Current events/Government affairs
Government Affairs Committe
February 3rd Meeting
Legislative Update
June 30, 2011
Dear Members:
The 82nd Legislative Session wrapped up on May 30th and convened for a special session the following day, after failing to pass a key education bill on public school funding. Though Governor Perry called for the special session to address school funding, he added other items to the agenda, including a proposed reform to the Texas Windstorm Insurance Association (TWIA) which failed to pass during the regular session.
On Tuesday, the legislature passed HB 3, the TWIA reform bill with an 18-12 vote in the Senate and a 98-14 vote in the House, just one day before lawmakers were set to adjourn the special session. Some of the key provisions in HB 3 require claims to be filed within one year of a storm, allow policyholders to sue for their claims and collect double damages and allow TWIA the ability to issue pre-event bonds. The bill also establishes an interim task force to examine windstorm insurance issues and TWIA operations. The Corpus Christi Chamber of Commerce intends to work with the task force, which will report back to lawmakers next legislative session, to ensure that windstorm insurance is affordable for residents of the coast.
Though there is much work that remains to be done, we are fortunate that Chairman Todd Hunter and Senator Juan “Chuy” Hinojosa fought hard to prevent language in the bill that would include rate increases. We thank them for these efforts and would also like to thank our other coastal lawmakers, Representative Raul Torres and Representative Connie Scott for their leadership on the windstorm insurance issue.
The following is the status of priority legislation for the Corpus Christi Chamber of Commerce.
CRUISE SHIP RESOLUTION:
Senate Concurrent Resolution 5, by Senator Juan “Chuy” Hinojosa and Representative Todd Hunter passed the legislature and was signed by the Governor. The resolution will authorize a legislative study regarding the development and potential economic impact of a cruise industry south of Calhoun County. The study will involve an appointment of a legislative committee that could hold hearings in communities along the coast.
CONVENTION CENTER DEVELOPMENT:
The legislature passed SB 977 by Senator Juan “Chuy” Hinojosa and Representative Raul Torres. The bill, signed by the Governor and effective immediately, allows the city of Corpus Christi to be eligible to receive rebates for sales and use tax and hotel occupancy taxes for qualified projects. In other words, Corpus Christi would be eligible to construct a qualified hotel project under the Enterprise Zone. According to the Ways and Means Committee Report, cities that have utilized the program have a track record of producing positive economic development benefits for their community and the State of Texas.
GAMING:
This session, there was a strong push to let voters decide whether they want to legalize casinos or slot machines in Texas. However, the movement for gambling was unsuccessful with stiff opposition from Governor Perry and members of the legislature.
DEL MAR COLLEGE:
The Chamber supported sufficient base funding which enables community colleges to keep tuition affordable and accessible. Del Mar’s state budget proposal passed both chambers of the Legislature and is awaiting the Governor’s signature. This proposal cuts the College’s general appropriations funding about $1 million per year for the next two years.
The Chamber also supported continued funding for the community college group healthcare insurance base on employee eligibility, which allows community colleges to hire and retain talented and dedicated faculty. State funding for employees insurance and retirement coverage was reduced nearly $4 million per year for the next two years.
In addition, the chamber supported performance-based funding as an incentive for exemplary educational results, not as base community college funding. The concept of performance-based funding for higher education was approved by the legislature, but proposed statutes do not apply these measures to community colleges in the next biennium.
TAMUCC:
The Chamber supported funding for the Texas Success Initiative, a state-legislated program designed to ensure that students enrolled in public colleges and universities possess the necessary academic skills to perform effectively in college-level coursework. Unfortunately, with the budget cuts our state faced it is virtually unlikely the university will obtain the funding.
The Chamber also supported funding for the universities engineering program. Last session, the 2010-2011 budget for the state of Texas included $4 million for a new engineering program at TAMUCC. Currently, the university is still awaiting a conference committee report for final details.
Thank you,
Desiree Castro
Government Affairs Coordinator
Legislative Update
March 15 , 2011
Dear Members,
In late January, the Senate and House released budget proposals that include massive cuts to schools. While the Senate and House versions vary, the proposals included eliminating grants for Texas’s pre-kindergarten program and trimming grant programs which provide college tuition and fee support for economically disadvantaged students. Public education is facing $9.8 billion in funding reductions and it is estimated that 100,000 people such as teachers, bus drivers, and counselors will lose their jobs. In addition, the House budget proposal cuts formula funding for institutions of higher education by 10 percent across the board, with a freeze on financial aid.
With public education and higher education identified as two of our top concerns for the 82nd legislative session, the chamber is launching a communications campaign that outlines the critical education issues facing our community. We encourage business and industry leaders to contact our local delegation and members of the education committees to let them know that funding cuts of this magnitude will affect business and industry throughout the region.
If you are interested in sending a letter please click here to get a list of legislator contacts as well as information on education issues. The members of the legislature need to hear that the business community firmly believes that education is a strategic investment in the future economic growth of our state. If we do not act now, our state may face a path that will adversely impact our future prosperity.
Thank you,
Desiree Castro
Government Relations Coordinator
Legislative Update
April 7, 2011
Dear Members,
On Sunday, April 3rd, the Texas House of Representatives passed the first draft of the state budget, House Bill 1, on a vote of 98 to 49. The $164.5 billion budget will spend $23 billion less than the current budget and does not add taxes or dip into the state’s rainy day fund but does institute deep cuts to public education, higher education, and health and human services.
According to a March analysis by the Legislative Budget Board, a joint committee of the Texas Legislature, the House proposal could cost our state over 300,000 jobs. Locally, Del Mar College is bracing for reductions that range from $12 million to $14.4 million while Texas A&M University-Corpus Christi is facing a biennium reduction of $23.7 million.
With the House passage, the budget will now move on to the Texas Senate, which is expected to offer a proposal with fewer cuts. Once the Senate version of the budget is passed, each chamber will appoint members to a conference committee in which they will reconcile their different versions of the budget, and pass out a conference report. Each chamber will then vote on a final version of the budget before the legislature adjourns.
The following are a few issues the chamber has been tracking:
Economic Development
The chamber is a strong supporter for the economic development programs that the Texas Legislature has put in place in our state. Our economic development tool kit is one of the best in the nation and one of the most valuable pieces is the Texas Economic Development Act, referred to more commonly as “Chapter 313”.
Several pieces of legislation have been filed that will amend the law including HB 2652 by Rep. Jim Pitts and SB 1590 by Sen. Steve Ogden. SB 1590 would cap state spending on tax breaks local school trustees can grant that help attract business or expansion projects. The bill would also shift the power to make decision on tax breaks from local trustees to the state comptroller. The bill was left pending in the Senate Finance Committee.
In addition, the chamber attended the House Committee on Ways & Means to support HB 1316 by Rep. Raul Torres. The proposed legislation and its senate companion, SB 977 by Sen. Hinojosa, relates to convention center hotel incentives for Corpus Christi. The bill would allow Corpus Christi to be eligible to receive certain rebates for sales and use tax and hotel occupancy taxes imposed by the State of Texas. The bill was left pending in committee.
Gaming
Last week, the chamber attended the House Committee on Licensing and Administrative Procedures to support gaming proposals that included full-fledged resort casinos, legalizing and regulating poker parlors, and allowing slots and tables at existing tracks and Native American reservations.
Dozens of gambling proponents spoke in favor of the activity stating that gaming taxes could put an additional $1 billion a year into state coffers. Landry's CEO Tilman Fertitta stated he could have a Golden Nugget casino open in Galveston "within a matter of weeks" if gaming was approved. Houston-based Landry's Inc. owns the Golden Nugget casinos in Las Vegas and Laughlin.
Although supporters believe that the state’s financial situation gives them a favorable case, the committee left more than a dozen bills pending which will likely be revised by committee staff before lawmakers cast a vote.
Windstorm Insurance
Last session, reforming and strengthening the Texas Windstorm Association (TWIA) was one of the most important issues facing the Coastal Bend. Legislation was filed that would have dramatically increased TWIA rates and hurt the economy of the Texas coast. Fortunately, none of those bills passed and current laws provide windstorm insurance at an affordable rate.
This session several reform bills have been filed including HB 272 by Rep. John Smithee, Chairman of the House Insurance Committee, and HB 2818 by Rep. John Taylor, a member of the committee. HB 272 relates to the operation of TWIA and to the resolution of certain disputes concerning claims made to the association. HB 2818 by John Taylor is a comprehensive reform effort intended to address many of the problems facing TWIA. We will continue to keep you updated on the status of these windstorm insurance bills as well others that were filed.
Thank you,
Desiree Castro
Government Relations Coordinator
Legislative Update
April 28, 2011
Dear Members,
Early this morning, the Texas House of Representatives tentatively voted for a new House redistricting map. The vote, 92-52, followed a day that centered mostly on debate regarding minority districts. The plan would all but guarantee a continued Republican majority and paired several members together, including Representative Raul Torres and Representative Connie Scott.
The consolidation of Districts 33 and 34, responds to the relative slow population growth in the Coastal Bend compared to other parts of Texas. For instance, Nueces County grew by only 8.5 percent, compared to the statewide growth of 20.6 percent.
Currently, District 32 has 157,055 residents, District 33 has 148,929 residents, and District 34 has 143,582. According to the Texas Legislative Council, the average population per Texas House District now has to be 167,637. As a result, the three Corpus Christi lawmakers found their districts short of the ideal numbers and the pairing of two Corpus Christi Texas House members was not unexpected.
For more information on Texas Redistricting, visit the Texas Legislative Council website.
Other issue:
Senate Budget
Last week, the Senate Finance Committee approved its amended version of HB 1, the Appropriations bill, by an 11-4 vote. The $176.4 billion two-year state budget spends nearly $12 billion more than a $164.5 billion budget passed by the House.
The Senate Committee Finance Chairman, Steve Ogden, said he hopes to get the bill to full Senate by the end of the week. However, Ogden is having trouble getting the two-thirds of the GOP-controlled Senate to bring up the bill for consideration. This is mainly due to a proposal to spend money from the rainy-day fund to help balance the budget for 2012-2013.
Thank you,
Desiree Castro
Government Relations Coordinator