House State Affairs – March 11, 2021

House State Affairs met on March 11 to consider a number of bills. This report covers HB 3 (Burrows), HB 327 (Howard), HB 587 (Cole), HB 1082 (P. King), HB 1118 (Capriglione), and HB 1322 (Shaheen).

 

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

HB 1082 (P. King) relating to the availability of personal information of an elected public officer

• King – Bill was inspired by protestors outside of former Rep. Eric Johnson’s house; legislators have the ability to opt of out having personal information released to the public
• Would extend this to all elected officials in the state; changes current statute to an “elected public officer” and just provides the option to opt out
• Lucio – Thanks him for this bill and provides a personal anecdote about a threat on their life; this is not just about protestors, could be about a number of things
  • Almost every legislator has received a threat
• Hunter – Is discretionary? May not have much of an impact on those whose information is already out there
  • Yes, would be optional
  • Eric Johnson gave me the permission to note his strong support of this bill

 

Betsy Price, Mayor Fort Worth ­– For

• Have been talking to Geren about a similar bill; private protection needs to be extended to local elected officials due to increased risk across the nation
• Provides an anecdote upon a threat on their life last summer; protests are important, but can be done at more appropriate locations
• This risk is a possible deterrent to those who want to run for public office

HB 1082 is left pending

 

To Speak on the Latest Emergency Item from the Governor

Arthur D’Andrea, Chair PUC

• Here to discuss repricing; notes that they have “flip-flopped” on this issue several times
• Repricing does not help/hurt consumers with one exception
• One of the deadlines to reprice has passed
• Would be illegal to me as a chair to reprice, would be the legislature’s job
• Paddie – Can you speak to the $16 billion we are hearing about?
  • It is not a real number, but was first proposed by the independent market monitor
  • They revised position to $3.2 billion yesterday
• Paddie – Consumers are top of mind; can you speak to what effect this could have on consumers
  • Would not help/hurt would take money away from generators and give it to retail electric and their banks
  • The retail electrics are not going to give that cost back to their customers
  • Can step up education efforts to remind customers they can shop for providers
  • The exceptions are city-owned powerplants and rural co-ops; if repricing would happen, you are taking Texans’ money away and giving it to retail electric providers
  • Repricing would help more co-ops than you hurt, and take pressure off of places like Rayburn Co-op, Brazos Electric, and retail electric providers
  • 80% of the problem is Brazos, they had no collateral and filed for bankruptcy; giving money to them would be complicated
  • LCRA and City of Austin told us they would be bankrupt if we repriced
• Paddie – Is this a pricing error?
  • Is not a repricing error; were surprised by the output, but that is the formula everyone agreed to
• Paddie – No cap for ancillary charges?
  • Correct, was no cap; it makes sense there should be one, but is not the market we have right now
• Paddie – May need to recognize the rules of the game need to be changed; are some areas we need to take a look at
  • Correct
• Paddie – If we decided to do this, can we? Do we have the legal/regulatory authority? How much of this is settled already?
  • Does not believe he can personally, are getting sued no matter what; legislature would have more authority than the PUC
  • Our interest is protecting the ratepayers; by missing the ICE repricing deadline, the futures market has been set already
  • Was at $9,000, all money has already been set internationally
  • ICE has diverse futures to place hedges at, have been told if you retroactively price, will become expensive for people in Texas to buy contracts in ICE to keep their businesses going
  • Bankers and those at the Dallas Fed have noted they are afraid that we will reprice
• Paddie – Is your opinion that since these have been settled, what mechanism would we have to “claw” that back?
  • ICE monies cannot be “clawed” back; can try to unwind ERCOT, but would create winners and losers
• Raymond – You feel like you would be breaking the law if you changed the price?
  • Yes, violating civil laws that constrain the agency
• Raymond – A majority of the legislature does not agree with you; if you do not think there is anything to be done, then maybe the Governor should appoint someone who would
  • Got a letter from the Senate urging me to reprice, signed by 28 senators and the Lt. Governor
• Raymond – $16 billion popped up from somewhere, remind me what that is? Does not have confidence in them if they are now projecting $3.2 billion, could change
  • Have an independent market monitor, and was their first pass
  • Paddie – Aim to have them here next week with the Dallas Fed, ICE and other stakeholders
  • $3.2 billion is what you move from one pocket to another
• Raymond – Notes the South Texas Co-op has been hit hard; likens fixing this to attesting charges on a credit card
• Raymond – The sooner we turn this back the other way, the better; need General Paxton here next week to discuss price gouging
• Raymond – If you are going to stay in this job, need to fix this because it does not make sense; do not want to milk the system because that is a criminal offense
  • Aims to work with the legislature on this issue
  • Raymond – This is not complicated in my mind, you overbilled and need to fix this; are not going to let Brazos and South Texas go down
• Raymond – Can you come back here and help us figure this out?
  • If you reprice, South Texas will get hammered and have to take out a large loan
  • Raymond – So they are against repricing?
  • They are, they own generation and it showed up and produced; they made money, so if you reprice the consumers will be paying that loan back for a decade
  • Make a commitment to figure this out, but needs to be solved from the back end
• Hunter – Notes he is the only commissioner left; asks about the letter from the senate, and you disagree?
  • Urges to reprice the last 32 hours and to lower the cap for ancillary services during the winter storm; yes, disagree
• Hunter – What is LCRA? They told you what? What region do they serve? Who else will go bankrupt?
  • Lower Colorado River Authority; one of the repricing options form the Lt. Governor would bankrupt them
  • Here in Austin in surrounding areas; not sure the specific service area
  • South Texas Electric Co-op told me they would get hit extremely hard, covers a large service area
  • STEC will get hit hard, Golden Spread will get hit hard with maybe an $80 million loan and Austin Energy will get hit
• Hunter – Everyone forgets the rate payer because all I hear about is corporations; biggest concern for the PUC is their focus on the public
• Hunter – Still have note gotten an answer for why the lights are on one side of the street and off the other; who gave the list to turn people off?
  • Will get that to you
• Hunter – Members are frustrated because $16 billion down to $3.2 billion was such a large mistake; we need accurate information to make a plan
• Hunter – Need stability information in this committee; corrects them on a former quote, public is our priority
  • Yes
• King – Thanks him for a recent appointment; LCRA said it would lead from bankruptcy, a statement from them just noted that they have never made such a statement
• King – They do note that repricing ancillary services would hurt the entire market
• King – Option as to why Brazos immediately took such a large hit?
  • A lot of market participants were surprised; were not collateralized since ERCOT does not require a lot of collateral
  • They had to buy off the market
• King – Are you an attorney? There is confusion as to what authority you have as a singular commissioner, would like to speak to you about this
  • Yes
• Lucio – Explain if you reprice, they have to take out a loan? That is the issue, you are talking to those stakeholders; need to look at the other side
  • Talked to a lot of providers; need to know if repricing decision will hurt consumers who are a part of a municipal or co-op
• Lucio – If we reprice the charges of the consumers during the storm, the only way to be sympathetic would be if there overhead was way above
  • Is a gas problem,
  • Lucio – Should narrow the repricing to the fixed cost on the gas end, not on substantial windfalls
• Lucio – Cannot rely solely on the stakeholders on the advice we need to make decisions; if we only listened to lobbyists, we would not get the people’s work done
• Howard – We need to recognize there are increases on the gas end, like Lucio said; the independent market monitors are not a vested interest?
  • Yes
• Howard – PUC order to raise the rates for scarcity, asks about the 32 hours of the price remaining high despite load shed being over
  • Load shed for residential was over during those 32 hours, but there is an argument that since industrial load shed was still occurring load shed was not over
• Howard – Need to clarify about where load shed occurred, if price remained high when load shed stopped, that is an error on PUC and ERCOT’s side to follow the rules
• Howard – Are winners and losers already due to the current market system
  • Market broke down in a significant way, and we will fix those; repricing issue is difficult because the deadline was last Friday
  • We know who is hurt, so we need to “stick to the status quo” and help those who have been hurt instead of fighting about the money
• Howard – You noted that industrial load shed was not something that you even though about; breakdown in communication throughout the whole industry
• Howard – Since these things seem to be happening more regularly, need to plan for them
  • Agrees
• Hernandez – Have we done repricing before? Why do you think it is illegal now?
  • Have repriced before; rule is that we reprice when ERCOT makes a mistake
  • If this is just something we do not like, then there is no authority for that
• Hernandez – So you do not believe this was an ERCOT mistake?
  • Yes, was a whole market issue; lost half our gas fleet, which caused industrial issues and our emergency operations plans were not ready for this
  • Prices “spit out” were the ones the formula agreed on
• Hernandez – The formula does not take into account the $9,000 cap?
  • Formula is a computer program, but does not believe the formula considers the $9,000 cap
• Deshotel – Repricing may not be the right word, cost of natural gas went up? What lead to that increase?
  • Is either market or greed, not sure; they would tell you the demand was high and the supply was stressed
  • That price was really high though
• Deshotel – Would not this be a chance where you could take the money the gas companies got and give it back to consumers?
  • Does not have authority over gas, but electricity
  • Deshotel – What about service stations who charge more for gas during a hurricane?
  • That would be price gouging
  • Deshotel – Then how is this different?
  • Paddie – Notes it would be more appropriate to have this conversation in the Energy Resources Committee
• Deshotel – Need to look over in the oil and gas also, maybe you are taking the heat over things you have no control over
• Paddie –
  • Correct
• Shaheen – Am getting confused by your use of the word “repricing,” and the Senate says correct the billing errors?
  • They mean the same thing
  • Reiterates it was not an error; signed up for a formula we do not like now
• Shaheen – Understanding is power plants started failing in succession, first time hearing gas prices could be a cause
  • High gas prices did not cause people’s lights out, winterization was the issue there
• Shaheen – Is it inaccurate to say the increase in gas caused electricity prices to increase?
  • Yes; price of gas is financial pressure
  • Shaheen – Those emergency operation plans are the main failure
  • Notes he supports Lucio’s winterization bill
• Raymond – Notes he may be misreading the letter, reads the section that emergency pricing intervention, so you do not think there was an error there?
  • They are not lawyers, the ones cited there; does not agree the emergency pricing should have ended when they did
  • ERCOT did not do anything wrong when it came to this specific issue
• Raymond – Does the PUC have absolute authority over ERCOT? You are ERCOT; reiterates if D’Andrea does not believe there is an issue, then we need someone else in their place
  • Yes; commits to working with you
  • Raymond – This is fixable, need to correct what went wrong, if we are the ones to fix it, then we better do it soon
• Deshotel – Can you speak more about the deadlines?
  • ICE market deadline was March 5
  • Deshotel – Got a letter from ICE on March 8 that those contracts were delayed were ERCOT funds
  • Talked to ICE yesterday, and they told us and the Fed that the deadline has passed; will get clarification on that letter
• Deshotel – The cost of electricity has nothing to do with the price the generators pay for natural gas?
  • It does
• Paddie – Will finish this conversation later; $16 billion is not the real number? You do not view this as an error, but is a system issue?
  • Correct, and yes the system needs to be changed
• Paddie – If we were to reprice, would not help the consumer? Would be picking different winners and losers?
  • Only those who sell electricity would get the money back because a majority are on fixed rate contracts
  • Correct, is a zero-sum game
• Paddie – You believe you do not have the authority to do this because it was not an error? Failure to cap ancillary services, but there is no legal cap?
  • Correct, need to change the rules
  • Is no legal cap, may be in the future
• Paddie – Need to make sure we know all the facts before we solve the problem; is concerned about if the only issue would be penalizing those who were just following the rules
• Paddie – South Texas Co-op did everything right, and we are contemplating penalizing them for doing the right thing?
• Paddie – A lot has to be considered before we head down the road of changing the rules of the game and getting involved in markets
• Raymond – Raymond asks about the resignation/firing of PUC and ERCOT members, that was all because nothing went wrong? Notes he is skeptical
• Raymond – Reiterates that the $16 billion now corrected to $3.2 billion, notes his skepticism; what is closer to the truth is probably $16 billion
• Raymond – Reintroduced a constitutional amendment, HJR 32 Honesty and Taxation, I have reintroduced; is tired of people being overtaxed
  • Agrees the market needs fixing, and would vote for the constitutional amendment
  • Raymond – If we cannot fix what happened during the storm, then what are we here for?
• Howard – Austin Energy did make some money that will go back to ratepayers; in terms of load shed, need to look at if there were actually errors there
• Howard – All those who did the right thing, like Austin Energy, will need to share the costs with those who did not; is another factor we need to keep in mind
  • Wants to get past the repricing conversation to get to the Uplift conversation
  • Notes Austin Energy did a good job getting industrials off
  • Howard – Notes Samsung is still off, and is a cost consequence
  • Was a difficult decision, but needed to be done
• Howard – Repricing will have an affect on the Uplift part of this conversation
• Deshotel – Still has not come to the conclusion of what the cost of this was; reiterates the need to look at this from the oil and gas side as well
• Paddie – Will continue to talk about this and will make an informed decision based on facts; will speak to you next week

 

HB 1118 (Capriglione) relating to state agency and local government compliance with cybersecurity training requirements

• Howard – Is a cleanup bill from HB 3834 last session; local governments seeking a criminal justice grant must show compliance with cybersecurity training

HB 1118 is left pending

 

HB 587 (Cole) relating to a study on the suitability of unused and underused public facilities for joint use by state and local governmental entities

• Cole – Last session Comptroller estimated 2500 governmental entities could entre into joint-use contracts; filed similar legislation last session, Facilities Commission will now be the one to conduct the study

HB 587 is left pending

 

HB 327 (Howard) relating to the Internet broadcast or audio recording of certain open meetings.

• Howard – Requires open meetings to be broadcast live on the internet and provide an video/audio archive within seven days of the hearing; will be no significant cost to the state
• Public should not rely on third-party organizations to broadcast their meetings

HB 327 is left pending

 

HB 1322 (Shaheen) relating to a summary of a rule proposed by a state agency

• Shaheen – Requires agencies to have a plain language summary of rule changes provided on their website; notices are only required in the Texas Register

HB 1322 is left pending

 

HB 3 (Burrows) (CS) relating to state and local government responses to a pandemic disaster; creating a criminal offense

• Burrows – Must provide the Governor a framework on how to handle it; bill aims to create a streamlined and effective response to a future pandemic
• Cannot not “government your way out of” a pandemic; they must work to ensure private sector partners are given the latitude to perform
• Does not give the Governor new powers, but how the response should be handled
• Bill protects Constitutional rights, prohibits the closure of churches, prohibits the closure of gun shops, may not adopt new election procedures,
  • Does not give local jurisdictions ability to create their own rules, but would be a unified response
• Creates a legislative oversight committee that would strike down orders that would infringe upon rights
• Smithee – Have had a number of drafts, which is the latest?
  • One did not have the legislative council’s text on it, committee sub does
• Smithee – New draft provides the Governor exercises all normal authority; has contradictory provisions that says he cannot enact law, but can release EOs that are like law?
• Smithee – Governor’s later EOs said he had authority to do so under Chapter 418; where did the legislature get the constitutional authority to allow the Governor the authority to release EOs?
  • Is a fair question, but would have to be answered by the courts; 418 does include natural disasters, but the specific word “pandemic” is not included
• Smithee – Separation of powers clause notes that the legislature does not have the authority to delegate its law-making authority to the Governor
  • Part is when we delegate rule making and regulatory powers, can you suspend it?
  • Have to decide what actions we want the executive branch to make during a natural disaster
• Smithee – Reiterates he would like to know where the constitutional authority could come from, is possible we would need to look at a constitutional amendment
  • Is an expectation we have a quick response after the natural disaster; if you are suggesting current framework is constitutional, then would have to look at that
• Smithee – What witnessed these orders have affected people in real ways; question is where the authority came from?
  • This bill is a framework to address the specific response to a pandemic; bill is open architecture
• Smithee – Notes the constitution was written by those who were particular about who gets what power
  • If is a constitutional issue, will need to look at this
• Raymond – Appreciates his previous work with Burrows, a lot of members wanted to go into special session to handle similar legislation as this
• Raymond – Would raise the argument that we can pass any legislation, and the courts will then determine if it is unconstitutional
  • Bill is not closed on the idea of a special session, but it would not cure the constitutional inquiries
• Raymond – Clarifies why he wanted to get into a special session to get ahead of some of the decisions that were made; this is a way to move forward and appreciates that
• Hunter – You have made it clear that you are willing to work on making changes to this bill; have been through two hurricanes and a winter storm, pontificates why certain entities have all this power
• Hunter – Notes there has to be a lot of more communications from state agencies to the public and those working within it
• Hunter – Use SPY language for civil liabilities during a disaster, want to balance litigation that is constructive versus destructive; does not want the word “disease” to stop legitimate coverage, should apply
  • Have two groups to discuss this language, agrees ambiguity does not lead to good results
• Hunter – The freedom of religion, protecting those groups and not burdening with government
  • Was because the places of worship were shut down, language ensures they are kept open; could be a better way to word that intent
• Hunter – Assuming a bill passes, would go into effect September 1, 2021; but would go into effect immediately if each chamber passed by 2/3
  • Correct
• King – Powers and duties of committee, legislative committee that reviews executive orders, would you consider the pros and cons to extend to state agencies, county judges, or any executive officer?
  • Have not thought about that, but it is a good idea
• King – Executive committee has the right to review after 30 days, considered any language that might avoid someone playing the system?
  • Bill currently talks about who actually has control; could add language that says local/agency orders have to be issued in accordance with the Governor’s order
  • May hear testimony that a lot of the Governor’s orders were used to supersede orders that were out of alignment
• Lucio – Restaurants, bars and gyms were all treated the same; want to craft legislation that is based on criteria like hospital capacity, availability of infrastructure, etc.; not a broad approach
  • Bill initially aimed to not to make any distinction of who is “essential”; want to tailor to disease/pandemic, and likes this idea
• Lucio – Need to create a standard a business owner owns up to in order to be open; like a pandemic plan, would be hard to quantify, but something to consider
  • Will have those debates and conversations
  • Lucio – Discusses that it is not long party lines
• Lucio – Do not think elections officers, but wants to ensure we do not have an aggressive SOS declining applications due to jurisdiction
  • That is what the bill intends to do
• Lucio – Is pro limiting civil liabilities for those acting in good faith, does not want those to abuse those who neglected the health and safety of their patrons; heard horror stories for some nursing homes neglecting residents
  • Will debate what is reasonable given the set of circumstances
  • Lucio – If businesses cannot keep their customers safe, then that business should not be able to operate;
  • What should a nursing home do if there workers cannot come in, they should not be subject to a lawsuit
  • Lucio – They are responsible as operators to maintain the safety of those within their care; not trying to pick on nursing homes
  • But what is the alternative, they close their doors?
  • Lucio – This is just like the lack of communication during the winter storm, you have to give people information
  • Is a standard for “gross negligence”
  • Lucio – What does “gross negligence” even mean?
• Lucio – Disaster Recovery Loan Program is already established?
  • Yes, is a carry-over; not creating a program
• Howard – Have had responses that were 100% against the originally filed bill
• Howard – Did not include oversight of spending of Federal dollars? Are you thinking about that?
  • As current money is coming down, believes currently there are contingency riders for how those will be spent
  • Understands the point that we could plan for future funds
• Howard – No mention of Public Health? Would it be agreeable to add something that includes planning PPE for private physicians and ambulatory clinics
  • Reads section of the bill about planned surge personnel; are other ideas that other testimony will provide today
• Howard – Who are the stakeholders who helped draft this legislation?
  • Lots of people; spoken with non-professionals in Lubbock, and some from the executive branch
• Howard – Current law states local disaster declaration use them to receive federal and state funds; bill does not allow that, so how will they get
  • Bill does not block them from them, they cannot declare an emergency on their own
• Howard – Even the Governor’s website says local jurisdictions have disaster preparedness plans; how is this bill in the best interest of local governments? Might be some room in this bill for a local and statewide strategy
  • Physical natural disasters are regional and do not require a statewide response, but a pandemic would require a more top-down approach
• Howard – The legislative oversight committee has many people on it, is currently only one democrat on the committee; should consider how to do this more represented by those who are elected by our constituents
  • Hears their concerns
• Raymond – Section 418, ad valorem tax rates, agrees with what was done in this section; recalls a previous conversation where they focused on prior year appraisals
• Raymond – Appreciates not increasing tax rates, but the appraisals will increase?
  • This will cover, no new revenue will be in place
• Lucio – Is a provision on the maintenance of employment levels; want to look back into this
  • Aims to take care of employment in future pandemics
• Lucio – Some feedback from constituents on the 30-day review window for disasters?
  • Loophole is not intended to exist and will not be in the final version we pass
• Lucio – Notes he does not agree with the Governor on many things, but he came down to the Valley and brought us what we needed
• Deshotel – Back to P. King’s suggestions, the Governor’s declarations specifically stated local governments and county judges did not have the ability to contradict Governor’s orders, but could the committee over-ride statewide declarations for specific localities?
  • Would have to look at that
• King – Bill says the committee has the right to terminate Governor’s orders, but what I am saying is that local orders could be terminated according to those same standards

 

Invited Testimony

Dr. John Zerwas, UT and Governor Advisor in Response to Pandemic – Neutral

• Provided context on pandemic
• Effort was to address most pressing needs; they did not have enough PPE (notes it is no longer an issue for us) but it was a large issue to overcome
• His role was to address hospital capacity and came up with a surge plan
• Testing was another large challenge; today we do 120k tests a day
• Was on the strike force to re-open Texas; notes people let their hair down on memorial day so Governor executed a mandate on statewide masking
• Thinks state mandate was important at that time
• Despite guidelines they did see a surge in certain parts of the state and had manpower they needed to address that surge
• Had drugs come on board including antibodies and advent of new vaccines
• On journey to herd immunity and over 7 million vaccinated
• 51-52% of over 65s have been administered vaccines; 1c population is open now
• Acknowledges Nim Kidd’s role as well
• Raymond – offered thanks
• Howard – offered thanks; personnel surge concern question on PPE
  • Shutting down all elective procedures was a disabling situation but there will be learnings from that
  • Have a supply of PPE and way of distributing it today
  • PPE is first line of defense of taking care of health care workers
  • References supply chain and Texas Epidemic Public Health Institute, the institute will reach out to Chair Burrows
  • Howard – we want to have lessons learned applied somehow regardless if it is this legislation or some other means
• Paddie – offered thanks as well

 

Nim Kidd, Texas Division of Emergency Management – Neutral

• All previous disasters have been overshadowed by COVID response
• Can not think of one where we had deficiencies like we did in COVID, PPE challenges were real
• Set up to fail again if we don’t keep a stockpile of PPE
• Also has never seen the amount of money the federal government has thrown at a specific event
• Raymond – offered thanks
• Response to question that far majority of PPE still comes from overseas

 

Carrie Kroll, VP Advocacy Quality and Public Health for Texas Hospital Association – For

• Health care workers have been on frontlines for over a year
• Hospitals are highly regulated and scripted to ensure compliance
• THA benefited from having first hand knowledge of what colleagues ahead of them were experiencing; helped them inform their response
• March 13 were engaged in asking for rapid response, HB 3 addresses this
• Gives them the ability to remain nimble
• Response has been built on over 100 waivers because of the nature of hospitals being regulated
• Provided examples – bed capacity suspension so they can accept patients of greater numbers, etc
• Believe protects flexibility they need during pandemic

 

Paul Hodson, Co-Founder Grassroots Gold and Self – Against

• Legislature is closest to people and their voice needs to be heard
• Bill falls short of recognition of separation of powers
• Bill does not address other specific disasters, not just pandemic
• Statements leave legislature impotent
• Authority to renew disaster should be left to legislature
• Legislation opens door for Governor declaring disaster and renewing it 18 times before regular session is called, would like something where legislation can call meeting to renew or address

 

Chair Paddie reminds audience the bill being discussed is the committee substitute

 

Terra Mencha, State Director for National Rifle Association – support

• Saw problems during pandemic were stores were not realized as essential
• Appreciate working with the state
• Bill has critical components they hope that will be continued to be maintained as bill is deliberated

 

George Kelemen, Texas Retailers Association – For 

• Appreciates spirit of cooperation and action taken by the Governor
• Transportation waivers allowed for continue movement of supplies and goods
• Governor’s actions provide workable solutions and established a level playing field
• But patchwork of bureaucracy developed across the state, Governor’s actions later served as welcomed relief to the situation

 

John Esparza, Texas Trucking Association – For

• Need was to be able to move freight from across the country and within the state
• Need to know differences in rules and in middle of disaster critical
• Had lots of contradictions early on, work through Governor’s office and TDEM was critical to help navigate
• Important to have uniform approach

 

Eddie McBride, Lubbock Chamber of Commerce – For

• Business liabilities protections have been a long term priority
• Vital for businesses

 

Scott Normon, Texas Association of Builders – For

• Multiple jurisdictions impacted ability to build
• Essential that industry was able to make sure they could work on and prepare housing needs
• Had to adjust the way they do business such as hand washing stations, temp checks, etc
• Important they could work with the Governor so their was uniformity, this is important in the bill
• Liability protections are also important

 

J.P Urban, Association of Electric Companies of Texas (ACT) – Neutral

• Actions by Governor helped them
• Multi-state entities, Governor helped addressed their need to travel over state lines
• Agencies conducting businesses virtually helped them keep continual electric service going
• Raymond – did you work at PUC? How long?
  • Yes, Executive Director about 2 years and 9 months

 

Glenn Hamer, Texas Association of Business – For

• COVID liability aspect is what he will speak to
• Legal environment is critically important, especially true during a pandemic
• Support protections for employers who have made a reasonable effort to operate safely
• Supports legislation that will address abusive litigation
• Broad applicability of this provision is absolutely essential
• Hunter – understand liability but also don’t want Texans denied insurance coverage and asked the Chairman to look at the word disease
• Raymond – wanted to walk through a couple of scenarios?
  • Would not apply to willful misconduct
  • Raymond – just trying to wrap brain around how this would be helpful
  • Raymond – you think there should be people who would creatively look for loopholes?
  • No desire to protect those that operated with willful misconduct

 

James Quintero, PD Texas Public Policy Foundation – For

• Is there a legitimate role for Texas to play and provide a better balance between government control and individual liberties
• TPRA creates a limited executive check on overreach; answers two questions 1) should the state of disaster continue and 2) should any rules/regulations be rescinded?
• Mitigates rogue actions by local political subdivisions such as putting restrictions on certain establishments
• Includes language that makes clear there is a single source of authority with a check in place; believes it strengthens and enshrines good government actions that tilts the balance to a limited government direction
• King – Tell us about TPPF and what you are/do
  • Provides an overview of what the TPPF does; free-market research thinktank
  • King – What was your position on the bill before it was substituted?
  • Was some consternation about the bill pre-committee substitute, but CS is a great improvement
• Raymond – Notes their website supports a state income tax, and he does not agree with that

 

Annie Spilman, National Federation of Independent Business – For

• Represents small businesses
• Issues of small business owners; cost of health insurance, property taxes, retainment, uncertainty over government action/regulations/economic environment
• HB 3 hits upon many of those concerns
• Concerning civil liabilities, a business would be “grossly” negligent if not in compliance with OSHA or CDC regulations
• Asks COVID-19 claims would be filtered through workers compensation
  • Agrees with Hunter’s proposition to define “disease” more clearly
• Any sort of freezing rates would be helpful to small businesses; notes that it is more helpful when there are statewide stipulations
• Raymond – Asks for their continued guidance through this; what guidance should be used?
  • Businesses have their own guidelines that are based upon regulations from OSHA and the CDC
• Raymond – My experience is the smaller the business is, the harder they are trying
• Lucio – Understands the public safety side and the small business side; maintaining employment levels could be taken in the wrong direction quickly
  • Intent is good, but will be good to have discussion; may need to define employment laws or be more descriptive
  • Lucio – Any decision that is made either way impacts consumer confidence
  • Have seen consumer confidence going up, but could show the effect that congress/the legislature has on it
• Howard – The onus we have been putting on business with no clarity; local officials and state officials should state the policy rather than putting it on the businesses
  • Would agree, there was panic
• Howard – Appreciates the small businesses who have been responsible
  • Will be able to provide data on the small business trends from a year ago

 

John Mason, AT&T – For

• Focus is on the civil liability provision; overviewed their work during the pandemic
• Civil liability provision is important
• Section incentivizes businesses with reasonable, holds bad actors reliable
• Would create certainty
• Would seek redress for those who have been wrongfully harmed

 

Anthony, Texans for Lawsuit Reform – For

• In favor specifically of the civil liability protection provision
• Lucio – Notes support of this provision, but just aims for it to not be abused; should be specifically for COVID-19 related issues
• Lucio – Standard for nursing homes, hospitals, etc. should not be decreased because of this provision
• Are committed to working with you

 

Walt Baum, Texas Cable Association – Neutral

• Overviews coordination of industry with the Governor/agencies to handle the shift in broadband load
• Cable industry is proud of the job they did to work with state leadership; should the legislature choose to add additional checks and balances, will work with them

 

Public Testimony

David Wiley, Executive Committee Member Republican Party of Texas & Self – Against

• Section 418 already gives the Governor the ability to react to unforeseen circumstances, but the pandemic is statewide/worldwide; is no way to handle long-running issues
• Is not a need to codify every type of disaster that is to occur
• Supports the removal of adherence to federal guidelines and the establishment of an oversight committee, but is limited to just a pandemic; should be expanded to future unknown disasters
• Should extend Section 418 for the Governor to call the legislature into special session if a disaster has extended a specific period of time
• Paddie – You are not questioning the powers in Section 418, but should have a time limit?
  • Yes, executive overreach is due to lack of time-based element

 

Jim Perdue, Texas Trial Lawyers Association – Neutral

• Make a commitment to work with this committee and Rep. Burrows to work in the interests that are shared
• Construction of certain expectations for businesses, that is a decent policy
• COVID-19 related litigation 655 cases in Texas, 2 deal with exposure to a business; if this bill is targeted and temporary, would be appropriate solution
• Language says “for a person” but “patient” sits different in the law, a “licensee” sits different in the law; those distinctions are relevant to the scope of this bill
• Hunter – Concern is not the liability section, but just do not want to use a word that blocks people, need to come up with a definition better than “disease”
• Hunter – Asks them to come up with their own definition of that

 

Noe Perez, Self – For

• Many local governments place occupancy limits, deemed certain businesses as essential, and set curfews
• Supports the section of the bill that keeps sport shooting ranges open during a pandemic

 

Tom Glass, Texas Constitutional Enforcement – Against

• Bill fundamentally violates the constitution
• Bill violates separations of power; either get rid of criminal penalty or define what it is precisely
• No triage of healthcare via command and control; need to let those who know the most about it make the decisions
• Power of the people needs to reign in the executive
• Should never again have lockdowns or mask mandates because they violate given rights
• Communicable disease statute was written in the 1980s and no one used that, that is a common-sense way to protect Texans

 

John O’Shay, Self – Against

• Believes the bill is well-intended; it does not go far enough
• Notes that he was unable to visit a loved one in a nursing facility; notes that the lifting of certain EOs after the ERCOT disaster is suspicious
• King – Hardest issues have been figuring out what to do about nursing homes and long-term care facilities
  • Noted the small facility
• Smithee – Focus needs to be improving people who are in a similar situation to you

 

Matt Long, Self – Against

• Notes he agrees with Smithee’s opening statements; agrees with Lucio that we do not lower our standards due to our situation
• Should not lower constitutional standards; no where is there any mention of the right to take away rights in light of a pandemic

 

Chris Jones, Combined Law Enforcement Associations of Texas – For

• Notes first responders did not have the opportunity to work from home; difference between natural disasters and COVID-19 is that you cannot see a pandemic
• Some agencies gave officers workers comp, made them take vacation, or paid them for COVID-19 exposure/cases; need a more unified plan
• Spent $500,000 to buy PPE on the market
• Need a better plan for next time, if you do not make your life, what good is liberty
• King – State has a fund of $500,000 if an officer is killed in the line of duty, could not collect if they died of COVID?
  • Absent of presumption in the law, you have to prove you became ill because you got sick at work
• King – Could an emergency declaration include that provision?
  • Asked the Governor for that last year, but did not get it
  • King – The Governor may have not thought he had the authority to do that, may need to talk to the chairman about adding this provision
  • Efforts are underway out there to fix this
• Howard – Were talking earlier about the need to include doctors’ offices in having sufficient supply of PPE, but first responders are included in that
  • Notes that first responders were not able to get vaccinations in the first vaccine group in the state; trying to address a number of issues
• Howard – There is a bill in the legislature that is looking at nurses for what happens when they catch it on the job, need to ensure there are appropriate remedies for first responders
  • Have identified at least 100 officers have died from COVID-19

 

Kristin Bentley, Texas Freedom Coalition & Self – Against

• This bill will have impact on all Texans in a personal way
• This bill needs to have legislative oversight on EOs and it is not good enough to have a committee overseeing that; Texans elect representatives to elect us
• Howard – Thanks them for their testimony

 

Russell Schaffner, Assistant County Administrator Tarrant County – Neutral

• The as file version of the legislation that gives authority of a county judge or mayor the same power as the governor over their locality
• The word pandemic is used twice in the section in the state emergency management plan; wants to expand that
• Asks deconfliction language about county judges and mayor’s orders
• Concerns about filing for FEMA reimbursements if local governments are unable to declare states of disaster

 

Spencer Houghton, Self – Against

• We do not understand the pandemic because we are not listening to science; notes that masks are ineffective
• Notes that the death rate is low, and this should not even be on the legislature’s plate

 

Auburn Gallagher, True Texas Project – Against

• Notes the oversight of this bill is unconstitutional and the closures over the pandemic were unrequired; not calling a special session was unconstitutional
• Only good things in the bill is protection of gun stores and houses of worship

 

Sheena Rodriguez, True Texas Project – Against

• Mask mandates disregarded individual rights and health
• Raymond – Have you read the committee substitute?
  • No

 

Timothy James Scott, Self – Against

• Committee substitute still violates the constitution; separation of powers
• Asks at a minimum to remove the section that deals with limited alteration of voting procedures; is the easiest section to kill as it is unconstitutional and is the job of the legislature
• Governor’s authority to stop life-saving procedures was criminal

 

Daniel Collins, El Paso County – Against

• Opposes the CS as it takes away localities ability to declare disasters particular to their area
• Legislative oversight committee may cause confusion on applicable laws during the pandemic
• Concerns that the limitations of voting procedures; is paramount safety measures are in place
• Asks for flexibility in times of disaster

 

Austin Kinghorn, General County Attorney General’s Office – Neutral, Resource Witness

 

Stacy M, Self – Against

• Are several issues between both the original bill and CS
• Are no safeguards against those whose surgeries were determined as “elective;” asks these protections are firmed up

 

Terri Lopez, Self – Against

• Provides a personal anecdote about having to wait to receive a lifesaving surgery

 

Diane Valasco, Self – Against

• Legislature needs to take back their power and let this bill die; this bill consolidates more power in the executive branch

 

Stacy Robertson, Self – Against

• Provides a personal anecdote of the shutdowns that hurt their business and of the halting of certain surgeries because they were classified as “elective”
• No reason to codify government overreach

 

Sandy Bitrich, Self – Against

• Against this bill due to the devastating effect of shutdowns on their family
• King – Inquires about their family members

 

Blake Hudson, AARP – Neutral

• Concern about nursing home liabilities under this bill; pre-pandemic the most cited violation was infection control
• Have lost over 10% of long-term care facility residents due to COVID-19, but the bill is giving another free pass to bad actors in the industry
• 556 facilities were cited for violations over infection control last year; nursing home residents have different rights compared to small businesses
• Paddie – Is confident Burrows is willing to work with you on this

 

Bill C, Self – Against

• Lists portions of the bill they believe are unconstitutional

 

Rhonda McCauly, Self – Against

• Proposed bill is unnecessary and unconstitutional

 

Tim Georgif, Self – Against

• Is Shelly Luther’s husband; this bill wants to grant the Governor the power that got us in this mess
• Provides a personal anecdote concerning how the pandemic affected their family

 

Shelly Luther, Self – Against

• Governor Abbott is impeding the liberties of business owners; this bill would codify that
• A disaster bill should focus on PPE issues with first responders and nurses
• Raymond – Asks her how her son is doing
  • Notes he is a totally different kid

 

Fran Rhodes, Self and President of True Texas Project – Against

• Emphasized that the virus is not controlled
• HB 3 does very little to help the situation we have been in for the last 12 months
• Begged Governor to call special sessions, he never did

 

Henry Bonner, Self – Against

• Claims that he is powerless as a citizen and they are powerless are legislators
• Thinks there are other bills that address our situation that would be better than HB3

 

Richard Bonner, Self – Against

• Claims there is no evidence that mask and shutting down businesses are not efficient
• Claims COVID is simply political

 

Melinda Morris, Self – Against

• Claims no one person should have the unilateral power to make decisions that affect millions
• No place for politics in medicine

 

Darcy Wilbanks, Self – Against

• Feels like she has been betrayed by her country and governor

 

Don Beamer, Self – Against

• Says that COVID is the “trojan horse” for all the notorious things elected officials are trying to do
• This bill gives the governor too much power

 

Meme Bureas, Self – Against

• Says we as citizens have been dictated against for the last year
• Raymond – If you were sitting in our positions and you had a choice between a committee substitute or the status quo, what would you pick?
• Hard question, it depends; if I am having to take this bill with the 10 on the committee as it is, I would put checks and balances on those people
• Raymond – In what way?
• Well, I do not know; but we need to distribute power equally

 

Christie Wulfo, Self – Against

• Refers people wearing masks as a “herd of sheep” notes they will not take the vaccine

 

Alexi Schwarzi, Self – Against

• Claims we cannot take anymore help from the government, will not trade liberty for life

 

James Butonrock, Self – Against

• Not willing to give up freedom for the sake of safety, safe is not measurable
• Describes the past year as a governmental overreach
• King – If the bill also included the ability for the legislature to convene itself, would you encourage us to vote for it?
• Yes, would definitely encourage
• Raymond – I will commit to you, and your amendment will be offered. Can we work on that?
• Yes

 

Lee Lester, Self – Against

• Need Legislators input, does not believe states need HB3

 

Kevin Whit, Self – Against

• Refers to requiring masks as an executive overreach

 

Brian Bodine, Self – Against

• Emphasizes mandate is not a law; law and stronger language in statute will not lead to more compliance
• Refers to requiring masks as an executive overreach

HB 3 CS is withdrawn, bill is left pending