2019-118 Legislative Session SummaryDate: May 31, 2019 Report No. 2019-118
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Provide an update on the 86th Texas Legislative Session.
DISCUSSION:
The 86th Texas Legislative Session concluded on May 27, 2019. The following are updates for
some key bills of interest. Staff will continue to provide updates on legislation that impacts the
City and monitor analysis from professional associations such as the Texas Municipal League
(TML).
Senate Bill 386 (Tourism Public Improvement District) – This bill authorizes the creation
of a tourism public improvement district under certain parameters. The changes would enable
the possible creation of a TPID in the City of Denton. This legislation was led by the Denton
Convention & Visitors Bureau and City Council agreed to support. It was sent to the Governor
on May 21, 2019.
Senate Bill 1066 (Denton County Transportation Authority) – This bill defines the DCTA
Board composition as including one appointment from each founding municipality, two
appointments from the Denton County Commissioners Court, and one member for each
additional municipality that contributes certain public dollars toward DCTA. The bill became
effective on May 20, 2019 when the Governor signed it.
House Bill 4683 (Hunter Ranch) – This bill authorizes the creation of the Hunter Ranch
Improvement District No. 1 of Denton County under certain parameters, including city consent
and execution of an operating agreement and project agreement with the city. The bill was sent
to the Governor on May 26, 2019 for his signature.
House Bill 4693 (Cole Ranch) – This bill authorizes the creation of the Cole Ranch
Improvement District No. 1 of Denton County under certain parameters, including city consent
and execution of an operating agreement and project agreement with the city. The bill was sent
to the Governor on May 29, 2019 for his signature.
Senate Bill 2 (Property Tax Bill) – This bill makes numerous changes to the process for
adopting property tax rates, including, but not limited to, setting a “rollback” rate (now called
“voter-approval” tax rate) at 3.5 percent and requiring a mandatory election on the November
uniform election date for a tax rate that exceeds the voter-approval tax rate. There are numerous
other changes and procedural items related to if a mandatory election is held to seek approval
of a tax rate that exceeds the voter-approval tax rate. This bill was sent to the Governor on May
28.
Senate Bill 1152 (Right-of-Way Rental Fees) – This bill amends the Local Government Code
to eliminate certain right-of-way rental fees for telecommunications companies by allowing a
Date: May 31, 2019 Report No. 2019-118
company to elect to pay either telephone franchise fees under the access line compensation
system or cable franchise fees under the state-issued cable franchise system, but not both as
they currently must. The bill allows the companies to choose to no longer pay the lesser of the
two fees, although they benefit financially from both by using public land for a private purpose.
On April 16, 2019, the City Council passed a resolution in opposition of this bill as it would
force City of Denton taxpayers to subsidize the operational costs of private businesses and
allow the use of publicly-owned property for less than fair market value. This bill was sent to
the Governor for signature on May 25. The bill will take effect on September 30, 2019 and
will apply only to franchise fee payments made after January 1, 2020. City Staff expects the
resulting estimated revenue loss to be over $670,000 per year.
House Bill 852 (Building Permit Fee Calculation) – This bill prohibits cities from calculating
their residential building permit fees on the cost of a proposed residential structure or
improvement. The bill was signed by the Governor on May 21, and it is effective immediately.
City staff and Legal are working to understand the implications of the bill to the City and
develop options for a revised fee schedule.
House Bill 1631 (Red Light Camera) – This bill amends the Transportation Code to prohibit
local authorities, including municipalities, from operating a photographic traffic signal
enforcement system, or red-light cameras. This bill gained final passage from the Legislature
on May 17, was enrolled, and sent the Office of the Governor for signature. There will be a
City Council work session on June 3 regarding red light camera legislation and the City’s
contract.
Senate Bill 621 (Plumbers Licensing) – The state agency of the Texas Board of Plumbing
Examiners (TBPE) was set to “sunset” and expire on September 1, 2019. This bill would have
abolished the TBPE and transferred its functions to the Texas Department of Licensing and
Regulation (TDLR), including state licensing and regulation of plumbers and plumbing work,
however, the final version of the bill failed to pass. Staff will monitor if the State plans to
address the issue in any way or alternative options that could be considered. It is also our
understanding that the Texas Municipal League is looking at the impact on cities if the Texas
Board of Plumbing Examiners is no longer in existence on September 1, 2019.
House Bill 2439 (Building Materials) – This bill would will pre-empt cities from enforcing
any kind of building materials requirements and processes more restrictive than what the
building codes require. In short, cities would no longer have the ability to regulate aesthetics
and quality development, especially in commercial or mixed-use areas. The bill has been sent
to the Governor for signature on May 29; however, there is still considerable opposition and a
push for the Governor to veto the bill.
Senate Bill 21 (Tobacco 21) – This bill amends the Health and Safety Code to prohibit sales
to or the possession, purchase, consumption, and receipt of cigarettes, e-cigarettes, and tobacco
products to anyone under the age of 21 years. A notable exception is that military personnel
presenting valid military identification may legally purchase and consume cigarettes, e-
cigarettes, and tobacco products. Additionally, persons between the ages of 18 and 21 at the
Date: May 31, 2019 Report No. 2019-118
time that the bill takes effect are also exempt. On February 26, 2019, the City Council passed
a resolution in support of similar legislation as there is evidence that reducing the availability
of tobacco and e-cigarette products for persons between 18 and 21 years of age results in a
reduction of smoking and smoking-related public health impacts. This bill was sent to the
Governor for signature on May 25. The bill will take effect on September 1, 2019.
House Bill 1545 (Craft Brewery To-Go Sales) – This bill will provide for the continuation
and functions of the Texas Alcoholic Beverage Commission (TABC) until its next scheduled
review by the Sunset Advisory Commission. Included in the expansive legislation is a
provision that allows for the sale of 288 ounces of ale or beer for off-premises consumption by
breweries with a brewers permit or manufacturing license. On April 9, 2019, the City Council
passed a resolution in support of “to-go” ale and beer sales by breweries as such a change
would increase the economic impact of breweries, particularly in Denton, and promote greater
fairness under the law by eliminating legal differences relating to “to-go” sales for breweries,
distilleries, and wineries. The bill was sent to the Governor for signature on May 29.
Senate Bill 1156 (RRC Public Hearings for Gas Wells) – City Council expressed interest
and support for this bill which would have required the Texas Railroad Commission to hold
public hearings on certain gas well permit applications where a proposed well site is located
within 1,500 feet of the property line of a child-care facility, private school, or primary or
secondary public school. This bill and its companion, HB 2920, did not pass out of committee
during the session.
House Bill 3143 (Ch. 312 Extension) – This bill extends the sunset date for Chapter 312 of
the Texas Tax Code to allow for the continued use of property tax abatements. Denton utilizes
Chapter 312 tax abatements as an economic development tool and, as a result, City Council
included the extension of the provisions of Chapter 312 as a priority in their 2019 Legislative
Agenda. The bill was sent to the Governor for signature on May 29.
Bills that are sent to the Governor for signature will, unless specified otherwise in the bill, become
effective when signed by the Governor or 20 days after the conclusion of the legislative session if
not signed by the Governor.
STAFF CONTACT:
Sarah Kuechler, Director of Public Affairs
(940) 349-8356
sarah.kuechler@cityofdenton.com
Ryan Adams, Deputy Director of Public Affairs
(940) 349-8565
ryan.adams@cityofdenton.com