Over the last 20-plus years, the Texas Air Conditioning Contractors Association (TACCA) has enjoyed many successes at the Texas State Capitol, as well as maintaining constant defense. Along the way, TACCA worked to increase the number of investigators dedicated to the Air Conditioning and Refrigeration (ACR) contractors department at Texas Department of Licensing and Regulation (TDLR), through the Appropriations process, and successfully fought off a proposed rule which would have required air conditioning units sold in Texas to be treated with a substance that would theoretically turn carbon dioxide to oxygen. The rule would have increased the cost to contractors and the substance was not effective. We never know what we might face next.

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Do you have an established relationship with your legislator?

If so, we would love to hear from you. Personal contact with legislators helps build relationships and establish lines of communication that ensure the concerns of the HVAC/R industry are heard and addressed. Contact us today.

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It's a Wrap!

June 2025

 

The 89th Texas Legislative Session is in the books as of June 2. A total of 8,719 bills were filed, more than have been filed in over 30 years, but of those years, the smallest percentage of bills passed - only 13.8%. The average bill success rate is closer to 20%. TACCA was tracking 144 bills and only 18 passed, or 12.5%.

Unfortunately, TACCA's Tool Tax Bill, HB 3504 by Rep. Trey Martinez Fischer (D-San Antonio) was not one of the lucky ones. The bill made it out of the House committee this time, and was scheduled for a vote by the full House, but it did not get reached before a deadline kicked in. This bill would create a sales tax exemption over Labor Day Weekend for tools, clothing, textbooks and equipment necessary for HVAC, plumbing, electrical and other trades. It will be filed again in 2027.

SB 30 by Sen. Schwertner (R-Georgetown) and Rep. Bonnen (R-Friendswood) also did not make it although it came very close. The original goal of the bill was to curb “nuclear verdicts” that award victims $10 million or more. Eventually it was substantially amended to a version that only required disclosure of referrals between lawyers and health care providers and expanded the options for what evidence could be admitted to estimate damages. In the end, the House and Senate could not agree on compromise language and it died a couple of days before the session ended.

Luckily, another bill that TACCA worked on and did not want to pass also died. HB 4016 by Rep. Anchia (D-Dallas) would have prohibited the use of electric resistance heat in residential buildings with a dwelling area greater than 500 square feet. The prohibition would have applied to residential building construction, remodeling, alteration, enlargement, or repair that began on or after January 1, 2026. TACCA met with the author's staff and with a representative of the company that brought the bill to Rep. Anchia, and requested an amendment that the prohibition on electric resistance heat only apply to new residential construction. The bill had a hearing but did not get voted out of committee.

 

Here are some of the bills that TACCA tracked which passed - note the focus on training for the trades in high school and beyond, and making licensing easier for military families:

HB 20 by Rep. VanDeaver (R-New Boston) and Sen. Schwertner (R-Georgetown)  

Creates the Applied Sciences Pathway Program which allows partnerships between school districts or open-enrollment charter schools and institutions of higher education with the goal of students' completion of a high school diploma AND a certificate program with a successful job placement rate in high-wage, high-growth jobs in one of the following industries:

(A)  plumbing and pipe fitting;

(B)  electrical;

(C)  welding;

(D)  sheet metal;

(E)  carpentry;

(F)  masonry;

(G)  diesel and heavy equipment;

(H)  aviation maintenance;

(I)  heating, ventilation, and air conditioning;

(J)  construction management and inspection;

(K)  mechanical and aerospace engineering;

(L)  industrial maintenance and processes;

(M)  robotics and automation;

(N)  information technology and cybersecurity;

(O)  oil and gas exploration and production;

(P)  refining and chemical processes;

(Q)  transportation distribution and logistics;

(R)  manufacturing and industrial technology;

(S)  electronics technology; or

(T)  automotive technology.

 

HB 120 by Rep. Keith Bell (R-Forney) and Sen. Schwertner (R-Georgetown)  

This bill improves or further funds the new instructional facility allotment and career and technology education, Rural Pathway Excellence Partnership Program (R-PEP), and Pathways in Technology Early College High School (P-TECH) programs. It also establishes the high school advising program and military pathway grant program. It increases Early College High School funding to $150 per student.  It also allows a student to receive no more than two subsidies, up from one subsidy, for Certification Examinations, and provides that a teacher is entitled to a subsidy under that section if the teacher passes a certification examination related to career and technology education, rather than cybersecurity under current law. 

HB 322 by Rep. Guillen (R-Rio Grande City) and Sen. Zaffirini (D-Laredo)

This bill provides that grants from the Jobs and Education for Texans (JET) Grant Program may be used to pay costs for the acquisition, implementation, and ongoing maintenance of technology solutions necessary to support career and technical education programs at public junior colleges, public technical  institutes, public state colleges, and school districts and open-enrollment charter schools, as well as for start-up costs associated with the development of new career and technical education programs.

HB 346 by Rep. Harris Davila (R-Round Rock) and Sen. Phil King (R-Weatherford)

H.B. 346 seeks to address high start-up costs for new businesses by authorizing the secretary of state to work with state and local governmental entities to minimize fees related to licensing and regulation of businesses in their first year of operation.

  

HB 3214 by Rep. Richardson (R-McKinney) and Sen. Paxton (R-McKinney) 

Reduces from 4 years to 2 years the time a person must be a journeyman plumber before becoming a master plumber.

 

HB 3260 by Rep. Keith Bell (R-Forney) and Sen. Kelly Hancock (R-North Richland Hills)

Changes the Industry-Recognized Apprenticeship Grant Program to accept only apprenticeship programs approved by the Texas Workforce Commission ("Commission"), rather than the U.S. Department of Labor. The bill also provides that the Commission may distribute payments constituting a partial reimbursement to an eligible program participant as they meet milestones for on-the-job training and employment; establish which occupations are recognized as an apprenticeable occupation, and the criteria for that determination; and certify a training program as an industry-recognized apprenticeship program.

HB 5629 by Rep. Terry Wilson (R-Georgetown) and Sen. Sparks (R-Midland)

Reduces barriers to employment for military families by making it easier for them to obtain a Texas occupational license if they hold a license in good standing from another state and that state's scope of practice for the occupation is similar to Texas'.

SB 705 by Sen. Zaffirini (D-Laredo) and Rep. Gerdes (R-Smithville)

Removes the two ex officio, nonvoting members from the ACR Advisory Board at TDLR.

 

SB 783 by Sen. Menendez (D-San Antonio) and Rep. Ana Hernandez (D-Houston)

The 2021 International Energy Conservation Code and the energy efficiency chapter of the 2021 International Residential Code are 5 to 10 percent more efficient than current state codes. This bill allows the State Energy Conservation Office ("SECO") to implement these new codes to ensure that new construction is more energy and cost efficient by exempting from the prohibition established under existing statute an energy code adopted by SECO and an energy and water conservation design standard established by SECO. The bill also amends the Health and Safety Code to authorize SECO to amend an adopted edition of the energy efficiency chapter of the International Residential Code not more than once every 6 years, and to amend an adopted edition of the International Energy Conservation Code.

SB 1080 by Sen. West (D-Dallas) and Rep. David Cook (R-Mansfield)

Provides that a licensing authority may issue a provisional license valid for a term of 12 months to an applicant who has been convicted of an offense, including an applicant who is an inmate imprisoned in the Texas Department of Criminal Justice; a person released on parole or mandatory supervision and residing at a halfway house; or a person who is enrolled in or has completed an educational program offered by the Windham School District; or an institution of higher education, as defined by Section 61.003, Education Code. The term of a provisional license issued to an applicant who is an inmate imprisoned in the Texas Department of Criminal Justice begins on the date the applicant is released.

SB 1242 by Sen. Birdwell (R- and Rep. Terry Wilson (R-Georgetown)

Facilitates the acquisition of land by the Texas State Technical College ("TSTC") System by eliminating the requirement that the Texas Higher Education Coordinating Board must review and approve the acceptance or acquisition of any land and facilities. Instead, the TSTC Board may accept or acquire by purchase in the name of the State of Texas land and facilities in any of the counties in which a campus or extension center is located. 

 

SJR 59, again by Sen. Birdwell and sponsored in the House by Rep. Lambert (R-Abilene), also benefits TSTC. A constitutional amendment which will be on the next statewide ballot for voter approval, SJR 59 provides for the creation of funds to support the acquisition of land and capital improvements for educational programs offered by TSTC. The sum of the amount allocated to the TSTC System and the amount distributed to the System may not exceed $52 million for the state fiscal year beginning September 1, 2025.

 

SB 1252 by Sen. Schwertner (R-Georgetown) and Rep. Ken King (R-Canadian) 

Provides that a municipality may not adopt or enforce an amendment to the National Electrical Code that would regulate the installation or inspection of a "residential energy backup system," which is defined as a backup energy system installed at a residential property that is capable

of providing no more than 50 kilowatts of electricity to the residence or has a storage capacity of no more than 100 kilowatt hours. However, a municipally owned utility may still regulate the installation or inspection of a residential energy backup system within the utility’s service area.

 

SB 1646 by Sen. Phil King (R-Weatherford) and Rep. Hefner (R-Mt. Pleasant)

Creates a state jail felony offense of 'unauthorized possession of certain copper or brass material' for a person who intentionally or knowingly possesses copper or brass material and is not a person who is authorized under the bill's provisions to possess the copper or brass material. The crime is enhanced to a third degree felony if it is shown that: the copper or brass material was unlawfully obtained from a critical infrastructure facility; or the person has been previously convicted of the offense or another offense involving copper or brass.

 

SB 1818 by Sen. Hancock (R- North Richland Hills) and Rep. McQueeney (R-Fort Worth)

 

Requires a state agency that issues an occupational license, upon receipt of an application for an alternative license for a military service member, veteran, or military spouse, to promptly issue a provisional license to the applicant while the agency processes the application. The provisional license will be valid for 180 days or until the agency approves the license application, whichever occurs first.

 

 

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TACCA 88th Legislative Report

June 2023

The 88th Regular Legislative Session ended, and the first called or special session began, simultaneously on May 29.

The two biggest priorities expressed by legislative leadership at the beginning of the regular session were creating a voucher program so that parents can opt to send their kids to private schools and pay for it with taxpayer dollars; and property tax relief totaling half of the $33 billion surplus. Neither passed in the regular session.

The special session was called to address the property tax issue as well as human trafficking along the border. At this writing, the House has passed the bills and adjourned sine die ('without a day,' meaning the House is not coming back in the special session), leaving the future of this special session totally up to the Senate to pass the bills exactly as the House did, or let them die.

Disagreement between the House and Senate on vouchers and property tax reduction negatively influenced the entire legislative process in the regular session and led to many bills of each not being passed by the other body in retaliation. This happens at the end of every session to some extent, but the dissension, both public and private, between the bodies has been the most rancorous in recent memory.

This is curious, since Republicans have full control of state government, but they are not all on the same page. A high-ranking staffer for a Senate Chairperson said recently when talking about the House, ‘it’s like they’re in a different party!’

Added to the mix, the House General Investigating committee voted unanimously to refer twenty articles of impeachment against Attorney General Ken Paxton to the full House, based on their investigation into allegations of his wrongdoing, and the full House voted 121-23 to adopt the articles. The impeachment trial will be conducted by the Senate in August according to some sources. The impeachment followed just weeks after the House voted unanimously to expel one of its own members for sexual misconduct.

For the most part, the bills affecting TACCA and the HVACR industry did not get caught up in the infighting. The following is an update on bills TACCA was tracking.

Public Education - Fighting over vouchers made everyone a loser.

1. HB 100 by Chairman Ken King (R-Canadian), was the big education bill providing for teacher pay raises among other changes. Unfortunately, the House version all but eliminated funding for Career and Technology Education (CTE). The Senate restored the CTE funding but amended the voucher bill onto it, so it died and along with it, teacher pay raises.

2. HB 1859 by Rep. Matt Schaefer (R-Tyler) – Under this bill the minimum age for a registered technician is lowered from 18 to 16. This is the bill TACCA worked on with Rep. Schaefer to require “direct supervision” instead of “on-site supervision” of a registered technician younger than 18 by a contractor or certified technician. It also expands the available teaching pool for HVACR CTE programs by allowing either a licensed air conditioning and refrigeration contractor or a certified air conditioning and refrigeration technician to serve as instructors. Passed.

  3. HB 1391 by Rep. Matt Schaefer (R-Tyler) – Creates a new pathway to obtain a residential wireman license if the applicant successfully completes a CTE program. Currently, the only way to qualify is to complete 4,000 hours of on-the-job training under the supervision of a master electrician or residential wireman. The CTE program would either be established under the Education Code or a similar program to be determined by the Texas Department of Licensing and Regulation (TDLR) and offered by an institution of higher education or a private school. A person who successfully completes a sequence of courses in the electrical trade that is offered through a CTE program could apply for and take an examination for a residential wireman license, regardless of whether the person has completed the required number of hours of on-the-job training. Passed.

  4. SB 68 by Sen. Judith Zaffirini (D-Laredo) allows high school juniors and seniors to take up to two days off from school each year as excused absences to visit a professional workplace for a career investigation day. Passed.

Higher Education – TACCA was tracking several bills of note which affect institutions of higher education which provide instruction in HVACR. 

1. HB 8 by Rep. Gary VanDeaver (R-New Boston) - Establishes a public junior college state finance program that ensures community colleges across Texas can access foundational levels of funding for instruction and operations and by providing for the establishment of a program to provide financial aid to certain high school students enrolled in dual credit courses. The bill also improves efficiencies for students transferring between community colleges and four-year universities, and provides for piloting, expanding, and streamlining various grant programs. These grant programs address more efficient use of financial aid, expanding workforce partnerships, and other components of postsecondary success. Passed.

2. HB 3287 by Rep. Doc Anderson (R-Waco) – This bill cleaned up the statute determining where the Texas State Technical College System (TSTC) can operate campuses by designating the areas by county rather than individual cities. Passed.

  3. SJR 81 by Chair Brian Birdwell (R-Granbury) – This is the bill that TSTC championed that would have established an endowment for a dedicated funding source for capital projects and equipment purchases for the TSTC System. The bill died at the very end of the session despite passing both chambers unanimously. However, the House version expanded the endowment to also include the Lamar University System. With the contingent $1.05 billion already included in the adopted and passed budget, Lt. Gov. Patrick and Speaker Phelan could not agree on the split between the two institutions. Lt. Gov. Patrick wanted $750M for TSTC and $300M for Lamar, while Speaker Phelan wanted $577.5M for TSTC and $472.5M for Lamar, in a great example of how their animosity plays out. Died.

Workforce Measures – A number of bills relating to workforce development and grant programs were on TACCA’s tracking list.

1. HB 1755 by Chair Angie Chen Button (R-Garland) - Establishes the Lone Star Workforce of the Future Fund grant program through which the Texas Workforce Commission (TWC) will provide grants to public junior colleges and technical institutes and nonprofits that satisfy certain eligibility requirements and administer performance-based workforce training programs that lead to employment in high-demand occupations. Passed.

2. HB 4390 by Chair Angie Chen Button (R-Garland) - Revises the definition of an "industry-recognized apprenticeship program" to mean a training program certified as such by the TWC. The certification criteria would have to include that the training program: led to the attainment of certain skills; involved manual, mechanical, or technical skills or knowledge requiring significant on-the-job work experience; and required related instruction to supplement the on-the-job training. The House version excluded training programs in the construction industry, but the Senate removed that section. However, the House determined that some of the Senate amendments were non-germane (not relevant to the original bill language) and the bill died.

3. HB 4451 by Rep. Salman Bhojani (F)(D-Euless) - requires the TWC, in consultation with local workforce development boards, to submit to the legislature by September 1 of each year a report on available apprenticeship programs in Texas and make recommendations to expand the availability of apprenticeship programs in emerging and high-demand industries. The report must include data on the total number of active apprenticeship programs and active apprentices, categorized by the industries included in the North American Industry Classification System; and the total occupational demand for each industry, categorized by each occupation in the industry for which an apprenticeship program may be established. Passed.

Plumbing Bill - HB 2334 is the bill TACCA opposed in solidarity with PHCC. Unfortunately it passed. A person will no longer be required to have a plumbing license to install, service or repair mains or service lines that provide water, sewer or storm drainage services on private property in an area that extends from a public right-of-way or public easement to not less than five feet from a building or structure, with exceptions for plumbing work performed on private property designated for a one-family or two-family dwelling. 

 

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TACCA 87th Legislature Wrap-Up

June 2021

 

By all accounts, the 87th Regular Session of the Texas Legislature was a singular experience that no one wants to see repeated – ever. The session opened in the middle of a once-a-century pandemic and resulting lockdown that, coupled with falling oil prices, left the Texas revenue forecast looking very bleak. The Legislature convened on time, with strict COVID protocols that included most staff working from home, and remote committee registration and testimony for the first time. The Capitol was virtually empty as lobbyists learned to navigate remote meetings and presentations.

Then, a month into the session, Winter Storm Uri hit – estimated to be the most expensive Texas natural disaster. Instantly the Legislature’s focus shifted from coping with and paying for the pandemic to ensuring that ERCOT and the Public Utility Commission had the tools to prevent any future statewide grid failure, and that electric generation facilities and the gas facilities that fuel some of them were required to weatherize to protect the grid against future demand driven by both winter and summer extreme conditions.

In the midst of this pandemic/budget/electricity chaos, the regular work of the Legislature continued. Of 137 bills on TACCA’s tracking list, 27 are on the final list and have been signed by the Governor or are on his desk. He has until June 20 to veto, sign, or let bills become effective without his signature. Here are a few of the bills that are of particular interest to TACCA, in rough order of importance.

HB 871 – Morrison/Kolkhorst – TACCA’s municipal fee bill was signed by the Governor on June 4 and takes effect September 1! As of that date, municipalities will no longer be allowed to charge HVAC contractors a fee to do business. 

HB 1560 – Goldman/Buckingham – The Texas Department of Licensing and Regulation (TDLR) is reauthorized. The bill provides for: the commission, in consultation with the respective advisory boards, to establish a minimum number of hours of continuing education; the executive director or the presiding officer of the commission to appoint interdisciplinary advisory boards across license types; and the department to conduct risk-based inspections that prioritize inspections based on key risk factors identified by the department. The bill also requires TDLR to prioritize and expedite the complaint resolution process.

HB 636 – Thompson/Whitmire – The Texas State Board of Plumbing Examiners is reauthorized.

HB 19 – Leach/Taylor - Relating to procedure, evidence, and remedies in civil actions relating to commercial vehicle accidents. Provides a framework for trial procedures, the use of evidence, and the determination of liability in certain civil actions involving commercial motor vehicles.

HB 738 – Paul/Nichols – Updates both the International Residential Code, and the International Building Code for commercial properties to their May 1, 2012 versions. A municipality may not adopt a local amendment to either Code unless the municipality holds a public hearing on the local amendment and adopts it by ordinance.
 
HB 2110 – Morales/Whitmire – When residential real property that includes an air conditioning system as a fixture to the property is conveyed to a new owner, a manufacturer's warranty in effect on that system or a component of that system on the date of the conveyance is automatically transferred to the new owner and continues in effect as if the new owner was the original purchaser of the system or component.

HB 3215 – Geren/Hughes – Relating to energy efficiency building standards. In addition to the Energy Star Program, HB 3215 recognizes as also being in compliance with Texas energy efficiency standards a home energy rating system index utilizing Standard 301 of the American National Standard for the Calculation and Labeling of the Energy Performance of Dwelling and Sleeping Units using an Energy Rating Index, commonly cited as ANSI/RESNET/ICC 301. The bill also updates the energy rating indexes required for the various climate zones for single family residential construction. 

SB 1210 – Johnson/Oliverson – Beginning January 1, 2023, a building code or other requirement applicable to commercial or residential buildings or construction may not prohibit the use of a substitute refrigerant authorized pursuant to 42 U.S.C. Section 7671k, the U.S. Stratospheric Ozone Protection Safe Alternatives Policy.

The full final tracking list is posted here.

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Key Bills TACCA is Tracking in the 87th Texas Legislative Session (updated 5/12/2021)

As of May 12, 2021, TACCA has monitored or actively supported or opposed approximately 136 bills in the Texas House and Senate that have the potential to impact HVAC/R contractors, the HVAC/R industry, or small businesses. Of those, 30 of TACCA's tracked bills have passed their house of origin. Last session, 1,427 bills were passed, and as of today, only 61 bills have been sent to the Governor. Passing a bill this session is a major accomplishment.

HB 871 by Chair Geanie Morrison – TACCA’s bill, eliminating the municipal fees charged to certain air conditioning and refrigeration contractors. This is essentially the same as HB 4249, our bill from last session by Rep. Kuempel. This bill passed out of the Texas House of Representatives on April 13, passed out of the Senate Local Government Committee on May 10, and is currently recommended for Senate local and uncontested calendar with a high probability of passing and being sent to the Governor.

HB 19 by Rep. Leach relating to civil liability of a commercial motor vehicle owner or operator. Passed out of the House on April 30, and testimony was heard in the Senate Transportation Committee on May 12.

HB 334 by Rep. Gary Gates, amends Education Code Section 48.106:
(c) At least 90 [55] percent of the funds allocated under this section must be used in providing career and technology education programs in grades 7 through 12.

HB 636 by Rep. Senfronia Thompson, relating to the continuation and functions of the Texas State Board of Plumbing Examiners. Passed out of the Texas House of Representatives and sent to the Texas Senate (April 14). Passed out of the Senate Natural Resources & Economic Development Committee on May 11, and was placed on the Senate intent calendar for May 12. 

HB 738 by Rep. Dennis Paul, relating to the residential building codes of municipalities.
(c)  Subject to Subsection (e), a [A] municipality may establish procedures:                 
(1)  to adopt local amendments to the International Residential Code that may add, modify, or remove requirements set by the code; and
(2)  for the administration and enforcement of the International Residential Code.
(d)  A municipality may review and consider amendments made by the International Code Council to the International Residential Code after May 1, 2012 [2001].

The bill adds that the municipality may only adopt changes under subsection (c) after a public hearing and by adopting the changes in an ordinance. The bill passed out of the House (April 8) passed out of the Senate Business & Commerce Committee (May 10), and was recommended to Senate local and uncontested calendar.

HB 1146 by Rep. Gary Gates amends Section 21.403(b), Education Code:
(b) For each year of work experience required for certification in a career or technological field, up to a maximum of 10 [two] years, [a] certified career or technology education teachers and persons issued a school district teaching permit under Section 21.055(d-1) are [teacher is] entitled to salary step credit as if the work experience were teaching experience.

HB 1146 is exciting because TACCA met with with Rep. Gates' legislative director over the summer to discuss the difficulty of attracting new CTE teachers because of the pay cut most of them take when they leave their industry. This bill has been referred to the House Public Education Committee.

HB 1650 by Rep. Matt Schaefer amends "Tradesman plumber-limited license holder" to mean a person who has completed at least 4,000 hours working under the direct supervision of a journeyman or master plumber as a plumber's apprentice; or has successfully completed a coherent sequence of courses in the plumbing trade that are offered through a career and technology education program, as described by Section 1301.3542; has passed the required examinations; and constructs and installs plumbing for one-family or two-family dwellings under the supervision of a responsible master plumber.

HB  2110 by Rep.Christina Morales related to the automatic transfer of manufacturer's warranties on air conditioning systems conveyed with residential real property. TACCA was consulted prior to this bill being drafted and we have committed to staying neutral on it.

HB 3032 by Rep. Oliverson relating to substitutes for hydrofluorocarbon refrigerants applicable to commercial or residential buildings or construction. Identical bill SB 1210.

HB 3803 by Reps. Geren, Darby, Kuempel, Minjarez, Goldman, relating to the adoption of a certain plumbing code by the Texas State Board of Plumbing Examiners. This bill would eliminate the Uniform Plumbing Code from state plumbing code.

SB 125 by Sen. Nathan Johnson, relating to the regulation of hydrofluorocarbons under the Texas Clean Air Act. Phases in a prohibition on the use of certain propellants including refrigerants.

SB 207 by Sens. Schwertner, Buckingham, Campbell, relating to recovery of medical or health care expenses in civil actions.

SB 871 by Sen. Robert Nichols relating to the continuation and functions of the Texas State Board of Plumbing Examiners. This is not identical to the bill filed in the House to continue the Plumbing Board. This one repeals the designation of "responsible master plumber" and includes the Tradesman plumber-limited license holder provisions in HB 1650. Both this bill and the House bill require the Plumbing Board to go through Sunset review again in 2027.

Other bills TACCA is tracking include the usual noise regulations, cell phone prohibitions, franchise tax changes, and minimum wage requirements.

Please contact the TACCA office if you have any questions about the Legislative Session.

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Government Affairs Update

January 2021

On January 12, 2021, the 87th Texas Legislative Session began with a low-key, socially distanced swearing-in ceremony in both chambers. In the House, Representative Dade Phelan was elected as Speaker. Both chambers adopted their rules for the session, which include wearing masks, how hearings and voting will occur, and allowing each member to set the policies for his or her office space. There will be no lobby days this year.

Perhaps the most significant rule: The Senate became one seat less Republican in the November election, so they changed the number of votes needed to bring legislation to the Senate floor from 19 to 18 votes, or a five-ninths supermajority of the Senate. Traditionally, the rule was 21 votes.

Lieutenant Governor Dan Patrick released committee assignments, with few changes. The Senate Business and Commerce Committee is where most bills of interest to TACCA are heard:

Kelly Hancock, Chair 
Robert Nichols, Vice Chair
Donna Campbell
Brandon Creighton 
Nathan Johnson - new
José Menéndez 
Angela Paxton 
Charles Schwertner 
John Whitmire  

The new Speaker of the House has not made committee appointments; Friday, January 22 was the deadline for House members to send in their committee preferences. Assignments could be announced as early as January 29, but could be as late as the end of February.

The House and Senate are adjourned until the afternoon of Tuesday, January 26th. The latest word is that they will reconvene Tuesday-Wednesday and then adjourn until the following Tuesday.

Budget Update:

As of January 15, when the fourth quarter 2020 tax receipts were due, Texas is facing a $1 Billion revenue shortfall compared to the current budget. Given the pandemic surge, it is likely that first quarter 2021 tax numbers will be lower than anticipated, so the $1 Billion may go up when the Comptroller revises his estimate in mid-April.

Even though we are in a pandemic, people are still moving to Texas, and more people are probably moving onto the Medicaid rolls through employment loss, so education and state-paid healthcare costs, the two biggest pieces of the budget pie, are getting bigger. Without raising more revenue, they will have to make cuts.

In an interview with the Texas Tribune the day before the session opened, new Speaker Dade Phelan would not commit to maintaining the increases to public education passed last session. However, in House and Senate base budget bills released mid-January, Public Education is the only category not cut.

Remember that the Rainy Day Fund probably has over $12 Billion, and even though it will grow more slowly now, they could easily take the $1+Billion shortfall out and still have a robust account.

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Government Affairs Update

September 2020

from Shannon Noble, Government Affairs Counsel

 

Uncertainty is the byword of the political landscape heading into the 87^th Legislature. Due to COVID-19 concerns, the interim House committees are conducting studies via written submissions instead of holding hearings, and only one Senate interim hearing is currently scheduled. Adding to those changes, a new House speaker will be elected when the Legislature convenes in January, and virus protocols for conducting the legislative session are being discussed.

TACCA is closely following the Sunset Commission (“Sunset”), as the Texas Department of Licensing and Regulation (TDLR) is under Sunset review. It was one of the agencies which was scheduled to be heard by Sunset in August before those hearings were canceled. Sunset and TDLR staff advise that the hearings will be rescheduled.

In anticipation of the upcoming legislative session, the biggest issue TACCA is currently following is what will happen to the regulation of the plumbing industry. Because the Governor’s extension of the Plumbing Board was temporary, a decision must be made by the Legislature whether to re-create the Plumbing Board, or move regulation of the industry to TDLR.

Another issue which may be raised again is TACCA’s bill from last session to eliminate the municipal registration fees that HVAC contractors are required to pay in many jurisdictions.

TACCA’s Legislative Committee is considering these and other issues as the date for early bill filing to begin approaches on November 9.

 

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TACCA Final 2019 Legislative Update

 

Of the 100 bills on TACCA’s tracking list for this session, only five passed that are of note for TACCA. There were also two notable failures:

1.     Unfortunately, TACCA’s own bill, HB 4249, which provided that municipalities could not continue to charge registration fees to HVAC contractors, did not pass. Although it was sent to the drafters in October, 2018, it was not back from them and ready to file until March 8, 2019, which was the filing deadline. There is no explanation for the delay, and it did put the bill in an uphill battle for time. Then, instead of being referred to the House Licensing and Administrative Procedures Committee, where TACCA’s bills have always gone, it was referred to Urban Affairs, where the bill’s author, Rep. John Kuempel (R-Seguin), had never appeared. Even so, it was voted out of committee with only one no vote, from freshman Rep. Jessica Gonzalez (D-Dallas). That one no vote made it ineligible for the Local and Consent Calendar, which is much faster than the regular House calendar. So it was sent to the House Calendars Committee, where it died.

The Texas Department of Licensing and Regulation (TDLR) is up for Sunset review in 2021, and that process will begin this fall. The next goal is to include the language of HB 4249 in the TDLR Sunset bill in 2021.

2.     The Plumbing Board Sunset bill, SB 621 by Sen. Nichols (R-Jacksonville), had its own series of unfortunate events, and ultimately it also failed. That bill would have abolished the Plumbing Board and moved the regulation of plumbers to TDLR. PHCC opposed SB 621, and had Rep. Nevarez (D-Eagle Pass) file another bill, HB 4226, which created a new agency – a trades board governing plumbers, electricians, and HVAC contractors. That bill did not even get a hearing.

TACCA pitched to TDLR, and to Sen. Nichols and Rep. Nevarez, a compromise proposal of creating a trades board under the TDLR umbrella, for the same three license groups. The Governor would appoint members of the three trades to serve on the independent trades board, its rules would be reviewed by the TDLR commission, and TDLR would perform all administrative duties required for issuing and investigating those licenses. This was not adopted but was not negatively received, and will be pitched again to the Sunset Commission and its staff during TDLR’s Sunset review.

Ultimately, the Governor resuscitated the Plumbing Board by executive order and extended it for two more years, which means it will be the subject of Sunset legislation again in 2021. His rationale for the executive order was the ongoing need for licensed plumbers in the aftermath and rebuilding from Hurricane Harvey, and the need to stay prepared for the next hurricane or other disaster.

 

Bills that passed:

1.     HB 1342 by Rep. Jeff Leach (R-Plano) provides that a conviction within the past five years for an offense that does not directly relate to the duties and responsibilities of a licensed occupation is no longer grounds for disqualification for the occupational license. The bill also expands the list of factors a licensing authority has to consider in determining whether a criminal conviction directly relates to the duties and responsibilities of a licensed occupation to include whether there was correlation between the elements of a crime and the duties and responsibilities of the occupation.

 

2.     HB 2452 by Rep. Craig Goldman (R-Fort Worth) allows the TDLR to contract with a qualified individual to assist with reviewing and investigating complaints. Except for an act involving fraud, conspiracy, or malice, the contractor would be immune from liability and could not be subject to a suit for damages for acting in the contracted capacity. This should speed up the complaint review process.

 

3.     SB 237 by Sen. Jane Nelson (R-Flower Mound) provides that each agency that licenses an occupation or profession shall determine the type of license holders’ personal information that the agency should make available on its website, based on the following factors:

• the type of information the public needs to verify a license, locate a servie provider, and file a complaint with the agency; and
• whether making the information available on the website could subject a licensee to harassment, solicitation, or other nuisance.

4.     SB 1217 by Sen. Carol Alvarado (D-Houston) provides that, for purposes of determining a person's fitness to perform the duties and discharge the responsibilities of a licensed occupation, a licensing authority may not consider an arrest that did not result in the person's conviction or placement on deferred adjudication community supervision.

5.     SB 1531 by Sen. Kelly Hancock (R-North Richland Hills) removes the requirement that applicants for electrician licenses demonstrate their honesty, trustworthiness, and integrity. These types of bills seek to make it easier for Texans to obtain and retain their licenses.

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Want to support TACCA's advocacy efforts? Visit the TACCAPAC page or make a donation to the TACCA Political Action Committee today.

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TACCA is a member of the ACCA - Allied Contractor Organization network that monitors legislative matters at the national level. Visit ACCA at www.acca.org for more information on these matters.