2017-066 State Legislative SummaryDate: September 15, 2017 Report No. 2017-066
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Summary of the 85th Texas Legislative Sessions
BACKGROUND:
The City compiles its key legislative issues into a State Legislative Program that is adopted by the
City Council in advance of the regular Texas Legislature session every two years. The City’s 2017
State Legislative Program for the 85th session was adopted by the City Council on December 13,
2016. The Program included a general policy that the City will oppose any legislation viewed as
detrimental to the City’s strategic goals or would limit home rule authority; is contrary to the
health, safety, and welfare of its citizens; mandates increased costs or loss of revenues; or would
diminish the fundamental authority of the City.
DISCUSSION:
Please find attached an End of Session Report from the City’s legislative consultant, Focused
Advocacy, presenting a recap of the outcomes for the regular and special sessions of the 85th Texas
Legislative, both in terms of cities affected statewide and Denton specifically.
Below are a couple noteworthy items from the special session:
SB 6 passed requiring cities in large counties to receive voter approval before annexing
new areas. This is harmful to cities that use annexation as a means to ensure that residents
and businesses outside a city’s corporate limits, who benefit from access to the city’s
facilities and services, share the tax burden associated with constructing and maintaining
those facilities and services. Texas Municipal League (TML) is working to update an
annexation paper and provide guidance based upon the requirements of the legislation.
Staff plans to present an overview on annexation changes to the City Council at a work
session in October.
HB 7 passed pre-empting some aspects of local tree ordinances. HB 7 does not allow cities
to charge homeowners fees for removing trees that are under 10 inches in diameter. There
is additional regulations regarding offset fees – homeowners can entirely eliminate fees by
planting new trees, residential developers can offset 50% of fees, and commercial property
owners can offset fees by at least 40%. This bill goes into effect December 1, 2017. Staff
is working together to compare this legislation with the City’s tree ordinance and will
report back to Council in October on this legislation and any associated impacts.
Please do not hesitate to contact staff with any questions on the legislative session or the attached
report from Focused Advocacy.
ATTACHMENTS:
1. End of Session Report
STAFF CONTACT:
Date: September 15, 2017 Report No. 2017-066
Sarah Kuechler
Assistant to the City Manager
(940) 349-8356
Sarah.Kuechler@cityofdenton.com
9/13/2017
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85TH SESSION
END OF SESSION REPORT
CITY OF DENTON
Brandon Aghamalian Snapper Carr
Curt Seidlits Andrew Keefer
DENTON
HOUSE DELEGATION
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Tan Parker
Investments & Financial
Services (Chair)
International Trade &
Intergovernmental Affairs
Redistricting
Lynn Stucky
Agriculture & Livestock
Land & Resource Management
Pat Fallon
Culture, Recreation & Tourism
Elections
9/13/2017
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3
Jane Nelson
Finance (Chair)
State Affairs
Health and Human Services Transition
Legislative Oversight Committee (Co‐chair)
Craig Estes
Natural Resources & Economic Development (Chair)
Business & Commerce
Nominations
State Affairs
State Water Implementation Fund for Texas Advisory
Committee
DENTON
SENATE DELEGATION
WHERE WE STARTED
LEADERSHIP AGENDAS
•Solid GOP majorities in both chambers
–House 95 R / 55 D Senate 20 R / 11 D
•Abbott
–Four Emergency Items: CPS, Sanctuary Cities, Ethics, and a Convention
of the States; added a fifth: Voter ID
•Patrick
–SB 1‐30: Property Tax Caps, School Choice, “Bathroom Bill,” Sanctuary
Cities, Voter ID, State Spending Caps, Hailstorm
•Straus
–School Funding, CPS, Mental Health, Infrastructure, Higher Education
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85TH LEGISLATURE
BY THE NUMBERS
•6,568 # of bills filed (i.e. –proposed ideas)
•169 # of constitutional amendments filed
•80 # of bills filed per day
•3,089 # of bills filed last 10 days before deadline (47%)
•2,508 # of “city bills” tracked and monitored by
Focused Advocacy
•1,211 # of bills passed (18% passage rate)
•9 # of constitutional Amendments passed
•1,007 # of bills signed into law
•153 # of bills filed without signature
•50 # of bills vetoed
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DENTON
LEGISLATIVE AGENDA
As adopted by Council (Resolution #043 2016)
1. Protect Revenue Sources & Budget Setting Authority
2. Protect Land Use Regulations & Authority
3. Preserve DME as Community Owned & Operated
4. Seek introduction and passage of legislation to authorize
City to utilize local Hotel Occupancy Tax (HOT) funds for
enhancement of city‐owned recreation fields (as adopted
by Council Resolution #11 2017)
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RESULTS
1. Protect Revenue Sources & Budget Setting Authority ✔
Defeated SB 1 / SB 2
2. Protect Land Use Regulations & Authority Authority ✔‐
Defeated all bad land use bills but “Vote to be Annexed”
passed in special –however Denton SPA protected by
Focused Advocacy efforts
3. Preserve DME ✔
No bad MOU bills passed
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RESULTS
•HB 2445 by Rep. Stucky & Estes –PASSED
•Rep. Stucky filed it
•Delicate bill that required a lot of negotiating with Texas
Hotel Association
•Mayor & lobby team invested a lot of time/effort
•The bill became subject to a lot of other (unrelated)
amendments
•It was one of the very last bills passed on the last day
•Hard fought victory with all credit to Stucky & Estes
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TREES
•SB 744 by Sen. Kolkhorst (author) & Rep. Phelan (sponsor) –PASSED
–Passed during regular session but vetoed by the Governor
–Governor veto statement: “…compromise bill that imposes a very minor
restriction on some municipal tree ordinances…I believe we can do better for
private property owners”
•HB 7 by Rep. Phelan (author) & Sen. Kolkhorst (sponsor) –PASSED
–Passed during special session
–HB 7, unlike SB 744, doesn’t allow cities to charge homeowners fees for
removing trees that are under 10” in diameter
–More specific about offset fees: homeowners can entirely eliminate fees by
planting new trees, residential developers can offset 50% of fees, and
commercial property owners can offset fees by at least 40%
–Goes into effect Dec. 1
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ANNEXATION
•SB 715 by Sen. Campbell (author) & Rep. Huberty (sponsor) –DEFEATED
–Defeated with a filibuster during regular session
•SB 6 by Sen. Campbell (author) & Rep. Huberty (sponsor) –PASSED
–Passed during special session
–Rewrites Municipal Annexation Act to severely curtail the ability of
cities to annex property
–“Bracketed” to apply only to certain cities
–Goes into effect on Dec. 1
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WHAT PASSED
MUNICIPAL BILLS
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Bill #Author
Sponsor Description Status
SB 4 Perry
Geren Sanctuary Cities PASSED
HB 100 Paddie
Schwertner
TNC’s (Transportation Network
Companies) ‐Uber PASSED
SB 1004 Hancock
Geren
Small Cell Deployment (right of
way fees) ‐AT&T PASSED
SB 1004
•SB 1004 by Sen. Hancock (author) & Rep. Geren (sponsor) –PASSED
•Taxpayer subsidy for use of public property
•Mandates the use of street signs, traffic structures, and street lights
for antennas for cell phone companies
•Subsidizes the cell phone industry with below market rental rates
and capped application fees
•Under the Texas Constitution, cities are mandated to receive fair
market rental value for use of public rights‐of‐way.
•City coalition led by McAllen and Dallas have filed a state suit
challenging constitutionality of the statute. More cities are
expected to join coalition as the suit moves forward
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WHAT DID NOT PASS
REGULAR SESSION
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Bill #Author
Sponsor Description Status
SB 2 Bettencourt
4% Property tax rate caps & budget
referendums DEFEATED
SB 715
HB 424
Campbell
Huberty Vote ‐to‐be‐annexed in certain counties DEFEATED
SB 241
SB 445
Burton
Burton Prohibiting Cities From Advocating / Lobbying DEFEATED
SB 451
HB 2551
Hancock
Parker
Preempting short term property rental
ordinances (i.e. – Home Away / Air B‐n‐B)DEFEATED
SB 488 Bettencourt
Requiring cities to get Secretary of State
approval for all ballot propositions DEFEATED
HB 1658
SB 461
Phelan
Lucio
Requiring voluminous financial information to
appear on bond proposition ballots DEFEATED
SB 737
HB 1577
Hancock
Parker
Requiring cities to send email notification and
hold hearings before adopting/raising “fees”DEFEATED
WHAT DID NOT PASS
REGULAR SESSION
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Bill #Author
Sponsor Description Status
HB 1572 Workman
Preempting tree ordinances if owner believes
removing tree necessary for safety DEFEATED
HB 744 Farrar Making cities broadly liable for attorney’s fees in
civil litigation DEFEATED
HB 3801
SB 1530
Capriglione
Estes
Prohibiting municipal regulation of payday
lenders DEFEATED
HB 2076
SB 628
Schubert
Schwertner
Allowing former owners to repurchase
condemned property for lack of progress DEFEATED
HB 1271 Lang Elimination of May city election date DEFEATED
SB 88
HB 808
Hall
Fallon Banning city red light cameras DEFEATED
9/13/2017
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UTILITY
BILLS
WHAT PASSED
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Bill #Author
Sponsor Description Status
SB 758 Menendez
Rodriguez, J.
Bill payment assistance program
for CPS PASSED
SB 735 Hancock
Extends ERCOT IOUs to file at the
PUC to make rate changes
between base rate cases
PASSED
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EMINENT DOMAIN
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Bill #Author
Sponsor Description Status
SB 740 Kolkhorst
Acquisition of property by an
entity with eminent domain
authority
DEFEATED
HB 2684 DeWayne
Burns
acquisition of property by an
entity with eminent domain
authority; waiving certain
sovereign and governmental
immunity
DEFEATED
WHAT DID NOT PASS
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Bill #Author
Sponsor Description Status
HB 1460 Workman
AE customers to petition the PUC to
review rates DEFEATED
HB 1458 Workman
Allow Austin City Council to transfer
management of AE to an appointed
Board of Trustees
DEFEATED
HB 1459 Workman
Cap AE general fund transfer and limit
use of revenue DEFEATED
HB 1461 Workman
Require AE to transfer outside of city
limits customers to neighboring electric
cooperatives
DEFEATED
9/13/2017
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ELECTRIC MARKET
STRUCTURE
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Bill #Author
Sponsor Description Status
SB 736 Hancock
Clardy
General Land Office Power
Program PASSED
SB 758 Menendez
Rodriguez, J.Bill payment assistance programs PASSED
SB 1976 Whitmire
Eligibility process for customer
service benefits PASSED
BILLS AFFECTING CITIES
LAND USE REGULATIONS
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Bill #
Author
Sponsor Description Status
SB 744 Kolkhorst
Phelan
Tree planting credit to offset tree
mitigation fees VETOED
SB 1248 Buckingham
Lucio IIII
Limits municipal regulation of
manufactured home communities PASSED
HB
1449
Simmons
Nelson
Prohibits cities from imposing affordable
housing fees on new construction PASSED
HB
1704
Kuempel
Huffman
Loser pays court costs and attorney's fees
in “permit vesting” lawsuits (chapter 245)PASSED
9/13/2017
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21
Bill #
Author
Sponsor Description Status
HB 501 Capriglione
Taylor, V.
Personal financial statements filed by public
officers and candidates, disclosure of certain
contracts
PASSED
SB 255 Zaffirini
Simmons
Contracts with and training for governmental
entities and vendors, including purchasing and
contract management training
PASSED
SB 1289
Creighton
Paddie
Purchase of iron and steel made in the United
States for certain governmental entity projects PASSED
SB 1221 Watson
Hinojosa
Annual report submitted to comptroller for
hotel occupancy taxes PASSED
BILLS AFFECTING CITIES
CONTRACTING & REPORTING
ECONOMIC
DEVELOPMENT
•No “bad” economic development bills passed this session.
•However, dozens were filed and considered.
•“Economic Development” has become a bad word. It’s now thought
of by most as cronyism, picking winner and losers, corporate welfare
and/or violating property rights.
•Texas Enterprise Fund reduced to $86M (down from $90M).
•FYI ‐Chapter 312 (tax abatements) expires next session.
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LOCAL CONTROL
VS. LIBERTY
•“If 2015 was the year local control began to lose its luster as a
governing principle…, the 2017 Session saw the culmination of this
unfortunate trend.
•The new, improved mantra at the Capitol is “liberty,” which translates
to liberty to do anything you want in a city without consideration for
the liberty or property values of your neighbors.
•How did we arrive at this state of affairs?
•There are three principle reasons.” ‐‐TML
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LOCAL CONTROL
VS. LIBERTY
•‘First, national “think tanks” are pushing the idea that state legislatures know better
than local governments…that preemption …is the way forward... These groups are
well funded by the national business lobby.
•It’s a simple concept: why deal with multiple cities’ regulations when you can have one‐
stop shopping at the statehouse?
•Second, years of litigation against the federal government have convinced some that
state government is the pinnacle... That state government is supreme, and higher and
lower levels of government need to get on board with that concept.
•Finally, (there is) a new effort to politicize the non‐partisan nature of city government...
Supporters of the two major parties are active in local city elections. This trend toward
politicizing local government may be one of the biggest challenges the League faces in
the coming years.” ‐‐TML
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SPECIAL SESSION
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•During regular session, Lt. Gov. Dan Patrick held key
“sunset” legislation hostage
•It was an effort to force a special session on other issues
•Namely bathrooms and property tax reform and some
other “red‐meat” issues
MAKE IT COUNT
20 ISSUES
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•“Because of their inability or refusal to pass a simple law that would
prevent the medical profession from shutting down, I’m announcing a
special session to complete that unfinished business. But if I’m going to
ask taxpayers to foot the bill for a special session, I intend to make it
count.” –Greg Abbott
•Promised to add 19 more issues but only after the Senate passed sunset
•20 for 20 became the mantra – especially in the Senate and with the
Governor
•“As your governor, I will not allow Austin, Texas, to California‐ize the Lone
Star State” –Greg Abbott
9/13/2017
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PATRICK COMMENT
ABOUT CITIES
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•Dan Patrick: “People are happy with their governments at
the state level.
•They’re not with their cities…
•Our cities are still controlled by Democrats.” –Dan Patrick
PATRICK COMMENT
ABOUT CITIES
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•“Where do we have all our problems in America? Not at the state
level, run by Republicans, but in our cities mostly controlled by
Democrat mayors and city councilmen.
•That’s where you see liberal policies, that’s where you see high
taxes, where you see high street crimes. Look at New York, look at
Chicago, look at…go around the country.
•So the only place Democrats have control of is our cities and they’re
doing a terrible job.”‐‐Dan Patrick
9/13/2017
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THE SCORE CARD
WHAT PASSED
1. Medical Board Reauthorization (sunset) ✔
2. Annexation by Referendum ✔
3. Preemption of Tree Ordinances ✔
4. Reforming Health Insurance funded Abortions ✔
5. Abortion Complication Reporting ✔
6. Commission for School Finance ✔
7. Teacher Pay & Benefits (Band Aid School Finance) ✖✔
8. Mail‐in Ballot Fraud ✔
9. Do‐Not‐Resuscitate Orders ✔
10. Maternal Mortality Task Force ✔
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THE SCORE CARD
WHAT FAILED
1. Property Tax Rate Caps / Budget Referendums (3%) ✖
2. Spending Caps on Local Governments ✖
3. Preemption of Ordinance on Private Property ✖
4. Preemption of Hands Free Ordinances ✖
5. Expedited Permitting ✖
6. Bathrooms / Privacy ✖
7. Prohibiting Taxpayer Funded Abortions ✖
8. School Choice (Special Needs Student) ✖
9. Union Dues ✖
10. Spending Caps on State ✖
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THE BLAME GAME
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•"We missed some major opportunities, but what I'm most
upset about is the House quit tonight," Patrick said at a
press conference Tuesday evening.” With 27 hours to go,
they walked off the job," he added.
•Gov. Greg Abbott put blame on the House —particularly
Speaker Joe Straus —for the shortcomings of the special
session and left the door open to calling another one.
•Asked if he assigned blame to Straus, a San Antonio
Republican, Abbott replied, "Well, of course."
THE BLAME GAME
32
•"There is a deep divide between the House and Senate on
these important issues," Abbott said.
•"So I’m going to be making decisions later on about
whether we call another special session, but in the
meantime, what we must do is we need to all work to get
more support for these priorities and to eliminate or try to
dissolve the difference between the House and the Senate
on these issues so we can get at a minimum an up‐or‐down
vote on these issues or to pass it.”
9/13/2017
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LOOKING AHEAD
JUDICIARY
•Sanctuary Cities (SB 4) –TRO issued Aug. 30, 2017
•Voter ID –permanent injunction issued Aug. 23,
2017
•Small Cell Deployment (HB 1004) – lawsuit filed
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LOOKING AHEAD
ELECTIONS
•Statewide Officers on the ballot in 2018 (US Senate top of
ticket along with Governor, Lt. Gov, etc.)
•Primary races essentially start now (March 6, 2018)
•General Election (Nov. 6, 2018)
•Retirements / Seeking other offices will continue to drive
turnover in Legislature
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MEMBERS NOT RETURNING
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SENATORS REPRESENTATIVES
1. Taylor, Van (R) – Plano 1. Keough, Mark (R) –The Woodlands
2. Gonzales, Larry (R) – Round Rock
3. Laubenberg, Jodie (R) – Parker
4. Cindy Burkett – running for Senate
5. Pat Fallon – running for Senate
LOOKING AHEAD
NEXT SESSION
•Anti‐First Amendment Movement (limiting cities voice in legislature)
•Property Tax Rate Caps & Budget Referendums
•Local Control v. Liberty (i.e.‐municipal preemption)
–Land use
–STR
•Right of Way Revenues
•Debt Issuance
•Re‐Addressing Unconstitutional Bills
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THANK YOU
Brandon Aghamalian
Snapper Carr
Curt Seidlits
Andrew Keefer
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