Budget
The Conference Committee on HB 1, the general appropriations bill, will continue to work on the differences between the Senate and House bills. The Legislative Budget Board has published the issue dockets and rider comparisons that the committee will work through as discussions continue.
Tax Relief
Both the Senate and House now how received the other chamber’s tax relief packages and the bills are awaiting referral to committee – which will most likely occur this week.
The sales tax (HB 31) and business franchise tax (HB 32) relief bills were passed out of the House on April 29 which are estimated to provide around $4.9b in tax relief.
HB 31 (Bonnen) would reduce the state sales tax rate from 6.25 percent to 5.95 percent. CSHB 31 with 4 adopted amendments was passed out of the House unanimously.
HB 32 (Bonnen) would reduce franchise tax rates by 25 percent. CSHB 32 with 5 adopted amendments was passed out of the House with 115 ayes and 29 nays.
The House’s tax relief packing will now move to the Senate side and await referral.
Upon passing the bills to third reading, Rep. Bonnen stated the bills address the taxes that the legislature is responsible for, in a statement on Wednesday he noted, “most importantly, we signaled to taxpayers that they can hold us accountable to today’s promises because the tax reductions under House Bills 31 and 32 cannot be taken away without a future vote of the Legislature.” The House argues a sales tax cut is more equitable than a property tax cut and will last longer than a property tax cut, which rising appraisals and local tax increases could impact.
Both the House and Senate are proposing cuts to the margins tax/business franchise tax – SB 7 (Nelson) would reduce the business franchise tax rate by 15%. Additionally SB 8 (Schwertner) would increase the margin tax exemption from $1 million to $4 million in gross receipts. However, in contrast to the House sales tax cut, the Senate’s $4.4 billion, two-year package includes $2.15 billion to raise the homestead exemption to 25 percent of the state's home median market value (SB 1 – Nelson). The Senate’s package (SB 1, SJR 1, SB 7, and SB 8) has been received in the House and is awaiting referral.
In further discussions on various tax relief SB 1760 (Creighton) relating to the transparent and equitable application of ad valorem taxation procedures was debated on the Senate floor on April 30. An amendment by Sen. Paul Bettencourt requires local taxing entities to have a 60% majority vote before they can raise property taxes. The bill among other things will require certain language regarding the tax increase on notices and election ballots. SB 1760 as substituted and with 2 floor amendments was passed out of the Senate on April 30 with 24 ayes and 7 nays and will now move to the House for further consideration.
Deadlines
In one week the end of session deadlines will start. The first deadline is on Monday, May 11 which is the last day House committees can report out bills and constitutional amendments that start in the House. For more details and a calendar of all the upcoming deadlines: End of Session Deadlines
Education Bills on the Move
HB 1536 (Dutton) Relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District was voted out of the House Committee on Public Education favorably as amended on April 28. The companion bill SB 895 (Taylor) is pending in Senate Education.
HB 1798 (Deshotel) Relating to local control school districts was voted favorably from House Public Education as substituted on April 28. SB 1012 (Hancock) relating to local control school districts was heard in Senate Education on April 16 and committee action is pending.
HB 2804 (Aycock) Relating to assessment of public school students and evaluation of public school performance was voted favorably from committee as substituted House Public Education on April 28. The committee substitute includes Senate Bill 6 (Taylor) which would establish an A-F rating system for school districts. HB 2804 will now move to House Calendars for consideration.
HB 506 (Rodriguez) relating to the issuance of tax-supported bonds by certain school districts and increasing the tax rate limitation on the issuance of those bonds. HB 506 is on the May 6 House Calendar.
Upcoming Hearings
House and Senate Committee hearing will continue next week, the latest information can be found by visiting HillCo’s “Legislative News from Texas.” Please note that dates and times are subject to change and additional hearings dates may also be added at any time so you will want to re-visit the page frequently to confirm hearings.
The standing committee hearings as well as floor discussions, live and archived, can be listened to at the following links: House | Senate. Please note that formal hearings may not be broadcasted.
Chamber
The House will reconvene today at 12 noon. House Calendar
The Senate will reconvene today at 11am. Senate Calendar
Video Broadcasts: House | Senate