The Senate Committee on State Affairs met on February 28 to take up and consider bills. The report below covers discussions on SB 15 (Creighton), SB 40 (Zaffirini), SB 71 (Nelson), SB 201 (Huffman), and SB 416 (Huffman).

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing, 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.

 

SB 15 (Creighton) Relating to the regulation by a municipality or county of certain employment benefits and policies.

  • Creighton – Prevents political subdivisions from regulating private employers
  • Issues include employment leave, benefits, and scheduling practices
  • Texas is very business focused & important to maintain business-friendly environment
  • Local governments have placed burdensome regulations on private businesses; private employment regulations are a state-level issue, want to avoid patchwork regulation
  • HB 15 creates statewide policy and prohibits local governments
  • CS narrows scope of the bill by removing “hiring practices” language and removing Subsection C language specifying that the bill does not affect nondiscrimination ordinances
  • CS also clarifies that cities and counties can have employment practices for their own public employees
  • Creighton sends up the Committee Substitute for consideration
  • Huffman – SB 15 relates to private employers, has nothing to do with public employers
    • Correct, CS clarifies this that it is affecting patchwork policies affecting private employers & that these decisions are best left to state and federal level

 

Annie Spilman, NFIB – For

  • Members are small business owners, very low unemployment in the state which pushes businesses to be competitive and offer competitive wages, benefits, etc.
  • Understand that sometimes the government needs to come in and mandate practices, but want a consistent regulatory framework around the state
  • Uncertainty over government action and regulation is one of the biggest priorities for NFIB members, operate on very thin margins
  • Zaffirini – In your written testimony you state that Texas cities have begun to pass more ordinances, do you know how many?
    • Has not happened before, cities are being pressured to enact these measures; have not needed statute on this issue in the past
    • Dallas, Austin, and San Antonio had or were in process on measures before the 3rd Court decision
  • Zaffirini – Are these the only 3 cities you know about?
    • Yes, new idea, taking opportunity now to ensure cities are not trying to expand regulatory scope

 

Jonathan Lewis, Center for Public Policy Priorities – Against

  • Local officials have passed laws to improve conditions and promote public health in absence of state action; SB 15 will stifle these efforts
  • Presents stats showing high level of confidence in local officials and local governance, 74% of Texans favor allowing local governments to pass paid sick leave
  • Paid sick leave will also promote public health, will prevent sick people from coming into contact with others
  • Huffman – Have there been any studies showing the cost to small businesses for paid sick leave?
    • A lot of analysis has shown that cost of paid sick leave is not higher than hiring & retraining employees, businesses have been finding that it is
  • Huffman – What studies are you quoting, find this hard to believe
    • Can send these to you
  • Fallon – If it is in the best interests of the business, why wouldn’t they do this on their own?
    • Would love if businesses would do this
  • Creighton – Shares poll results, Texans want support for small businesses and do not want to have the patchwork regulation like California
  • Zaffirini – Asks after the public health concerns involved with this policy
    • Not just talking about businesses, also talking to the public; children are more likely to succeed
    • Many report going into work sick, don’t want to be eating at restaurants with sick employees; public health concerns also factor in

 

Lisa Fullerton, A Novel Idea – For

  • Supporting SB 15, wants to personalize business and show that not all business owners are against this
  • Small businesses face many hardships, mandates can affect the viability of the business
  • Fallon – Would you feel as if your business model could be threatened if a small number of employees took advantage of this provision?
    • Yes, at risk if we have to endure other restrictions like base pay, etc.
    • Would cost us $75k to have paid sick leave

 

Shelby Sterling, Texas Public Policy Foundation – For

  • Mandates for paid sick leave would effectively raise minimum wage, paid sick leave mandates harm employers and employees alike; businesses would see drastically higher costs
  • City mandated paid sick leave is only one issue that sparked this conversation, but much broader conversation

 

Rene Lara, AFL-CIO – Against

  • Appreciates amendment for city and county workers, opposing other sections of the bill
  • City ordinances are still under litigation, AFL-CIO supported both Austin and San
  • Policy that allows workers to earn paid sick leave would benefit tens of thousands of workers and their families, would also help
  • SB 15 would overturn paid sick leave ordinance, but would also impact water breaks for construction workers, sexual assault panic button access ordinances for hotel workers
  • Zaffirini – Do you have specific info on how these policies impact specific areas like food service workers?
    • We have seen the same statistics as CPPP where 2/3rds of workers go into work sick, exposure of food and public to sick workers definitely impacts health care cost
  • Zaffirini – Do you have info on how these policies impact parents of sick children
    • Have heard of cases where parents take sick children to school because they cannot get sick leave & other kids get sick

 

Nolan Gore, Top Choice Lawn Care – For

  • Philosophically conflicted on this issue, asked all of the employees if they would prefer a raise or paid sick leave; over 60% of them would prefer the raise over sick leave
  • Paid sick leave is not what is best for our workers, at least in my case they would prefer commensurate raise
  • Also have heard of people misclassifying employees
  • Huffman – I think it’s more important that you make a decision about how you compensate your employees rather than the government telling you
  • Fallon – If an employee takes a sick day you have the choice to pay them or not, correct?
    • Yes, some employees have paid time off

 

Joseph Domingo, Small Business Owner – For

  • Burdensome for small business owners like myself to deal with patchwork regulations around the state
  • Freedom to compensate employees the way they choose is important, increasing burden of employing workers will have negative impact like lowering hours
  • In favor of a flat regulatory environment that is predictable & consistent

 

Adam Orman, L’Oca d’Oro – Against

  • Was asked by Austin to participate in the creation of the paid sick leave ordinance, businesses were involved & was a model of local government
  • Ordinance imposes no administrative burden on us, created a tool to track accrual of sick pay, implemented requirement to visit doctor before taking this sick leave, etc.
  • If all of employees used all sick days, it would represent .5% of total sales
  • Paid sick leave should be the minimum to have a healthy community, Austin should be allowed
  • Huffman – You understand you can do what you want, but you think you should be able to tell the other businesses what to do?
    • That I should? No; That local city council should be able to if they were elected and the process was inclusive? Yes
  • Zaffirini – When you participated in the meetings did you consider them inclusive and were people heard?
    • There were businesses added throughout the process, multiple meetings were held, given opportunity to count days, added requirement for doctors notes to verify
  • Hughes – Let’s say the city has an open and inclusive process & they take a vote, is there any limit on what the city council can do? What should the limit on city authority be?
    • I think we learn early on that there are systems of checks and balances in all stages of government, if it was apparent that the city council and the mayor were overreaching or overstepping the will of the people, then they will be elected out
    • In this case, there is evidence that residents of Austin were in favor; this situation is not an example of local government overstepping
  • Hughes – Just to be clear, is there any limit
    • There is a difference between the philosophical version of that question and the legislative question
    • Legislatively speaking there are limits
  • Hughes – Philosophically what should the limits be?
    • Philosophically there should not be, and this is why there are lengths of term
  • Fallon – you have 30 employees, did you implement paid sick leave before the ordinance?
    • No, implemented it during the conversation on the ordinance, ended up having a policy before the ordinance passed

 

Pam Bratton, Meter Staffing Services, Society of Human Resource Management – For

  • SB 15 provides protection for local businesses owners, protects against patchwork of legislation; confusion only benefits attorneys, not employers or employees
  • Mandates will only impede job growth in Texas

 

David Alley, Local Union 716 International Brotherhood of Electrical Workers – Against

  • One-size approach does not work for all cities, seeking higher standards of living and seeking benefits for Houston workers; why would you limit ability of workers to get water?

 

Jeremy Hendricks, Laborers International Union of North America – Against

  • SB 15 would have serious and negative impacts across Texas
  • Should not impede innovation and experimentation by local governments, consequences of this super-preemption bill are chilling
  • Zaffirini – What other ordinances or policies would this bill impact?
    • Many around Texas, situation in Houston is particularly impactful, would endanger policies of Houston
  • Zaffirini – Can you give us any specific policies?
    • Austin and Dallas have rest break ordinances for access to drinking water and bathrooms
    • If the Senate wants to lift people up, should do a rest break ordinance for all cities
  • Creighton – Point of the legislation is that we need uniform policy that all businesses an depend on

 

Robert Livar, CDI Technology Services – Against

  • Very invested in workforce as a business developer in the community
  • Nelson discusses the history of the business, asks if this policy would’ve been burdensome when the business started
    • Always been a union shop, always provided a living wage, etc.
  • Nelson – there are so many mandates that are burdensome when you are trying to get a business started
    • We need the ability to petition the local government and level playing field, good practices are about sustainability & it is about treating employees fairly
  • Nelson – Good businesses will use good practices and stay in business
  • Fallon – Why would you need any government to tell you what to implement?
    • More about leveling playing field
    • Conversation is about more than paid sick leave
  • Fallon – You would argue that

 

Valerie Ward, Sweet Ritual Ice Cream – Against

  • Part of process of drafting Austin’s paid sick leave policy
  • For many small businesses it can seem very difficult to do the right things, often perceived barriers to doing the right thing are greater than the actual barriers; local government can be a partner in helping these things come about by passing common sense law
  • Found that it is about 5 minutes worth of work to implement paid sick leave and would cost only .5% of annual revenue if every employee took all sick leave

 

Jasmine Wang, NARAL Pro-Choice Texas – Against

  • Asking each member to vote no on SB 15
  • Paid sick leave is essential for ensuring healthy Texans and also for ensuring abortion access across the state
  • With dwindling abortion providers, workers are forced to choose between economic security and taking time for an abortion
  • Paid sick leave is about leveling the playing field for all workers, especially those most vulnerable to financial repercussions
  • Supporting paid sick leave demonstrates commitment to public health and worker’s wellbeing

 

Leonard Aguilar, Texas Building Trades – Against

  • SB 15 is a far-reaching overbroad bill that would prevent local governments from enacting benefits policies
  • Investments in these policies are necessary because Texas has more construction fatalities than any other states, SB 15 would do away with local ordinances designed to improve conditions for construction workers

 

Scott Norman, Texas Association of Builders – For

  • Our builder members build and remodel homes in multiple jurisdictions, mass adoption of ordinances would be impossible to comply with
  • Businesses also work in more than one city, state should have preemption because we need a uniform playing field
  • Fallon – Do you believe these ordinances are stripping business owners of the right to self-determination?
    • When local governments impose their will on businesses and individuals you bring these issues
    • Other states have also determined that states should preempt these issues, this policy is an expansion of Texas action in the 1970s to preempt individual minimum wage ordinances

 

Greg Casar, Austin City Council

  • Job of the city council to try and make citizen’s lives better; responded to constituents to pass paid sick leave ordinance; similar for water break ordinances
  • Preemption is wiping out worker protection laws around the state, will need to go back to constituents and tell them that measures they supported are no longer in effect
  • Zaffirini- Did you reach out to all businesses and did they all have opportunity to participate?
    • Had a very inclusive process, had stakeholder conversations, public meeting was held, etc.; many opportunities for input & made compromises with business input
    • Ensured that paid sick leave was defined narrowly, scaled the days for small businesses, removed private rights of action, removed fractional earning of sick leave
    • Tried to take in as much input as possible
  • Zaffirini – Did you study paid sick leave policies adopted by other cities and states?
    • Yes, this policy is very popular, not a partisan issue
    • US is the only advanced nation without a paid leave policy
  • Zaffirini – Would this impact other ordinances in Austin?
    • Yes, would wipe out water break ordinance, would wipe out fair hiring ordinance regarding criminal background checks
    • Could also possibly catch other ordinances, would also prevent local response to issues in the future
  • Nelson – Do you understand the point regarding businesses doing business in multiple cities trying to accommodate different municipalities rules?
    • It certainly did, which is why some portions of the ordinance exist, e.g. if you are working a short amount of time in Austin then you do not accrue sick leave
  • Nelson – Good employers take care of their employees
  • Fallon – Question is who should properly decide this issue, decision is more appropriate at state level
    • Would be very supportive of statewide law guaranteeing sick leave, don’t see why we would take away water breaks, etc. as well
  • Fallon – If you’re a good employer and you want to stay in business you will take care of employees; this type of regulation puts a burden on the free market
  • Creighton – Sen. Fallon’s comments are very consistent with our intent and 3rd Court of Appeals when they struct down the Austin ordinance, issues of what workers deserve are handled at the state level; need to keep uniformity and predictability for the business environment; did you support the investigation and subpoena power?
    • Yes, goal is to get employees sick days & not to punish employers
    • Need to protect workers in cases with bad actors, if the state would step up and support workers we would support this, references child labor laws
  • Creighton – Have you spoken to your representatives about bringing the statewide bills you speak of?
    • Yes, we have, there were hearings this past week about minimum wage
    • Rep. Collier is carrying the bill for paid sick leave
  • Creighton – And were those bills drafted for Austin or Texas?
    • Drafted for Texas
  • Creighton – We have to have those issues addressed at a state level, this is the proper role of the state; will curtail economic development if we allow cities to adopt these policies, courts agree that this is state business
  • Fallon – Austin did not pass child labor laws, that was federal
    • I understand, we would like to keep our water break ordinance however along with other critical protections

 

David Smith, TD Industries, Associated Builders and Contractors – For

  • Concerned about the possibility of patchwork ordinances, not uncommon for industry professionals to work in multiple cities in brief spans of time

 

Amanda May, Purple Fig Cleaning Company – Against

  • Paid sick leave ordinances promote public health and cultures of self-care, keeps sickness out of the workplace and out of client’s homes

 

Denise Hernandez, La Gloria – For

  • Difficult for business owners to deal with mandates like this, important to have discretion in spending for business decisions

 

Dana Harris, Austin Chamber of Commerce – For

  • Supports language as filed, consistent employment regulations are needed around the state

 

Herminia Mendoza, Workers Defense – Against

  • Shares experience working in food service, ordinances like the Austin ordinance are important protections for workers

 

Emily Martin, NARAL Pro-Choice Texas – Against

  • SB 15 is an overly broad bill that would prevent local governments from implementing any policies beyond state and federal minimum standards, bill is harmful to Austin and San Antonio who decided on paid sick leave
  • Due to state action, abortion has become more difficult to access because of numerous hoops like 24-hour waiting period; working Texans need 2 days time off to receive medical care
  • Paid sick leave allows access to abortion without fear of lost wages or repercussions

 

Craig Patterson, HT Group – For

  • Keeping employment regulations standard across the state will eliminate red tape & help businesses to create jobs

 

Jodi Mozeika, Black Star Pub & Brewery – Against

  • Black Star offers robust paid time off & fair wages, feeling of members & workers that paid sick leave should be available to all staff
  • Similar paid sick policies have been passed in other jurisdictions around the country, supports measures to promote worker health and public health

 

Jennifer Pumphrey, Texas Advocates for Justice – Against

  • SB 15 would affect other local ordinances like fair-chance hiring, fair-chance hiring was a hard-won battle for local stakeholders in Austin
  • Need for business to pay slightly more to accommodate local ordinances is not worth someone losing their job because they cannot get leave; SB 15 is overly broad and vague

 

Russell Potocki, Staff Force – For

  • Having different rules and regulations for every city would be a nightmare to keep up with for our organization and the temp industry as a whole
  • Employment law is already voluminous, additional burden of trying to accommodate local regulations would be impossible; need uniformity, totally in favor of SB 15

 

David Edmondson, TechNet – Against

  • Against CSSB 15, which removes the current and future nondiscrimination ordinances
  • Removal of this language raises the specter of possibly impacting local nondiscrimination ordinances; if it is not the desire to affect these, then requesting intent language

 

Adam Cahn, Chanman’s Musings – For

  • Appreciates the broad approach to this issue, bill is very significant; biggest threat to state economy in general is unrestricted growth of local government
  • Austin’s paid sick leave ordinance process was rushed and did not include many stakeholders

 

Lauren Baker, Self – Against

  • Shares experience of her mother who became sick and lost her job; economic development shouldn’t outweigh people’s needs

 

James Hines, Texas Association of Business – For

  • TAB strongly supports the goals of the bill, preferred bill as filed when it contained broader protections
  • Important for Texas to have a sound & predictable regulatory climate

 

Liz Martinez, Workers Defense – Against

  • Texas is the most deadly and dangerous state for construction workers, many workers do not have access to rest breaks, drinking water, and sick leave
  • There is a lot that can be done to ensure construction workers have good & safe conditions, has seen wage theft and dangerous conditions at job sites in the state
  • Each city has the ability to respond to the needs of its constituents, SB 15 will eliminate basic protections for construction workers in Texas

 

Frank Fuentes, U.S. Hispanic Contractors Association – For

  • Supports SB 15 & consistency of regulations across the state
  • Association is in support of sick leave, but local ordinances have rules & regulations that are more burdensome to businesses; need to carry liabilities on the balance sheet of companies and affects lines of credit and bonding
  • Hughes – Were you involved in the process in Austin in developing the ordinance?
    • We were, our involvement was very minimal, felt that we weren’t heard; many business organization would agree that the process was flawed
    • Ability of local government to subpoena book records, small businesses don’t have the funding to be involved in this legal process
  • Hughes and Fuentes discuss the makeup of the construction industry, has a lot of upward mobility
  • Hughes – Have you found that industries look at benefits like paid sick leave to attract employees?
    • It is very competitive and there is a shortage of workers, so yes

 

CSSB 15 adopted & voted out (5-1)

 

SB 71 (Nelson) Relating to the establishment of a statewide telehealth center for sexual assault forensic medical examination.

  • Nelson – Creates statewide telehealth consultation program allowing conference with sexual assault nurse examiners
  • Very few of these nurses certified statewide & many counties lack access to this care, SB 71 provides for this access
  • CSSB 71 adopted, guarantees that a statewide organization with expertise in children’s programs will be consulted & ensures that the telehealth system will be interoperable with other uses
  • Issue is prioritized in Senate budget, $50 million to address backlog and $1 million to help set up this system
  • Zaffirini – Would like to cosponsor this bill, could you clarify our process of hearing bills not funded in the budget?
    • Nelson – We are still hearing SB 1 and workgroups are meeting, Chairs have been asked to not pass a bill out with a fiscal note unless it is in SB 1

 

Susan Jackson, Deeds Not Words – For

  • Without this bill, survivors will have to choose between long commutes & not being heard

 

Tatum Zeko, Deeds Not Words – For

  • Desperately need a bill like SB 71, shares experience of friend who committed suicide

 

Rhea Shahane, Deeds Not Words – For

  • Nurses comfort survivors, treat mental & physical trauma, testify in court, etc.; job is much more than DNA collection

 

Chris Kaiser, Texas Association Against Sexual Assault – For

  • SB 71 ensures any Texan can access medical care and get evidence collected in a competent manner, addresses issue of access

 

Ashley Ford, Texas Council for Developmental Disabilities – For

  • SB 71 would increase access to sexual assault care for people with disabilities
  • Health care professionals may need additional training to properly care for sexual assault survivors with IDD
  • Disability advocates should be consulted on implementation of the bill

 

CSSB 71 left pending.

 

Huffman notes that there is not a quorum, State Affairs will be voting on the rest of the bills considered by the committee on Monday, 3/4

 

SB 40 (Zaffirini) Relating to locations, terms, sessions, and procedures for conducting court proceedings.

  • Zaffirini – Recommendations in the bill are from the Texas Judicial Council & follow up to Hurricane Harvey, would give greater flexibility to the Supreme Court to issue longer emergency orders modifying or suspending court proceeding for up to 90s days, allows judicial regions to modify court dates with consent of local judge, and allow judges to meet outside of home county
  • Sen. Birdwell will have amendment to allow presiding judge of judicial area to approve modifications
  • Nelson – What do they do if there is an emergency like a restraining order?
    • Calls resource witness to answer

 

David Slayton, Texas Judicial Council

  • In Aransas County, the courthouse was destroyed and the Supreme Court signed orders allowing judges to operate in other counties, generally CPS can find the judge for orders
  • Regional judges being involved allows for ease of communication
  • SB 40 allows provisions anywhere in state, but Supreme Court can only take these actions when the Gov. declares a disaster so not unlimited leeway
  • Huffman – I think this fits within the Gov.’s emergency item for disaster recovery, could move this along quickly

 

SB 40 left pending.

 

SB 201 (Huffman) Relating to increasing the criminal penalties for certain offenses committed in a disaster area or evacuated area.

  • Huffman – Adds potential increase in punishment for offenses of arson, burglary of motor vehicle, or criminal trespass in a disaster area or an evacuated area; repeals superfluous and potentially confusing affirmative defense
  • Hopes that these measures deter looting and give tools to prosecutors, heartened by testimony during interim that there wasn’t much looting during Harvey, but do need to be prepared to punish swiftly and effectively

 

No witnesses present to testify

 

SB 201 left pending.

 

SB 416 (Huffman) Relating to legal counsel provided by the attorney general to a political subdivision subject to a declared state of disaster.

  • Huffman – AG’s office received numerous requests from local jurisdictions during Harvey, but currently only able to provide guidance in limited circumstances
  • SB 416 allows the AG to provide guidance to certain local officials during declared disaster & the 90-day period following the end of the disaster period
  • Limited to Emergency Management Director, County Judge or Commissioner, or Mayor in areas subject to disasters
  • Nelson – Is there a duration? How long could they do this?
    • 90 days following the expiration or termination of the disaster to account for issues like FEMA delays, etc.

 

No witnesses present to testify

 

SB 416 left pending.