Several Interim Reports Published

The Joint Interim Committee on Advertising Public Notices, Senate Committee on Business & Commerce, and Senate Committee on State Affairs have all released their interim report to the 85th Legislature. Below is a link to each report. Also provided below is a spotlight on the recommendations and some of the comments made in letters to the Chair; however, for complete details please refer to the full reports. 

Joint Interim Committee on Advertising Public Notices Publishes Interim Report  
 
The Joint Interim Committee on Advertising Public Notices has published their interim report to the 85^th Legislature. Several recommendations are included in the report:

• Retaining the print requirement;
• Request for legislation requiring political subdivisions distinguish between public notice spending and other advertising, creating a line-item for monies spent fulfilling their statutory requirement to post public notices with local print media organizations so that further study on this issue may address the question of cost based on official budget records; and
• Recommends that the state create, within the Office of the Comptroller, a website which will act as a clearinghouse for public notices. The State of Texas, and all political subdivisions, will be required to send a copy of all public notices to the Comptroller electronically for placement on this website.

 
Senate Committee on Business and Commerce Publishes Interim Report
The Senate Committee on Business and Commerce has published their interim report to the 85^th Legislature. Sen. Huffines in his letter to the chair complements the Committee report’s finding and recommendations in Charge 1 of reviewing all occupations licensed under Texas law to determine the extent to which continued state regulation and licensure is required to protect public health and safety. Sen. Watson expressed in his letter to the Chair two reasons he could not sign the report: 1) a couple of recommendations under the second charge relating to property insurance coverage and litigation, and 2) he cannot endorse the report’s recommendations under subpart (a) of the seventh charge relating to E-verify.

Recommendations on Review of All Occupational Licenses

• The Legislature should continue the policy of consolidating minor boards and licensure programs under as few agencies as possible. This will enhance the Sunset Commission's ability to review the necessity of continued licensure requirements in specific areas as part of an enhanced evaluation of a major agency’s functions. It will also highlight for the Legislature the need to examine licensure requirements as part of the discussion for a major agency’s reauthorization and appropriations requests.
• Furthermore, when taking up Sunset Recommendations on agencies administering licensing programs, the Legislature should strongly consider enacting specific sunset dates for individual licensing programs. This would necessitate periodic legislative review and reauthorization as to affirm a continued need for professional certification and government involvement.

Recommendations on Monitoring Number of Lawsuits Related to Certain Property Claims

• The Legislature should assess strengthening barratry enforcement actions through additional provisions of the state's barratry law.
• Prescribe additional pre-suit notices be given to insurers, so they have the opportunity to comply with their contractual obligations before litigation is entered into by both parties.
• Allow insurance companies to indemnify their agents so that they cannot be personally sued for performing their duties in the course of their employment.
• Preserve the right of policy holders to force insurance companies to pay claims fully and in a timely fashion. 

Recommendations on Impact Study of the Penalty Calculations under the Current Prompt Payment of Health Care Claim Laws and Regulations

• The area of prompt pay law represents a complex segment of the health care market design in the State of Texas. The protections offered under the Texas Prompt Pay Act are essential to serving the healthcare needs of millions of Texans.
• By studying this issue, it is clear that there are broad concerns with how the price of healthcare service is calculated when applied to prompt pay penalties; how billed charges are established; understanding the variations when applied to those charges; and whether this is an appropriate measurement moving forward.
• The complexity of the issue warrants further study as new data becomes available. 

Recommendation on Examine Cyber Security Efforts Undertaken

• Cyber security is an issue for public sector data storage just as it is for the private sector. The Committee recognizes that private business and enterprise are far ahead of their public counterparts in development of security strategies to manage risk in this area. DIR has recognized that staffing of cyber security positions within state agencies is still their most critical challenge in combating cyber threats. The Committee concurs with this assessment, but proposes, in equal importance, that the voluntary nature of cyber programs and policies developed at DIR represent an obstacle to a uniformed statewide response to future threats. The Committee also believes that as long as state agency cyber security policies and programs are voluntary, cyber threat mitigation efforts will continue to be under-prioritized by agency department heads.
• The Legislature should enact legislation that requires "technical risk assessments" be conducted on all state agencies based upon the State of Texas risk framework as defined by DIR on a 5 year periodic basis. Most assessments, or those given priority, should occur between now and the next legislative appropriation cycle for the 2019 Legislature. Results from the technical risk assessments should be forwarded to the appropriate Senate or House Committees as defined by the Lieutenant Governor and Speaker of the House, respectively. Due to its sensitive nature, details from the assessments should be protected from open records provisions of the Public Information Act.
• In an effort to elevate the status and priority for addressing cyber security management programs, agency designated cyber security specialists should report directly to the agency's chief executive and not the administrator of information technology divisions where conflicts of interests may be inherently present.
• Additionally, the Legislature should continue to assess and adopt policies oriented toward utilizing private sector solutions such as cloud technologies for state data storage needs with a goal to bring down costs and administrative overhead encumbered by the state.
• Finally, if any state entity adopts contract guidelines that restricts the contractual outcome to what could be considered a monopoly, they should be required to report the reasons for such a decision to the Senate Committee on Finance and House Committee on Appropriations.

Recommendations on Study Elder Financial Abuse and Determine Next Steps for Protection

• Clarify that APS can share information with or alert law enforcement and other government agencies to potential fraud cases without the need for a subpoena or court order dealing with all accounts for vulnerable adults.
• Work to find an appropriate time frame in which a financial institution can place holds on an account of a vulnerable adult. 

Recommendations on Collection Process for Delinquent Ad Valorem Taxes

• The Committee recognizes that the current system is working. The competitive dynamic has provided a reasonable market-based price. Since the last time the Legislature touched this area of law in 2013, Texas has seen a decline in costs associated with tax liens and stabilization of the market. As it currently stands, the Committee finds that there is a place in the Texas property tax collection system for a variety of products that can assist Texans in retaining their property.
   

Recommendations on Federal Electronic Verification of Employment Authorization Program

• The Legislature should expand statutory E-Verify requirements for businesses engaged in direct government contracts with the State of Texas.

Recommendations regarding Balance Billing Process

• Expand mediation and surprise billing protections for consumers to all out-of-network emergency care services to include physicians, providers, and facilities.
• Expand mediation protections for consumers who receive services from any out-of- network providers working at an in-network hospital.
• Increase transparency of health care prices (billed charges) and network status.
• Increase consumer awareness of access to the mediation process.

Recommendations regarding Texas Windstorm Insurance Association (TWIA)

• The Committee recommends continued monitoring and updates from TWIA and the Texas Department of Insurance to the Legislature.

Recommendations regarding regulation of Public Insurance Adjusters

• Streamline the appraisal process.
• Better enforce existing rules and regulations related to barratry, case run, insurance fraud and the unauthorized practice of public adjusting.
• Increase public information and education for consumers to help them know their insurance rights and how to recognize fraud and abuse.

Recommendations Regarding Consent Policy for State Disclosure of Personal Data

• In the absence of substantive testimony provided to the Committee, there was not a recommendation on the charge made.

Senate Committee on State Affairs Interim Report Published
The Senate Committee on State Affairs has published their interim report to the 85^th Legislature. The report includes recommendations for six interim charges and a letter to the Chair from Sen. Zaffirini pointing out her concerns on some of the recommendations. 

Spotlight on Recommendations
Religious Liberty Recommendation

• The legislature must continue to ensure that the government does not force individuals, organizations, or businesses to violate their sincerely held religious beliefs. The First Amendment rights of all Texans must be protected. In order to avoid lengthy and costly litigation, the legislature should enact targeted religious liberty protections designed to address specific violations of an individual, business, or organization's sincerely held religious belief.

Union Dues Recommendation

• The legislature should continue to ensure that businesses across the state are given the freedom to sustain economic and income growth. As more states act to curtail union special privileges and protect the freedom to work, Texas cannot afford to remain complacent. Texans must do everything they can to hold union officials accountable under the same laws as other citizens and end all labor-relations policies that set up barriers to the efficient and effective provision of public services. Therefore, the legislature should enact legislation similar to Senate Bill 1968 from the 84th Legislative Session. 

Judicial Matters Recommendation

• As the state's population continues to grow, maintaining a qualified and stable judiciary to effectively meet the current and future needs of the state and its citizens is essential. The legislature should review and consider the recommendations from the most recent Judicial Compensation Commission report.
• The legislature should agree on a reasonable alternative to delink legislators' standard service retirement annuities from district judge salaries.
• Ideally, judicial candidates must be given individual consideration by voters to preserve the public's confidence in the judicial system and to preserve a stable, qualified judiciary. 

Eminent Domain Recommendation

• The legislature must continue to ensure that private property owners are fairly compensated for any property purchased or taken by entities with eminent domain authority.
• Furthermore, the legislature should ensure that property owners clearly understand a condemnor's legal restrictions.
• The legislature should ensure condemnors abide by this law by crafting a penalty for noncompliance.

Ethics Recommendation

• The Commission needs to promptly notify filers and the public regarding any Commission rule change that directly affects the PFS. Without sufficient and timely notice, filers and the public may not become aware of such changes, which may lead to unintended reporting errors. Thus, it is critical that the Commission effectively communicate rule changes to filers and the public.
• The Commission must also ensure the sworn complaint process maintains due process.
• Despite the obstacles, the legislature must continue to look closely at the state's ethics laws in an open, deliberative, and transparent way, so that all voices are heard and all proposals are thoroughly discussed.

Monitoring Charge Recommendation

• The legislature is hopeful that open carry will continue to be a non-issue in Texas. Accordingly, the legislature should continue to monitor open carry laws to ensure the average citizen, business, and public entity understands when, where, and under what circumstances it is lawful to carry a firearm openly.
• The legislature needs to continue to prioritize the needs of wards, especially as the number of guardianships rises across the state. It is critical that Texas closely monitor the guardianship system to ensure that it is not overburdened and that the wards are properly cared for. the legislature should consider creating a statewide central database that contains pertinent information about guardianships so that law enforcement and first responders can easily access this information.
• To ensure our active military serving overseas continue to be afforded every opportunity to vote, the legislature should authorize the pilot program beyond its current sunset date of September 1, 2017. Furthermore, the legislature should continue to work with SOS to alleviate any additional obstacles military voters in combat zones may have when attempting to participate in the voting process. Every effort should be made to ensure military members have every opportunity to participate in the election process.
• The legislature should continue to monitor the financial conditions of the pension and health care programs administered by ERS after the most recent 2016 data is released, and when necessary, take actions to ensure the affordability and sustainability of those programs.
• The legislature should continue to monitor the financial conditions of the pension and health care programs administered by TRS after the most recent 2016 data is released, and when necessary, take actions to ensure the affordability and sustainability of those programs. Furthermore, the legislature should embrace the recommendations of the Joint Committee to Study TRS Health Benefit Plans to ensure the long-term viability of both health care plans.
• The legislature should continue to monitor the public integrity unit under the authority of the Texas Rangers. Furthermore, the legislature should continue to support the Texas Ranger PIU to ensure it has the necessary resources to conduct thorough and proficient investigations.