Posts Tagged ‘88th Texas Legislative Session’

Death Star Update: Preemption Bill Closer To Passage

Tuesday, May 16th, 2023

Remember the “Death Star” preemption bill designed to prevent left wing local governments from doing amazingly stupid things? Now it’s one step closer to Governor Abbott’s desk.

A landmark local government preemption bill cleared its second hurdle Tuesday as House Bill (HB) 2127 was passed by the Texas Senate, with a few amendments.

Dubbed the “Texas Regulatory Consistency Act,” the bill prohibits municipalities from approving regulations that exceed state law in nine different sections of code: Agriculture, Business & Commerce, Finance, Insurance, Labor, Local Government, Natural Resources, Occupations, and Property.

The bill states that any regulation specifically enumerated in state code is regulatable by municipalities, and anything else is not, a strategy called “field preemption.” Up until this session, the state had opted for “conflict preemption,” a strategy of addressing specific policies adopted by localities after the fact.

It’s the difference between blasting with a shotgun and firing with a rifle.

HB 2127 allows individuals or associations in the county of potentially offending regulation to sue the locality for abridging this prohibition.

The bill, authored by Rep. Dustin Burrows (R-Lubbock) and sponsored by Sen. Brandon Creighton (R-Conroe), was passed by the House about a month ago, where it received eight votes from Democrats in the lower chamber. From there, it moved to the Senate Business & Commerce Committee, where it passed six to two.

On Monday, the Senate passed its version with three amendments; Sen. Robert Nichols (R-Jacksonville) was the only GOP “nay” on the bill. The vote was the same on Tuesday’s final passage.

Those amendments include a “loser pays” provision, placing the burden of payment for a frivolous lawsuit with the person or group who brought the suit; a limitation that a suit may only be brought against the offending political subdivision, not individual elected officials of that locality who were liable to be sued under the House version; and the tacking on of a prohibition against local governments halting evictions.

Plaintiffs must provide three months’ notice to the locality of an impending suit, intended as a grace period within which the potential violation can be revoked.

That eviction language comes from Senate Bill (SB) 986, which appears to have stalled out in the lower chamber. That bill is aimed at what big cities in Texas tried to do — but were stopped by courts — in ordering eviction moratoriums during the COVID-19 pandemic.

Creighton said in a statement after the bill’s passage, “The Texas Regulatory Consistency Act, the most pro-business, pro-growth bill of the 88th session has passed the Senate.”

“HB 2127 gives Texas job creators the certainty they need to invest and expand by providing statewide consistency and ending the days of activist local officials creating a patchwork of regulation outside their jurisdiction. Local governments acting as lawmakers in a patchwork of varying anti-business ordinances result in job killing outcomes.”

Gov. Greg Abbott has backed the bill, shedding little doubt over whether he will sign it into law once it reaches his desk.

Snip.

With the bill passed in the upper chamber, it now moves back to the House, where the members must either accept the Senate version with its amendments or reject them and trigger a conference committee.

From there, it moves into the friendly embrace of Abbott, who’s been chomping at the bit to sign it into law.

The sooner this is signed into law, the sooner the madness consuming the local governments in Travis and Harris County can be reigned in.

Three Cheers For The Death Star

Tuesday, May 9th, 2023

The Texas Legislature looks like it’s finally ready to pass some long-overdue corrective oversight on local government overreach:

Local elected and community leaders are denouncing what they’re calling the “Death Star” bill — legislation they say would strip the city and county of its power to enforce local laws protecting its residents.

House Bill 2127 is being debated Tuesday on the House Floor and it’s getting backlash from local officials across the state and in the Houston-area. The bill was filed by Republican State Representative Dustin Burrows of Lubbock and leaders are concerned that the bill limits the authority that the City of Houston and Harris County would have to enforce some laws and would give more control to the state.

The bill would prevent local governments from regulating changes in state codes such as agriculture, finance, insurance, labor, natural resources and occupations.

Left wing city councils that endanger their residents through stunts like defunding police and declaring themselves sanctuary cities had this coming. And I’m pretty sure that Austin is offender A-1, followed by Queen Lena’s fiefdom in Harris County.

I probably should have published this May 4…

Score One For Gary Gates

Tuesday, May 2nd, 2023

If you’re a longtime BattleSwarm reader, then you know that I’ve been pretty critical of Republican State Representative Gary Gates of Richmond. Before winning Texas House District 28 to fill the unexpired term of John Zerwas in 2019, Gates was best known as a seven-time loser, his most prominent flame-out being an underhanded, dishonest campaign against Wayne Christian for Railroad Commissioner in 2016. Before that he was behind the suspiciously squishy (and now apparently moribund) Texas Citizens Coalition. More recently he’s played footsie with the social justice set by voting for a bill to create an Office of Health Equity within the Texas Department of Health and Human Services.

So Gates has done little to endear himself to me. But recently he did good by cracking down on “affordable housing” tax giveaways.

Rep. Gary Gates (R-Richmond) took to the back microphone this week to make the case for greater regulation of a controversial state program offering millions in tax exemptions to developers for affordable housing.

One of several lawmakers to propose reforms to the Public Facility Corporation (PFC) program, Gates had introduced a reform bill with tough standards, but allegedly former Speaker Dennis Bonnen repeatedly pressured him to drop his proposals.

Gates told The Texan he was urged by Bonnen to sign on to arguably weaker reforms authored by Rep. Jacy Jetton (R-Richmond) — House Bill (HB) 2071 — and warned that although his own legislation had been approved by the House Committee on Urban Affairs, it would be killed in the powerful Calendars Committee.

Instead, Gates successfully tacked on multiple amendments to HB 2071 during Tuesday’s floor session.

“I’m pleased with these amendments, but I still have my own PFC reform bill, HB 3568, which I hope to get to the floor in short order. It has 69 authors and co-authors, while HB 2071 had only 10.”

Under the PFC program, local government officials may offer a 100 percent tax exemption to developers who build or purchase multifamily housing, as long as some rental units are set aside for “affordable” reduced rent. But both Jetton and Gates acknowledged there have been abuses of the system; in some cases, PFCs have been authorized with only 10 percent of units designated for low-income families.

On the House floor, Gates queried Jetton about whether his reforms set new minimum standards and noted that the current system took tax revenue from public school districts without their approval. He also pointed out that in some cases developers were already charging below-market rents before transitioning to PFC status and were therefore not obligated to demonstrate a public benefit.

“This is hurting our schools, this is hurting our counties and our cities,” said Gates. “This [tax revenue] is being taken from our fire departments, our police departments, our neighborhood schools. They are getting their taxes wiped out and we can’t determine if there’s any public benefit.”

In response to Gates’ questions, Jetton acknowledged that other taxpayers or the state’s general funds would have to make up the loss in revenue to school districts.

Gates’ first proposed amendment, opposed by Jetton, mandates that 60 percent of the developer’s tax savings must be dedicated to reducing rents. It was approved in a bipartisan vote of 87 to 54, with two members registered as “present, not voting.”

Under the formula, 12 percent of units must be set aside for those earning 50 percent of the Area Median Income (AMI), 12 percent for those at 60 percent AMI, and 12 percent at 80 percent AMI.

After the House voted for a second Gates amendment requiring approval from counties and school districts for any new PFCs, Jetton gave up his opposition and accepted four more revisions as friendly amendments.

Noting that some PFCs had been granted 100 percent sales and property tax exemptions for up to 99 years, Gates also questioned Jetton about HB 2071’s language setting a minimum tax exemption period of 10 years while removing even the 99-year limit.

Among revisions accepted by Jetton, the tax-exempt status will be limited to 12 years for new construction and 10 years for the conversion of existing properties.

So one cheer for Gary Gates for getting rid of a tax kickback.

Ideally, government should get entirely out of the business of giving different types of tax breaks for different rental housing. Get out of regulating any but the most essential safety and business standards and let the free market come up with solutions. The main obstacles to building actual affordable housing are too many regulations, not too few.

But we shouldn’t disdain even baby steps of reform in the right direction.

Texas To Run Another Big-Ass Budget Surplus

Thursday, January 12th, 2023

One huge advantage Texas has over one-party Democrat-rule states is the salutary habit of running budget surpluses year after year after year. (Or, to be technically correct (“the best kind of correct!”), biennium after biennium after biennium.)

Now Comptroller Glenn Hegar has officially forecast that the Texas budget for 2024-2025 (the one the legislature will pass in the just-started legislative session) will be a $32.7 Billion surplus.

The historic Texas budget surplus estimate has grown even larger as Comptroller Glenn Hegar announced a $5 billion increase in an updated Biennial Revenue Estimate (BRE) on Monday.

The Texas Legislature convenes for the first day of its 88th Regular Session on Tuesday and now appears to have at its disposal $32.7 billion — a sum that has more than its fair share of stipulations and restrictions. Hegar’s July 2021 projection pegged the number at $27 billion.

“Even with constitutional spending limits and an inflation-influenced new normal, the enormous amount of projected revenue gives the state a remarkable, or a truly ‘once-in-a-lifetime,’ opportunity for historical actions this legislative session,” Hegar said, presenting the BRE Monday.

Tempering reactions, he added, “Don’t count on me announcing another big revenue jump two years from now.”

“The revenue increases that we’ve seen have been in many ways unprecedented and we cannot reasonably expect a repeat. We are unlikely to have an opportunity like this again.”

Overall, the comptroller estimates $188 billion available in general-purpose spending for the 2024-2025 budget, a 26 percent increase from the current biennium. The state will also receive an estimated $176 billion in federal dollars and other revenues that are non-discretionary, earmarked already with specific purposes.

Over half of the general revenue-related funds come from sales taxes and 13.2 percent from oil and gas severance taxes. Due to the high oil and gas prices over the last year, severance tax collections rose 116 percent in 2022; the average annual increase from 1996 to 2021 was just 7.5 percent.

Without new appropriations, Hegar estimates the Economic Stabilization Fund to reach a balance of $27.1 billion, slightly constrained by a constitutional limit.

Texas has had a Republican trifecta (House, Senate and Governor’s mansion) for two decades, and in that time it has followed the budget maxim of former governor Rick Perry: “Don’t spend all the money!” Conservative governance, free market policies, low taxes and fiscal prudence have all combined to keep the economy growing even in difficult times, a record few Democratic-dominated states even remotely approach.

The Texas Public Policy Foundation has more thoughts on how Texas government can reduce the Texas tax burden even further.