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Senate Natural Resources & Economic Development Committee met on April 29 to discuss a number of bills. This report covers SB 715 (Hall), SB 1599 (Lucio), SB 2089 (Lucio), and SB 2181 (West). A video of the hearing can be found here.

 

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.

 

Vote Outs

CSSB 1465 (8-0)

 

Testimony

SB 715 (Hall) – Relating to the Brazos River Authority, following recommendations of the Sunset Advisory Commission; specifying grounds for the removal of a member of the board of directors.

  • Hall – Sunset bill for the Brazos River Authority
  • Provides grounds for removal, training, responsibilities, a process for acting upon complaints, and transparency for the public

 

David Collinsworth, General Manager and CEO of the Brazos River Authority – For

  • Recommendations will help us accomplish our goals

 

Carrie French, Neighbors for the Protection of Willow Beach Slough – On

  • Small shallow cove with long term residents
  • Had concerns about water quality in the park
  • Lack of consideration that the local office has given to the residents is not good
  • 4 docks that extend into this cove have not been vetted, no consistency in commercial permits
  • A lot of swimming, very concerned
  • Brazos River Authority has created a dangerous condition and no process for public appeal or transparency
  • Seliger – Are you opposing the sunset of the Brazos River Authority?
    • I am not, but it is limited as written
    • There is a need for standards because there is no follow through when the rules are violated
  • Seliger – Has there been a process?
    • We were told to submit public comment, but were told nothing would happen essentially
  • Seliger – So it is on the agenda?
    • Yes

SB 715 left pending

 

SB 1599 (Lucio) (CS) – Relating to indemnity agreements between contractors and subcontractors for services pertaining to certain wells or mines.

  • Lucio – Professional placement companies may purchase liability insurance, but not always for oil and gas workers
  • When a worker does not have this coverage, it requires a lawsuit against the operator
  • Simply requires placement company to explain worker’s rights and responsibilities
  • Requires placement company to tell worker if they are covered by liability insurance
  • 30 day notice of renewal for this insurance required

 

Blake Stribling, Attorney – For

  • People do not know what they are getting into from a risk allocation standpoint
  • Bill is measured and targeted, does not change structure or bargaining
  • Ensures that people know what they are agreeing to, is transparent
  • A simple upfront notice allows workers and subcontractors to make provisions accordingly

 

Steve Brewington, President of Brewington Engineering LLC – For

  • Started career in oil and gas industry
  • Clarifies insurance and indemnification responsibilities between temporary services and contractors
  • Many people are not knowledgeable on how to interpret legal documents
  • Requires that the agreements be written in plain English

SB 1599 left pending

 

SB 2089 (Lucio) (CS) – Relating to the use of county hotel occupancy tax revenue by certain counties.

  • Lucio – Allows Brownsville to utilize the $300 million in private capital secured to revitalize downtown Brownsville
  • Incremental hotel occupancy taxes to be used in the zone to create a tower to observe space activity
  • Enables Cameron County to observe the Space Launch industry and support it
  • Allows Brownsville to promote tourism by constructing a museum and amphitheater in the cultural district

 

Brian Sullivan, Texas Hotel and Lodging Association – On

  • Grateful for Sen. Lucio’s efforts

 

Noel Bernal, Brownsville City Manager – For

  • This bill enables the full scope of space projects to be captured economically

SB 2089 left pending

 

SB 2181 (West) (CS) – Relating to the financing of certain sports and community venue projects.

  • CS that will need to be amended, designed to narrow focus to Fair Park in Dallas
  • Allows Dallas to use hotel occupancy tax to fix this particular park
  • Used same sort of financing to fix the American Airlines Center to pay off bonds in 15 years instead of 30 years
  • Kolkhorst – This is a new tax?
    • Yes
  • Kolkhorst – Do you know how much the tax is?
    • We have resource witnesses to explain that
  • Birdwell – Normally the tax is not for a park, but Fair Park is not necessarily a park
  • Kolkhorst – Is Texas-OU the only game played here?
    • No, there are many

 

Lee Kleinman, Dallas City Council – For

  • 277-acre campus home to hundreds of events each year
  • Generates 50,000 bed nights for hotels, more than local professional teams
  • Enables city council to do its duty
  • Lucio – How do you maintain the Cotton Bowl?
    • It holds 100,000 people and is maintained through subsidies in the Parks Department
    • Have added bond money over the years
    • 3 football games per year along with some soccer matches
    • Other events as well, should be utilized as much as possible

 

Brian Sullivan, Texas Hotel and Lodging Association – Against

  • An exception to the prohibition on hotel occupancy tax
  • Financing mechanism would be a 2% venue tax ballot proposition
  • 2% would be unavailable for other priorities and projects
  • Convention center expansion would bring best ROI after discussing with many
  • Needs financing for both Fair Park and the convention center to support
  • Hinojosa – I thought Fair Park is a priority?
    • The hotel stakeholders see the convention center as a priority
  • Hinojosa – What about the citizens?
    • I cannot speak for them
  • Hinojosa – I thought it helps room night production?
    • I trust the hotel’s judgement
  • Lucio – I cannot see us holding back on this
    • We would like a win-win scenario
  • Seliger – Don’t you agree that Fair Park is a huge generator of hotel revenue?
    • We just think that the convention center is a better option
  • Seliger – Does the tax approximate the amount that would be spent?
    • I am not sure
  • Kolkhorst – But it doesn’t prevent the council from expanding the convention center?
    • Correct, we do not want this to exclude other projects

 

Calvert Collins-Bratton, President of the Dallas Park and Recreation Board – For

  • Serves as an artistic landmark on top of other events
  • February snowstorm was devastating to the infrastructure
  • Ensures that Fair Park can be utilized year-round for events and jobs
  • Is a National Historic Landmark that needs to be polished
  • Can serve as a vocational training center
  • Kolkhorst – This venue puts heads on beds
  • Alvarado – Would you like to counter anything from the previous witness?
    • There is a compromise to be made, Fair Park has never been considered for this before and it will be decided at the local level
  • Lucio – Anything left without proper maintenance is not good

 

Brian Luallen, Executive Director of Fair Park First – For

  • The reality is that Fair Park is a source of Texas Pride
  • Bring a wide variety of people for a wide variety of activities
  • Oversee 6 million visitors each year
  • Working to bring the World Cup back alongside the Dallas Sports Commission
  • Hasn’t been adequate investment
  • A revitalized study has shown that this will improve surrounding areas up to $2 billion in value
  • Already taking on $85 million in improvements, public needs to invest because it is a public tool

 

Lee Kleinman, Dallas City Council – For

  • This bill allows the city council to delegate how much to fund it
  • Seliger – Is the ballot wording going to be specific?
    • The CS requires the venues are explicitly listed

 

Brian Sullivan, Texas Hotel and Lodging Association – Against

  • A convention center expansion would not be possible for years because the maximization would have already occurred

SB 2181 left pending