On Wednesday, January 11 both the House and Senate chambers took up their rules resolutions and, after passing their resolutions, they adjourned until Tuesday, January 17th.
 
The Senate adopted their rules resolution (SR 3) after a lively discussion on an amendment to reinstate the two thirds rule used prior to the 84th Session. The amendment was tabled by party-line vote which kept intact the provision that requires support from 19 senators before a bill can get a vote on the Senate floor. The rules are similar to last session but did expand the Criminal Justice Committee from seven to nine members and the Committee on Veteran Affairs and Military Installations will now be referred to as the Committee on Veteran Affairs and Border Security. The Senate Rules were adopted with 29 ayes and 2 nays. 
 
As the House discussed their Housekeeping Resolution (HR 3) on January 11, Rep. Matt Schaefer (R-Tyler) proposed an amendment to restrict the use of Capitol bathrooms based upon their biological sex. The amendment was pulled down after a point of order by Rep. Charlie Geren was called on the amendment noting among other things that the Preservation Board oversees those restrooms. The Housekeeping Resolution (HR 3) was adopted as amended with 145 ayes and 0 nays.
 
Debate on House Rules (HR 4) on January 11 lead to a spirited debate on several issues including changing the name of the House Committee on Public Education to the House Committee on Education. The change proposed by Rep. Jeff Leach was not adopted. Leach stated his proposed suggestion would be a symbolic change to express an interest in private and home school education but after further discussion he pulled down the amendment. One of the adopted amendments would add cybersecurity to the jurisdiction of the House Committee on Government Transparency and Operation. The House Rules (HR 4) were adopted with 147 ayes and 0 nays.
 
Pre-Filing & 85th Dates of Interest
In the first day of pre-filing for the 85th Session, a record breaking total of 525 bills and resolutions were filed, although the pace did slow during pre-filing, the final number of bills filed before the start of the 85th Session still broke records with a total of 1379 bills and resolutions filed. Bills can and will still be filed until March 10th, the 60-day deadline. Local bills are not subject to the 60-day filing deadline. For more details on key deadlines and the legislative drafting details visit: LRL Dates of Interest for the 85th Regular Session and  Texas Legislative Council Drafting Manual.
 
Budget Update 
For the 85th Session lawmakers will be constrained by two calculations when determining appropriations for the upcoming biennium. They must adhere to Article VIII of the constitution which requires a spending limit/cap and they must adhere to Article III the “pay-as-you-go” provision.
 
On December 1, 2016 the Legislative Budget Board (LBB) met to set their spending limit. The LBB unanimously approved a motion to adopt an estimated rate of growth of 8% to a base amount of $92.5 billion which sets the limit of certain appropriations for the 85th Session at $99.9 billion, without concurrent resolution and subject to adjustments appropriated to the last biennium.
 
The second measurement was set when, on the eve of the 85th Session, Texas State Comptroller Glenn Hegar provided his estimate that Texas lawmakers will have $104.9 billion for general-purpose spending during the 2018-19 biennium. This calculation provides limits for the “pay-as-you-go” provision.
 
Comparison with 84th
For those who are curious how these amounts compare to last session; before the start of the 84th Session, the estimated rate of growth of 11.68% was adopted and applied to a base amount of $84.4 billion which set the limit for certain appropriations for the 84th Session at $94.3 billion. The Revenue Estimate which provides the “pay-as-you-go” calculation was released the day before session and noted the 84th would have $113.0 billion in funds available for general-purpose spending, which included a beginning balance of $7.5 billion from 2014-15.

Spending Limit*

  • 84th – 11.68% ($94.3 billion)
  • 85th –  8% ($99.9 billion)

Biennial Revenue Estimate*

  • 84th –  $113 billion
  • 85th – $104.9 billion

Beginning Balance*

  • 84th – $7.5 billion
  • 85th –  $1.53 billion

ESF/ Rainy Day Fund balance*

  • 84th – $11.1 billion
  • 85th –  $11.9 billion**

*These figures are based on details given at the start of each session. 
** Absent any additional appropriations that might be made by the Legislature, the balance is expected to be $11.9 billion at the end of the 2018-19 biennium. A supermajority vote is required to tackle the fund. 

 
Supplemental Discussions
Lawmakers are also expected to pass a supplemental spending bill during this session to address any funding needs of the current two-year budget cycle and it could total up to $2 billion this year based on some of the discussions during the interim. House Speaker Straus said during a Tribune Event that the House intends to restore cuts made to certain therapy provider’s payments over the interim. Other items that may be addressed include cost growth for Medicaid, emergency funding Child Protective Services (estimated by some to be $140 million), TRS Care, and $50 million to address flooding issues caused by weather and natural disasters at state parks*.
 
*some of these issues could be covered in the next biennium budget if not addressed in the supplemental.
 
Spotlight on Lawmakers of the 85th
Speaker Joe Straus (R-San Antonio) was unanimously elected by record vote as House Speaker for the 85th Legislative Session. This will be Straus' fifth term as Speaker of the House. 
 
Lt. Gov. Dan Patrick announced he would seek re-election in 2018 and also endorsed Gov. Greg Abbott for re-election if he should decide to run.
 
Senator Kel Seliger was unanimously elected President Pro Tempore of the Senate on the first day of the 85th Legislative Session.
 
Rep. Dawnna Dukes (D-Austin) who had announced in September she would resign in January, stated this month that she would not resign and was sworn in to serve during the 85th Legislature.
 
U.S. Rep. Sam Johnson (R-Plano) has announced his plan to retire from his seat, one of the names mentioned as a candidate to run for that seat will be Sen. Van Taylor (R-Plano).
 
Leadership Priorities
Lt. Gov. Dan Patrick Top Legislative Priorities
 
After being sworn in on January 10, House Speaker Straus listed several issues including welcoming those who want to invest in Texas, protecting children in our foster care and CPS system, good stewardship with an efficient and accountable government, and mental health reforms that can improve lives as well as save millions of dollars. Straus also spoke on the need for a well-educated work force addressing school finance for local schools that are the backbone of the state and heart of the many communities.
 
Spotlight on Agency Recommendations to the 85th
TWDB Legislative Priorities Report for the 85th
THECB Legislative Recommendations 85th Texas Legislature
Texas Ethics Commission Recommendations for Statutory Changes  
SBOE Recommendations to the 85th Texas Legislature
 
Topics for the 85th Legislature
The Texas Legislature will consider a wide variety of topics during the 85th Session. The House Research Organization (HRO) has published its Topics for the 85th Legislature which highlights issues the 85th Legislature may consider.
 
Sunset Recommendations
On January 11, the Sunset Advisory Committee took a final vote to approve all recommendations to the 85th Legislature (Agencies under review for the 2016-2017 Review Cycle). The committee also heard a status report on implementation of 2015 Sunset recommendations.
 
House and Senate Interim Reports
There are currently 24 Interim joint, House and Senate reports available online by searching reports of the 84th Session.