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2021-017 Legislative UpdateDate: March 19, 2021 Report No. 2021-017       INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: State Legislative Update BACKGROUND: The 87th session of the Texas Legislature began on January 12. Staff and contracted legislative consultants Jackson Walker, LLP and Focused Advocacy, LLC continue to monitor filed bills for any potential impacts to the City. The current session yielded an unprecedented political landscape since the aftermath of Winter Storm Uri. The Governor subsequently revised his emergency items that initially included expanding broadband internet access, punishing local governments that “defund the police” as stated by him, changing the bail system, ensuring what he described as “election integrity”, and providing civil liability protections for businesses that were open during the pandemic to also include funding for the winterization of the Texas power system. Given the Winter Storm circumstances, movement on items is now beginning to happen. DISCUSSION: A live update in a work session was planned to go before City Council on March 23. Due to the limited activity by the legislature because of the recent winter storm, however, bills are only now beginning to move and there was not much of an update to present to Council. However, staff has worked with the legislative consultants to put together a brief PowerPoint which provides an overview of the timeline of the remainder of regular session, officials’ priorities, as well as pertinent topics and bills currently being actively monitored (attached). CONCLUSION: Staff will continue to update Council through the Friday Report of any relevant updates to those topics impacting the City pursuant to Council’s adopted legislative agenda. A future work session to cover updates is scheduled for the end of April. STAFF CONTACT: Ryan Adams Customer Service & Public Affairs Ryan.Adams@cityofdenton.com Rachel Balthrop Mendoza City Manager’s Office Rachel.Mendoza@cityofdenton.com REQUESTOR: Staff Initiated The 2021 Legislative SessionDenise RosePartnerKate GoodrichAssociate AUSTIN | DALLAS | FORT WORTH | HOUSTON | SAN ANGELO | SAN ANTONIO | TEXARKANA | JW.comDenise RoseKate GoodrichMeet Your Jackson Walker Lobby Team•Originally from Oklahoma.•A Sooner with a Law degree from the University of Houston.•Been around the capitol almost 16 years and with Jackson Walker for five. •Background in healthcare law but now has lobbied in almost every policy area.•Enjoys trying new restaurants, wine, and live music. •Originally from Arlington, Texas.•Undergrad and law degree both from UT.•Started lobbying in D.C. for two years before law school.•Worked in three different Texas Senate committees.•Enjoys her rescue dog and cat, hiking, traveling, and meeting new people.  AUSTIN | DALLAS | FORT WORTH | HOUSTON | SAN ANGELO | SAN ANTONIO | TEXARKANA | JW.comYour Texas State Government+1 Democrat AUSTIN | DALLAS | FORT WORTH | HOUSTON | SAN ANGELO | SAN ANTONIO | TEXARKANA | JW.com•Revenue and taxation, including relevant property tax issues and protecting against unfunded mandates. •Public Safety policy and budgeting, including homelessness, policing, and criminal justice reform. •Infrastructure issues, including solid waste and transportation. •Power balance between cities and state:•Scope of Executive Office authority.•COVID‐19 and Winter Storm Uri disaster responses. •Tax‐payer funding lobbying.•Local governmental control issues.•Governmental transparency issues.Issues We Are Covering for Denton AUSTIN | DALLAS | FORT WORTH | HOUSTON | SAN ANGELO | SAN ANTONIO | TEXARKANA | JW.comCOVID‐19 Specific Issues•COVID‐19 liability protections for businesses.•Pandemic relief packages.  •Vaccine Rollout.•Eviction Moratoriums.•Monitoring Trauma Service Areas hospital capacities and impact to business re‐openings.•Interpreting State Executive Orders and Local Ordinances.  AUSTIN | DALLAS | FORT WORTH | HOUSTON | SAN ANGELO | SAN ANTONIO | TEXARKANA | JW.comAdvocating for The City of DentonCity of Denton Delegation:Senator Drew Springer:•Water, Agriculture & Rural Affairs — Vice‐Chair•Administration•Higher Education•Local Government•NominationsSenator Jane Nelson:•Finance — Chair•State Affairs•Ports (Select Committee)Representative Lynn Stucky:•County Affairs — Vice Chair•Appropriations  AUSTIN | DALLAS | FORT WORTH | HOUSTON | SAN ANGELO | SAN ANTONIO | TEXARKANA | JW.comThe 87th(R) Legislative Session is January 12ththrough May 31st. Important Deadlines*:•Last day to file bills/first day the Legislature can consider non‐emergency items for a vote (60thDay): March 12•Last day for House bills to be considered on Second Reading:  May 13•Last day for the House to consider Local bills:  May 21•Last day for the House to consider Senate bills on Second Reading:  May 25•Last day for the Senate to consider ALL bills: May 26•Last day for all Conference Committee Reports to be adopted: May 30 AUSTIN | DALLAS | FORT WORTH | HOUSTON | SAN ANGELO | SAN ANTONIO | TEXARKANA | JW.comTHANK YOU!Kate Goodrichkgoodrich@jw.comDenise Rosedrose@jw.com LEGISLATIVE UPDATEMARCH 23, 2021CURTIS L. SEIDLITS, FOUNDER & CEO, FOCUSED ADVOCACY LEGISLATIVE ISSUESPre‐winter event:2–Competition (customer choice)–Governance / general fund transfer–Purchasing generation review–Increased PUC oversight (rate review, appeals)–Electric vehicles / battery storage–Cybersecurity–Renewables–Broadband–Community advocacyPost‐winter event:•Governor Abbott emergency items:–ERCOT reform–Mandating winterization for Texas’s power system (as well as ensuring the necessary funding)–ERCOT $16B billing issue•Lt. Governor priorities: –ERCOT reform–Power grid stability–Taxpayer funded lobbying  TIMELINE – WINTER STORM EVENT LEGISLATIVE ACTIVITY•February 25th–March 11th:–Various Senate & House hearings on Winter Storm Event•March 1st: Independent Market Monitor (IMM) Report–For operating days February 15 through February 20, reprice all day‐ahead ancillary services (AS) clearing prices to cap them at the System‐Wide Offer Cap (SWCAP) of $9,000 per MWh ‐rejected by PUC–For operating days February 14 through February 19, invoke the "failure to provide" settlement treatment for all AS that were not provided in real time –adopted by PUC•March 4th: IMM report –Direct ERCOT to correct the real‐time prices from 0:00 February 18 to 09:00 February 19, to remove the inappropriate pricing intervention that occurred during that time period –rejected by PUC•March 11th: IMM report –Recommendation to correct two classes of inflated costs –rejected by PUC•March 15th: Sen. Hughes files, and the Senate subsequently passes, SB 21423 LEGISLATION TO WATCH4BILL SUMMARYHB 10 (Paddie)Restructures the ERCOT board, replacing the unaffiliated members with members appointed by the Governor, Lt. Governor, and Speaker of the House (last action: reported favorably as substituted from House State Affairs on 3/18/21)HB 11 (Paddie)Requires requires electric transmission and generation facilities to be weatherized (last action: reported favorably as substituted from House State Affairs on 3/18/21)HB 13 (Paddie)Establishes the Texas Energy Disaster Reliability Council to improve coordination during disasters (last action: reported favorably as substituted from  House State Affairs on 3/18/21)HB 17 (Deshotel)Prevents any political subdivision or planning authority from adopting or enforcing an ordinance, regulation, code, or policy that would prohibit the connection of residential or commercial buildings to specific infrastructure based on the type or source of energy that will be delivered to the end user. (last action: reported favorably as substituted from House State Affairs on 3/18/21)SB 182 (Schwertner)Directs PUC to compare five‐year average of rates of MOUs to those in the competitive retail markets in a similar geographic region. If rates are more than 10% above those in the competitive market, the MOU must enter into retail competition. (last action: referred to Senate Business & Commerce 3/3/21)SB 2 (Hancock)Independent organizations to manage power regions (last action: referred to Senate Business & Commerce 3/18/21)SB 3 (Schwertner)Creates the Texas Energy Reliability Council which would be composed of representatives from the PUC, RRC, TCEQ, TDEM, TCEQ, TxDOT, and governor appointees from the electric, oil, and gas industries. (last action: referred to Senate Jurisprudence 3/18/21)HB 4378 (Paddie)Supply of power and the financial stability of the competitive wholesale and retail electricity markets (last action: filed 3/12/21)HB 4492 (Paddie)Restructuring of electric utility providers (last action: filed 3/12/21)SB 1757 (Hancock)Securitization of electric markets  (last action: filed 3/12/21)SB 1750 (Hancock)Securitizing costs of electric services or electric markets (last action: filed 3/12/21)SB 2142 (Hughes)Correcting prices of wholesale power and ancillary services sold in the ERCOT market from 11:55 p.m. on February 17, 2021 through 9:00 a.m. on February 19, 2021 (last action: referred to House State Affairs 3/18/21) THANK YOUQUESTIONS?