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2021-050 Denton Delegation Voting Record on City-related BillsDate: July 16, 2021 Report No. 2021-050       INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Denton state legislative delegation voting record on select city-related bills (87th Regular Session). BACKGROUND: On July 2, 2021 Council Member Meltzer requested information on how the City of Denton state legislature delegation voted on City-related bills in the 87th Regular Session of the Texas Legislature. The following members of the Texas State Legislature represent the City of Denton:  Representative Lynn Stucky (District 64)  Senator Jane Nelson (District 12)  Senator Drew Springer (District 30) DISCUSSION: Staff requested that our general government legislative consultants, Jackson Walker, compile the voting records of the above members on the following list of city-related bills:  H.B. 872 – Exclusion of utility information from Public Information Act  H.B. 1869 – Limitations on funding of non-bond debt  H.B. 1900 – Prohibition on municipal government law enforcement defunding  H.B. 1925 – Prohibition on camping in public places  H.B. 3069 – Relating to public project liability timeframes  H.B. 4492 – Electric utility securitization bill  S.B. 3 – Utility weatherization bill  S.B. 19 – Prohibits contracts with companies that discriminate against firearm industry  S.B. 23 – Prohibition on county government law enforcement funding  S.B. 877 – Allows third-party building inspectors during a disaster The attached report summarizes the bills listed above and the voting record of each member of the Denton delegation on these pieces of legislation. Each of the bills also lists whether the City of Denton advocated support, opposition or took a neutral position. These positions were provided through a resolution adopted by the City Council or through the adoption of the 2021 City of Denton State Legislative Program. The City of Denton also actively supported or opposed a number of bills that did not gain final passage. A select few of those bills are also provided below:  H.B. 3 – Limits authority of governor and municipal governments during a disaster  S.B. 10 – Prohibition on publicly-funded lobbying activities  H.B. 1399/S.B. 29 & 1646 – Restricting transgender healthcare and athletic opportunities It is important to note that the City’s support or opposition of a bill, and likewise the support or opposition of a member of the Denton delegation, was not a fixed position, but could vary as numerous versions of legislation progressed through both the House and Senate. Additionally, Date: July 16, 2021 Report No. 2021-050       bills that eventually gained final passage may be the result of a significant effort toward a compromise legislation that, while not completely favorable to the City, prevented a much more harmful version from receiving further consideration. CONCLUSION: Staff will continue to submit additional analyses on adopted legislation through the Friday report over the coming months. City staff are very appreciative of the working relationship we have developed with our delegation. While there was not alignment with City policy on all issues, our delegation members were always receptive and open to speaking with the city regarding our concerns. If a Council member has a question regarding any of the bills within this report, please contact the staff below. STAFF CONTACT: Ryan Adams Customer Service & Public Affairs Ryan.Adams@cityofdenton.com Rachel Balthrop Mendoza City Manager’s Office Rachel.Mendoza@cityofdenton.com REQUESTOR: Council member Meltzer Bill Bill Summary Impact on the City of Denton Denton Position Sen. Jane Nelson Sen. Drew Springer Rep. Lynn Stucky Finally Passed?Comments HB 3 Would have limited the authority of the governor during certain disasters, including pandemic disasters. The bill would have required governors to work more closely with the state legislature in future emergencies. If passed, this bill could have had an impact on the scope of various state and local government leaders on future disasters in Texas. Oppose YES YES YES NO This bill died in the final days of the session in Conference Committee. HB 872 Requires a government-operated utility to be excluded from a Public Information Act request for information disclosing whether services have been discontinued or are eligible for disconnection. This bill will now require certain city utilities (such as sewer, gas, and garbage) to disclose information collected as part of an advanced metering system to a customer or a customer's representative if the information directly relates to utility services provided to the customer and is not confidential under law. Support YES YES YES YES HB 1399 This bill sought to prevent a physician from performing a surgery on or prescribing certain medications to a minor for gender modification purposes. No direct impact on the city of Denton operations. Oppose (Resolution)n/a n/a n/a NO This bill passed out of committee in the House but was placed on the House's General State Calendar with too little time to pass. HB 1869 This debt bill went through many iterations before finally passing in a negotiated form that ultimately simply modifies the definition of “debt” for purposes of the debt service property tax rate calculation to include only debt that meets certain clearly elucidated requirements. The city of Denton submitted written testimony speaking to this bill as filed's impact on the city. As finally passed, this bill will change the definition for cities like Denton on how it calcuates city debt.Oppose YES YES YES YES HB 1900 Applies to cities with populations of 250,000 and above. It states that if a municipality with a population over 250,000 reduces its law enforcement budget, the state would deduct money from its sales tax and ban the city from increasing property taxes or utility fees. Any areas annexed within the last 30 years could vote to de-annex, and the municipality would be banned from annexing any further areas. This bill will not apply to the city of Denton because it is bracketed to populations of over 250,000 residents. This bill would have prohibited Denton from taking actions that would affect their public safety budget that could be perceived as "defunding" police departments, but cities of Denton's size were not included in the final bill.Oppose (original version) YES YES YES YES HB 1925 Makes camping in an unapproved public place a Class C misdemeanor, punishable by a fine of up to $500. Cities may not opt out of the ban or discourage enforcement of it. This bill will have statewide implications that will in turn affect the city of Denton. This bill could have implications on Denton's citywide program to combat homelessness. This strategy also requires enhanced engagement from police, who may now find themselves required to take a more punitive approach in dealing with the city’s homeless population. Oppose YES YES YES YES HB 3069 Shortens the time public building owners can sue for defects from 10 years to eight years for public projects. Building owners would have an additional year (instead of an additional two years) to sue for defects discovered in the last year. This bill will require a governmental entity to bring suit against a relevant architect, engineer, interior designer or landscape architect when certain damages occur. Oppose YES YES YES YES HB 4492 "The Securitization Bill" provides a mechanism for recovery of certain costs incurred by various parties, including the electric company, during the extreme weather event in Texas in February 2021. Provides $900 million in securitized financing to ERCOT that can be used to cover the cost of market participants who either defaulted or short paid ERCOT during winter storm Uri. DME will be responsible to ERCOT for its market particpation share of these costs, the amount of which is unknown until the amount securitized is determined. Recovery of the securitized amounts, interest expenses and administrative expenses will be passed on to all ERCOT participants as an administrative charge on all energy transactions in ERCOT over the term of the securitization loan. DME and TPPA supported the House version that went to the Senate but did not take a position on the committee substitutue that ultimately was passed. Support YES YES YES YES SB 3 "The Weatherization Bill" establishes an energy emergency alert system, formalizes the Texas Energy Reliability Council (TERC), and requires weatherization of equipment under threat of civil penalties, among other things. Requires DME to weatherize the Denton Energy Center to prevent a repeat of winter storm Uri. Cost of weatherization has yet to be determined as engieering of options must be done first. Also requires DME to identify critical load facilties and to integrate such into laod shed plans. Additionally requires water and waste water critical facilties to develop emergency plans for prolonged power outages that must be submitted and approved by the PUCT. Nuetral YES YES YES YES SB 10 As filed, it would have prevented cities and counties from using public funds to hire lobbyists. As filed, this bill would have required the city of Denton to refrain from hiring contract lobbyists or outside consultants. The bill was re-worked in the House ultimately resulting in a bill that would have allowed external contracts to remain in place with increased reporting and transparency requirements. Oppose YES YES n/a NO This bill passed the Senate but was postponed several times and ultimately never laid out on the House floor. 87th(R) Denton Delegation Vote List SB 19 Prohibits contracts with companies that discriminate against the firearm or ammunition industries. This bill will prohibit political subdivisions, such as the City of Denton, from entering into a contract for the purchase of goods or services that has a value of at least $100,000 unless the contract contains a written verification from the contracted company that it does not have a policy that discriminates against a firearm entity or firearm trade association and will not discriminate against such an entity or association during the contract term. The bill exempts certain contracts from that prohibition. Oppose YES YES YES YES SB 23 Applies only to county governments with populations over one million. This bill requires cities to hold elections before reducing or reallocating their law enforcement budgets. Municipalities that do so without voter approval would have their property tax revenue frozen. SB 23 will become effective on January 1, 2022. This bill, as passed, will not apply to the City of Denton because it is bracketed to county governents with populations over one million residents. The original version was more broadly targeted to local governments.Oppose (original version) YES YES YES YES SB 29 This bill sought to prohibit the participation of students in interscholastic athletic competitions designated for the opposite sex. No direct impact on the city of Denton operations. Oppose (Resolution)YES YES n/a NO This bill passed out of the Senate but died in the final days of sesion in the House. SB 877 Amends the Local Government Code to authorize a municipal building inspection in an area of a municipality that is subject to a disaster declaration to be performed by additional licensed third-party professionals. This bill will require the city of Denton to accept independent third-party inspections by qualified professionals during a declared disaster to help tackle the backlogs experienced in distaster areas. Support (compromise version) YES YES YES YES SB 1646 This legislation would have prohibited children from receiving puberty suppression prescription drugs, cross-sex hormones, or medical procedures or surgeries for the purpose of transitioning genders or gender reassignment. No direct impact on the city of Denton operations. Oppose (Resolution)YES YES n/a NO This bill passed out of the Senate but did not receive a hearing in House Public health after it was referred in early May. SB 1580 Provides up to $2.8 billion in securitization funds to ERCOT for the defaulting or short paying electric cooperatives. If accessed by the electric cooperatives, the bill provided full securitization of amounts short paid to ERCOT by the cooperatives. Estimated securitization amount is $2.8 billion. If utilized, the recovery of the securitized amounts would be from the customers of the cooperatives. Consequently, DME would likely receive ~$ 9 million of the current $9.4 million in short pay that ERCOT owes DME for sales of energy from the DEC and our renewable energy resources during winter storm Uri. If the securitization funds are not accessed by the cooperatives, DME would likely never be paid the short pay amounts owed. Support YES YES YES YES