Legislative Affairs

Texas Association of Builders (TAB) professional government relations staff work year-round to advocate legislative reforms that benefit our industry. Our experienced lobbyists monitor bills and legislative hearings that affect the building industry and work to amend or defeat measures that would adversely impact the industry.

The government relations program is nationally recognized for its innovative programs and legislative successes. Legislation endorsed by the association has been passed which resulted in significant savings to the home building industry and in turn, to the home buying public. The association has routinely defeated bills potentially harmful to the industry.

Topics/Resources

The Texas Sunset Review Process 

In 1977, the Texas Legislature created the Sunset Advisory Commission to identify and eliminate waste, duplication, and inefficiency in government agencies. The 12-member Commission is a legislative body that reviews the policies and programs of more than 150 government agencies every 12 years. The Commission questions the need for each agency, looks for potential duplication of other public services or programs, and considers new and innovative changes to improve each agency's operations and activities. The Commission seeks public input through hearings on every agency under Sunset review and recommends actions on each agency to the full Legislature.

Since housing production is affected by a wide range of state departments and agencies, TAB staff closely monitors the activities of the Sunset Advisory Commission.  The agencies below are scheduled for Sunset review during the 2010 – 2011 biennium.  To read the findings and recommendations of the Commission go to www.sunset.state.tx.us.  For questions about the Commission process or their findings contact TAB staff.

Agencies under Sunset review:

The Texas House Will Study a Variety of Issues Affecting the Industry

Speaker Joe Straus released House committees' interim charges — topics for committees to examine and review in preparation for the next legislative session that will convene in January of 2011.

The charges assigned to the committee’s will be discussed in open meetings held at the Capitol as well as at other locations across the state.

To see a complete list of the interim charges, click here: http://www.house.state.tx.us/committees/charges/81interim/interim-charges-81st.pdf.

Interim charges of particular interest to TAB include the following:
House Committee on Appropriations (Chairman Jim Pitts, R – Waxahachie, Chair)

• Monitor the use of funds, adherence to state and federal reporting requirements, and ongoing development of federal rules and regulations provided under the American Recovery and Reinvestment Act (ARRA).
• Evaluate the impact of those funds on the state's economy. Joint Interim Charge with House Select Committeeon Federal Economic Stabilization Funding.

House Committee on Border and Intergovernmental Affairs (Chairwoman Veronica Gonzales, D – McAllen, Chair)

• Analyze state laws and regulations and the efforts of the multiple state entities responsible for addressing the needs of Texas residents in colonias.
• Determine the effectiveness of such programs and suggest improvements.

House Committee on Business and Industry (Chairman Joe Deshotel, D – Beaumont, Chair)

• Examine Title 11 of the Texas Property Code to determine if the various independent statutes are sufficient to protect the interest of homeowners and homeowners associations. Consider whether Title 11 should be consolidated with other laws.
• Study and report on third-party liability issues involving workers' compensation, including the frequency and success rates of third-party litigation, the relationship, if any, between third-party litigation and jobsite safety, the adequacy of compensation and reimbursement to workers, and the economic costs of third-party litigation and equitable and contractual subrogation in construction activities. Joint Interim Charge with House Committee on Judiciary and Civil Jurisprudence.
• Review the Unemployment Compensation Fund and its impact on business taxpayers to determine whether changes may be made to stabilize the fund in times of economic contraction without imposing an undue economic burden on businesses. Determine whether modernizations should be implemented to make the fund more efficient and effective. Joint Interim Charge with House Committee on Technology, Economic Development, and Workforce.

House Committee on County Affairs (Chairman Garnet Coleman, D – Houston, Chair)

• Study the current practices and tools available to counties to manage growth and development. Consider incompatible land uses and county rulemaking authority, including rulemaking authority bracketed to counties of a certain population.

House Committee on Defense and Veterans' Affairs (Chairman Frank Corte, R – San Antonio)

• Investigate strategies to address incompatible land use surrounding Texas military installations. Study approaches that minimize conflict with neighboring landowners.

House Committee on Energy Resources (Chairman Jim Keffer, R – Eastland)

• Survey current local ordinances governing surface use of property in oil and gas development. Recommend changes, if any, to the authority of the Railroad Commission to regulate the operation of oil and gas industries in urban areas of the state, particularly the Barnett Shale.

House Committee on Environmental Regulation (Chairman Byron Cook, R – Corsicana)

• Survey existing recycling programs and suggest needed improvements.
• Monitor federal legislative and regulatory initiatives as they pertain to climate change. Consider Texas' responses to proposals and make recommendations as to any further preparations.

House Committee on Insurance (Chairman David Smithee, R – Amarillo)

• Study title insurance rates and whether changes to the current ratemaking process would be beneficial to consumers.
• Examine the Texas Department of Insurance's (TDI) recently adopted Procedural Rule P-5.1, allowing a title insurance company to issue a policy containing a general exception from coverage for minerals. Determine whether Procedural Rule P-50.1, governing the use of the Minerals and Surface Damage Endorsements Forms (T-19.2 and T-19.3), should result in a different rate schedule for policies. Study the appropriateness, feasibility, and sustainability of title insurance companies writing the type of policy now required by P-50.1.

House Committee on Judiciary and Civil Jurisprudence (Chairman Todd Hunter, R – Corpus Christi)

• Study and make recommendations regarding the use of arbitration in Texas and the effect such practices have on state jurisprudence.
• Study and report on third-party liability issues involving workers' compensation, including the frequency and success rates of third-party litigation, the relationship, if any, between third-party litigation and jobsite safety, the adequacy of compensation and reimbursement to workers, and the economic costs of third-party litigation and equitable and contractual subrogation in construction activities. Joint Interim Charge with House Committee on Business and Industry.

House Committee on Land and Resource Management (Chairman Dennis Bonnen, R – Angleton)

• Examine unresolved issues relating to eminent domain legislation introduced during the 81st Legislative Session. Monitor any pending litigation.

House Committee on Licensing and Administrative Procedures (Chairman Edmund Kuempel, R – Seguin)

• Study all existing occupational licensing programs and determine their impact on consumers, competition, and the cost of services. Review and explore the extent to which new licensing programs are necessary.

House Committee on Natural Resources (Chairman Allan Ritter, D – Nederland)

• Evaluate groundwater regulations and permitting processes throughout the state, including the role of state agencies in groundwater management, the development of desired future conditions, and the adoption of groundwater management plans in relation to regional and state water planning.
• Monitor the effects of current and proposed federal initiatives that could impact the implementation of the State Water Plan. Evaluate the policies and investments developed by other states dealing with water issues similar to the State of Texas.
• Monitor ongoing drought conditions and initiatives to promote water conservation through the review of the following: state requirements for the submittal of water conservation plans and annual reporting; the "trigger" for use of drought contingency plans; recommendations by state agencies and the Water Conservation Advisory Council; and progress toward the development of recycled water resources and desalination projects.
• Evaluate the regulatory model for investor-owned water and sewer utilities, including rate case process and timing, consultant fee recovery, overall cost reductions, and more effective consumer participation.

House Select Committee on Federal Economic Stabilization Funding (Chairman Jim Dunnam, D – Waco)

• Monitor the use of funds, adherence to state and federal reporting requirements, and ongoing development of federal rules and regulations provided under the American Recovery and Reinvestment Act (ARRA). Evaluate the impact of those funds on the state's economy. Joint Interim Charge with House Committee on Appropriations.
• Review the Texas Department of Housing and Community Affairs' Weatherization Assistance Program and increased funding from ARRA. Examine the methodology used to distribute funds and the program's effectiveness at reducing residential energy costs. Joint Interim Charge with House Committee on Urban Affairs.

House Committee on State Affairs (Chairman Burt Solomons, R – Carrollton)

• Review state compliance with federal law regarding undocumented immigrants.
• Evaluate the costs of services and benefits provided to undocumented immigrants by state agencies and local governments.
• Examine state policy on "green" technologies for all state buildings and costs associated with such implementation.
• Monitor federal legislation and regulatory initiatives pertaining to climate change its effects on utilities and consumers. Consider Texas' response to proposals and make recommendations as to any further preparations.

House Committee on Transportation (Chairman Joe Pickett, D – El Paso)

• Monitor the Texas Department of Transportation (TxDOT) to ensure the agency is implementing recommended legislative, sunset, and Grant Thornton management audit changes.
• Review the organization and operation of Metropolitan Planning Organizations (MPOs). Consider the relationship between MPOs and TxDOT regarding transportation planning and programming.
• Study the practices and procedures used in the development of toll roads and make recommendations as necessary.

House Committee on Urban Affairs (Chairwoman Yvonne Davis, D – Dallas)

• Examine the Texas Department of Housing and Community Affairs' (TDHCA) regional allocation formula policies and determine methodologies that could enhance equitable distribution
• Review the TDCHA's Weatherization Assistance Program and increased funding from the American Recovery and Reinvestment Act. Examine the methodology used to distribute funds and the program's effectiveness at reducing residential energy costs. Joint Interim Charge with House Select Committee on Federal Economic Stabilization Funding.
• Evaluate the method of distributing federal hurricane relief funds and recommend improvements. Joint Interim Charge with House Committee on Appropriations.
• Make recommendations regarding the feasibility of a housing initiative that promotes independence and prevents unnecessary institutionalization of eligible populations.

House Committee on Ways and Means (Chairman Rene’ Oliveira, D – Brownsville)

• Monitor the revised franchise tax and identify changes to simplify the tax and improve compliance and fairness.
• Examine the state's major tax exemptions to determine how the current costs and benefits compare with the original legislative objectives. Make recommendations for adjustments as needed.
• Study methods for improving the quality and uniformity of, and communications to taxpayers about, property tax appraisals.
• Monitor the implementation of property tax appraisal and alternative valuation appeal reforms enacted by the 81st Legislature.

Bill Summaries

A wide range of bills affecting the homebuilding industry passed during the 81st legislative Session which ended June 1, 2009.  The September/October edition TexasBuilder magazine contained summaries of the bills. Click here for the article.

Fire Sprinklers

Capitol Efforts Save Industry and Consumers Millions

When the Texas Legislature ends the term used is sine die.  This Latin term is pronounced “cy-nee-die,” and it is used in reference to legislatures whose terms or mandates are coming to an end, as in "The Texas Legislature closed its 81st Session today by adjourning sine die."

For the residential development and residential construction industry, the 81st Texas Legislature ended “sine die” without lawmakers enacting any unnecessary taxes, regulations or fees on the industry.  But perhaps the most favorable news from the Capitol is not what failed to become law rather what did become law.

Senate Bill (SB) 1410 was one bill passed into law by Texas lawmakers this past Legislative Session that contains new statutory language of upmost importance to Texas home builders and remodelers, and, more importantly, to Texas homebuyers….read more.

Links

Texas Legislature Online – www.capitol.state.tx.us
Texas Tribune – www.texastribune.org