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Agenda Packet TC 06/22/2009 - Supplement June 11, 2009 Number 21 How small, of all that human hearts endure, That part which laws or kings can cause or cure. -Samuel Johnson- EIGHTY-FIRST TEXAS LEGISLATURE LIMPS OUT OF TOWN The Texas Legislature has wrapped up the 81st regular session without passing “must- have” legislation. Some Texas state agencies—including the Texas Department of Transportation and the Texas Department of Insurance—face an uncertain future because lawmakers failed to pass legislation that would extend their existence. This oversight will result in a special session at some future date. As always, legislators began the session by spending a day piously debating and adopting rules of procedure, and then spent the next 139 days violating, ignoring, or suspending those rules. But there the similarities to all other sessions ended. The Important Numbers The 2009 session was characterized, first and foremost, by the volume of work. Lawmakers filed 7,609 bills and proposed Constitutional amendments. That’s an increase of 19 percent over the 2007 figure and 29 percent more than 10 years ago. It’s likely that no other American legislative body has ever filed that many bills in a biennium. The volume of bills was made even harder to handle by a five-day, late- 1 session talk-a-thon in the House that prevented a voter identification bill from being considered for passage but held up dozens of other measures, as well. As a result, the number of bills passed dropped slightly (please see the accompanying chart). In 2007, lawmakers passed 23.5 percent of bills filed; this year, only 19.3 percent made the cut. Year Total Bills Introduced* Total Bills Passed City-Related Bills Introduced City-Related Bills Passed 1993 4,560 1,089 800+ 140+ 1995 5,147 1,101 800+ 140+ 1997 5,741 1,502 1,100+ 130+ 1999 5,908 1,638 1,230+ 130+ 2001 5,712 1,621 1,200+ 150+ 2003 5,754 1,403 1,200+ 110+ 2005 5,369 1,397 1,200+ 105+ 2007 6,374 1,495 1,200+ 120+ 2009 7,609 1,468 1,500+ 120+ *Includes bills and proposed Constitutional amendments; regular session only. For city-related bills, the success rate was even lower: roughly eight percent. That’s good news for cities, since the lion’s share of the city-related bills would have harmed municipal authority in some way. In the final days of the session, it required procedural sleight-of-hand to pass even the most non-controversial of bills. On the last day, almost nothing happened. House members, for example, spent most of their time passing resolutions recognizing staffers, friends, or family members. The highlight was a resolution that recognized a lawmaker’s grandson for graduating from high school. Then, the House suddenly adjourned without enacting important legislation. Not long after, the Senate, in a fit of pique aimed at the House, also called it quits. 2 Looking Ahead The following sections contain summaries of the major city-related bills passed by the Eighty-First Legislature. The governor has until June 21 to sign bills, veto them, or let them become law without his signature. Some of the bills described below will become effective as soon as they are signed; others (unless vetoed) will become effective on Monday, August 31. The specific effective date for each bill can be found on the Internet at Texas Legislature Online. Future issues of the TML Legislative Update or Texas Town and City magazine will provide additional details on some of the bills described here and will provide other updates as appropriate. FINANCE AND ADMINISTRATION Property Tax H.B. 8 – Property Taxes: does the following: (1) changes the frequency of the comptroller’s property value study of an appraisal district from annually to biennially if the most recent study found that the district’s appraisal values were valid; and (2) provides for biennial review of appraisal district methodologies. H.B. 770 – Property Taxes: this bill will: (1) allow the continuation of a residential homestead property tax exemption on property that is rendered uninhabitable by wind or water damage, provided reconstruction begins within one year; (2) exempt from property taxes the buildings, tangible property, and certain land owned by chambers of commerce with at least 50 dues-paying members for the preceding three years; (3) provide that a senior property tax freeze does not expire for property rendered uninhabitable by wind or water damage; and (4) provide that certain improvements (excluding additional square footage or improved exterior) made to real property because of wind damage do not count against the current-law, ten-percent residential property tax appraisal cap. H.B. 1038 – Property Taxes: provides that when appraising a residential homestead, the chief appraiser may not ignore the value of neighboring homesteads that: (1) were sold at foreclosure in the previous three years; or (2) have a market value that has declined because of a declining economy. H.B. 2291 – Property Taxes: does the following: (1) adds language to the motion that must be made whenever a city adopts a property tax rate that exceeds the effective rate, such that the following motion must now be made: “I move that the property tax rate be increased by the adoption of a tax rate of (specify tax rate), which is effectively a (insert percentage by which the proposed tax rate exceeds the effective tax rate) percent increase in the tax rate”; and (2) adds language to the required statement in the tax rate ordinance and on the home page of any Internet Web site operated by the city whenever a city adopts a tax rate that exceeds the effective rate, so that the statement must read as 3 follows: “THE TAX RATE WILL EFFECTIVELY BE RAISED (INSERT PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $(Insert amount).” (Note: these changes will be in effect for the 2009 tax year. As always, detailed tax rate adoption procedures will be posted on the Legal page of the TML Web site by the end of June 2009.) H.B. 2555 – Property Taxes: this bill will: (1) extend from three years to five years the maximum duration of certain charitable housing development corporation (CHDO) property tax exemptions; (2) remove the requirement from the fraternal organization property tax exemption that the city council must approve, or call an election to approve, the exemption; and (3) extend the fraternal organization property tax exemption to include property owned by certain tax-exempt corporations that turn over all income to fraternal organizations. H.B. 3206 – Property Taxes: alters the pollution control equipment property tax exemption (commonly referred to as the “Prop 2” exemption) as follows: (1) provides that the standards and methods used by the Texas Commission on Environmental Quality (TCEQ) to make a pollution exemption determination apply uniformly to all applications for an exemption; and (2) requires the TCEQ to establish a permanent advisory committee consisting of representatives of industry, appraisal districts, taxing units, and environmental groups, to advise the commission regarding implementation of the exemption. H.B. 3611 – Property Taxes: permits the boards of directors of two or more adjoining appraisal districts to consolidate appraisal review board operations by interlocal contract. (This bill will take effect only if voters approve a proposed constitutional amendment at the November 3, 2009, election. Please see H.J.R. 36, below.) H.B. 3612 – Property Taxes: creates a pilot program under which property tax disputes may be appealed to the State Office of Administrative Hearings (SOAH) in lieu of district court in the following counties: Bexar, Cameron, El Paso, Harris, Tarrant, and Travis. Appeals could be taken to SOAH for any property category other than industrial or mineral. H.B. 3613 – Property Taxes: does the following: (1) exempts from property taxes the total value of the homesteads of totally disabled military veterans; (2) grants a partial property tax exemption for a partially-disabled veteran based on the percentage of the veteran’s disability; and (3) provides that the market value of any residential homestead is determined solely on the basis of the property’s value as a residence homestead, regardless of the otherwise “highest and best use” of the property. (Part of this bill will take effect only if voters approve a proposed constitutional amendment at the November 3, 2009, election. Please see H.J.R. 36, below.) H.J.R. 36 – Property Taxes: proposes an amendment to the Texas Constitution which, if approved by voters on November 3, 2009, will authorize the legislature to do the following: 4 (1) permit the boards of directors of two or more adjoining appraisal districts to consolidate appraisal review board operations; and (2) provide that the market value of any residential homestead is determined solely on the basis of the property’s value as a residence homestead, regardless of the otherwise “highest and best use” of the property. (Please see H.B. 3611 and H.B. 3613, above.) S.B. 252 – Property Taxes: permits the governing body of a city under 10,000 in population to call an election to authorize the governing body to enter into an agreement with the owner of real property that is in or adjacent to the city and is receiving certain Department of Agriculture grants to freeze the property taxes of all taxing entities on that property for five years. S.B. 771 – Property Taxes: among other things, this bill will: (1) require that all available evidence that is specific to the value of a property shall be taken into account in determining the property’s market value; (2) provide that when the appraised value of a property is reduced following a successful challenge, the appraised value may increase in the following year only if the increase is reasonably supported by substantial evidence when all the reliable and probative evidence in the record is considered as a whole; (3) provide that for number 2 above, the chief appraiser may satisfy the requirement by correcting inequality in the appraisal of other properties that were considered when appraising the subject property; (4) provide that the burden of proof in number 2 above is on the chief appraiser; (5) provide that a sale may not be considered a “comparable” sale for appraisal purposes unless the sale occurred within the 24 preceding months; (6) provide standards for identifying comparable properties; (7) permit property to maintain an agricultural appraisal during a drought; (8) permit arbitration of residential appraisal for matters other than value; and (9) provide for expedited arbitration of certain properties. S.B. 798 – Property Taxes: does the following: (1) provides that requests for refunds of property tax overpayments shall be made to the tax collector rather than to the auditor as previous law required; and (2) in a city located in a county over 2 million in population, streamlines the process for taxpayers to apply for refunds of property taxes if the amount to be refunded does not exceed $5,000. S.B. 2442 – Property Taxes: this bill will: (1) alter the charitable organization property tax exemption by providing that exempt charities must provide support to certain beneficiaries without regard to ability to pay, and by allowing the exemption for charities that include training and employment in the production of commodities and charities that assist the blind; (2) exempt from property taxes certain radio stations operated by charitable organizations; and (3) exempt from property taxes certain property owned by a charitable organization and leased to an institute of higher education to the extent that it would otherwise be exempt if owned directly by the institute of higher education. Sales Tax H.B. 1801 – Sales Taxes: does the following: (1) adds school supplies (as they are defined by the federal Streamlined Sales and Use Tax Agreement) to the list of exempt items during the August sales tax holiday; and (2) redefines “backpacks” that are 5 currently exempt during the August sales tax holiday to include a backpack with wheels (provided it can also be worn on the back), but excluding luggage, briefcases, athletic bags, duffle bags, gym bags, computer bags, purses, or framed backpacks. Purchasing H.B 987 – Purchasing: provides that reasonable and necessary attorney's fees that are equitable and just are added to the total amount of money that may be awarded to a prevailing party in an adjudication brought against a local governmental entity for breach of a contract. H.B. 2082 – Purchasing: provides that the current local preference law relating to the purchase of any real property, personal property that is not affixed to real property, or services, is limited to a contract for an expenditure of less than $100,000. H.B. 2515 – Purchasing: this bill requires that a governmental entity that makes a public works contract with a prime contractor shall require the contractor, before beginning the work, to execute to the governmental entity: (1) a performance bond if the contract is in excess of $100,000; and (2) a payment bond if the contract is in excess of $50,000 and the governmental entity is a city or a joint airport board. The bill also provides that a person who furnishes material or labor to a contractor under a prime contract with a city that does not exceed $50,000 and that is for public improvements in this state and who gives notice required by law has a lien on the money, bonds, or warrants due the contractor for the improvements. H.B. 2820 – Professional Services: adds landscape architectural and geoscientific services to the Professional Services Procurement Act. H.B. 3668 – Purchasing: provides that if a contract is made without compliance with competitive procurement laws, it is void, and the performance of the contract, including the payment of any money under the contract, may be enjoined by: (1) any property tax- paying resident of the city; or (2) a person who submitted a bid for a contract to which the competitive sealed bidding requirement applies, regardless of residency, if the contract is for the construction of public works. H.B. 4127 – Playground Equipment: provides that on or after September 1, 2009, public funds may not be used to: (1) purchase playground equipment that does not comply with each applicable provision of ASTM Standard F1487-07ae1, "Consumer Safety Performance Specification for Playground Equipment for Public Use," or that has a horizontal bare metal platform or a bare metal step or slide, unless the bare metal is shielded from direct sun; (2) purchase surfacing for the area under and around playground equipment if the surfacing will not comply with each applicable provision of ASTM Standard F2223-04e1, "Standard Guide for ASTM Standards on Playground Surfacing"; or (3) pay for installation of playground equipment or surfacing if the installation will not comply with each applicable provision of the specifications described 6 by numbers (1) or (2), above, as applicable. The bill also provides that public funds may be used for maintenance of playground equipment or surfacing for the area under and around playground equipment that was purchased before September 1, 2009, even if the equipment or surfacing does not comply with the applicable ASTM International specifications. S.B. 229 – Design-Build: provides that a city over 100,000 in population may use the design-build procurement method for a certain number of civil works projects in each fiscal year. Elections H.B. 401 – Elections: authorizes any city that holds its general election on a date other than the November uniform election date to change the date of its general election to the November uniform election date if the change is made by December 31, 2010. H.B. 1256 – Complaint Notice: requires an election judge to post notice at one or more locations at a polling place regarding whom to contact to complain about the conduct of the election. H.B. 1720 – Political Advertising: provides that: (1) an officer or employee of a political subdivision may not knowingly spend or authorize the spending of public funds for political advertising; (2) that prohibition does not apply to a communication that factually describes the purposes of a ballot measure if the communication does not advocate passage or defeat of the measure; (3) an officer or employee of a political subdivision may not spend or authorize the spending of public funds for a communication describing a measure if the communication contains information that the officer or employee knows is false and is sufficiently substantial and important as to be reasonably likely to influence a voter to vote for or against the measure. The bill also provides that it is an affirmative defense to criminal prosecution for an offense described above that an officer or employee of a political subdivision reasonably relied on a court order or an interpretation in a written opinion issued by a court of record, the attorney general, or the Texas Ethics Commission. Finally, the bill provides that on written request of the governing body of a political subdivision that has ordered an election on a measure, the Texas Ethics Commission shall prepare an advance written advisory opinion as to whether a particular communication relating to the measure does or does not comply with the law. H.B. 2524 – Electronic Voting Machines: requires the general custodian of election records, upon the receipt of an electronic voting system from a vendor, to: (1) verify that the system is certified by the secretary of state; (2) perform a hardware diagnostic test on the system; (3) perform a public test of logic and accuracy on the system, as well as any additional test required by the secretary of state; (4) create a pre-election security procedure; (5) secure access control keys or passwords to voting system equipment; and (6) create a contingency plan for addressing the failure of an electronic voting machine. 7 In addition, the bill prohibits a direct recording electronic voting machine deployed for early voting from being deployed on election day. H.B. 3062 – Elections: provides that the governing body of a political subdivision, other than a county, that orders an election shall deliver notice of the election to the county clerk and voter registrar of each county in which the political subdivision is located not later than the 60th day before election day. S.B. 1134 – Election Clerks: allows certain underage students to serve as election clerks. S.B. 1970 – Elections: this bill: (1) provides that a special election of a city is considered to be a separate election from a general election for city officers or another special election of the city held at the same time; (2) requires a city to post a copy of the order declaring the election of each unopposed candidate at each polling place that would have been used in an election had it not been cancelled; (3) requires a city to print on each ballot for a separate election the names and offices of those candidates who were unopposed and declared elected for an election that was to be held at the same time; (4) allows a city that orders an election on a measure to declare the measure moot and remove it from the ballot if the city determines that the action to be authorized by the voters may not be taken regardless of the outcome of the election; (5) requires the notice of a general or special election to state the location of each polling place, including each early voting polling place; (6) requires an election order to state the location of each early voting polling place; (7) requires an early voting clerk to notify the voter registrar of a federal postcard application that states a voting residence address located outside the registrar’s county; (8) provides that a person who changes residence to another county may cast a vote during the early voting period if the person is registered to vote in the county of former residence at the time the person offers to vote in the new county; (9) allows a city to have a voting system technician present at a polling place, a meeting of the early voting ballot board, or a central counting station to maintain or operate voting system equipment; (10) requires a city to post notice of the dates of the filing period for an application for a place on the ballot in a public place within the main city office building not later than the 30th day before the first day on which the application may be submitted; (11) requires a recount deposit to be $60 for each precinct in which paper ballots were used and $100 for each precinct where an electronic voting system was used; and (12) allows for joint elections only if elections are ordered by the authorities of two or more political subdivisions to be held on the same day in all or part of the same county. S.B. 2085 – Political Advertising: provides that: (1) an officer or employee of a political subdivision may not knowingly spend or authorize the spending of public funds for political advertising; (2) it is an affirmative defense to criminal prosecution for an offense described above that an officer or employee of a political subdivision reasonably relied on a court order or an interpretation in a written opinion issued by a court of record, the attorney general, or the Texas Ethics Commission; and (3) on written request of the governing body of a political subdivision that has ordered an election on a 8 measure, the Texas Ethics Commission shall prepare an advance written advisory opinion as to whether a particular communication relating to the measure does or does not comply with the law. Open Government H.B. 2004 – Security Breach Notification: requires a city that owns, licenses, or maintains computerized data that includes sensitive personal information to comply with Section 521.053 of the Business & Commerce Code, which requires that an entity discovering or receiving notification of a breach of sensitive personal information by an unauthorized person must disclose the breach to the individuals as quickly as possible. The bill also requires a city to notify each consumer-reporting agency of a breach that affects at one time more than 10,000 persons, and adds mental and physical health information to the list of sensitive personal information under the security breach statute and to the list of information not subject to the Public Information Act. S.B. 375 – Accident Report Information: this bill provides for the confidentiality of certain types of accident reports and allows TxDoT to release aggregated or statistical information relating to motor vehicle accidents, subject to certain exceptions. S.B. 1068 – Public Information: this bill: (1) allows a city to redact certain personal information relating to a current or former city employee, official, or peace officer under the Public Information Act without first requesting a decision from the attorney general; (2) allows a city to redact certain personal information relating to a volunteer worker or member of the board of directors of a family violence shelter center or sexual assault program under the Public Information Act without first requesting a decision from the attorney general; (3) provides that a requestor of information may seek a decision from the attorney general’s office regarding information that was redacted by the city without first seeking a decision from the attorney general; (4) requires a city that redacts information without seeking a decision from the attorney general to provide certain information to the requestor on a form prescribed by the attorney general; and (5) creates an exception to disclosure that protects information in the custody of a city if that information relates to an employee or officer of the city and disclosure of the information would subject the employee or officer to a substantial threat of physical harm. S.B. 1182 – Open Government: this bill: (1) provides that a quorum of the city council may receive from municipal staff, and a member of the governing body may make, a report regarding items of community interest during a council meeting without having given notice of the subject of the report, provided no action is taken or discussed; (2) provides that an “item of community interest” includes expressions of thanks, congratulations, or condolence; information regarding holiday schedules; honorary recognitions of city officials, employees, or other citizens; reminders about upcoming events sponsored by the city or other entity that is scheduled to be attended by a city official or city employee; and announcements involving imminent threats to the public health and safety of the city; (3) requires a governmental body to send to the attorney 9 general a copy of the written comments submitted to a requestor within fifteen business days of receiving a written request for information under the Public Information Act (PIA); (4) clarifies that, under the PIA, a suit by a governmental body challenging the determination of the attorney general must be filed in a Travis County district court; (5) requires a law enforcement agency to provide reports of child abuse or neglect in response to a request from either the child who is the subject of the reported abuse or the child’s parent or guardian, unless the parent or guardian is alleged to have committed the abuse or neglect; (6) requires a law enforcement agency to redact any personally identifiable information regarding a victim or witness under 18 years of age who is not the child requestor or other child of the parent or guardian; and (7) requires a law enforcement agency to redact any information that is otherwise excepted from required disclosure under law. S.B. 1629 – Public Information Act: provides that an individual who, for substantial financial gain, works for either a newspaper of general circulation that is published on the Internet by a news medium engaged in the business of disseminating news or information to the public, or for a magazine that is published at least once a week or on the Internet by a news medium engaged in the business of disseminating news or information to the general public, is exempt from the required prepayment of personnel costs incurred by a governmental body in responding to certain requests that require large amounts of personnel time. Other Bills H.B. 1505 – Alcoholic Beverages: this bill provides that neither the advertising of an entertainment event, nor the advertising of an alcoholic beverage product is prohibited at a city-owned facility that is financed with public securities, the interest on which is exempt from federal income taxation. The bill also provides that a financial arrangement with concessionaires operating at certain city-owned facilities under contract with a city does not constitute evidence of “subterfuge ownership” as prohibited by state law. H.B. 3756 – Libraries: will: (1) allow a major resource system of libraries to expand its membership to include nonpublic libraries that are operated by units of local government; (2) allow a library operated by a unit of local government to become a member of a regional library system; (3) make records-retention schedules apply to records relating to the conduct of official business from periods before Texas was a state; and (4) abolish the local government records committee, which currently reviews and approves any changes to local government records retention schedules. S.B. 1 – State Budget/Parks: This is the state budget bill. Of interest to cities is the fact that local parks grant funding will increase slightly from $31 million for the previous biennium to $31.2 million. Total funding for local park grants, however, will decrease from $49.45 million to $36.2 million per biennium. Of that funding, $6.5 million will be earmarked for two specific local park projects (compared to $16.7 million for 18 specific projects last biennium). 10 S.B. 638 – Depositories: permits city depository banks to pool collateral for deposit amounts in excess of FDIC insurance. Specifically, the bill does the following with respect to pooled collateral: (1) gives cities and banks the option to participate in the program; (2) requires 102-percent collateralization; (3) requires state comptroller oversight of pooled collateral; and (4) requires third-party safekeeping of collateral in most cases. S.B. 1003 – Office of State-Federal Relations: does the following: (1) requires a city to report to the office on any contract between the city and a federal level lobbyist; (2) mandates that a city submit one report not later than the 30th day after the date the contract is executed and a second report not later than the 30th day after the date the contract is terminated; (3) provides that the report must include the name of the lobbyist or firm, the issue for which the lobbyist was hired, and the amount of compensation paid or to be paid to the lobbyist under the contract; (4) provides that a city or other political subdivision contracting with a federal level lobbyist before September 1, 2009, shall, if the contract has not terminated before that date, submit a report not later than September 30, 2009; and (5) provides that these requirements do not apply to a city whose lobbyist is required by other law to disclose, report, and make available the information required by these sections to the public and a federal or state entity. MUNICIPAL COURTS H.B. 1060 – Warrants: allows arrest warrants or criminal complaints to be forwarded via secure fax or other secure electronic means. H.B. 2386 – Juvenile Records: authorizes a juvenile court to require the sealing of records concerning juveniles who have successfully completed a drug court program. S.B. 408 – Appeals Relating to Animals: this bill will: (1) allow an appeal from the divestment of an animal by a municipal court for cruel treatment to the county court; (2) require that a city provide a transcript of the court’s proceeding regarding the divestment of ownership to the county court within five days of receiving notice of an appeal; and (3) require the county court to dispose of the appeal within ten days of receiving the transcript from the city. S.B. 410 – Statute of Limitations: requires a complaint in municipal court to be presented within two years of the date of the offense. S.B. 413 – Failure to Appear: requires a complaint to be filed in municipal court if a defendant fails to appear based on written notice, such as a citation, that has been filed with the court. S.B. 414 – Magistration: provides that, for purposes of commitment in municipal court, a defendant may be brought before the court in person or by means of an electronic 11 broadcast system through which an image of the defendant is presented to the court, including secure Internet videoconferencing. S.B. 415 – Arraignment: requires a defendant who has been accused of a fine-only offense to be arraigned in a municipal court or justice court, instead of a county or statutory county court. S.B. 1056 – Juvenile Records: requires a court that has convicted a child of a fine-only offense to issue an order prohibiting criminal justice agencies from disclosing to the public criminal history record information related to the offense, and creates certain exceptions. S.B. 1236 – Misdemeanor Admonishments: requires any citation for a Class C misdemeanor to include an admonishment regarding the consequences relating to gun ownership upon a conviction for a family violence offense. COMMUNITY AND ECONOMIC DEVELOPMENT H.B. 773 – Tax Abatement: extends the authority of cities to enter into new tax abatement agreements until September 1, 2019. (Note: The current statutory authority was due to expire on September 1, 2009.) H.B. 875 – Outdoor Advertising: provides that a district attorney, a county attorney, or a municipal attorney may recover reasonable attorney's fees incurred in a civil action against a person who erects outdoor advertising in violation of state law. H.B. 1029 – Public Improvement Districts: provides that a public improvement district project may include the development, rehabilitation, or expansion of affordable housing. H.B. 1633 – Graffiti: requires a court, including a juvenile court or a court granting community supervision, to require a defendant convicted of a graffiti offense to: (1) pay restitution or personally restore or replace the property; and, (2) if a juvenile, or if placed on community supervision, perform a certain number of hours of community service depending on the amount of pecuniary loss resulting from the commission of the offense. H.B. 2685 – Eminent Domain: provides that not later than the seventh day before the date a governmental or private entity with eminent domain authority makes a final offer to a property owner to acquire real property, the entity must send by first-class mail (or otherwise provide) a landowner's bill of rights statement. In addition, the bill requires an entity with eminent domain authority to provide a copy of the landowner's bill of rights statement to a landowner before or at the same time as the entity first represents in any manner to the landowner that the entity possesses eminent domain authority. H.B. 2927 – Cemeteries: requires a city that operates a cemetery to make necessary repairs, properly maintain the grounds, and restore gravesites after an interment in order 12 to maintain the cemetery in a condition that does not endanger the health, safety, or welfare of the public. H.B. 3072 – 4A/4B Corporations: permits a 4A/4B economic development corporation to receive transfers of real property from a city provided there is an agreement and transfer instrument that requires the corporation to use the property in a manner that promotes a public purpose of the city and provided there is a reverter clause should the property cease to be used for such a purpose. H.B. 3896 – Tax Abatement: extends the authority of cities to enter into new tax abatement agreements until September 1, 2019. (Note: The current statutory authority was due to expire on September 1, 2009.) The bill also permits a city to defer the commencement date of a tax abatement period. H.J.R. 14 – Eminent Domain: proposes an amendment to the Texas Constitution which, if approved by the voters on November 3, 2009, will provide that no person's property shall be taken, damaged, or destroyed for or applied to a “public use” without adequate compensation being made, unless by the consent of such person, and only if the taking, damage, or destruction is necessary for: (1) the ownership, use, and enjoyment of the property, notwithstanding an incidental use, by the state, a political subdivision of the state, or the public at large or an entity granted the power of eminent domain under law; or (2) the elimination of urban blight on a particular parcel of property. The resolution also provides that a “public use” does not include the taking of property for transfer to a private entity for the primary purpose of economic development or the enhancement of tax revenues, and that on or after January 1, 2010, the legislature may enact a law granting the power of eminent domain to an entity only with a two-thirds vote of all members elected to each house. S.B. 576 – Tax Increment Finance: does the following: (1) adds roads, sidewalks, and other infrastructure to the list of permissible costs related to tax increment project plans; (2) prohibits a tax increment plan from providing for payment to a neighborhood enterprise association; and (3) permits a city to grant tax exemptions within a tax increment zone in lieu of paying any increment into the increment fund. S.B. 820 – Building Codes: this bill applies only to a city with a population of more than 100,000. It provides that on or before the 21st day before the date the governing body takes action to consider, review, and recommend the adoption of or amendment to a national model code governing the construction, renovation, use, or maintenance of buildings and building systems, the governing body: (1) shall publish notice of the proposed action conspicuously on the city's Internet Web site; (2) shall make a reasonable effort to encourage public comment from persons affected by the proposed adoption or amendment; and (3) on the written request of five or more persons, shall hold a public hearing open to public comment on the proposed adoption or amendment on or before the 14th day before the date the governing body adopts the ordinance. The bill also provides that if the governing body has established an advisory board or substantially similar entity for the purpose of obtaining public comment on the proposed adoption of or 13 amendment to a national model code, the requirements described above do not apply. In addition, the bill provides that the governing body of a city with a population of more than 100,000 that adopts an ordinance or national model code provision that is intended to govern the construction, renovation, use, or maintenance of buildings and building systems in the city shall delay implementing and enforcing the ordinance for at least 30 days after final adoption, unless a delay in implementing or enforcing the ordinance would cause imminent harm to the health or safety of the public. S.B. 1458 – Tax Abatement: this bill is substantially the same as H.B. 3896, above. S.B. 1952 – Educational Facilities: provides that a home rule city with a population of 25,000 or more that has an institution of higher education located within its boundaries or has entered into an agreement with an institution of higher education relating to the provision of educational services within the city by the institution of higher education may issue public securities, including certificates of obligation, to acquire, construct, or improve land, buildings, or other permanent improvements for use by the institution of higher education. S.B. 2052 – 4A/4B Corporations: adds railport, sea port, and inland port facilities to the list of authorized 4A and 4B sales tax corporation projects. PERSONNEL H.B. 360 – Texas Municipal Retirement System (TMRS): makes the following changes to the TMRS statute: (1) guarantees an annual interest credit of at least five percent to member accounts; (2) sets the annuity purchase rate for retirees at a minimum of five percent; (3) requires the crediting or charging of income or loss; (4) requires the interest fund to accurately reflect the determination and allocation of net investment income or loss; (4) requires annual determination of net investment income or loss based on generally accepted accounting principles; (5) changes the way money from the interest fund is allocated to other TMRS funds, including giving priority to allocating interest to the current service annuity reserve fund, the supplemental disability benefits fund, the supplemental death benefits fund, and the employee savings fund; (6) provides for adequate reserves to provide reasonable rate stabilization to cities; and (7) deletes the provision allowing for the treatment of certain stock gains as investment income that is added to the interest fund. H.B. 451 – Mandatory Health Benefit: requires health benefit plans to cover autism in a child up to age nine. (Note: current law requires coverage up to age six.) H.B. 806 – Mandatory Health Benefit: does the following: (1) requires that health benefit plans provide coverage for prosthetic devices, orthotic devices, and professional services related to the fitting, use, repair, and replacement of those devices; (2) provides that the coverage must equal the coverage provided under federal laws relating to health insurance for the aged and disabled; (3) prohibits annual dollar limits on prosthetic coverage; but (4) allows the health benefit plan to have copays, deductibles, and 14 coinsurance on prosthetic coverage that are the same as those applied to other health conditions. H.B. 1177 – Legislative Leave: expands the number of cities—from cities of 200,000 or more in population to cities of 50,000 or more in population—in which peace officers and firefighters are eligible for legislative leave under subchapter A of Chapter 614 of the Government Code. H.B. 1290 – Mandatory Health Benefit: requires the issuer of a health benefit plan to provide up to $200 in coverage for noninvasive tests for the detection of cardiovascular disease every five years for certain at-risk individuals. H.B. 1960 – Public Safety Pay: requires a city to pay a firefighter or police officer for appearing as a witness at an administrative proceeding in the same manner that a firefighter or police officer would be paid for making an appearance as a witness in a criminal or civil suit. H.B. 2000 – Mandatory Health Benefit: requires a health benefit plan to provide coverage for amino acid-based elemental formulas (typically formulas for infants and children with food allergies). H.B. 2068 – Peace Officer Identification Card: requires a law enforcement agency to provide an identification card to any honorably retired peace officer who requests one. H.B. 2113 – Firefighters: requires a city to “designate” September 11 as a holiday for its firefighters. H.B. 2360 – Income Tax Information: requires a city to provide to its employees eligibility information relating to the federal earned income tax credit by March 1 of each year. The city must provide the information in person; through e-mail at the employee’s last known e-mail address; through a flyer included, in writing or electronically, as a payroll stuffer; or by mailing the information to the employee at the employee’s last known address by United States first class mail. The bill also requires the state comptroller to provide a form that includes information relating to the federal earned income tax credit for distribution by a city or other employer. Finally, the bill allows the Texas Workforce Commission to adopt rules regarding the information that a city or other employer must provide regarding the federal earned income tax credit. H.B. 2580 – Police Employment Web Site: does the following: (1) requires the Texas Workforce Commission (TWC) to develop, maintain, and promote an Internet Web site relating to employment opportunities for police officers; (2) requires the TWC to contract with the Texas Commission on Law Enforcement Officer Standards and Education (TCLEOSE) to develop a license verification system to verify whether a police officer is licensed and in good standing; and (3) requires the TWC to enter into a contract with TCLEOSE to operate such a Web site if there are no funds for TWC to do so. 15 H.B. 2806 – Civil Service Leave: provides that, in a city covered by Chapter 143 of the Local Government Code (fire/police civil service), when a firefighter or police officer who was on a military leave of absence is reinstated and the reinstatement creates a surplus of personnel in the rank in which the returning firefighter or police officer was reinstated, the person with the least seniority in the surplus position must be moved to the position immediately below the position to which the returning firefighter or police officer was reinstated. H.B. 3001 – Employee Pay: allows a Type A or Type B general law city to consider cost of living and longevity in determining an employee’s salary. H.B. 4560 – Staph Infection: provides that notice must be given to a firefighter or emergency medical technician who is exposed to methicillin-resistant staphylococcus aureus (MRSA) by a hospital, a local health authority, or by the city as employer. (Note: MRSA is a staph infection that is resistant to conventional treatment.) S.B. 39 – Mandatory Health Benefit: does the following (1) requires that certain health benefit plans provide coverage for health care costs incurred in connection with certain clinical trials for the prevention, detection, or treatment of a life-threatening disease or condition; (2) allows the insurer to subject this coverage to a deductible, coinsurance, or copayment requirement comparable to other deductible, coinsurance, or copayment requirements applicable under the health benefit plan; and (3) prohibits an insurer from cancelling or refusing to renew an insured’s policy solely because an enrollee in the plan participates in a clinical trial. S.B. 420 – Judge Evaluations: prohibits a city from taking into account the source and amount of municipal court revenue when evaluating a municipal judge’s job performance. S.B. 461 – Civil Service: requires that individuals taking the entrance exam for a beginning position in a fire department covered by Chapter 143 of the Local Government Code (fire/police civil service) be between eighteen and thirty-six years of age. S.B. 872 – Health Coverage for Survivors: does the following: (1) requires a city to provide health benefit coverage to the surviving spouse of a peace officer or firefighter killed in the line of duty at the same rate paid by current employees (meaning that if the city pays the entire premium, the surviving spouse would pay nothing); (2) allows an eligible survivor up to 180 days to apply for health coverage; (3) requires a city to provide an eligible surviving spouse coverage until the surviving spouse becomes eligible for federal Medicare benefits; (4) requires a city to provide an eligible minor coverage until the minor turns 18; (5) requires the city to provide two notices of eligibility for coverage; (6) includes trainees and training routines to the list of covered “line of duty” deaths that trigger required health benefit coverage for eligible survivors; and (7) gives eligible survivors who did not originally apply for coverage until March 1, 2010, to reapply for coverage. 16 PUBLIC SAFETY H.B. 55 – Cell Phones: this bill: (1) makes the use of a wireless communication device while operating a motor vehicle within a school crossing zone a class C misdemeanor, unless the vehicle is stopped or the device is being used in a hands-free mode; (2) requires a city that enforces the prohibition to post a sign that complies with standards adopted by the Texas Department of Transportation at each school crossing zone in the city in order to inform an operator of a motor vehicle of the prohibition (the standards must provide that the sign can be attached to an existing sign); (3) provides that the prohibition does not apply to either an operator of an authorized emergency vehicle if the operator is using the device in an official capacity, or an operator of a radio frequency device who is licensed by the Federal Communications Commission; and (4) provides for the preemption of all city ordinances that are inconsistent with specific provisions of the bill. H.B. 960 – Sexually Oriented Business: provides that a city or county that requires a sexually oriented business to obtain a license or other permit is entitled to obtain from the Texas Department of Public Safety criminal history record information that relates to a person who: (1) is an applicant for a license or other permit for a sexually oriented business in the city or county; (2) is the holder of a license or other permit for a sexually oriented business issued by the city or county; or (3) requests a determination of eligibility for a license or other permit for a sexually oriented business issued by the city or county. H.B. 1067 – Suicide Data Sharing: authorizes a city, without criminal or civil liability, to: (1) enter into a memorandum of understanding to share suicide data that does not name a deceased individual with a medical examiner, a local registrar, a local health authority, a local mental health authority, a community mental health center, a mental health center that acts as a collection agent for the suicide data reported by community mental health centers, or any other political subdivision; and (2) periodically release this data to an agency or organization with recognized expertise in suicide prevention. H.B. 1831 – Emergency Management Training: does the following (1) requires an elected law enforcement official or an appointed public official who has supervisory or management responsibilities and is involved in emergency management or emergency preparedness to take a three-hour emergency management training course provided by the state; (2) suspends the application of a city’s on-premise outdoor sign ordinance during a declared disaster to allow licensed or admitted insurance carriers to erect temporary signs to provide information regarding claims service; (3) requires the state’s division of emergency management to develop rules that establish uniform reentry procedures for personnel entering a disaster area and to develop a reentry credentialing process that recognizes the role of local emergency management in making decisions and provides local emergency management with flexibility to adjust the plan; (4) gives the mayor the authority to compel individuals to leave an area that is under a mandatory evacuation order; (5) makes an individual who stays in a disaster area despite a mandatory evacuation order civilly liable for any damages or injuries associated with 17 rescuing the individual after refusing to be evacuated; (6) gives immunity from civil liability to a city officer or employee who issues or is working on a mandatory evacuation order; (7) requires a city to provide a post-disaster evaluation to the division of emergency management not later than the 90th day after requested to do so by the division; (8) permits a privately-owned vehicle to qualify as a city police vehicle for certain purposes, provided that the vehicle is marked with the insignia of a law enforcement agency; and (9) requires an electric utility, including a municipally-owned electric utility, to sell electricity to another electric utility if it is needed during a declared disaster. H.B. 1998 – Emergency Shelters: provides that a political subdivision that is the location of temporary housing or emergency shelters for persons moved or evacuated by recommendation or order of the governor may be assisted by any resource available to the state, including the disaster contingency fund, to ensure the political subdivision receives an advance or reimbursement: (1) of all expenses, including lost revenue, incurred by the political subdivision to make available public facilities for temporary housing or emergency shelters; and (2) of the amounts paid for salaries and benefits of permanently employed, straight-time, and regular-time personnel of the political subdivision who perform duties associated with the movement or evacuation of persons into, out of, or through the political subdivision. H.B. 2086 – Gang Activity/Graffiti: does the following: (1) creates the crime of soliciting or directing street gang crime; (2) allows a city to use a map of gang-free zones as evidence at trial; (3) makes a member of a street gang or the gang itself liable to a city injured by the violation of a temporary or permanent injunction; (4) authorizes a city attorney to sue the gang or gang member for actual damages, court and attorneys costs, and a civil penalty not to exceed $20,000; (5) requires that the money collected from such a suit be deposited in the neighborhood and community recovery fund with the attorney general to be used only for the benefit of the community or neighborhood injured; (6) allows a city to retain its sovereign immunity when bringing such a suit; (7) authorizes a city to pass an ordinance requiring a business to lock up aerosol paint behind a counter; (8) allows a city to pass an ordinance requiring removal of graffiti by a property owner if the city offers to remove the graffiti free of charge and the owner refuses; (9) allows a city to remove graffiti from a property if a property owner fails to remove graffiti on or before the fifteenth day after the city gives the owner sufficient notice; (10) allows a city to assess expenses against a property owner on whose property the city had to remove graffiti after the owner refused to do so; (11) creates an anti-gang competitive grant program; and (12) creates a public corruption unit at the Department of Public Safety to investigate allegations of participation in organized criminal activity by peace officers, and requires local cooperation with the unit. H.B. 2553 – Off-Highway Vehicles: does the following: (1) prohibits the Texas Department of Transportation (TxDOT) from registering a golf cart for operation on a public highway, regardless of whether any alteration has been made to the golf cart; (2) authorizes the operation of golf carts on certain streets and in specified areas; (3) authorizes a city to either prohibit the operation of a golf cart on a street if the city 18 determines it is necessary in the interest of safety or to permit certain golf carts to operate on city streets under certain conditions; and (4) authorizes TxDOT to issue license plates to golf carts under certain conditions. H.B. 2571 – Tow Trucks: defines a "consent tow", for purposes of the bill, as any tow of a motor vehicle in which the tow truck is summoned by the owner or operator of the vehicle or by a person who has possession, custody, or control of the vehicle, not including an incident management tow or a private property tow; defines "incident management tow" as any tow of a vehicle in which the tow truck is summoned because of a traffic accident or to an incident; defines "nonconsent tow" as any tow of a motor vehicle that is not a consent tow, including an incident management tow and a private property tow; and defines "private property tow" as any tow of a vehicle authorized by a parking facility owner without the consent of the owner or operator of the vehicle. The bill provides that the Texas Commission on Licensing and Regulation shall adopt rules for granting permits to tow trucks and granting licenses to towing operators and towing companies, including rules for denial of applications and permits if the applicant has certain criminal convictions or has violated a commission order. To protect the public health and safety, the bill requires the commission to establish: the fees that may be charged in connection with a private property tow; the maximum amount that may be charged for fees, other than tow fees, in connection with a private property tow; and a maximum amount that may be charged for certain private property tows. The bill requires that in adopting rules described above, the commission shall at least every two years contract for a study that examines towing fee studies conducted by cities in this state and analyzes the cost of towing services by company, the consumer price index, the geographic area, and individual cost components. Of special interest to cities is the provision that the governing body of a political subdivision may regulate the fees that may be charged or collected in connection with a nonconsent tow originating in the territory of the political subdivision if the private property tow fees are authorized by commission rule and do not exceed the maximum amount authorized by commission rule. The bill also provides that a vehicle storage facility accepting a vehicle that is towed shall, within two hours after receiving the vehicle, report certain information to the police department of the city from which the vehicle was towed or, if the vehicle was towed from a location that is not in a city with a police department, to the sheriff of the county from which the vehicle was towed. Finally, the bill provides that: (1) the penalties for a towing company or a parking facility owner who violates state law are increased in certain circumstances, and a towing company is required to reimburse the owner or operator of a vehicle for an unauthorized tow in certain circumstances; (2) a hearing to determine the appropriateness of a tow shall be in the justice court having jurisdiction in the precinct from which the motor vehicle was towed; (3) the operator of a vehicle storage facility shall conspicuously post a sign that states: "This vehicle storage facility must accept payment by an electronic check, credit card, or debit card for any fee or charge associated with delivery or storage of a vehicle"; and (4) the operator of a vehicle storage facility may not refuse to release a vehicle based on the inability of the facility to accept payment by electronic check, debit card, or credit card of a fee or charge associated with delivery or storage of the vehicle unless the operator, through no fault of 19 the operator, is unable to accept the electronic check, debit card, or credit card because of a power outage or a machine malfunction. H.B. 2682 – Speed Limits: amends the current statute permitting a city to reduce the speed limit on a city street from 30 m.p.h. to 25 m.p.h. absent an engineering study as follows: (1) removes the current-law requirement that a street must be 35 feet or less in width to qualify for a reduction; (2) removes the current-law requirement that parking be allowed on the street to qualify for a reduction; (3) requires that a street must have two lanes and be undivided to qualify for a reduction; (4) requires a city that reduces a speed limit under the statute on any street after June 2009, to publish on its Internet Web site and submit to TxDOT a report that compares for each of the two previous calendar years the following: (a) the number of traffic citations issued by peace officers for speeding violations on the street; (b) the number of warning citations issued by peace officers on the street; and (c) the number of accidents resulting in injury or death that were attributable to speed limit violations on that street. H.B. 2730 – Public Safety: This is the Department of Public Safety sunset bill. Of particular interest to cities, this bill: (1) eliminates the criminal penalty for a concealed handgun license holder to refuse to display a handgun license and identification on request of a peace officer, and prohibits the suspension of that person’s license for refusing to display it to a peace officer; and (2) requires a county with an average disposition completeness percentage of less than 90 percent to establish a local data advisory board, of which the police chief of the municipality with the greatest population in the county must be a member. H.B. 3004 – Animal Control: adds a civil penalty of between $100 and $500 for violations of the animal shelter regulations under Chapter 823 of the Health and Safety Code, but specifies that the regulations cannot be enforced by the county against an animal shelter operated by a city. The bill also provides that a city or county may enjoin violations of the animal shelter laws. H.B. 3389 – Law Enforcement: does the following: (1) requires more detailed reporting by police departments when applying for Texas Commission on Law Enforcement Standards and Education (TCLEOSE) funds; (2) requires a city that desires to start a police department to send a report to TCLEOSE including information on the need for the department, the funding for the department, the facilities that will be used, any police procedures and policies, and other information; (3) requires TCLEOSE to establish a statewide comprehensive education and training program on federal and Texas law; (4) requires an officer to complete training on federal and Texas law as part of the officer’s education program; (5) requires an officer holding a basic proficiency certificate to take live training on crisis intervention with individuals with mental impairments; (6) requires an officer with an intermediate proficiency certificate to complete an education and training program on investigative topics and civil rights, racial sensitivity, and cultural diversity; (7) subjects a police department to a TCLEOSE penalty if the department violates state law or a TCLEOSE rule; (8) requires a police department to include handling of individuals of Middle Eastern descent in their racial profiling policies; (9) 20 expands the required contents of a police officer’s report on motor vehicle stops to include whether the officer knew the race of the individual detained before detaining the individual; (10) requires an annual report on racial profiling to be filed with TCLEOSE; (11) provides that if a police department intentionally fails to submit a required racial profiling report, TCLEOSE shall initiate disciplinary action against that agency’s chief administrator; (12) imposes a new ten-cent court fee on any person convicted in municipal court of a moving violation; (13) allows a municipal court to retain ten percent of that fee revenue; and (14) requires that the remaining fee revenue be remitted to the state for placement in the “Civil Justice Data Repository” for use by TCLEOSE. H.B. 3866 – Fire Safety Inspections: provides that: (1) only an individual certified by the Texas Commission on Fire Protection as a fire inspector may conduct a fire safety inspection required by a state or local law, rule, regulation, or ordinance; and (2) a fire safety inspection required by a state or local law, rule, regulation, or ordinance must be conducted in accordance with the most recent local fire code or the most recent fire code adopted by the state fire marshal. H.B. 4102 – Disaster Funding: this bill: (1) allows a city that participates in disaster preparation or recovery to request and receive funding from the disaster contingency fund to pay for costs incurred by the city in preparing for or recovering from a disaster; (2) requires a city that has received funding from the disaster contingency fund and subsequently receives reimbursement from the federal government or another source for costs associated with disaster recovery to reimburse the disaster contingency fund for those amounts; (3) provides that money in the disaster contingency fund may be used to pay for a disaster risk financing instrument to leverage available funds and receive proceeds greater than appropriated amounts to pay for extraordinary expenses; (4) provides that a city that is suffering financial hardship as the result of a disaster may receive disaster contingency funds for the purpose of providing local matching funds for Federal Emergency Management Agency qualifying projects. H.B. 4409 – Emergency Management: this bill: (1) waives the civil liability of a city officer, employee, or volunteer for actions taken while discharging duties involved in an activity related to sheltering or housing individuals during a disaster evacuation; (2) makes the Texas General Land Office responsible for contracting for debris removal from beaches following a weather-related disaster; (3) makes the Texas Department of Transportation responsible for contracting for debris removal from the state highway system following a weather-related disaster; and (4) makes the Texas Department of Housing and Community Affairs responsible for contracting to provide temporary shelter or housing following a weather-related disaster. The bill also provides that when constructing or extensively renovating a critical governmental facility (such as a command and control center, shelter, jail, or police or fire station), the entity with charge and control of the facility shall evaluate whether equipping the facility with a combined heating and power system (i.e., a system that can provide all the electricity needed to power the facility's critical emergency operations for at least 14 days) would result in expected energy savings that would exceed the expected costs of purchasing, operating, and maintaining the system over a 20-year period. Finally, the bill allows the entity to 21 equip the facility with a combined heating and power system if the expected energy savings exceed the expected costs. S.B. 61 – Child Safety Seats: does the following: (1) changes the fine for the offense of failing to secure a child passenger in a motor vehicle; and (2) creates a fifteen-cent court cost on such offenses to be sent to the comptroller to fund a child safety seat distribution program. S.B. 254 – Volunteer Fire Departments/Motor Fuel Taxes: exempts volunteer fire departments from the payment of motor fuel taxes. S.B. 418 – Street Gangs: requires a city police department in a city with a population of 50,000 or more or in a county with a population of 100,000 or more to compile and maintain in a local or regional intelligence database criminal information relating to criminal street gangs. S.B. 446 – Child Safety Fund: authorizes a city with a population under 850,000 that collects a child safety fund court cost but either does not operate a crossing guard program or has excess funds after funding that program to use the money remaining in the fund on programs designed to enhance public safety and security. S.B. 702 – Towing: provides, among other things, that: (1) a vehicle storage facility accepting a towed vehicle shall, within two hours after receiving the vehicle, report to the local law enforcement agency with jurisdiction over the area from which the vehicle was towed a general description of the vehicle; the state and number of the vehicle's license plate, if any; the vehicle identification number of the vehicle, if it can be ascertained; the location from which the vehicle was towed; and the name and location of the vehicle storage facility where the vehicle is being stored; (2) the report required by number 1, above, must be made by telephone, electronically, delivered personally, or by facsimile; (3) all storage fees shall be posted at the licensed vehicle storage facility to which a motor vehicle has been delivered and shall be posted in view of the person who claims the vehicle; and (4) a motor vehicle owned and operated by a governmental entity is exempt from the state’s towing laws. S.B. 1011 – Texas Commission on Fire Protection: does the following: (1) allows the Texas Commission on Fire Protection to modify or reject the recommendations of the Fire Fighter Advisory Committee; (2) requires that commission fees be based on an amount designed to recover the commission’s costs, with no maximum fee listed; (3) requires firefighter applicants to obtain a fingerprint-based criminal history record before receiving their certificates; (4) allows the commission to perform risk-based assessments on fire departments that can lead to fines, default judgments, and suspension of fire department certificates; (5) creates a grant program for firefighter training and firefighter equipment to be used by city fire departments and volunteer fire departments; and (6) abolishes the fire department emergency program, which provides scholarships, grants, loans, and other financial assistance to eligible local fire departments. 22 S.B. 1732 – Swimming Pool Safety: this bill: (1) requires the owner, manager, or operator of a public swimming pool to comply with pool safety standards adopted by the Health and Human Services Commission; (2) requires the executive commissioner of the Health and Human Services Commission to adopt pool safety standards related to drowning that are at least as stringent as those imposed under the federal Virginia Graeme Baker Pool and Spa Safety Act. S.B. 2048 – Sex Offenders: does the following: (1) authorizes a commissioners court in a county with a population greater than 100,000 to enter into an interlocal agreement with a city to designate the office of the chief of police as the mandatory, centralized sex offender registration site for the entire county; and (2) requires a sex offender residing in a city to notify the city of his/her registration with a centralized registration authority if the centralized registration authority is not the city. S.B. 2153 – Vehicle Booting: adds the regulation of vehicle "booting" (the attachment to a vehicle’s wheel a device that is designed to immobilize the vehicle) to the Texas Towing Act. The bill provides, among other things, that: (1) unless a person holds an appropriate license under state law, the person may not perform booting operations; (2) a parking facility owner may, without the consent of the owner or operator of an unauthorized vehicle, cause a boot to be installed on the vehicle in the parking facility if appropriate signs (as defined by the bill) are located on the parking facility at the time of the booting; (3) a boot operator who installs a boot on a vehicle must affix a conspicuous notice to the vehicle's front windshield or driver's side window stating that the vehicle has been booted and damage may occur if the vehicle is moved; the date and time the boot was installed; the name, address, and telephone number of the booting company; a telephone number that is answered 24 hours a day to enable the owner or operator of the vehicle to arrange for removal of the boot; the amount of the fee for removal of the boot and any associated parking fees; and notice of the right of a vehicle owner or vehicle operator to a hearing in justice court; (4) upon removal of a boot, the boot operator shall provide a receipt to the vehicle owner or operator stating various items as defined by the bill; (5) a booting entity shall accept payment by an electronic check, debit card, or credit card for any fee or charge associated with the removal of a boot; and (6) a booting entity may not collect a fee for any charge associated with the removal of a boot from a person who offers to pay the charge with an electronic check, debit card, or credit card form of payment that the booting entity is not equipped to accept. Of particular interest to cities, the bill provides that: (1) a city may adopt an ordinance that is identical to the booting provisions in the bill or that imposes additional requirements that exceed the minimum standards of the booting provisions in the bill, but may not adopt an ordinance that conflicts with the booting provisions in the bill; (2) a city may regulate the fees that may be charged in connection with the booting of a vehicle, including associated parking fees; and (3) a city may require booting companies to obtain a permit to operate in the city. 23 UTILITIES, TRANSPORTATION, AND ENVIRONMENT H.B 1174 – Sewer Backups: provides that: (1) a city may pay actual property damages caused by the backup of the city's sanitary sewer system regardless of whether the city would be liable for the damages under the Texas Tort Claims Act; and (2) the bill does not waive governmental immunity from suit or liability. H.B. 1433 – TCEQ Water Quality Fee: increases from $75,000 to $100,000 the maximum amount of the annual fee imposed by the TCEQ on wastewater discharge permit holders and water users, and requires an annual adjustment reflecting the change in the consumer price index (CPI), up to a maximum of $150,000. H.B. 1937 – Energy Assessment Zones: authorizes a city to create a voluntary property assessment in order to finance energy efficiency improvements on certain types of property. H.B. 2063 – Groundwater/Sovereign Immunity: authorizes a groundwater conservation district to sue a city, but does not explicitly waive a city’s sovereign immunity. H.B. 2333 – Mineral Leases: provides that a city may enter into a lease for an oil, gas, or mineral interest in a street, alley, or public square (not including a public park) if the lease prohibits the lessee from using the surface of the land for drilling, production, or other operations. H.B. 2527 – Commercial Fertilizer: this bill: (1) requires a person to hold a certificate of registration from the Texas Feed and Fertilizer Control Service in order to produce, store, transfer, or sell ammonium nitrate material; and (2) preempts any city ordinance relating to the regulation of commercial fertilizer. H.B. 2572 – Gas Pipelines: provides that a gas corporation has the right to lay and maintain lines over, along, under, and across a public road, a railroad, railroad right- of-way, an interurban railroad, a street railroad, a canal or stream, or a municipal street or alley only if: (1) the pipeline complies with all safety regulations adopted by the Railroad Commission of Texas, all federal regulations relating to pipeline facilities and pipelines, all rules adopted by the Texas Department of Transportation or the Railroad Commission of Texas, and all federal regulations regarding the accommodation of utility facilities on a right-of-way, including regulations relating to the horizontal or vertical placement of the pipeline; and (2) the owner or operator of the pipeline ensures that the public right-of-way and any associated facility are promptly restored to their former condition of usefulness after the installation or maintenance of the pipeline. The bill also provides that the right described above, relating to the use of a municipal street or alley, is subject to the payment of franchise charges and fees in accordance with state law. Further, the bill provides that in 24 determining the route of a pipeline within a municipality, a gas corporation shall consider using existing easements and public rights-of-way, including streets, roads, highways, and utility rights-of-way if the use is economically practicable, adequate space exists, and the use will not violate any pipeline safety regulations. Finally, the Texas Department of Transportation may require the owner or operator of a pipeline to relocate the pipeline at the owner or operator’s expense in most cases. H.B. 2667 – Plumbing Fixtures: provides that: (1) certain plumbing fixtures, such as shower heads, faucets, toilets, and others must meet detailed water-saving performance measures; and (2) the governing body of a city or county by ordinance or order may allow the sale in the city or county of a urinal or toilet that does not comply with the bill’s requirements if the governing body finds that to flush a public sewer system in a manner consistent with public health, a greater quantity of water is required because of the configuration of the drainage systems of buildings located in the city or county or the public sewer system. S.B. 129 – Neighborhood Electric Vehicles: requires that, in order to be legal on a street, a neighborhood electric vehicle must: (1) be able to attain a maximum speed of 35 miles per hour; and (2) be driven at a maximum of 35 miles per hour, or the speed limit, whichever is less. S.B. 686 – Gas Pipelines: this bill applies to a natural gas pipeline located or proposed to be located in: (1) a county in which a part of the Barnett Shale natural gas field is known to be located; (2) a county that is located in the boundaries of a metropolitan planning organization; or (3) the corporate limits of a city. The bill provides, among other things, that a gas utility is entitled to lay, maintain, and operate a natural gas pipeline through, under, along, or across a controlled access state highway only if: (1) the pipeline is subject to the jurisdiction, control, and regulation of the Railroad Commission of Texas and subject to safety standard requirements pertaining to gas pipeline facilities and transmission lines for the transportation of gas; (2) the pipeline complies with all applicable state rules consistent with the bill and all applicable federal regulations on the accommodation of utility facilities on the highway or right-of-way, including rules and regulations relating to the horizontal and vertical location of the pipeline; and (3) the highway and associated facilities are promptly restored to their former condition of usefulness after the installation or maintenance of the pipeline, as applicable, is complete. The bill provides that TxDoT may require a gas utility to relocate a facility at the cost of the gas utility to accommodate construction or expansion of a highway or for any other public work unless the gas utility has a property interest in the land occupied by the facility to be relocated. The bill may not be construed to limit the authority of a gas utility to use a public right-of-way under any other law, and the bill may not be construed to affect the authority of a city to regulate the use of a public right-of-way by a gas utility under any other law or to require payment of any applicable franchise fee. 25 S.B. 769 – Electric Utilities: this is a complex electric rate bill that enables a deregulated electric utility to obtain recovery of system restoration costs that are caused by certain natural disasters. The bill: (1) provides that system restoration costs may be recovered outside of a traditional rate case by the use of securitization financing to recover those costs; (2) defines "system restoration costs" as reasonable and necessary costs that are incurred by an electric utility due to any activity conducted in connection with the restoration of service and infrastructure associated with electric power outages affecting customers as the result of any weather-related event or natural disaster that occurred in calendar year 2008 or thereafter; (3) provides that system restoration costs include mobilization, staging, and construction, reconstruction, replacement, or repair of electric generation, transmission, distribution, or general plant facilities; (4) provides that, to the extent a utility receives insurance proceeds, governmental grants, or any other source of funding that compensate it for system restoration costs, those amounts shall be used to reduce the utility's system restoration costs recoverable from customers; and (5) provides for detailed implementing procedures, including Public Utility Commission oversight. (Note: Cities that have been affected by a natural disaster since 2008 and that are served by a deregulated electric utility should review the provisions of this bill carefully.) S.B. 926 – Red Light Cameras: prohibits a city from imposing a civil penalty on an emergency vehicle for running a red light that is monitored by a red light camera, but clarifies that a city may take disciplinary action against an employee that operates an emergency vehicle in violation of city policy. S.B. 1354 – Plumbing: provides, among other things, that a person is not required to be licensed to perform plumbing, other than plumbing performed in conjunction with new construction, repair, or remodeling, on a property that is located inside a city that is within a county that has fewer than 50,000 inhabitants and that: (1) has fewer than 5,000 inhabitants; and (2) by municipal ordinance has authorized a person who is not licensed to perform plumbing. The bill also provides that a city that requires a plumbing contractor to obtain a permit before the person performs plumbing shall by telephone, fax, or e-mail: (1) accept permit applications; (2) collect required fees; and (3) issue the required permits. Finally, the bill provides that: (1) if drawings of proposed plumbing work are required by a city, the city shall specify how drawings are to be submitted; (2) a person who is required to obtain a permit is not required to pay a plumbing registration fee or administrative fee to a city; and (3) a plumbing contractor must register, electronically or in person, with a city that requires registration before performing plumbing regulated by the city. S.B. 1410 – Residential Fire Sprinklers: makes various changes to the requirements to obtain a state plumbing license. Of interest to cities, the bill provides, among other things, that: (1) a plumbing inspector who meets the requirements of the State Board of Plumbing Examiners may inspect a multipurpose residential fire protection 26 sprinkler installation; (2) the board may certify "multipurpose residential fire protection sprinkler specialists"; (3) notwithstanding any other provision of state law, after January 1, 2009, a city may not require the installation of a sprinkler system in a new or existing one- or two-family dwelling; (4) a city may allow a multipurpose residential fire protection sprinkler specialist or other contractor to offer, for a fee, the installation of a fire sprinkler protection system in a new one- or two-family dwelling; and (5) a multipurpose residential fire protection sprinkler specialist may install a sprinkler system in a new or existing one- or two-family dwelling in a city described by numbers 3 or 4 above. TML member cities may use the material herein for any purpose. No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the Texas Municipal League 27 INDEX Topic Page Finance and Administration ……………………………………. Property Tax …………………………………………….. Sales Tax………………………………………………… Purchasing ………………………………………………. Elections……………………………………….................. Open Government…………………................................... Other Bills…………………………................................... 3 3 5 6 7 9 10 Municipal Courts ……………………………………………….. 11 Community and Economic Development….……….................... 12 Personnel………………………………………………………… 14 Public Safety……………………………...................................... 17 Utilities, Transportation, and Environment ……………………… 24