $72 million of the $80 million in the fund
• In 2003, the Legislature used $1.26 billion (leaving $365 million in the fund)
• In 2005, the Legislature used $2.03 billion. 

We are NOT finding the savings in Medicaid, as anticipated.

Senate Medicaid subcommittee making slow progress on finding billions of savings assumed in the budget

The head of the Senate subcommittee tasked with implementing cuts in the Medicaid program gaveled in today's hearing expressing hope that the panel could pass along a list of recommendations to the full Finance committee.

But within an hour, it had become clear that Sen. Jane Nelson (R-Flower Mound) wasn't close to persuading her colleagues to put their names to many of the cuts. A clearly frustrated Nelson gaveled the hearing closed with a reprimand to the panel.

"We have to get serious about this," Nelson said.

Nelson's panel has been stuck for about a week, unable to find a consensus position on a list of recommended cost containment measures that would come anywhere close to the $9.9 billion in cuts to the Medicaid program assumed in the Senate base budget.

Nelson has dialed back expectations that she would be able to find the full amount of savings. She told panel members the goal now is to find savings that will get budget writers halfway to the $9.9 billion figure.

Senators going into this morning's meeting had agreed to about two dozen cuts and the subcommittee agreed to another couple of cost savings measures today. But the aggregate GR savings amount to about $400 million, or less than 10 percent of even the revised savings target set out by Nelson.

Nelson got the most pushback from a pair of Republican Senators – Kevin Eltife of Tyler and Bob Deuell of Greenville – and a pair of Democratic Senators – Judith Zaffirini of Laredo and John Whitmire of Houston.

Their arguments boiled down to this – the Senators don't have enough information on the impact of the proposed cuts for them to feel comfortable about signing on.

For instance, there have been indications that the feds will give the state some unexpected flexibility on further rollout of managed care in the Medicaid program. Hospitals have raised the concern that they could lose a significant source of federal aid, UPL dollars, if the expansion of HMO-style services is implemented the wrong way.

It was announced yesterday that lawmakers have figured out how to expand Medicaid managed care without endangering UPL funds. Deuell said though that he wanted more information in writing to reassure him on that point. He said he could envision scenarios where the funding framework could fall apart.

Deuell borrowed a famous Reaganism, "Trust but verify," before saying he wasn't ready to sign on to further expansion of Medicaid managed care.

Eltife had a similar grievance about a list of anticipated cuts to adult Medicaid optional services, intended to garner about $119 million in GR savings.  Eltife said he was troubled by some of the proposed cutbacks. For instance, one of the savings contemplated was limiting reimbursement to pay for hearing devices for just one ear and possibly not reimbursing the cost of batteries for those hearing aids.

Of bigger concern to Eltife was a proposed cutback in mental health services from a maximum of five days of treatment per week to a single weekly visit.

Eltife said he needed more information on how the cuts would affect levels of service for individual clients. "I'm not willing to vote for something when I don't know how many Texans are being affected," he said. "I can't vote for this as it is printed."

He added that he'd rather see some services, like massage therapy, eliminated if it could keep mental health services whole. "You're messing with too many people," he said.

Soon afterward, Nelson gaveled the hearing closed. "I'm not sure where we're going to go from here," she said. But she repeated her message that she's been delivering for a week now – the panel needs to focus on getting a list of cuts ready.

"I'm telling you, I'd much rather have members of this committee discuss these serious cuts we need to do," she said.

HEALTH – The House Insurance Committee met on Tuesday and took up:

HB 636 by John Zerwas (R-Fulshear) would establish a state health insurance exchange, the Texas Health Insurance Connector, to facilitate the purchase of small employer and individual health benefit plan coverage, and provide assistance with enrollment of individuals eligible for qualified health plans.  It was left pending. 

Lawmakers Want State, Not Federal, Insurance Connector

Rep. John Zerwas, R-Simonton, is no fan of "Obamacare." But he told his House colleages this afternoon that if they don't set up a health insurance exchange — one of the tenets of the reform — by 2014, the federal government will do it for them.

The so-called insurance connector would effectively serve as a public marketplace a la Travelocity or Orbitz, where consumers could shop for health insurance, or find out if they qualify for Medicaid or other services. Zerwas' bill sets up an oversight committee "to make sure this thing doesn't fall off into an abyss and we lose our sense of control" — and a "Sunset provision" to put the agency under review in 2019, and eliminate it if it isn't working. 

"The exchange is an incredibly important component of reaching our uninsured Texans," said Anne Dunkelberg, with the Center for Public Policy Priorities. She said low to moderate-income persons would benefit the most. "The vast majority of our uninsured Texans today would qualify for some kind of assistance," she said.  

Many small business owners offered their support for the bill. Howard Adams, who operates a business in Lubbock, said after he was diagnosed with multiple sclerosis, his business' health insurance premium jumped to $74,300 a year. "It was a hardship on me to have to pay twice the insurance," he said. "It was a hardship on my employees because they can't buy insurance through the company."

Gwen Loomis, a small business owner in Dallas, told lawmakers if her premiums had been lower over the years, she could've done far more to expand her business. "We can pay these premiums — barely — but there are many who cannot," she said. 

Lawmakers and representatives from the health insurance industry didn't seem to have major opposition — but they suggested some tweaks. Rep. Armando Walle, D-Houston, requested provisions to ensure the board will represent the interests of the consumer. As it is now, he said, insurance experts will dominate the board. James Mullen of California-based Delta Dental, which offers specialized healthcare plans, suggested that stand-alone dental plans should be offered in the connector.

Michael Gomez, executive vice president of BenefitMall, a Dallas-based private insurance exchange with nearly 2 million employees, supports Zerwas' bill, but said he hopes the Legislature will ensure it contains "as few restrictions on this private market" as possible. A public insurance exchange could help expand coverage, especially to the uninsured, he said, but the Legislature should protect "the consumer's right of choice" by excluding language that would require people to use the public exchange.

Arlene Wohlgemuth, executive director of the Texas Public Policy Foundation, also offered support for the bill, saying it is as close to a free market solution as possible. Wohlgemuth says TPPF certainly doesn't favor implementing "Obamacare" — but "if the law of the land continues to be the law of the land, the state of Texas can do a better job governing itself" than the federal government.

The Senate Health and Human Services Committee also met on Tuesday.  They took up:

SB 190 by Jane Nelson (R-Lewisville) would prohibit the Texas Medical Board (TMB) from investigating anonymous complaints; would update physician, physician assistant, acupuncturist, and surgical assistant temporary licensing requirements; would authorize TMB, Texas Physicians Assistant Board, and Texas State Board of Acupuncture Examiners to hear evidence and conduct deliberations related to license applications and disciplinary actions in closed executive session exempt from the Texas Open Meetings Act; and would create postgraduate training permits for physician assistants and acupuncturists.  It was voted out favorably as substituted. 

SB 192 by Jane Nelson (R-Lewisville) would clarify provisions related to good faith reporting by a nurse, and expand provisions related to protection from retaliation for a nurse who reports inappropriate patient care conduct.  It was voted out favorably. 

SB 355 by Rodney Ellis (D-Houston) would prohibit smoking in places of employment, in public places, and in the seating area at an outdoor event.  It was left pending. 

Next Week:  The Senate Health and Human Services Committee will meet on Tuesday, March 8, 2011 at 11:00a.m. in the Senate Chamber to take up: 

SB 401 by Florence Shapiro (R-Plano) would create the Texas Diagnostic Imaging Facilities and Fluoroscopy-Guided Pain Management Procedure Centers Licensing Act.  I WILL DROP A CARD ON BEHALF OF TOA AGAINST THIS BILL.

SB 193 by Jane Nelson (R-Lewisville) would authorize the Texas Board of Nursing to develop a standardized error classification system for use in nursing peer review committee evaluations.

SB 228 by Jane Nelson (R-Lewisville) would require institutions of higher education to report the amount of money spent by the institution on human embryonic stem cell research and adult stem cell research and the source of the funding for that research; and would require the Texas Higher Education Coordinating board to annually compile that information and submit it to the legislature. 

SB 622 by Jane Nelson (R-Lewisville) would:

• prohibit the sale of protected health information;

• increase criminal penalties for theft of medical records, breach of computer security, and health care fraud, including Medicaid fraud, that involves stolen health information;

• increase the civil penalties the Texas Attorney General may assess for violations of the Texas Medical Privacy Act;

• require health care providers to provide a person's health record in an electronic format within five days of the request; and

• require the Texas Attorney General to maintain a website providing information about consumer privacy rights and complaint procedures.

The Senate Intergovernmental Relations Committee will meet on Wednesday at 9:30a.m. in E1.028 of the capitol extension to take up: 

SB 761 by Royce West (D-Dallas) would authorize the employment of physicians who primarily treat children at hospitals associated with a nonprofit fraternal organization.

TORT – Senator Tommy Williams (R-The Woodlands) announced that he filed SB 21 which would allow victims or defendants to create Voluntary Compensation Plans to speed up compensation payments to victims of an accident or an allegedly defective product.  Senator Williams said, "Voluntary Compensation Plans provide victims quick, fair and non-adversarial compensation for legitimate claims.  These plans are another form of alternative dispute resolution and can reduce expensive, risky, and emotionally-draining litigation.  I'm also honored to have the support of both the Texas Civil Justice League and Texans for Lawsuit Reform.  Studies show that 50 – 60% of amounts expended by defendants in civil cases cover attorneys, expert witnesses, and pretrial discovery fees.  Establishing a Voluntary Compensation Plan could eliminate most of these expensive transaction costs.  Voluntary Compensation Plans will allow victims to quickly recover damages, so they can keep more of the compensation instead of lengthy litigation and a majority of compensation going to trial lawyers and the courts." 

On Monday, Speaker Joe Straus was the keynote speaker at the Texans For Lawsuit Reform luncheon.  He said, "Texas had a runaway civil justice system that permitted frivolous lawsuits and outrageous jury awards.  ‘I'll see you in court' became a common refrain because, in Texas, just about anyone could sue anyone for anything.  Lawsuit reform has played a critical role in strengthening the Texas economy.  75% of all private sector jobs created in America were created in Texas.  Tort reforms have increased the number of doctors throughout the state, including in my home county – Bexar – where there are now 900 more physicians than there were when medical liability reforms were passed in 2003."

February 2011

Friday, February 25, 2011

OF SPECIFIC INTEREST – Podiatrists are shopping for authors of a scope bill (but see HB 1631), but no takers so far, and the physical therapists haven't yet found a Senate author.  In visiting with Senate Health & Human Services and House Public Health committee members and staff, there is little appetite for scope of practice bills. 

GOVERNOR – Texas medical professionals are divided on medical boards merger proposal. 

The boards under consideration for a merger

Gov. Rick Perry's proposal to combine nine health professions boards into a single agency has some critics asking whether that would jeopardize patient safety.  The governor's appointees on medical boards defend the idea and say any merger of the boards regulating doctors, nurses, dentists, optometrists, psychologists, chiropractors, pharmacists and other medical professionals would make safety a primary consideration.  The governor's budget anticipates at least $7 million in savings if the boards merged to become the Health Professions Agency. More savings could be realized through streamlining identified by the Legislature, according to Perry's budget.  But the impact might be felt more acutely at some boards than others. Some agencies have struggled in years past to meet basic benchmarks set by the Legislature and have let some disciplinary cases against medical professionals linger for years.  One thing going for the boards: They are cash cows. For example, the Texas Medical Board, which oversees doctors, had a budget of $9.4 million for fiscal 2010 but brought $35.7 million into the state's coffers through fees and fines.

The merger concept has cautious support from some medical professionals, who said they are awaiting specific details.  Dr. Irvin E. Zeitler Jr., a San Angelo physician appointed by Perry as president of the Texas Medical Board, said he supports any move to cut the state's deficit.  The medical board, he said, licenses 70,000 professionals and deals with 7,000 complaints each year. Zeitler said that because he hasn't seen a proposal, it is difficult to know how feasible combining boards would be.

Dr. Susan R. Bailey, a Fort Worth allergist and president of the Texas Medical Association, said creating a single agency sounds like a good proposal. Public safety, she said, could be enhanced through multiple healthcare boards working together and sharing information. But, she said, "The devil's always in the details. My concern now is that a lot of these agencies have had their budgets cut in the past, and I would hate to see something like this exacerbate those funding cuts and hamstring them even more."

Others are more skeptical.  State Sen. Leticia Van de Putte, a licensed pharmacist for 32 years, said the consolidation concept isn't new and has been rejected more than once. Perry is reviving the proposal, she said, mostly as a way to distract from larger cuts to education and healthcare.  "My feeling is that consolidating our health professional boards would really negatively influence quality of care," said Van de Putte, D-San Antonio. The boards' "real job is ensuring the safety of Texans, and that's what I'm afraid will be compromised."

Dr. Ronald L. Rhea, a Houston dentist and president of the Texas Dental Association, said that from an efficiency standpoint, the Texas State Board of Dental Examiners already collects a huge sum of money through licensure fees and turns over most of it for the state's general fund. "While we're sympathetic to [Perry's] efforts to balance the budget, we're not sure that this move would really continue to protect the public in the way that we try to protect them at this point," he said.  With so much uncertainty in the plan, Rhea is also concerned about who would be regulating whom. He noted that dental investigators are specifically trained to investigate dental claims. "We don't know anything about medicine and don't want to regulate the medical people," he said. "And certainly they know absolutely nothing about our profession as far as its regulation."

Other states have tried to save money by consolidating professional regulatory boards under one umbrella.  In Kansas, professionals such as doctors, occupational therapists, athletic trainers and respiratory therapists are under one agency -- though not nurses or dentists. In Indiana, an umbrella agency has 35 boards, commissions and committees that regulate 70 professions. The medical licensing board is under the agency, which serves administrative functions, while the board itself has the ultimate decision-making authority over licensees, a spokesman said. In Illinois, the Department for Finance and Professional Regulation oversees not just doctors and nurses but also banks, cemeteries, credit unions and pawnbrokers. The merger of Illinois' financial and health professions boards in 2004 resulted in more than $9 million in savings, spokeswoman Susan Hofer said. Some efficiency comes through having a standardized way of licensing, Hofer said.  "Licensing large numbers of people require a certain skill set," she said. "It requires certain administrative tools. And whether you're licensing accountants or doctors, you need to be able to create a form that's easy to fill out."  The information then goes to professionals who examine qualifications.

STATE OF THE JUDICIARY – On Wednesday, Chief Justice of the Supreme Court Wallace B. Jefferson addressed a joint session of the Texas Legislature to give the State of the Judiciary update.  He called on legislators to take action on judicial selection.   Chief Justice Jefferson said, "All that I have discussed depends on an impartial system of justice overseen by the judicial branch.  A justice system built on some notion of Democratic judging or Republican judging is a system that cannot be trusted.  I urge the Legislature to send the people a constitutional amendment that would allow judges to be selected on their merit and not on a partisan basis.  First, I would eliminate straight-ticket voting that allows judges to be swept from the bench – not for poor work ethic, not for bad temperament, not even for their controversial but courageous decisions – but because of party affiliation.  We saw this in Dallas County four years ago and in Harris County in the 1990's, in 2008 and just last year.  Let's extend terms for state judges, from four years to six for district court judges and from six years to eight for appellate courts judges.  And, let's bring sense to the process to allow a judge appointed to an unexpired term to serve a full term before having to face the voters.  That will give her or him experience and – this is important – a record to run on."

SENATE –  On Wednesday, the Senate passed SJR 1 by Steve Ogden (R-Bryan) and Florence Shapiro (R-Plano), calling on Congress to convene a constitutional convention for the purpose of passing an amendment to the U.S. Constitution that would require a federal balanced budget.  He spoke to several members of Congress on both sides of the aisle and found that, whether right or left, members were unwilling to consider a balanced budget amendment.  He concluded that if a budget amendment is going to be considered, the states must take the lead.

Senator Kirk Watson (D-Austin), who voted for the balanced budget resolution, turned the focus back on Texas saying, "I strongly believe that government budgets need to be not only balanced, but sustainably balanced.  And I support the conversation about federal spending that this resolution – and the constitutional amendment it contemplates – would create.  But the irony of this action makes my head spin.  It isn't enough for the Texas Legislature to simply point fingers at Washington DC without examining its own budgeting bad habits.  It's at least equally important that the legislature take steps to reform its budget and finances than to pass a resolution about another legislative body.  I have proposed an Honesty Agenda of legislation that would make government more open, its finances more honest, and those in control more accountable.  It would make information about the budget more widely available and help ensure that the state is on the side of middle-class Texans.  Until the legislature effectively addresses these issues, it's a waste of time to pass what could well become a purely symbolic resolution.  Those in control should focus on their own actions, and the need to reform their own house, before scolding others for the condition of theirs."

The Senate adjourned until 1:30p.m. on Monday, February 28, 2011.

HOUSE – On Thursday, Representative Burt Solomons (R-Carrollton), Chair of the House Redistricting Committee, talked to the House about his plans and the schedule for the redistricting process.  He said the Redistricting Committee will have an organizational meeting on March 1^st; will hold a public hearing on State Board of Education districts on March 15^th; will hold public hearings on Texas House districts on March 24^th and 25^th; and will have a hearing on Congressional district lines on April 7^th.  It is his goal for the House to pass the redistricting bills by the end of April.  He encouraged legislators in urban counties that have more than one member per county to work together.  He said, "I'm requesting the county delegations to get together to try to agree on a map.  Please work together for the best results for your constituents.  The more you work together, the better result we will have.  I want the House to pass the best, fair, and legal maps possible for the citizens of our state."

The House adjourned until 11:30a.m. on Monday, February 28, 2011.

Next Week:  Representative Dennis Bonnen (R-Angleton), Chairman of the House Select Committee on Voter Identification and Voter Fraud, announced that his committee will hold a public hearing on March 1, 2011 to consider Senate Bill 14, the Voter ID legislation, passed by the Senate.  Chairman Bonnen said, "In accordance with Governor Rick Perry's designation of Voter ID as an emergency item, this legislation is the select committee's first priority this session.  House Speaker Joe Straus has selected fellow committee member, Representative Patricia Harless (R-Spring) to serve as the lead House sponsor on SB 14.  Testimony from both sides of this critical issue will be given full consideration during this hearing."

BUDGET – The full Senate Finance Committee met Monday through Thursday of this week.  Their Subcommittee on Medicaid met on Monday and Thursday, and the Subcommittee on Education also met on Monday and Thursday.

The full House Appropriations Committee met on Monday, Tuesday, and Thursday and has posted a meeting for Friday.

HEALTH – This week, Speaker Joe Straus weighed in on the effort to reform Medicaid.  He said, "Medicaid is an unsustainable federal program that continues to eat up more of our state budget, crowding out other priorities.  State spending on Medicaid has doubled in the last 10 years, and current spending now accounts for 18.7% of the GR-related 2011/11 Texas budget.  Like most states, Texas is faced with the challenge of maintaining this critical safety net with limited taxpayer dollars.  While this is not an easy task to accomplish in these difficult economic times, the Legislature is working diligently to do what is best for our most vulnerable citizens.  I am grateful to Chairman Lois Kolkhorst and other members for their leadership in working to reform Medicaid so that taxpayer dollars are spent wisely and essential services are preserved."

On Tuesday, Members of the Coalition to Protect Trauma Care urged Texas legislators to maintain adequate funding for the statewide trauma system and protect trauma's main source of funding:  the Driver Responsibility Program.  Dan Stultz, chair of the coalition said, "Since its inception, the Driver Responsibility Program has raised more than $720 million in revenue for trauma care, yet just $380 million has been appropriated to hospitals and emergency care providers.  Year after year, money is used to help certify the state budget.  These resources are intended to support the trauma system, and should be used for that purpose.  Both the House and Senate versions of the state budget appropriate less than $58 million per year from the fund for trauma in the next biennium – a 23% decrease from 2010-11.  At the same time, designated trauma facilities are reporting more than $225 million in uncompensated trauma care costs a year.  We hope lawmakers will at least maintain the 2010-11 appropriation of $75 million per year for trauma care."  Representative John Zerwas (R-Fulshear), Chair of the Subcommittee on Article II (Health and Human Services) of the House Appropriations Committee, said, "As a physician, I know the importance of having access to timely trauma care, and Texas is fortunate to have a statewide trauma system.  I commend the thousands of dedicated trauma care providers across this state who are available 24/7 trying to save lives when disaster strikes."

The House State Affairs Committee met on Wednesday and took up HB 15 by Sid Miller (R-Stephenville) and HB 201 by Geanie Morrison, both requiring a sonogram before an abortion can be performed.  After four hours of testimony, both bills were left pending.  On Thursday, the committee voted out HB 15.   

Next Week:  The House Insurance Committee will meet on Tuesday, March 1, 2011 at 10:30a.m. in E2.026 of the capitol extension to take up:

HB 438 by Senfronia Thompson (D-Houston) would require a health benefit plan that provides coverage for cancer treatment to cover orally administered anticancer medication, in addition to intravenously administered medication. 

HB 636 by John Zerwas (R-Fulshear) would establish a state health insurance exchange, the Texas Health Insurance Connector, to facilitate the purchase of small employer and individual health benefit plan coverage, and provide assistance with enrollment of individuals eligible for qualified health plans.

The Senate Health and Human Services Committee will also meet on Tuesday, March 1, 2011 at 11:00a.m. in the Senate Chamber to take up:

SB 177 by Joan Huffman (R-Houston), would prohibit the Texas Medical Board from accepting anonymous complaints, and specify reporting requirements related to complaints filed by insurers against a physician.

SB 190 by Jane Nelson (R-Lewisville) would prohibit the Texas Medical Board from investigating anonymous complaints; would update physician, physician assistant, acupuncturist, and surgical assistant temporary licensing requirements; would authorize TMB, Texas Physicians Assistant Board, and Texas State Board of Acupuncture Examiners to hear evidence and conduct deliberations related to license applications and disciplinary actions in closed executive session exempt from the Texas Open Meetings Act; and would create postgraduate training permits for physician assistants and acupuncturists. 

SB 191 by Jane Nelson (R-Lewisville) relates to the licensing and regulation of physicians.  

SB 192 by Jane Nelson (R-Lewisville) would clarify provisions related to good faith reporting by a nurse, and expand provisions related to protection from retaliation for a nurse who reports inappropriate patient care conduct.

SB 227 by Nelson relating to the nondisciplinary resolution of certain complaints filed against physicians. 

SB 355 (Rodney Ellis (D-Houston) would prohibit smoking in places of employment, in public places, and in the seating area at an outdoor event.

TAX – The House Ways and Means Committee met on Monday for an organizational meeting and to hear invited testimony from the Comptroller's office.  Representative Jose Menendez (D-San Antonio) filed HB 1597, which would temporarily increase the state sales tax by two cents for two years.  The extra money would be exclusively dedicated to reducing the proposed $10 billion cuts in public education.  The increase would expire on September 1, 2013.

TORT – The House Judiciary and Civil Jurisprudence Committee met on Monday for an organizational meeting and to take invited testimony from the Office of the Attorney General and the Supreme Court.

ENVIRONMENT – On Wednesday, the House Energy Resources Committee met and heard from invited witnesses on the litigation involving the Environmental Protection Agency.  Chairman Jim Keffer (R-Eastland) announced that the Environmental Protection Agency declined to send a representative to the hearing.  Texas Commission on Environmental Quality Commissioner Bryan Shaw testified that the Flexible Permit Program is working although it has received some bad press.  He expressed frustration that the EPA wants to take over the Greenhouse Gases Program.  So far TCEQ and the EPA have been unable to reach a compromise.  Mark Vickery, Executive Director of TCEQ, reported that the state implementation plan has been submitted to the EPA for approval, but it has yet to be approved.  He also added that in 2010, the EPA disapproved the flexible permit program.

Senator Wendy Davis (D-Fort Worth) announced the filing of SB 772 which would require companies drilling for natural gas to include a "tracer" fluid in the fracturing water used in the drilling process.  Senator Davis said, "The use of the tracer would protect the gas drilling industry from false claims of groundwater contamination or answer questions for landowners about possible contamination in the same manner that DNA evidence is used to prove or exonerate defendants in criminal court cases. . . I support responsible drilling and the positive impact that drilling for natural gas has brought to our local economy.  The use of tracer fluid could help quickly settle costly legal disputes related to the fracturing process.  The goal of this legislation is to reduce the cost of legal burdens on the gas drilling industry or landowners when questions of water contamination arise, while also demonstrating to a ground-water dependent public that drilling is safe."

Next Week:  The Senate Natural Resources Committee will meet on Tuesday, March 1, 2011 at 9:00a.m. in E1.012 of the capitol extension to take up SB 332 by Troy Fraser (R-Horseshoe Bay), which would provide that a landowner, or the landowner's lessee or assign, would have a vested ownership interest in and right to produce groundwater below the surface of the landowner's real property.

PUBLIC EDUCATION – This week, the U.S. House of Representatives passed an amendment to H.R. 1 by Congressman Michael Burgess to free up federal education funds for Texas from the Education Jobs Bill of 2010.  Governor Rick Perry said, "I commend the U.S. House for passing Congressman Burgess' amendment to H.R. 1, which would prohibit the U.S. Department of Education from enforcing the anti-Texas Doggett provisions of the Education Jobs Bill passed in 2010.  With 48 out of 50 states having already received their share of the funds from the Education Jobs Bill, I hope the U.S. Senate will also approve this measure to help right a wrong, apply equity to Texas, and quickly get $830 million to Texas schools, teachers and children."  In response to the repeal of his amendment, Congressman Lloyd Doggett (D-Austin) said, "There is a clear path for Texas schools to get all of the money that Texas Democratic Congress embers voted to provide them.  The Governor simply has to sign a three-page application for the $830 million, like the one he signed to get the $3.25 billion of aid he kept for purposes other than education.  Though this is presented as an attempt to repeal our amendment, it does not repeal it.  It is a meaningless gesture, though it does cloud up the possibility that some federal court may suggest that Texas is not entitled to any money.  Let us not shut the door to opportunity."

On Thursday, Senators Florence Shapiro (R-Plano), Royce West (D-Dallas), Robert Duncan (R-Lubbock), and Wendy Davis (D-Fort Worth) announced that they have jointly filed SB 912.  Their press release said, "SB 912 will ensure schools don't have to make rash decisions about their most essential personnel.  This is a pro-teacher, pro-school district solution.  Currently, a school district, by law, must notify a teacher in mid-April if the district intends to end the teacher's term contract.  Not only are these notifications sent out around testing time, but this year, school districts may not have the real numbers they need to make the best decisions about their budget.  Teachers only have fifteen days after a notice of nonrenewal to request a hearing in an attempt to keep their job.  In a year when layoffs appear eminent, a school district wouldn't be able to allow true due process for the amount of anticipated hearings.  SB 912 will allow teachers thirty days to request a hearing should districts give notice of intent to not renew a contract.  During this time, teachers could plan their next steps, decide whether or not to request a hearing, and school districts will have more time to get real numbers.  It also allows school boards to hire an independent third party should the amount of hearing requests make it impossible for them to hear all the cases.  This independent party would give true due process to teachers and help the school boards manage their workload.  Recognizing that the state's economic future will become more clear in the coming months, the senators are committed to preserving teacher jobs and allowing more time to districts before they make tough decisions.  SB 912 lays out the first of several steps that will ensure that the budget problems of this state aren't solved using the teachers of Texas."

Friday, February 18, 2011

GOVERNOR – On Tuesday, Governor Rick Perry renewed his call to make the small business tax cut passed last session permanent and to strengthen our legal system by creating a "loser pays" system to provide stronger protections against frivolous lawsuits; establishing an early dismissal option for frivolous lawsuits; ensuring new laws cannot create causes of action unless expressly established by the Legislature; and setting up expedited trials and limited discovery for lawsuits with claims between $10,000 and $100,000. 

STATEWIDE – On Tuesday, the Texas Legislative Study Group, a liberal/progressive caucus, released its 2011 Texas on the Brink:  How Texas Ranks among the Fifty States report.  Here are some of the report's pertinent findings; 

1^st = the highest
50^th = the lowest 

Health – Texas ranks

• 4^th in percent living below the federal poverty level
• 2^nd in percent of population with food insecurity
• 47^th in average monthly Women, Infant, and Children (WIC) benefits per person;
• 16^th in prevalence of obesity in adults
• 46^th in percent of population who visit the dentist
• 1^st in percent of population uninsured, percent of non-elderly uninsured, and in percent of uninsured children
• 49^th in percent of low income population covered by Medicaid
• 48^th in percent of population with employer-based health insurance
• 43^rd in total state government health expenditures as a percent of the gross state product
• 50^th in per capita state spending on mental health
• 49^th in per capita state spending on Medicaid
• 36^th in percent of population physically active
• 44^th in health care expenditures per capita

Representative Armando "Mando" Martinez (D-Weslaco) said, "We have the unfortunate distinction of being the state with the highest uninsured population in the country.  To make matters worse, there are proposals to severely cut the rates we pay doctors who see Medicaid patients.

State Taxes – Texas ranks

• 46^th in tax revenue raised per capita
• 47^th in tax expenditures per capita
• 15^th in sales tax per capita

Workforce – Texas ranks

• 38^th in average hourly earnings of production workers on manufacturing payrolls
• 50^th in workers' compensation coverage

SENATE – The Senate passed SB 16 by Dan Patrick (R-Houston), which would require a doctor to perform a sonogram before performing an abortion and make available both the sonogram image and the sound of the fetal heartbeat.  It would allow the woman to decline to see the sonogram or to hear the heartbeat.  The bill passed by a vote of 21 to 10.  Senator Jeff Wentworth (R-San Antonio) was the only Republican to vote against the bill.  Three Democrats joined the other Republicans in voting for it including Senators Eddie Lucio, Jr. (D-Brownsville), Carlos Uresti (D-San Antonio), and Judith Zaffirini (D-Laredo).

The Senate adjourned until Tuesday, February 21, 2011 at 1:30pm.

HOUSE –Bills are being referred to House committees at the rate of around 100 per day.  So far approximately 500 bills have been referred.  The House adjourned until Monday, February 21, 2011 at 1:00pm.

HOUSE DISTRICT 48 ELECTION CONTEST – Special Master, Representative Will Hartnett (R-Dallas) released his Master's Report on the election contest in House District 48 where Republican Dan Neil is contesting the election of Representative Donna Howard.  Hartnett's report concluded that Rep. Howard won by a margin of 4 votes and that her Neil produced no evidence of intentional voter fraud.

BUDGET – Senate Finance Committee Chairman Steve Ogden (R-Bryan) announced two subcommittees, one of them being a Subcommittee on Medicaid – Jane Nelson, Chair, and members:  Deuell, Eltife, Hinojosa, Whitmire, Williams, and Zaffirini.  To the subcommittee, Senator Nelson said, "Growth in Medicaid is simply unsustainable.  Medicaid costs are projected to double every ten years.  We've got to roll up our sleeves and find every savings we can."

House Appropriations Committee Chairman Jim Pitts (R-Waxahachie) announced the chairs and members of the House Appropriations Committee's subcommittees.

Health and Human Services (Article II) – John Zerwas, Chair, and members:  Warren Chisum, Dawnna Dukes, Craig Eiland, Susan King, and Charles Schwertner.

Education (Article III) – Scott Hochberg, Chair, and members:  Jimmie Don Aycock, Myra Crownover, Helen Giddings, Geanie Morrison, Diane Patrick, and Mike Villarreal. 

General Government, Judiciary and Criminal Justice (Articles I, IV, and V) – John Otto, Chair, and members:  Angie Chen Button, Dee Margo, Armando Martinez, Ruth Jones McClendon, and Mark Shelton.

Natural Resources, Business and Economic Development, and Regulatory (Articles VI, VII and VIII) – Drew Darby, Chair, and members:  Lance Gooden, Eric Johnson, Doug Miller, Debbie Riddle, and Raul Torres.

Subcommittee on Current Fiscal Condition – Jimmie Don Aycock, Chair, and members:  Warren Chisum, Susan King, Ruth Jones McClendon, and Sylvester Turner.

On Thursday, the Senate State Affairs Committee met and passed SJR 1 by Steve Ogden (R-Bryan) and SJR 10 by Florence Shapiro (R-Plano) calling on Congress to convene a constitutional convention for the purpose of passing an amendment to the U.S. Constitution that would require a federal balanced budget.  An amendment was added to provide that Texas's call for a convention would be rescinded if the body considers amendments other than a balanced budget amendment.  These bills are on Tuesday's Senate Intent Calendar.

On Tuesday, Senator Kirk Watson (D-Austin) filed what he calls his "Honesty Agenda" which includes 15 bills designed to open the budget process, make information widely available about the state's finances, and enhance citizens' power over the state treasury.  Senator Watson said, "For too many years, the budget has incorporated a toxic mix of debt, diversions and deception.  I simply don't believe our state would be in this position if Texans had better information – and the ability to get better information – about how their money is raised and spent."

These bills make up Senator Watson's "Honesty Agenda."

SB 695 would require money dedicated for specific purposes to be spent only on those purposes and not used to balance the budget. 

SB 696 would require the comptroller to provide regular reports about the state's budget condition. 

SB 697 would create the State Budgeting Plan Legislative Advisory Committee composed of legislators and business leaders to develop a comprehensive state budgeting plan. 

SB 698 would require the Legislative Budget Board to prepare an appropriations impact statement analyzing the impact of budget reductions. 

SB 699 would require the state to report what it collects in fees, whether fees were increased during a legislative session, and how much the fee revenue is being diverted to balance the budget.  

SB 700 would require raw budget data to be posted online so the general public can analyze how public money is being spent. 

SB 701 would encourage state agencies to post data sets online.

SB 702 would allow any member of the legislature to request a report on the long-term economic impact of legislation, even those that cost money in the short-term. 

SB 703 would require state agencies to report the impact of refusing to accept federal dollars. 

SB 704 would allow the public to comment on budget changes that are ordered between legislative sessions.

SB 705 and SJR 24 would end unfunded mandates on cities, counties, school districts and other local governments.

SB 706 would require the state's Cash Management Committee to hold a public hearing and take testimony on the state's cash flow situation and overall economic condition before approving the issuance of additional short-term debt.

SB 707 would move the Texas Performance Reviews from the Legislative Budget Board back to the comptroller. 

SB 708 would subject the Sunset Advisory Commission to sunset review by the comptroller.

Next Week:  The Senate Finance Committee's Subcommittee on Medicaid will meet on Monday at 9:00am in the Senate Chamber.  The House Appropriations Committee will meet on Monday, February 21, 2011 in E1.030.  The Subcommittee on Article II will meet on Tuesday.

ENERGY – On Tuesday, the Senate Business and Commerce Committee and the Senate Natural Resources Committee held a joint hearing on the rolling blackouts that occurred in early February.  Barry Smitherman, Chairman of the Public Utility Commission, gave three reasons why equipment failure led to the blackouts.  First was a lack of communication between various agencies that oversee the power grid in Texas.  Second was a problem with the state's natural gas supply.  Electric supplies were accidentally cut to some gas plants, so they weren't able to supply additional gas needed to generate electricity.  And finally, there was a lack of adequate winterization to protect against extreme cold.  Smitherman said that all plants in Texas are weatherized, but mostly to protect against hurricane, rather than cold, conditions.  He explained that one of the solutions the PUC is looking at include a review of all emergency plans at the various power generators to ensure they have adequate protection against future cold weather events.  He believes that current statutory authority combined with market forces are enough to encourage suppliers to better prepare.

On Wednesday, the House State Affairs Committee held a similar hearing on rolling blackouts.

HEALTH – On Tuesday, the Senate Health and Human Services Committee took up 13 bills, including the ones listed below.  Chairman Jane Nelson announced that all the bills were similar to bills that passed the Senate last session but did not pass the House.  She also announced that the committee would not be meeting next week but would meet on March 1^st and 8^th, and in those meetings, the committee would hear bills related to the committee's interim charges.

SB 81 by Jane Nelson (R-Lewisville) would clarify that food manufacturers, food wholesalers, and warehouse operators who harvest, package, or wash raw fruits or vegetables for shipment at the location of harvest are exempt from holding a license under the Texas Food, Drug and Cosmetic Act.  It was reported favorably and recommended for the Local & Uncontested calendar.

SB 156 by Joan Huffman (R-Houston) would transfer the powers and duties of the Texas Health Care Information Council to the Department of State Health Services and confidential data would remain confidential.  It was reported favorably and recommended for the Local & Uncontested calendar.

SB 187 by Jane Nelson (R-Lewisville) would require the Anatomical Board of Texas to develop an informed consent document to be made available on the Internet for a person intending to make a gift of a decedent's body or anatomical specimen for purposes of education or research.  It was reported favorably and recommended for the Local & Uncontested calendar.

SB 189 by Jane Nelson (R-Lewisville) would establish additional eligibility requirements for an applicant for a license to practice medicine who is not a legal citizen or lawfully admitted alien, and authorize the Texas Medical Board to limit such a person's license to practice medicine to a designated health professional shortage area, or medically underserved area.  It was reported favorably and recommended for the Local & Uncontested calendar.

On Wednesday, Lt. Governor David Dewhurst and Senator Jane Nelson (R-Lewisville) announced the filing of SBs 7 and 8, designed to increase health care savings for the state, create more flexibility for providers, enhance transparency for the public, and improve medical outcomes for patients.  SB 7 would lower reimbursements for doctors in cases of preventable complications, or readmissions for the same medical issue; offer incentives for hospitals that operate more efficiently; and establish a pilot study to look at the effectiveness of the pay-for-performance model in long-term care.  SB 8 would develop a state plan to implement and use pay-for-performance as a way to improve the quality and efficiency of healthcare; require the public reporting of preventable complications and readmissions; standardize hospital wristbands; and set up a system to track preventable conditions that arise in long-term care.   Lt. Governor Dewhurst said, "We don't have health care in America – we have sick care.  Studies by Dartmouth Institute and others indicate that we can save money and improve medical outcomes by incentivizing doctors and hospitals to use best practices and focus on wellness and prevention, rather than the number of procedures they perform.  Senate bills 7 and 8 will give doctors and hospitals the flexibility to work together to improve health care delivery and ultimately reduce the rising costs associated with programs like Medicaid.  Over the last decade, Medicaid spending has more than doubled, and funding for Health and Human Services now represents almost one third of the state budget."  Senator Nelson added, "These bills move us toward a payment system that rewards quality outcomes rather than quantity of services, along with reducing our costs for unnecessary tests and preventable hospital readmissions.  We need to refocus our payment system on the true goal:  healthy outcomes for Texans."

Texas Hospital Association added its support for SBs 7 and 8.  Dr. Dan Stultz, President of Texas Hospital Association said, "The current system of paying for health care is based on volume, not quality.  Payment reform is needed to change the incentives and reward 'right behaviors,' such as using best practices and evidence-based protocols to improve quality.  SBs 7 and 8 create incentives for physicians and hospitals – as well as other health care providers – to collaborate and focus on outcomes.  Patients expect and deserve the best outcome possible for their condition.  Texas hospitals are ready to embrace the concept of health care collaboratives, where physicians, nurses and hospitals work together to achieve the best quality results for their patients.  Removing antitrust barriers and creating financial incentives – such as global or bundled payments and reductions in reimbursement for preventable complications and preventable readmissions – will help drive the movement to improve quality, and over time lead to tangible cost savings and better outcomes."

Next Week:  The House Public Health Committee will meet on Wednesday, February 23, 2011 at 8:00am in E2.012 of the capitol extension for an organizational meeting and to hear invited testimony.

PRIVACY - Senator Jane Nelson (R-Lewisville) filed SB 622, which is designed to strengthen the protection of Texans' personal health information.  SB 622 would:

• prohibit the sale of protected health information
• increase criminal penalties for theft of medical records, breach of computer security, and health care fraud, including Medicaid fraud that involves stolen health information
• increase the civil penalties the Texas Attorney General may assess for violations of the Texas Medical Privacy Act
• require health care providers to provide a person's health record in an electronic format within five days of the request
• require the Texas Attorney General to maintain a web site providing information about consumer privacy rights and complaint procedures

REDISTRICTING –On Thursday, the U.S. Census Bureau delivered 2010 census data to the State of Texas for use in redistricting.  The census figures indicated that the population of Texas was 25.1 million in 2010, a gain of 20.6% in the last 10 years (4.3 million people).  The Hispanic population of Texas increased from 6.7 million to 9.5 million in 2010, increasing the overall Hispanic percentage of the population from 32% to 37.6%.

TAX – An affiliate nexus bill was filed in the Texas Legislature this week.

HB 1317 by Elliot Naishtat (D-Austin) would create a rebuttable presumption that a retailer is doing business in Texas, and thus required to collect sales tax, if the retailer enters into an agreement with a Texas resident under which the resident receives a commission or other consideration for direct or indirect referrals by any means, including a link on an Internet web site, and the retailer received at least $10,000 in gross receipts from such residents over the previous four calendar quarters.  The presumption may be rebutted by proof that the Texas resident did not engage in any solicitation in Texas on behalf of the retailer that would satisfy Constitutional nexus requirements.  It was filed after Amazon.com announced last week that it would close its Irving distribution facility.  Comptroller Susan Combs has requested Amazon to pay $269 million which she estimated the company owes in back sales taxes.  Governor Rick Perry was quoted in the Washington Examiner as saying, "That is a problem, and I would suggest to you that we need to look at that decision that our comptroller made.  The comptroller made that decision independently.  I would tell you from my perspective that's not the decision I would have made."

Next Week:  The House Ways and Means Committee will meet on Monday, February 21, 2011 at 2:00pm in E2.014 of the capitol extension for an organizational meeting and to hear invited testimony.

TORT:

Next Week:  The House Judiciary and Civil Jurisprudence Committee will meet on Monday, February 21, 2011 at 2:00pm in E2.010 of the capitol extension for an organizational meeting and to take invited testimony.

Friday, February 11, 2011

OF SPECIFIC INTEREST THIS WEEK:  The Governor is advocating the consolidation of the licensing boards for doctors, nurses, dentists, optometrists, psychologists, chiropractors, pharmacists, physical therapists, and podiatrists into a new Health Professions Agency for a savings of $7 million.  Rep. Garnet Coleman filed HB 1266 to broaden the scope of practice for advanced practice nurses.  Rep. Tom Craddick filed HB 1264 relating to establishing a separate provider type for prosthetic and orthotic providers under the medical assistance program.  Sen. Carona is expected to file a scope of practice expansion bill for the optometrists.

GOVERNOR – On Tuesday, Governor Rick Perry delivered his State of the State address to a joint session of the Senate and House.  Pertinent parts of his announced agenda are included under the headings below. 

SENATE – The Senate was in session Monday through Wednesday this week.  They  unanimously passed SB 18 by Senator Craig Estes (R-Wichita Falls), the omnibus eminent domain reform bill.  It would require a governmental entity intending to take private land for public use to offer a good-faith offer in writing that meets appraisal value of the property; and would permit an owner to repurchase the land at the price the government paid for it if the public use purpose is not advanced within ten years. 

The Senate adjourned until Monday, February 14, 2011 at 1:30p.m. 

HOUSE – The House conducted routine business Monday through Wednesday this week.  On Wednesday, Speaker Joe Straus announced House committees for the 82^nd Legislature.  He appointed Beverly Woolley (R-Houston), a former Craddick lieutenant, as Speaker Pro Tempore and officially designated former speaker Tom Craddick (R-Midland) as Dean of the House.  He also added two new committees:  the Select Committee on Voter Identification and Voter Fraud; and the Select Committee on State Sovereignty.  Committees and their chairs (and members of important jurisdictional committees) are:

Agriculture & Livestock – Rick Hardcastle (R-Vernon)

Appropriations – Jim Pitts (R-Waxahachie)

Border & Intergovernmental Affairs – Veronica Gonzales (D-McAllen)

Business & Industry – Joe Deshotel (D-Beaumont); Orr, VC; Miller, Sid; Quintanilla; Bohac, Garza; Giddings; Solomons; Workman

Calendars – Todd Hunter (R-Corpus Christi)

Corrections – Jerry Madden (R-Richardson)

County Affairs – Garnet Coleman (D-Houston)

Criminal Jurisprudence – Pete Gallego (D-Alpine)

Culture, Recreation & Tourism – Ryan Guillen (D-Rio Grande City)

Defense & Veterans' Affairs – Joe Pickett (D-El Paso)

Economic & Small Business Development – John Davis (R-Houston)

Elections – Larry Taylor (R-Friendswood)

Energy Resources – Jim Keffer (R-Eastland)

Environmental Regulation – Wayne Smith (R-Baytown)

General Investigating & Ethics – Chuck Hopson (R-Jacksonville)

Government Efficiency & Reform – Bill Callegari (R-Katy)

Higher Education – Dan Branch (R-Dallas)

Homeland Security & Public Safety – Sid Miller (R-Stephenville)

House Administration – Charlie Geren (R-Fort Worth)

Human Services – Richard Pena Raymond (D-Laredo); Morrison, VC; Gonzalez, Naomi; Hughes; Naishtat; Hopson; Hunter; Laubenberg; Taylor, Van.

Insurance – John Smithee (R-Amarillo)

Judiciary & Civil Jurisprudence – Jim Jackson (R-Carrollton); Lewis, VC; Castro; Hartnett; Madden; Raymond; Bohac; Davis, Sarah; Scott; Thompson; Woolley

Land & Resource Management – Rene Oliviera (D-Brownsville)

Licensing & Administrative Procedures – Mike Hamilton (R-Mauriceville)

Local & Consent Calendars – Senfronia Thompson (D-Houston)

Natural Resources – Allan Ritter (R-Nederland)

Pensions, Investments & Financial Services – Vicki Truitt (R-Keller)

Public Health – Lois Kolkhorst (R-Brenham); Naishtat; Coleman; Gonzales, Veronica; Laubenberg; Truitt; Alvarado; Davis, Sarah; King, Susan; Schwertner; Zerwas

Redistricting – Burt Solomons (R-Carrollton)

Rules and Resolutions – Ruth Jones McClendon (D-San Antonio)

State Affairs – Byron Cook (R-Corsicana)

Technology – Aaron Pena (R-Edinburg)

Transportation – Larry Phillips (R-Sherman)

Urban Affairs – Harold Dutton, Jr. (D-Houston)

Ways & Means – Harvey Hilderbran (R-Kerrville)

Select Committee on State Sovereignty – Brandon Creighton (R-Conroe)

Select Committee on Voter ID/Voter Fraud – Dennis Bonnen (R-Angleton)

Of the 38 committees, 15 committees have the same committee chair as last session– Appropriations, Border & Intergovernmental Affairs, Business and Industry, County Affairs, Criminal Jurisprudence, Energy Resources, General Investigating & Ethics, Higher Education, House Administration, Insurance, Local & Consent Calendars, Natural Resources, Pensions Investments & Financial Services, Public Education, Public Health, and Redistricting.  9 committee chairs were open because their chairs did not return to the House including:  Agriculture & Livestock, Calendars, Corrections, Culture, Recreation & Tourism, Defense & Veterans Affairs, Human Services, Licensing & Administrative Procedures, Homeland Security and Public Safety, and Redistricting.  Four committees are new: Economic & Small Business Development, Government Efficiency and Reform, Select Committee on State Sovereignty, and Select Committee on Voter Identification and Voter Fraud.  9 committees have new chairs while their previous chairs are still in the House including:

Elections – change from Todd Smith, who is the only Republican who is no longer a Chairman.

Environmental Regulation – change from Byron Cook, who went to State Affairs.

Judiciary & Civil Jurisprudence – change from Todd Hunter who went to Calendars

Land & Resource Management – change from Dennis Bonnen, who went to Select Committee on Voter ID and Voter Fraud and Chair of the Sunset Advisory Commission.

State Affairs – change from Burt Solomons, who went to Redistricting.

Technology – change from Mark Strama, who is no longer a Chairman.

Transportation – change from Joe Pickett, who went to Defense & Veteran Affairs.

Urban Affairs – change from Yvonne Davis

Ways & Means – change from Rene Oliviera, who went to Land and Resource Management.

After committee assignments were announced and 100 bills were referred, the House adjourned until Monday, February 14, 2011 at 1:00. 

BUDGET – In his State of the State speech, Governor Rick Perry suggested some budget reforms, including consolidation (collapse Department of Rural Affairs into the Department of Agriculture), suspension of non-mission-critical entities (Historical Commission and Commission on the Arts), and appointing a State Inspector General ("We should follow the lead of the Health and Human Services Commission, whose inspector general has saved the state more than $5.3 billion since its creation in 2004.  Applied across all state agencies and departments, these practices could significantly reduce wasteful spending, and save taxpayers' money.  A state Inspector General would work directly with the agencies, enhancing the state auditor's efforts and improving efficiencies.").  He also cautioned against passage of unfunded mandates on local governmental entities.   

On Tuesday, Governor Perry released his budget recommendations.  As a starting point, it assumes the lowest recommended amount of general revenue and general revenue-dedicated for each agency and institution included in the introduced House or Senate appropriation bills.  He proposed an alternative way of arriving at the base number proposed by HB 1 (or SB 1).  The governor's budget made several recommendations for savings and sources of revenue including:

• Consolidate the licensing boards for doctors, nurses, dentists, optometrists, psychologists, chiropractors, pharmacists, physical therapists, and podiatrists into a new Health Professions Agency ($7 million)

• Suspend the Texas Historical Commission for the biennium ($4.6 million)

• Suspend the Commission on the Arts for the biennium ($5.1 million)

• Suspend the Board of Professional Geoscientists ($1.2 million)

• Suspend the Board of Professional Land Surveying ($881,000)

• Consolidate Texas Facilities Commission into General Land Office ($4.2 million)

• Consolidate Department of Assistive and Rehabilitative Services into Department of State Health Services and Department of Aging and Disability Services ($8.4 million)

• Consolidate Commission on Jail Standards, the Commission on Law Enforcement Officer Standards and Education and the Commission on Fire Protection into a new Licensing Agency Commission ($2.1 million)

• Consolidate Texas Department of Housing and Community Affairs into the Texas State Affordable Housing Corporation, Public Utility Commission, and Texas Department of Licensing and Regulation ($12.2 million)

• Consolidate Texas Department of Rural Affairs into the Texas Department of Agriculture ($6.4 million)

• Consolidate the Office of Public Utility Council into the Public Utility Commission ($1.5 million)

• Consolidate Texas Board of Veterinary Medical Examiners, Texas Funeral Services Commission and Texas Board of Plumbing Examiners into Texas Department of Licensing and Regulation ($2.9 million)

• Requiring state employees whose spouses receive 50% of their insurance coverage paid by the state to pay a 10% spousal surcharge ($11 million)

• Cancelling the University of Texas Medical Branch's contract for Correctional Managed Care and explore private sector delivery options ($30 million)

• Sell Texas Department of Criminal Justice Central Unit in Sugar Land property ($141 million)

• Increase state collection rates by 16% by giving agencies tools to maximize collection efforts ($141 million)

• Sale of property by the School Land Board ($200 million)

The governor's budget includes increases funding for:

Higher Education – Increase and combine TEXAS Grant and Tuition Equalization Grant Funding ($360.3 million); System Discretionary Funding ($479.2 million); and restore formula funding for general academic, health-related, and two-year institutions ($478.2 million).  Those increases would be offset by reductions in the higher education base of:  eliminate tuition waivers, except military-related waivers ($118 million); increase faculty productivity ($383 million); and reduce special items funding ($816.7 million). 

Health – Increase funding for alternatives to abortion ($8.4 million); and debt service for issuance of cancer bonds ($14.5 million). 

Efficiency – Add funding for a new Statewide Inspector General ($35.7 million). 

Tax – Continue the small business tax exemption of up to $1 million ($150 million).

The Senate Finance Committee met Monday through Thursday this week.  On Monday, they took up the Texas Education Agency and other issues relating to public education.  On Tuesday they heard from the Coordinating Board and community colleges.  On Wednesday, they took testimony regarding the University of Texas system schools and Texas Tech University system schools.  On Thursday, they heard from Texas A&M University system schools and components. 

On Wednesday, two hours after the committee was appointed, the House Appropriations Committee held its organizational meeting.  They heard overviews on the state budget from the Chief Revenue Estimator from and the Director of the Legislative Budget Board.  The reconvened on Thursday to hear presentations on prisons, Medicaid, and the foundation school program.  At the end of Thursday's meeting Chairman Jim Pitts announced that he would make appointments to the four subcommittees before Monday morning, and members would be notified via e-mail over the weekend of their subcommittee assignments.  The subcommittees will begin their work on Monday morning at 7:00.  The four subcommittees will be:

• Health and Human Services (Article II)
• Education (Article III)
• General Government, Judiciary and Criminal Justice (Articles I, IV, and V)
• Natural Resources, Business and Economic Development, and Regulatory (Articles VI, VII and VIII)

He asked the subcommittees to report their mark-ups back to the full committee beginning on Monday of the following week, 2/21, and announced that the full committee and subcommittees would be meeting on Fridays and as necessary on weekends.

Next Week:  The Senate Finance Committee will meet at noon to take up medical schools.  The Senate Finance Committee's Subcommittee on Medicaid will meet on Monday and Tuesday at 9:00a.m. in 2E.20 of the capitol extension and on Wednesday at 9:00a.m. in the Senate Chamber to take invited testimony. 

The House Appropriations Committee's subcommittees will all start meeting on Monday morning at 7:00a.m. and will meet subsequently throughout the week subject to the call of the chairs. 

The Subcommittee on Article III will meet in Room 140 of the John H. Reagan Building

The Subcommittee on Article II (HHS) will meet in Room E1.030 of the Capitol Extension

The Subcommittee on Articles I, IV, and V will meet in Room E2.030 of the Extension

The Subcommittee on Articles VI, VII, and VIII will meet in Room 120 of the John H. Reagan Building; note that the Texas Medical Board is in this subcommittee.

ECONOMIC DEVELOPMENT – In his State of the State speech, Governor Perry called for continued funding for the Texas Enterprise Fund, which he said has helped create tens of thousands of jobs for Texans and generate billions of dollars in capital investment in communities across the state.  He also called for renewed funding for the Texas Emerging Technology Fund, which he said has helped foster an environment of innovation in Texas, strengthened the state's technology industries, and attracted top researchers to Texas universities.  He said, "If we pulled the plug on our economic development efforts, no one would be happier than my fellow governors, in states like Oklahoma and New Jersey, who are creating their own versions of the TEF, to compete for the jobs we've been landing." 

HEALTH – On Wednesday, the Senate State Affairs Committee took up SB 16 by Dan Patrick (R-Houston), the emergency sonogram legislation.  By a vote of 7-2, the committee substitute would require that a sonogram would have to be performed by a physician or licensed sonographer 24 hours before an abortion procedure.  The woman may refuse the offer to view the results of the sonogram.  The doctor would also be required to check for the heartbeat and allow the woman to hear it if she so chooses.  The facility would be required to give printed materials to the patient describing the risks as well as any free pregnancy services available in her area.   

Next Week:  The Senate Health and Human Services Committee will meet on Tuesday, February 15, 2011 at 11:00a.m. in 2E.20 of the Capitol Building to take up 16 bills:

IMMIGRATION – As a part of his discussion on illegal immigration in the State of the State address, Governor Perry said, "It is time to seriously address the demand side of illegal immigration.  We must establish criminal penalties for employers who knowingly hire workers who are here in violation of immigration law."  On Wednesday, Representative Debbie Riddle (R-Houston) filed HB 1202, which would make it a state jail felony to intentionally, knowingly, or recklessly hire a person who is not lawfully permitted to be in America.  Representative Riddle said, "Employers who reward and incentivize this illegal behavior are the primary culprit in the illegal immigration problem.  Now, they're going to have to think hard about whether or not it's worth the risk to them and their business when they make these hiring decisions." 

PUBLIC EDUCATION – In his State of the State speech, Governor Rick Perry called for a continued commitment to accountability and called for the legislature to expand STEM (science, technology, engineering and mathematics) education and the Virtual School Network and to address the dropout program.  He also suggested that school districts should be encouraged to enter into shared service arrangements with other entities in their area to reduce expenses. 

HIGHER EDUCATION – In his State of the State address, Governor Perry outlined measures to make higher education more affordable, accessible and accountable including the creation of an outcomes-based funding system, in which a portion of undergraduate funding would be based upon the number of college degrees actually awarded, rather than just college enrollment, especially for at-risk students and in some critical fields.  Governor Perry challenged institutions to utilize web-based instruction, innovative teaching techniques and aggressive efficiency measures to develop bachelor's degree programs that cost no more than $10,000, including textbooks.  He also renewed his call for a four-year tuition freeze at the level a student pays his or her freshman year to help make financial planning more predictable for families.

Texas Faculty Association responded to Governor Perry's "outcomes-based funding" higher education proposal.  Mary Aldridge Dean, TFA's executive director said, "It will increase the number of college graduates but will not increase the number of educated graduates able to fill the technical jobs needed in the 21^st century.  It will force higher education systems to coerce their faculty to pass students in order to receive funding, regardless of student performance in the course they take.  This will not create an educated citizenry necessary to compete in the global workforce.  The governor's proposal for a $10,000 bachelor's degree was a 'statement out of fantasy land.'  With increased student populations and cuts in funding, the numbers simply do not add up to quality education for Texas students."

TORT REFORM – Governor Rick Perry talked about the effectiveness of prior tort reform efforts, and he called for additional tort reform in his State of the State address.  He said, "We've reformed our legal system to cut down on frivolous lawsuits, so employers and doctors don't spend all their time in court.  Since tort reform took effect, more than 26,000 medical license applications have been received, and 33 counties got their first emergency room physician.  Since the passage of reforms, the Rio Grande Valley has added 220 physicians to care for its growing population. Texas needs a 'loser pays' component in our legal system, in which those who sue and lose are required to pay the court costs and legal expenses of those they sued.  Texas is one of a very few states who don't have an 'early dismissal' option for obviously frivolous lawsuits, but we should.  We need to make our system more accessible to the little guy, by setting up expedited trials and limited discovery, for lawsuits with claims between $10,000 and $100,000.  These reforms would further improve the legal climate in our state, and impart even more energy, stability and security to our economy."

Texas Trial Lawyers Association President J. Steve Mostyn responded to the governor's tort reform proposals.  He said, "Legislators should be extremely skeptical when lobbyists for foreign corporations, insurance companies, polluters, liquor interests, and others of their ilk seek immunity from accountability in the name of so-called 'tort reform.'  Past practice tells us that these proposals are crafted to allow wrongdoers to escape accountability for their actions, they are not about reform.  The access to trial by jury in civil cases is a right Texans have in the Open Courts provision of the Texas Constitution and the Seventh Amendment of the U.S. Constitution.  These rights have been systematically eroded in a 10 plus year, lobby-driven attack to gut constitutional guarantees through legislative mandates rigging the justice system in favor of those whose conduct causes death, injury and financial devastation to Texas families and small businesses.  A right without a remedy is no right at all."

TRANSPORTATION – On Tuesday, Representative Lois Kolkhorst (R-Brenham) and Senator Glenn Hegar (R-Katy) filed HB 1201 and SB 565 to bring a formal and final close to the Trans-Texas Corridor by removing all remaining references to it from state law.  They said the legislation is necessary because although the financial tools to build the Trans-Texas Corridor have already been removed, the underlying legal code which enables the building of it at a later date has not.  

See you next week!
MICHELLE WITTENBURG

Friday, February 4, 2011

A GROUP OF BILLS OF SPECIFIC INTEREST relating to practices at the Texas Medical Board include SB 177, SB 190, HB 680, and HB 1013.

SENATE - Lt. Governor David Dewhurst announced Senate Committee assignments.   Tarrant County does not have representation on the Redistricting Committee, and Senator Wentworth did not regain a committee chairmanship.  All of the committee chairs and most of the committee members are the same as the interim committees that Lt. Governor Dewhurst shuffled around last summer.  Senate committees and their chairs include:

         Administration – Kevin Eltife (R-Tyler)

         Agriculture & Rural Affairs – Craig Estes (R-Wichita Falls)

         Business & Commerce – John Carona (R-Dallas)

         Criminal Justice – John Whitmire (D-Houston)

         Economic Development – Mike Jackson (R-LaPorte)

         Education – Florence Shapiro (R-Plano)

         Finance – Steve Ogden (R-Bryan)

         Government Organization – Rodney Ellis (D-Houston)

         Health & Human Services – Jane Nelson (R-Lewisville)

         Higher Education – Judith Zaffirini (D-Laredo)

         Intergovernmental Relations – Royce West (D-Dallas)

         Subcommittee on Flooding & Evacuations – Mario Gallegos (D-Houston)

         International Relations & Trade – Eddie Lucio (D-Brownsville)

         Jurisprudence – Chris Harris (R-Arlington)

         Natural Resources – Troy Fraser (R-Horseshoe Bay)

         Nominations – Robert Deuell (R-Greenville)

         Select Committee on Redistricting – Kel Seliger (R-Amarillo)

         State Affairs – Robert Duncan (R-Lubbock)

         Transportation & Homeland Security – Tommy Williams (R-The Woodlands)

         Veterans Affairs & Military Installations – Leticia Van de Putte (D-San Antonio)

Administration: Eltife, Chair; Uresti, Vice-Chair; Ogden; Shapiro; Wentworth; Whitmire; Zaffirini

Agriculture & Rural Affairs: Estes, Chair; Uresti, Vice-Chair; Hegar; Hinojosa; Jackson

Business & Commerce: Carona, Chair; Harris, Vice-Chair; Eltife; Estes; Jackson; Lucio; Van de Putte; Watson; Whitmire

Criminal Justice: Whitmire, Chair; Huffman, Vice-Chair; Carona; Ellis; Hegar; Hinojosa; Patrick

Economic Development: Jackson, Chair; Fraser, Vice-Chair; Birdwell; Eltife; Harris; Watson; Zaffirini

Education: Shapiro, Chair; Patrick, Vice-Chair; Carona; Davis; Gallegos; Ogden; Seliger; Van de Putte; West

Finance: Ogden, Chair; Hinojosa, Vice-Chair; Deuell; Duncan; Eltife; Estes; Lucio; Nelson; Patrick; Seliger; Shapiro; West; Whitmire; Williams; Zaffirini

Government Organization: Ellis, Chair; Hegar, Vice-Chair; Birdwell; Lucio; Nelson; Ogden; Whitmire

Health & Human Services: Nelson, Chair; Deuell, Vice-Chair; Huffman; Nichols; Patrick; Rodriguez; Uresti; West; Zaffirini

Higher Education: Zaffirini, Chair; Birdwell, Vice-Chair; Duncan; Huffman; Watson; Wentworth; West

Intergovernmental Relations: West, Chair; Nichols, Vice-Chair; Gallegos; Patrick; Wentworth/Subcommittee On Flooding & Evacuations: Gallegos, Chair; Nichols; Patrick

International Relations & Trade: Lucio, Chair; Davis, Vice-Chair; Fraser; Gallegos; Rodriguez; Seliger; Williams

Jurisprudence: Harris, Chair; Rodriguez, Vice-Chair; Carona; Duncan; Gallegos; Huffman; Uresti

Natural Resources: Fraser, Chair; Estes, Vice-Chair; Deuell; Duncan; Eltife; Hegar; Hinojosa; Jackson; Nichols; Seliger; Uresti

Nominations: Deuell, Chair; Hegar, Vice-Chair; Fraser; Nelson; Nichols; Rodriguez; Watson

Select Committee On Redistricting: Seliger, Chair; Gallegos, Vice-Chair; Carona; Eltife; Estes; Fraser; Hinojosa; Huffman; Lucio; Patrick; Uresti; Wentworth; West; Williams; Zaffirini

State Affairs: Duncan, Chair; Deuell, Vice-Chair; Ellis; Fraser; Huffman; Jackson; Lucio; Van de Putte; Williams

Transportation & Homeland Security: Williams, Chair; Watson, Vice-Chair; Davis; Ellis; Harris; Hinojosa; Nichols; Shapiro; Wentworth

Veterans Affairs & Military Installations: Van de Putte, Chair; Wentworth, Vice-Chair; Birdwell; Davis; Estes; Rodriguez

Budget

The Senate Finance Committee held hearings Monday through Thursday (a schedule they intend to keep that won't have them meeting on Fridays) on health and human services agencies.  The committee began with invited testimony from John Heleman, Chief Revenue Estimator from the Comptroller's office.  He reported that the state is expected to finish the current biennium with a $4.3 billion shortfall.  In response to a question from Senator John Whitmire (D-Houston), Heleman explained that Texas has a "structural deficit" caused by the fact that the local property tax relief passed in 2006 has cost more than anticipated, and the business margins tax it was replaced with has brought in less than expected.  The business tax was originally estimated to bring in $6 billion per year and it only brings in $4 billion per year.  He attributed that to large taxpayers subtracting more cost-of-goods-sold than predicted.  Heleman then discussed the Texas economy.  The recession knocked down Texas's revenue stream substantially.  The sales tax took a hit, and it brings in 60% of all state revenue.  The sales tax peaked in 2008, dropped 2.7% in fiscal year '09 and went down an additional 6.79% in fiscal year 2010.  On the issue of jobs, Heleman said that Texas is gaining jobs at a faster pace than the United States; we have gained back 55% of the jobs lost during the recession and by the second half of 2012, we should be back to summer of 2008 levels.  In response to another question from Senator Whitmire, Heleman estimated that Texas loses around $500 million per year from sales made over the Internet where sales taxes are not collected and remitted to the state.

John O'Brien, Director of the Legislative Budget Board, gave an overview of SB 1, the Senate appropriations bill.  He explained how the LBB went about designing a budget that is within available revenue:

1. They protected agency core programs and instead targeted reductions to discretionary programs and services (although some Finance Committee members expressed disagreement as to what agency programs are "discretionary");
2. They suspended appropriations for the next two years in some cases; 
3. In other cases, they made significant reductions of 25% and 50% to programs and services;
4. They reverted back to prior funding levels from 2006, 2007 and 2008 in some cases;
5. They asked agencies where cuts could be made and took the agency recommendations;
6. They looked for sources of funding other than general revenue when they could find them;
7. They looked at places where clientele could pay for services and made the service contingent on the agency raising fees; and
8. They assumed passage of legislation to bring spending in line with available revenue.

He provided committee members with a list of examples where statutory changes are required.  He said the LBB would be seeking sponsors for the bills.  That prompted several committee members to laugh and wish them luck.  Some of the required statutory changes include:

• Reduce state contribution to Teacher Retirement System enrollees to 6%;
• Reduce the state contribution rate for employee health insurance in TRS-Care;
• Repeal the prohibition on managed care in South Texas;
• Eliminate the insurance premium tax credit for exam fees and overhead assessments;
• Reduce school finance formula entitlements by 13%;
• Reduce Medicaid provider rates by 10%;
• Increase state employee/retiree share of group health insurance costs;
• Modify sales tax timely filer and prepayment discounts;
• Suspend the sales tax holiday;
• Implement a surcharge on inefficient vehicles;
• Increase state traffic fines; and
• Reduce escheat dormancy periods on unclaimed property from 5 to 3 years and for utility deposits from 3 to 1 year.

Article 2 agencies – health and human – were the focus of the committee this week.  HHSC Commissioner Tom Suehs asked budget writers to give priority to mitigating rate reductions and cuts to primary physicians and specialists in children's Medicaid and CHIP as well as restoring funding to cover caseload growth in the Medicaid program.  Suehs said that the problem was that in Medicaid, you either reduce the number of people you serve or the amount you pay the providers. The federal government with last year's federal health care law prevented states from dropping people from the Medicaid rolls by changing eligibility requirements; thus, state planners have in essence just the single big tool in the toolbox – provider rate cuts – to find savings in the Medicaid program. Critics argue that the end result remains fewer people receiving services because not paying providers will cause them to leave the system.

Suehs said that he would try not to do across the board rate cuts for providers but "targeted cuts to minimize hits to access to care." Specifically, he said that with primary care physicians and specialists who treat children on Medicaid and CHIP, he would ask to limit the rate cut to 2 percent. Restoring 8 percent of the provider rate cuts in those two areas would cost the state roughly $125 million in general revenue next biennium.

Suehs also indicated that he would push for budget writers to restore money to pay for growth in the Medicaid program. HHS projects that the number of Medicaid clients is expected to grow about 200,000 – from about 3.5 million in the current fiscal year to 3.7 million in fiscal year 2013. CHIP enrollment is expected to grow about 40,000 – from nearly 574,000 (a record high level of participation) to 613,000.

The base budget does not include any money to pay for this population growth. Because Medicaid is an entitlement program, eligible applicants can't be turned away. Paying for that caseload growth in Medicaid would cost $4 billion in general revenue over the coming biennium. In addition, Suehs asked for the money to cover expected increases in health care costs, to the tune of $1.2 billion.

Suehs added requests to fund a few other smaller requests, such as to hire some more eligibility staff in areas of the state with big caseloads or to preserve a children's physician loan repayment program established by the Frew settlement. All together, Suehs said that he needs $6.6 billion in additional general revenue "to get the job done at HHS."

The 10 percent provider rate reduction is a major part of a suite of proposed $3.6 billion in savings counting both general revenue and federal matching money. Suehs said that if savings cannot be met, other reductions like lower reimbursements to hospitals or requiring Medicaid clients to pay more for services might follow. Left unsaid in all this is what happens to other Medicaid providers, such as long term care providers, if rate cuts are applied differently to primary care providers and specialists.

Payment Reform – Lt. Gov. David Dewhurst is championing payment reforms in the Senate.  The state stands to generate massive savings — and Texans will have far better health care, he said — if doctors and hospitals are paid for how well they treat patients, not for how many tests they run, or how many days they keep someone in the intensive care unit.  

Under the guidance of Dewhurst and Sen. Nelson, the Senate approved legislation last session that would have created a variety of outcomes-based health care initiatives, from pay-for-performance pilot programs that provide incentives to doctors in the private market, to preventative care-focused "medical homes" for disabled and needy Texans on Medicaid and CHIP, the Children's Health Insurance Program. The measure died in the House — stuck behind an end-of-session voter ID stall-fest.  This session, with the estimated $28 billion shortfall, Dewhurst and Nelson are determined to get such legislation through. They believe such programs are in the best interest of patients. They are also keen to achieve the cost savings that reform could create, at least in theory. Dewhurst estimates those savings could be as much as 40 percent of health care spending overall and up to 28 percent of spending in hospital settings. "If we don't come together on a change in our payment structure, on how we pay doctors and hospitals, we're going to crowd out spending on essential public programs," Dewhurst said.

Eminent Domain

On Thursday, the Senate State Affairs Committee passed from committee SB 18 by Craig Estes (R-Wichita Falls), the eminent domain reform bill designated an emergency by Governor Rick Perry.  It would:

• Prohibit the exercise of eminent domain if the land subject to a taking is not for public use;
• Require governmental entities to hold a public hearing and vote prior to initiating a condemnation proceeding;
• Require entities authorized to exercise eminent domain to file with the comptroller a letter identifying the provision in law that grants the authority;
• Require entities wanting to acquire property through eminent domain to make a bona fide offer that is equal to or greater than the amount of a written appraisal; if a court finds that the condemnor did not make a bona fide offer, it could order the condemnor to pay court costs and attorney's fees; and
• Allow the person or the person's heirs or successors to repurchase the property at the original purchase price if the property is not used by the acquiring entity within ten years.

Public Education

Senator Florence Shapiro (R-Plano) filed SB 468, a school mandate relief shell bill.  The bill's purpose is return control over personnel matters, operations, and resource allocation to school districts.

Next Week:  The Senate Finance Committee starts considering Article 3 issues – education.  On Tuesday, they will take up higher education in general; on Wednesday, they will take up University of Texas system and Texas Tech system schools; and on Thursday, they will take up Texas A&M University system schools.   They will continue to take up higher education entities and issues the following week.   The Senate State Affairs Committee will meet on Wednesday, February 9, 2011 in the Senate Chamber to take up SB 16 by Dan Patrick (R-Houston), which requires physicians, prior to performing an abortion, to provide a pregnant woman with a sonogram that she can view, a verbal explanation of the sonogram images, and an audible heartbeat of the fetus; and would require the woman to certify that she understands the nature and consequences of an abortion.

Health

Texas Attorney General Greg Abbott released a statement following U.S. District Judge Roger Vinson's ruling that the Patient Protection and Affordable Care Act's individual mandate is unconstitutional.  General Abbott said, "As Judge Vinson's decision made clear, Congress cannot regulate inactivity under the Commerce Clause, and therefore exceeded its Constitutionally-set boundaries by requiring all Americans – against their will – to buy government-approved health insurance.  Judge Vinson also declared that 'because the individual mandate is unconstitutional and not severable, the entire Act must be declared void.'" 

HOUSE –Expect committee assignments next week.  Current House Appropriations Chairman Jim Pitts says that he will begin holding hearings on the budget next week…necessitating the assignment of committees.  Since there are no committee assignments, no formal business was conducted in the House.  Rep./Dr. Shelton (R-Ft. Worth) announced the formation of a Health Care Policy Study Group in the House.

Misc.

Rolling Power Outages became an issue this week.  Our electric grid and infrastructure weren't prepared to deal with winter storm emergency experienced in Texas this week; our laws and practices have contemplated hot weather peak demands, not cold weather demands.  The grid, known as the Electric Reliability Council of Texas ("ERCOT"), initiated the blackouts as cold weather caused water pipes to break at two North Texas power plants.  Natural gas backup generators normally come online in such situations, but the weather chilled the gas to the point that the pressure was too low to engage the backup generators.  In order to deal with the lack of available generation, areas statewide were put into temporary blackouts. The Governor and Lt. Gov. asked Texans to conserve their use while this problem is dealt with and accommodations made to prevent rolling blackouts in the future.

January 2011

Friday, January 28, 2011

NEW BILLS OF SPECIFIC INTEREST TO TOA:  HB 708 by Hancock & HB 915 by Christian, both relating to the licensing, regulation, and authority of advanced practice registered nurses to make medical diagnoses and to prescribe and order prescription drugs and devices.

SENATE – On Monday, Lt. Governor David Dewhurst announced the filing of SB 1, the SENATE'S APPROPRIATIONS BILL, and he announced Senate Finance Committee assignments.  Dewhurst reappointed Senator Steve Ogden (R-Bryan) as Chairman of the Senate Finance Committee and Senator Juan "Chuy" Hinojosa (D-Mission) as Vice-Chairman.  Other members include Senators Bob Deuell (R-Greenville), Robert Duncan (R-Lubbock), Kevin Eltife (R-Tyler), Craig Estes (R-Wichita Falls, and a new addition to the committee), Eddie Lucio, Jr. (D-Brownsville), Jane Nelson (R-Lewisville), Dan Patrick (R-Houston), Kel Seliger (R-Amarillo), Florence Shapiro (R-Plano), Royce West (D-Dallas), John Whitmire (D-Houston), Tommy Williams (R-The Woodlands), and Judith Zaffirini (D-Laredo).  The Lt. Governor added that he plans to bring up a resolution calling on Congress to convene a constitutional convention to pass a balanced budget amendment to the Constitution, as he believes that Congress must reduce spending and live within its means, just like the rest of us Texans do.

The Senate's version of the budget is similar to the House's but proposes a somewhat smaller overall reduction.  It proposes $158.7 billion for the 2012-13 biennium, a $28.8 billion, or 15.4 percent reduction over current spending. The House plan calls for $156.4 billion, a $31.1 billion, or 16.6 percent, decrease from the current 2010-11 biennium.  The upper chamber's initial budget proposal includes a total of $69.8 billion for public and higher education; the House version provides $67.7 billion for education. Their overall spending on health and human services is about the same (though some details differ). If you're looking only at state money — general revenue funding — the Senate would spend $79.7 billion, compared to the $79.3 billion in the House plan presented last week.

The big difference in state spending, as with the overall budget, is in education. The Senate would leave public schools $9.3 billion short of what they're due under current education funding formulas, about $500 million better off than the schools would do under the House plan. In either case, the Legislature would have to change its school funding formulas, and until they do that, there's no way to know which school districts lose how much money. Technology allotment and pre-kindergarten early start grants aren't funded. In addition, the Senate would spend about $400 million more on various education programs than the House.

Another notable difference is a proposed reduction in the state workforce. The Senate proposes cutting 8,167 state employees, compared to 9,610 recommended for termination in the House plan.  Also absent from the Senate plan is the proposed elimination of four community colleges.  Like the House plan, the Senate version would balance the state budget through program reductions and does not propose new or increased taxes. Like the House's budget, the Senate bill also does not tap into the state's Rainy Day Fund, which is projected to contain $9.4 billion in the 2013 fiscal year.  Unlike the House's budget, the Senate's would raid Gov. Rick Perry's pet Enterprise Fund for cash for jobs programs backed by Lt. Gov. David Dewhurst, the Senate's presiding officer.  Dewhurst has championed a Back to Work program, which encourages employers to hire laid-off workers, and a worker-retraining effort called the Skills Development Fund — both managed by the Texas Workforce Commission.  The Senate budget calls for them to be financed in the next two years with unspent money from Perry's Enterprise Fund, which is used to close relocation and expansion deals with businesses. It is expected to have $151 million left over by Sept. 1.  The Senate plan guarantees the first $50 million of that for the Enterprise Fund, but then would rake off $45 million for the two Workforce Commission programs and $5 million for a jobs program run by Comptroller Susan Combs.  Only if the transfers are made would the Enterprise Fund then be allowed to spend the remaining $51 million.

In re: SB 1 on HHS budget items, the House & Senate bills do similar things in health and human services, cutting provider reimbursement rates by another 10 percent on top of cuts already made and without taking into account federal stimulus funds used in the current budget that won't be available for the next budget. But the Senate made different assumptions about federal matching funds for those programs; they think the state will get $1 billion more in so-called FMAP funds than the House assumed.  The Senate bill has more funding for the Cancer Prevention and Research Institute of Texas; for Department of Family and Protective Services; for Department of Assistive and Rehabilitation Services; reinstates funding deleted in the House bill for abstinence education; and money deleted in the House bill for alternatives to abortion.  SB 1 has more money for Baylor College of Medicine, and it includes funding for the Family Practice Residency Program; the Preceptorship Program, the Primary Care Residency Program; the Graduate Medical Education Program; the Physician Education Loan Repayment Program; the Professional Nursing Financial Aid Program; the Vocational Nursing Financial Aid Program; the Dental Loan Repayment Program, the Professional Nursing Shortage Reduction Program; the Alzheimers Disease Centers; and Hospital-based Nursing Education.  The House bill has more funding for the MD Anderson Cancer Center and the Texas Health Science Center in Tyler. 

On Monday, the Senate met as a Committee of the Whole ("COW") to take up the VOTER ID bill.  It is the only bill designated a special order in the Senate rules allowing it to be taken up by a simple majority rather than the two-thirds required to bring up all other bills.  SB 14 would require people to present a photo ID (a driver's license, Texas Department of Public Safety-issued photo ID, a passport, federal citizenship papers with a photo attached, or a military ID).  On Tuesday, Senators held a 12-hour session in the COW, questioning the bill sponsor, Sen. Troy Fraser (R-Horseshoe Bay), and taking invited and public testimony.  The bill was reported back to the full Senate by a vote along party lines of 20 Republicans -12 Democrats (Lt. Governor David Dewhurst cast a vote in favor of the bill) around 9:30 Tuesday night.

On Wednesday, the full Senate was scheduled to take up Voter ID at 9:30p.m. when it was eligible to be brought up under the Senate's 24-hour rule for laying out committee reports.  By mutual agreement, the bill's proponents (Republicans) and opponent's (Democrats) decided to take the bill up earlier in order to avoid late-night debate which the public would find more difficult to observe.  Over 41 amendments were considered, but only 9 were added to the bill.  Some that passed included:

• Allowing concealed handgun licenses to be used as an alternative form of identification;

• Requiring county voting websites and materials to be in English and Spanish;

• Exempting the disabled from Voter ID requirements with a letter from a doctor; and

• Preventing Voter ID from taking effect if the Legislature does not appropriate money to pay for it. 

Expect the Lt. Governor to name the remainder of the committees today, Friday, January 28^th. 

Next Week:  The Senate Finance Committee will have its first meeting on Monday at 10:00a.m.  in E1.031 of the capitol extension.  They will also meet Tuesday, Wednesday, and Thursday starting at 9:00a.m.  Health & Human Services budgets are up first.

HOUSE – On Monday, the House adopted the HOUSE RULES.  Key changes adopted by the House include: 

Committees – Two new committees were created: the Economic and Small Business Development and Workforce Committee with seven members; and Government Efficiency and Reform Committee with seven members (which shares jurisdiction of the Sunset Commission with State Affairs).  The number of members of five substantive committees was reduced:  the Business and Industry Committee, Corrections Committee, Criminal Jurisprudence Committee and Urban Affairs Committee were reduced from 11 to nine members.  The State Affairs Committee was reduced from 15 to 13 members.  The number of members of two procedural committees was increased:  the Calendars Committee increased from 13 to 15 members; and the Redistricting Committee increased from 15 to 17 members.  House Ways and Means, however, remains intact; some had speculated that the leadership might reconstitute the Local Ways and Means Committee, but that did not happen, and now there is even greater speculation as to the chairmanship of Ways & Means – current Chair Rene Oliveira (D-Brownsville) or potentially John Otts (R- Dayton).  Expect House Committees to be named on either Friday, Feb. 4^th or the 11^th. 

Time Limit for Local, Consent, and Resolutions Calendar Consideration – Sets a time limit of one calendar day for consideration of measures on a Local, Consent, and Resolutions Calendar.  Bills on that calendar that are not reached for floor consideration because the calendar day expires will be carried over to the next such calendar.  The carried over bills will go in front of any new measures on the next calendar.  This provision is intended to address the non-stop chubbing employed by some House Democrats last session in their ultimately successful attempt in preventing consideration of the Voter ID bill.     

Layout Period for Appropriations Conference Committee Reports – Instructions to budget conferees must lay out for 48 hours before the House can vote on them.

Assistance to Conferees – The chair of the House conferees on the general appropriations bill will be allowed to request the assistance of any member of the House Appropriations Committee at a meeting of the conferees. 

The House rules provide for the following:            

• Allowing witnesses to present invited testimony via the Internet or other videoconferencing system if the witness has executed a sworn statement, filed it with the chair before testifying, and with two-way communication enabled;
• Requiring fiscal notes that say that the fiscal implications cannot be ascertained must include a statement of the reasons the fiscal impact cannot be determined;
• Requiring dynamic economic impact statements on appropriation bills indicating the number of state employees to be affected and the estimated impact on private-sector employment;
• Allowing archived video broadcasts on House proceedings to include a link to the point in time in the video where each measure the House is considering is laid out;
• Requiring calendars containing sunset bills to be posted at least 48 hours before consideration by the House; and
• Striking a provision that prevents a member whose district is subject to an election contest from making a seniority committee request. 

Rep. Wayne Christian (R-Center) offered an amendment to House rules to allow the House to consider the VOTER ID directly on the floor as a committee of the whole (like the Senate did) without taking public testimony.  But Burt Solomons (R-Carrollton), who drafted the rules, told his colleagues that the House only has met as a committee of the whole to deal with impeachment proceedings in the 1920s and 1970s, and even those matters first passed through standing House committees.  Christian's effort was doomed when a fellow conservative, Rep. Chisum (R-Pampa) questioned the lack of public testimony if the House takes up voter identification without public hearings; Christian was voted down 130-13 – 88 Republicans and 42 Democrats voted against Christian, while all those voting with him were Republicans.

Chris Griesel, who has in the past served as assistant parliamentarian, gets to drop "assistant" from his title for this session.

GENERAL BUSINESS – Texas Association of Business held its annual conference this week.  TAB's President Bill Hammond outlined the group's legislative agenda.  He said, "It's easy to read the headlines and hear the talk around the Capitol and think that the sky is falling when it comes to the budget challenges our state is facing.  I prefer to describe it as difficult, but doable.  This is the second time that Texas legislators have been faced with a general revenue shortfall in the past decade, and this shortfall must be addressed in the same way – by reducing spending and without raising taxes or fees.  While we congratulate House Members for sticking to their guns and presenting a base budget that is within existing revenue, we must continue to fight to ensure that we implement cost-saving reforms that reflect Texas' commitment to prosperity and to economic growth."  TAB recommends:

• Hold general revenue spending at its current level of $87 billion;
• Use $6 billion of the Rainy Day Fund to fill the budget gap;
• Expand Medicaid managed care statewide ($1.2 billion);
• Fulfill the Legislature's commitment of using $550 million of the Available School Fund to fund textbooks and instructional materials, and use the rest of the $1.5 billion to fill the budget gap;
• Delay the date of payments by the State by one day into the next fiscal year (saving between $3 and $4 billion);
• Pass legislation to allow slot machines at existing Texas racetracks and Native American Indian reservations (would generate as much as $850 million in direct state tax revenue during the current biennium and nearly $1 billion per year at full implementation); and
• Pass legislation that requires probation and mandatory treatment for first-time, low-level drug possession offenders with no prior violent, sex, property, or drug delivery crimes (an estimated $500 million savings by 2012).  

SEE YOU NEXT WEEK!
MICHELLE WITTENBURG

Friday, January 21, 2011

OF SPECIFIC IMPORTANCE TO TOA MEMBERS is the filing of the Physical Therapist's direct access bill, HB 637, by Rep. Craig Eiland (D-Galveston); the filed version is very broad and concise – a "shell" bill that will allow for major amendments by the TOA and others.  A copy is attached for your review.

The Senate and House met in joint session for the inauguration of Governor Rick Perry and Lt. Governor David Dewhurst. 

GOVERNOR PERRY took the oath of office for his third full term as Texas's 47^th governor.  In his inaugural address, the governor said, "By living within our means and upholding the principles that have kept our state strong – low taxes, restrained spending, predictable regulations, a fair legal system, safe communities and accountable public schools – Texas will emerge even stronger, remaining a national model for economic success and accountable government.  We must continue investing in our people, developing young minds, grooming and attracting the best and brightest in the fields of science and medicine, and giving individuals the tools and the freedom to prosper."  Perry was joined by a delegation of governors from several bordering Mexican states.  He noted the importance of putting an end to the ongoing drug violence that has terrorized the Mexican border region, and reiterated Texas' commitment to securing the border. 

Perry designated TWO ADDITIONAL EMERGENCY ITEMS for the legislature to consider in the initial 30 days of the session:  Voter ID and legislation to provide for a balanced budget amendment to the U.S. Constitution.  The Senate will meet Monday, Jan. 24^th, in a Committee of the Whole, and consider Voter ID, where it will only require a majority vote to bring up and pass the matter. 

SENATE – On Tuesday, Dewhurst was sworn in for a third four-year term.   On Wednesday, the Senate adopted its rules, and changes include: 

Conference Committee Reports on Appropriations Bills – Requiring the "out of bounds" resolution (the resolution suspending the limitations on the conferees) for the general appropriations bill to be provided to Senate members at least 48 hours prior to Senate action on the resolution during a regular session and 24 hours in a special session.  

Committees - Adding the Committee on Agriculture and Rural Affairs with five members, the Committee on Economic Development with seven members, and the Committee on Higher Education with seven members; and

Introduction of Local Bills – Clarifying the rule on introduction of bills to allow local bills to be filed any time during the session.

During debate on the TWO-THIRDS RULE, Senator Dan Patrick (R-Houston) announced that although he would vote for the rules as proposed, he would prefer to see the rule requiring a two-thirds vote of Senate members to bring up legislation be eliminated.  Senator John Carona (R-Dallas) expressed agreement with Senator Patrick saying, "I stand in contrast to my position of two years ago because I have heard from over 200 constituents who feel strongly on this issue."  Democratic Senators Lucio, Whitmire, and Gallegos spoke in support of maintaining the two-thirds rule, saying that it protects against the tyranny of the minority and that it allows senators to look for solutions in the middle and that are not partisan.   Ultimately, the rules resolution was adopted by a vote split along party lines of 18 Republicans voting for it and 11 Democrats voting against it (two Senators were absent).

Lt. Governor Dewhurst said the Senate will lay out its proposed budget by the middle of next week.  Dewhurst didn't close the door to using the Rainy Day Fund to help balance the budget, but said the money must be spent carefully and with an eye to the future.  He added, "If we use some of the money in the Rainy Day Fund, we're leaving enough there so that we have an amount sufficient to balance our budget in 2013."

The Senate did not meet on Thursday.  They adjourned until 1:30 p.m. on Monday, January 24, 2011, as did the House.

HOUSE – After adjournment on Wednesday, Representative Jim Pitts (R-Waxahachie), the current chairman of Appropriations and sponsor of HB 1, the general appropriations bill which he filed on Tuesday, answered questions from House members about the budget.  He explained that HB 1 reflected the guidelines given him by Speaker Straus to not raise taxes, not use the Rainy Day Fund, and to show an honest effort to shrink the size of Texas government.  He said that HB 1 is within the projected income of the state for the next biennium and under current estimates will leave around $100 million to be appropriated.

BUDGET SUMMARY – As proposed, HB 1 appropriates $156.4 billion from all fund sources for state government operations for the 2012-13 biennium, which represents a $31.1 billion (16.6%) decrease from the 2010-11 biennium.  General Revenue funds total $79.3 billion, a decrease of $9.2 billion (10.4%) less than 2010-11 spending levels.  It would reduce the number of state employees by 9,287 and would decrease the state contribution rate for retirement benefits from 6.95% to 6%.  The bill would not tap into the Rainy Day Fund, and the balance in that fund is projected to be $9.4 billion by the end of the biennium.  Democratic House leaders Garnet Coleman (D-Houston), Pete Gallego (D-Alpine), Jessica Farrar (D-Houston) and Marc Veasey (D-Dallas) responded to the budget plans by saying that the deepest cuts were reserved for neighborhood public schools, nursing homes and graduating seniors (and their families) struggling to put together money to go to college.

Health:  In the Health and Human Services category, HB 1 would appropriate $35.2 billion ($14.6 billion in general revenue) for the Texas Medicaid program, which includes provider rate reductions of 10%, a decrease of $1.6 billion in general revenue and $3.8 billion in all funds.  It does not include funding for increased Medicaid-eligible recipients, for increased medical costs, or for higher utilization.  It would result in the loss of an additional $5.7 billion in federal matching funds.  It would appropriate $2.1 billion in all funds ($626.4 million in general revenue) for the Children's Health Insurance Program, which represents a decrease in general revenue and an increase in federal funding due to program changes.  Funding would be reduced from 2010-11 levels (by 5.6%) as a result in shifts in caseloads and a 10% provider rate reduction.

Higher Education – HB 1 would appropriate $21.1 billion in all funds and $13.6 in general revenue for higher education, a $411.9 million reduction in formula funding (a 10% reduction).  It would eliminate funding for four community colleges, would not provide funding for enrollment growth, and would reduce special item funding by approximately 25%, resulting in a decrease of $254.4 million.  It would provide student financial aid only for students already receiving financial aid, a reduction of $431.2 million.  It would reduce higher education group insurance contributions by $245.8 million; reduce the Research Development Fund by $19.2 million, system office operations by $26.2 million, clinical and hospital operations by $82.5 million, assistance to volunteer fire departments by $32.5 million and eliminate $227 million in one-time federal stimulus funding.  It would eliminate funding for Texas Research Incentive Program, Professional Nursing Shortage Reduction Program, Family Practice Residency Program, College Readiness Grants, the Advanced Research Program, and the Teach for Texas Loan Repayment Program.

Economic Development – HB 1 would appropriate $151.3 million in estimated unexpended balances to the Texas Enterprise Fund to be moved forward for expenditure in 2012-13.  It would eliminate Texas' national advertising and marketing campaign and would reduce economic development loans primarily to local economic development corporations, which assist local regions and communities with economic growth and development through job creation, capital investment, retention, expansion, and attraction of industry.  It would appropriate $21.3 million in unexpended balances for the Texas Emerging Technology Fund, down from $137.4 million in the last biennium (an 84.5% decrease).  Funding for rural economic development programs through the Texas Department of Agriculture would be eliminated.  The GO Texan Partner Program would also be eliminated.

Public Education – HB 1 would appropriate $32.8 billion in all funds and $36.7 billion in general revenue for the Foundation School Program, a $953 million reduction in general revenue and $9.8 billion below the amount required to fund the school finance formulas including projected growth of 80,000 students ($2.2 billion).  Education funding outside the foundation school program would be reduced by $1.8 billion (67.1%) by eliminating funding for District Awards for Teacher Excellence educator grants, Texas Advanced Placement Incentive Program, the Virtual School Network, Middle School PE grants, Life Skills Teen Parenting, Texas Reading/Math/Science Initiative, the Student Success Initiative, the Technology Allotment fund, pre-kindergarten Early Start grants, High School Completion and Success Initiative, Science Lab grants, and School Bus Seat Belt grants.

Energy – HB 1 would reduce funding at the Public Utility Commission by $2.1 million (10.2%).  The reductions are expected to delay the development of tools for companies to make filings via the Internet, result in longer wait times for customers who contact the PUC by phone, and reduce staff participation in rate cases.

Environment – HB 1 would reduce funding for the Texas Emission Reduction Plan by 50% ($114.3 million) and eliminate funding for the Low Income Vehicle Repair, Replacement and Retrofit Program.  Funding for brush control projects would be cut by 50%.

TORT REFORM – In a speech to the Texas Public Policy Foundation last week, Governor Rick Perry called for expanded lawsuit reform in Texas.  He said, "We need to continue the fight against lawsuit abuse because employers aren't doing anybody any good when they're tied up in court.  Victims of frivolous lawsuits shouldn't have to bear the financial burden of defending themselves.  Instead, the responsibility should fall to the individual who brought the suit in the first place.  Texas is one of a very few states who do not currently have an 'early dismissal' option for obviously frivolous lawsuits but we should.  We should balance that new power for judges by ensuring new causes of action can only be created by the Legislature in a transparent and deliberative manner.  We need to make our system more accessible to the little guy by setting up expedited trials and limited discovery for lawsuits with claims between $10,000 and $100,000." 

SEE YOU NEXT WEEK!
Michelle Wittenburg

Thursday, January 20, 2011

The 82^nd session of the Texas Legislature kicked off at noon on January 11, 2011 and will end on May 30, 2011.

GOVERNOR PERRY designated two issues as emergency items – private property rights/eminent domain and abolishing sanctuary cities.

THE SENATE unanimously elected Senator Steve Ogden (R-Bryan) as the President Pro Tempore for the Senate.  Ogden, who chairs the Senate Finance Committee, talked about the budget challenges facing the legislature.  He said, "We need to manage the problem and not let the problem manage us.  I know that with $177.8 billion in revenue and $9.2 billion in the Rainy Day Fund we can get the job done.  It will not be easy.  It will not be painless, but we can do it."  He outlined problems with the Medicaid system.  In the last session, 70% of the cost of Medicaid was paid by the federal government with 30% paid for by the state.  This biennium is estimated that the federal share will be 58% with 42% being the obligation of the state (the difference is $4.5 billion).  He added, "Medicaid cries out for reform.  If we convert Medicaid to a managed care program, we can save $4 billion."  He concluded by saying, "I ask every one of my fellow senators to check your political ambition at the door and let's work and do our very best for the 25 million people who call Texas home."

On Wednesday, the Senate was expected to take up changes to SENATE RULES, but adopting their rules has been postponed until next week.  Expect to see a discussion on whether to abolish or modify the "2/3 rule," which requires a 2/3 vote of the Senate to consider a bill; Sen. Patrick may move to reduce the requirement to a simple majority or waive it for certain purposes (voter ID).

The Senate has two new members: Brian Birdwell (R-Granbury) and Jose Rodriguez (D-El Paso).  The partisan numbers in the Senate are the same as in the 2009 session - 19 Republicans and 12 Democrats.

SPEAKER JOE STRAUS  (R-San Antonio) was re-elected Speaker of the House by a vote of 132 to 15, with two present-not-voting and one abstention.  A contested speaker's race was expected but didn't materialize, as challengers  Ken Paxton (R-McKinney) and Warren Chisum (R-Pampa) ultimately withdrew their candidacies.  A motion was made to elect Joe Straus as speaker by acclamation, but Representative Leo Berman (R-Tyler) objected and requested a record vote.  The 15 House members voting against Straus for speaker were all Republicans – Representatives Leo Berman of Tyler, Cindy Burkett of Mesquite, Erwin Cain of Sulphur Springs, Wayne Christian of Center, Dan Flynn of Canton, Phil King of Weatherford, Jim Landtroop of Plainview, Jodie Laubenberg of Wylie, Tan Parker of Flower Mound, Ken Paxton of McKinney, Charles Perry of Lubbock, David Simpson of Longview, Van Taylor of Plano, James White of Hillister, and Bill Zedler of Arlington.  Republicans Bryan Hughes of Mineola and Jason Isaac of Dripping Springs voted "present," and Yvonne Davis (D-Dallas) did not vote.   

33 new members were sworn in to the House of Representatives this week including 28 Republicans and 5 Democrats: 

Three former members of the Texas House returned:  Boris Miles (D-Houston), Jim Murphy (R-Houston), and Bill Zedler (R-Arlington).  The partisan split in the House is now 101 Republicans and 49 Democrats.  That compares to 76 Republicans and 74 Democrats in the 2009 session.  Three Democratic House members have switched to the Republican Party since the 2009 election including:  Chuck Hopson of Jacksonville, Aaron Pena of Edinburg, and Allan Ritter of Nederland.

AN ELECTION CONTEST has been filed in House District 48 in Travis County, where Republican Dan Neil has contested the election of the certified winner, Democratic incumbent Donna Howard, who won the election recount by 12 votes.  After the Special Committee on Elections makes its recommendations, the House will consider the contest and decide whether to uphold the election of the certified winner or seat the challenger contesting the election, depending on whether it can ascertain who won the election, or to invalidate the election and direct the governor to call a special election, with the previous incumbent occupying the seat until a successor qualifies. 

COMPTROLLER SUSAN COMBS issued her Biennial Revenue Estimate on Monday, and it showed that the state is projected to have $72.2 billion available for general-purpose spending during the 2012-13 biennium.   There is a $4.3 billion ending balance for the current biennium, and a projected shortfall of $27 million for the next biennium, depending upon what assumptions one makes.  At the end of the 2012-13 biennium, the state's Rainy Day Fund will have approximately $9.4 billion.  (Note: The full Biennial Revenue Estimate is available on the Comptroller's website.)

Appropriations Chairman Jim Pitts (R-Waxahachie) will file the Appropriations bill on Tuesday and take general questions from the members on Wednesday.  It is likely to be the worst case scenario budget we will see and will include cuts, less state employees (perhaps 8,000 less), will balance within the Comptroller's revenue estimate and without using any of the state's Rainy Day Fund. Pitts says one way to plug the hole is to entertain and adopt various "$200 million ideas" – for example, a surcharge on drink bottles, noting that while one such idea might not have a great impact on its own, the accrual of several of these makes a dent. 

Other ODDS & ENDS include:

On Thursday, Texas' senior U.S. SENATOR KAY BAILEY HUTCHISON announced she would not seek another term when her current term expires in 2012.

The SUNSET ADVISORY COMMISSION recommended abolishing the five-member Texas Transportation Commission and installing a single statewide commissioner, merging the Texas Youth Commission and Juvenile Probation Commission, and reducing the jurisdiction of the Texas Railroad Commission, renaming it the Texas Oil and Gas Commission, and placing the agency under a single elected commissioner instead of the current three.

REP. JOHN ZERWAS (R-Richmond and an anesthesiologist) filed legislation that would establish Texas' health insurance exchange, saying that an exchange would be of benefit to Texans even without federal health care reform because it provides for better competition and more informed consumers in the insurance market.  This bill may face opposition in the Senate.  Zerwas said today that he makes no secret of his opposition to the health care reform law. But as long as the law is on the books, Texas needs to prepare to implement it, he said. By not implementing an exchange, Zerwas said Texas would be inviting a worse fate – federal infringement in one of the most important sectors of the Texas economy. 

TOM DELAY, the former U.S. House majority leader and redistricting mastermind, was sentenced to 3 years in jail for conspiring to launder corporate money for use in Texas political campaigns, 10 years on probation, and a suspended 5 year sentence for a money-laundering charge.  The decision will be appealed, and there is already idle talk of a possible pardon from the Governor.   

NEXT WEEK – The swearing-in ceremony for Governor Rick Perry and Lt. Governor David Dewhurst will be held on Tuesday, January 18, 2010 at 11:00 a.m. on the South Steps of the capitol building.

Additional information can be obtained via the Senate, House and Capitol websites:

www.senate.state.tx.us
www.house.state.tx.us
www.capitol.state.tx.us

SEE YOU NEXT WEEK!
Michelle Wittenburg