88th Legislative Session | Partnership Priorities

88th Texas Legislative Session Summary

The Partnership’s Board of Directors and Public Policy Steering Committee developed a legislative agenda to address the most pressing issues facing the Houston business community and the greater Houston region. The Partnership’s legislative agenda rested on four executive priorities—economic development, higher education, energy transition, and flood mitigation.

This year, the Partnership worked to advance solutions that strengthen the region’s long-term growth and provide opportunity for all. While not all priorities made it over the finish line, the Partnership made great strides in advancing these key policy issues during the 88^th Texas Legislative Session.

Below are the Partnership’s Executive Priorities and a listing of bills supported by the Partnership during the 88^th Texas Legislative Session.

Executive Priorities

Economic Development
Higher Education Funding
Energy Transition
Flood Mitigation

Economic Development

Temporary Economic Development Incentives

House Bill 5

PENDING

House Author: Representative Todd Hunter (R-Corpus Christi)

Senate Sponsor: Senator Charles Schwertner (R-Georgetown)

Ensures a conducive business climate and fosters growth by developing a new, transparent, and accountable economic development program for Texas.
Makes the state attractive to emerging industries and ensures long-term competitiveness.

A state-wide economic development incentive program is critical to attracting businesses that invest in local communities and provide high-quality jobs. After the expiration of the Chapter 313 economic development program last session, Texas was in need of a new school property tax abatement program as a competitive economic development tool.

Texas has long been a national leader in securing large capital-intensive investments and attractive to businesses looking to relocate on nearly all measures companies consider. However, Texas often falls short on property taxes, and the lack of a new school property tax abatement program could cause it to fall behind other states in landing new businesses. In fact, Texas lost several multi-billion-dollar deals to other states due to the uncertainty around whether Texas would have an economic development incentive program after the expiration of Chapter 313.

After the last session, when the Texas Legislature voted to sunset Chapter 313, the Partnership and other business organizations began working on its replacement. Leading up to this session, a coalition of supporters conducted statewide polling, finding that Texans strongly support creating a new economic development program. The Partnership also partnered with statewide business organizations to mobilize regional partners to support House Bill 5, resulting in the collection of over 250 signatures from chambers of commerce and economic development organizations across the state on a letter of support for the bill.

House Bill 5, the XX Act, establishes a new, more transparent economic development tool for Texas that enables the state to continue to compete on a global scale for large-scale projects and bring investments to local communities. Many of the changes proposed in House Bill 5 directly respond to shortcomings of the previous incentive program. The new plan puts in place strong transparency provisions, keeps companies accountable for promises made during the application process, treats schools fairly, and gives the tools necessary for the state to compete for and win new projects. House Bill 5 provides the stability Texas needs and will protect Texas’ position as the nation’s economic powerhouse.

Higher Education Funding

Texas University Fund (TUF)

House Bill 1595/House Joint Resolution 3

PASSED

House Author: Representative Greg Bonnen (R-Friendswood)

Senate Sponsor: Senator Brandon Creighton (R-Conroe)

- Establishes a $3.4 billion research endowment for the University of Houston, Texas Tech University, University of North Texas, and Texas State University.
- Allocates up to $100 million annually for each university. Allocates dollars based on performance, including research expenditures and doctoral degrees awarded.

Texas currently has only two universities ranked in the national top 50 of public universities: the University of Texas (#10) and Texas A&M (#26). As a result, there is a shortage of available seats for the thousands of qualified Texas students that would like to attend a top 50 university. This lack of elite options restricts Texas’ ability to attract high-caliber students, professors, and researchers. It also negatively affects Texas’ ability to win competitive research and funding opportunities.

House Bill 1595 solves these problems by establishing the Texas University Fund, a permanent endowment that will appropriate billions of dollars to four of the state’s public universities, including Houston’s flagship university, the University of Houston.

This transformational investment will strengthen Texas’ higher education institutions by providing the necessary funding to improve Texas universities’ national rankings, which will help the state attract top talent and reduce “brain drain.” The fund will also provide long-term financial certainty, allowing for forward-thinking projects and innovation. Finally, it will help Texas schools compete for federal research grants, secure private research funding, drive increased alumni support, and position Texas as a top destination for premier higher education.

The TUF will also bolster the state’s economy by making Texas more attractive to business. There will now be a true ecosystem of institutions engaged in high-level research and development, strengthening Texas’ talent pipelines.

Community College Finance

House Bill 8

PASSED

House Author: Representative Gary VanDeaver (R-New Boston)

Senate Sponsor: Senator Brandon Creighton (R-Conroe)

- Overhauls the state’s method of financing community colleges, shifting toward an outcomes-focused, industry-aligned model.
- Increases college affordability by creating new scholarships to support high-demand industries.
- Improves college capacity by providing funding for student support and inter-institutional shared services, to better serve the state as its population grows.

Currently, Texas’ community colleges are funded by a combination of property taxes, tuition, and enrollment. This means community colleges remain fully funded regardless of student outcomes. However, a strong economy is supported by its workforce talent pipelines. Therefore, the ability for students to graduate, earn credentials, obtain self-sustaining wages and jobs in high-demand fields, pay off loans, or transfer successfully should all be part of the equation on how community colleges are funded.

The solutions provided by House Bill 8 provide for a transformational change by moving towards an industry-led, outcomes-based funding model, while also increasing college affordability and capacity. Community colleges will also work with employers to ensure they are producing the type and caliber of workers needed for the future economy.

The Partnership is proud to have supported the development of House Bill 8 by promoting industry voices at the Texas Commission on Community College Finance hearings, which was charged with studying how community colleges are funded and making recommendations to the legislature for improvement. The Partnership hosted a Legislative Policy Forum to spotlight the success of an industry-led, outcomes-based community college approach. The event gathered over 30 different legislative offices at San Jacinto College’s Center for Petrochemical, Energy, and Technology for an immersive learning session. As a result of these efforts, the final version of House Bill 8 is strong on industry leadership and alignment.

House Bill 8’s passage means that thousands of Texas students will be guided into high-demand careers with good pay and upward mobility, and employers will have access to a pipeline of skilled workers. Through House Bill 8, Texas becomes the first state in the nation to fully align community college funding with student outcomes, providing a competitive advantage for Texas businesses.

Flood Mitigation

The Flood Infrastructure Fund

House Bill 1

PENDING

House Sponsor: Representative Greg Bonnen (R-Friendswood)

Senate Author: Senator Joan Huffman (R-Houston)

Allocates $350 million in general revenue for the Flood Infrastructure Fund (FIF).

Senate Bill 30

PENDING

House Sponsor: Representative Greg Bonnen (R-Friendswood)

Senate Author: Senator Joan Huffman (R-Houston)

Provides $400 million in federal American Rescue Plan Act (ARPA) funds for FIF.

Following Hurricane Harvey in 2019, the Partnership advocated for the creation of the Flood Infrastructure Fund (FIF) during the 2019 legislative session to address the need for adequate relief from flooding and protection from future severe weather events across the state. The FIF marked the first time for the state to provide funding to improve Texas’ flood recovery and resiliency, a space previously occupied only by local and federal resources.

As of February 2023, the greater Houston region received more than $159 million of the initial $793 million FIF appropriation, meaning Houston received 20% of the original fund dollars for flood mitigation projects.

In late 2022, the Texas Water Development Board (TWDB), the state agency charged with oversight of the FIF, signaled that the fund is oversubscribed and would soon be exhausted.

This session, the Partnership prioritized the effort to replenish the FIF and advocated for increased funding for flood mitigation projects. As a result, the Texas Legislature invested over $1 billion in flood prevention and resiliency work. The FIF received $350 million in general revenue funds in House Bill 1—a first for the fund as it was originally funded by a one-time infusion from the Economic Stabilization Fund, also known as the Rainy Day Fund. Additionally, Senate Bill 30 provided $400 million in funding to FIF from the federal American Rescue Plan Act (ARPA) funds as a one-time investment in the fund.

House Bill 1 also included funding for the Lake Houston Dam Improvement Project, a priority flood prevention project for the region, as it will enable the rapid lowering of lake levels in advance of a flood, while also extending the life of the dam. The Partnership will continue to advocate increased investment by the state in resiliency projects for Houston.

The Coastal Texas Program

House Bill 2416

PASSED

House Sponsor: Representative Dennis Paul (R-Houston)

Senate Author: State Senator Carol Alvarado (R-Houston)

Creates the Gulf Coast Protection Trust Fund.
Provides funding for the state’s contribution to begin construction on the Coastal Texas Program.

The Coastal Texas Program, also known as the Coastal Spine or the Ike Dike, will protect the Houston region from catastrophic weather events and storm surges like the ones experienced during Hurricane Ike. The barrier floodgate and levee system’s development will require significant investment from all levels of government, making its funding a priority for the Partnership.

At the federal level, as part of the Water Resources Development Act of 2022 (WRDA), Congress formally authorized the Coastal Texas Program with an estimated 65% federal cost share. The remaining funding will be fulfilled through state and local matching funds through two non-federal partners – the Gulf Coast Protection District (GCPD) and the General Land Office (GLO).

In 2021, the Texas Legislature created the Gulf Coast Protection District (GCPD) to become the non-federal sponsor of the Coastal Texas Program. This session, the Legislature voted to establish the Gulf Coast Protection Trust Fund with the passage of House Bill 2416. The fund, administered by the GLO, will be used for hurricane and storm surge protection flood infrastructure projects within the Gulf Coast Protection District, including the Coastal Texas Program.

The Texas Legislature’s investment in the Gulf Coast Protection Trust Fund will provide for the state’s portion of the state-local match requirement for the Coastal Texas Program to begin constructing the $13-17 billion gate system, which will serve as a dual surge protection and flood mitigation mechanism. House Bill 1, the General Appropriations Act, also provides $550 million to the GCPD to fulfill the state and local match requirements.

H_GHP_Downtown_Buffalo Bayou_Memorial Drive_2019

Energy Transition

Carbon Capture Use & Storage: Comprehensive Regulatory Framework

House Bill 4484/Senate Bill 2017

FAILED TO PASS

House Author: Representative Greg Bonnen (R- Friendswood)

Senate Author: Senator Robert Nichols (R-Jacksonville)

- Affirms surface owner owns pore space, recognizes the mineral estate, and establishes a process for pore space integration.
- Creates an ongoing stewardship program and addresses transferability of long-term liability.

Leveraging Texas’ comparative advantage and remaining competitive in the multi-trillion-dollar carbon capture use and storage (CCUS) industry is a top Partnership priority. After successfully advocating for the state to seek primacy from the Environmental Protection Agency (EPA) for Class VI carbon injection storage wells last session – currently pending EPA approval – now is the time for Texas to address the regulatory and legal uncertainty hindering CCUS so we can stay competitive with the twelve other states that are ahead of Texas on clarifying law, including our biggest direct competitor, Louisiana. The Partnership joined a broad coalition to support a comprehensive CCUS framework thoughtfully crafted for success in Texas this session. The bill resolved significant legal complexities that pose the biggest barrier to CCUS while offering explicit protections for the mineral estate, providing additional revenue opportunities for landowners, and going above and beyond every other state to ensure potential wins for all parties.

The bill was effectively gutted after an unproductive committee hearing filled with mischaracterizations and misinformation by opposition groups over a fundamental aspect of the bill – integration – a process required to combat immense hurdles CCUS developers face trying to assemble the web of fragmented property rights needed for expansive deep underground pore space storage.

Work on this priority legislation began long before the legislature convened, with a series of policy summits in Austin to educate legislative staff. Ahead of the bill’s legislative hearing, the Partnership doubled down on advocacy and outreach – mobilizing companies, spearheading a letter-writing campaign, and amplifying our message through the halls of the Capitol. Looking ahead to 2025 more must be done to educate lawmakers on the intricacies of CCUS. Expanding CCUS should be a win for economic growth, the environment, and landowners – the Partnership remains committed to ensuring Texas becomes the rightful leader in CCUS.

Carbon Capture Use & Storage: Reducing Cost Barriers

House Bill 4983/Senate Bill 2203

FAILED TO PASS

House Author: Representative Stephanie Klick (R-Fort Worth)

Senate Author: Senator Kelly Hancock (R-North Richland Hills)

- Establishes a carbon capture project franchise tax credit program.

House Bill 3355

FAILED TO PASS

House Author: Representative Brooks Landgraf (R-Odessa)

- Provides carbon capture projects a property tax exemption through the existing Tax Relief for Pollution Control Property Program.

House Bill 1158/Senate Bill 2243

FAILED TO PASS

House Author: Representative Drew Darby (R-San Angelo)

Senate Author: Senator Nathan Johnson (R-Odessa)

Makes carbon capture projects explicitly eligible for funding through the Texas Emissions Reduction Plan.

House Bill 4557

FAILED TO PASS

House Author: Representative Drew Darby (R-San Angelo)

Prohibits the application of “public nuisance” lawsuits against carbon storage projects to deter frivolous, costly, and time-consuming lawsuits aimed at strangling industry.

As of 2020, it was estimated carbon capture use and storage (CCUS) can cost between $50 and $100 per metric ton, leading many other state governments and the federal government to enact plans that would reduce financial roadblocks to scaling this technology and provide a signal to encourage more capital investments. In Texas, the Partnership supported a similar effort spearheaded by the Carbon Neutral Coalition. The slate of bills put before the legislature was intended to reduce the hefty price tag associated with CCUS. Unfortunately, with both key conservative-leaning and key democrat-leaning groups opposed to the measures, these bills ultimately failed to reach Governor Abbott’s desk.

Other energy transition issues

Hydrogen

House Bill 4885

PASSED

House Author: Representative Brooks Landgraf (R-Odessa)

Senate Sponsor: Senator Brian Birdwell (R-Granbury)

Establishes the Texas hydrogen infrastructure, vehicle, and equipment grant program as part of the Texas Emissions Reduction Plan.
Authorizes $98 million in funding within the state budget to fund the buildout of hydrogen infrastructure.

House Bill 2847

PASSED

House Author: Representative Drew Darby (R-San Angelo)

Senate Sponsor: Senator Kevin Sparks (R-Midland)

Grants that the Railroad Commission of Texas (RRC) has primary jurisdiction over all pipeline transportation and underground storage of hydrogen.
Establishes the Texas Hydrogen Production Policy Council to study and make recommendations relating to the RRC for hydrogen energy development.

Currently, Texas is home to more than 60 percent of U.S. hydrogen pipelines and 30 percent of the world’s hydrogen pipelines. This session, the State took a significant leap forward to build upon its progress and kickstart the diversified use of hydrogen. The U.S. Department of Energy (DOE) made it clear that hydrogen will be a transformative fuel of the future, and the Partnership applauds the Texas Legislature for setting Texas up for success. Together, these bills provide the investment, regulatory certainty, and pathway needed to boost Texas’ three regional hydrogen hub applications vying for $7 billion from the DOE, including two from the Houston area.

Geothermal

Senate Bill 785

PASSED

Senate Author: Senator Brian Birdwell (R-Granbury)

House Sponsor: Representative Drew Darby (R-San Angelo)

Creates a clear definition of geothermal estate ownership in Texas by providing the landowner owns all geothermal energy and associated resources below the land.
Protects mineral estate.

Senate Bill 786

PASSED

Senate Author: Senator Brian Birdwell (R-Granbury)

House Sponsor: Representative Drew Darby (R-San Angelo)

Places jurisdiction of closed-loop injection wells under the Texas Railroad Commission to provide a more business-friendly, one-stop shopping approach for permitting and regulatory governance for geothermal energy.

Senate Bill 1210

SIGNED BY THE GOVERNOR

Senate Author: Senator Cesar Blanco (D-El Paso)

House Sponsor: Representative Bobby Guerra (D-McAllen)

Allows orphaned oil and gas wells to be repurposed for geothermal energy production.

Texas is ideal for geothermal energy development due to its vast geothermal resources, favorable geological conditions, and strong energy infrastructure. This session, lawmakers advanced a series of bills that will improve regulatory certainty and signal to the investment community that Texas is open for geothermal business. These measures sailed through both the House and Senate chambers with nearly unanimous support. Geothermal will play an important role in accomplishing the energy-abundant, lower carbon goals of the energy transition.

Issues

Curriculum

House Bill 1605

PASSED

House Author: Representative Buckley (R-Salado)

Senate Sponsor: Senator Brandon Creighton (R-Conroe)

Provides “high quality instructional material” that is certified to be on grade level as well as parent access to classroom materials.
Eases teachers’ workloads by providing ready-to-use instructional materials and lesson plans.
Provides funding to acquire new instructional materials and to train teachers on new materials.

Today, many Texas schoolchildren are being taught lessons that are below their grade level. Notably, only 19% of Houston Independent School District (HISD) students receive classroom materials on grade level. This often results in children earning good grades for regular coursework but failing STAAR and other standardized tests.

House Bill 1605 aims to address this problem by providing school districts with optional ‘high-quality instructional material (HQIM)” that has been vetted by the State Board of Education and Texas Education Agency and guaranteed to be on grade level. Districts opting into the HQIM will receive additional funding for implementation and support.

The HQIM will also be available online for parent access. This way, parents can see exactly what their children are being taught in class at any time.

House Bill 1605 also aims to lighten teachers’ workloads by providing ready-to-use lesson plans. During this bill’s committee hearings, several witnesses testified that teachers are often overburdened with non-teaching activities, including finding and developing instructional materials. By increasing the rigor of Texas schoolchildren’s coursework, Texas ensures that its future workforce will be competitive with any other state. Texas children will be knowledgeable, skilled, and prepared to drive the economy of the future.

Public Education Funding

House Bill 100

PENDING

House Author: Representative Ken King (R-Canadian)

Senate Sponsor: Senator Brandon Creighton (R-Conroe)

Increases the basic allotment for all public schools.
Increases special education funding.
Amended late in session to add Educational Savings Accounts and funding for teacher pay raises. << this needs to be looked at

Public schools need increased funding due to pandemic-related enrollment declines, inflation, population growth, and a sunset of the availability of federal funds. Texas’ recorded surplus this session provided the opportunity to invest in public schools at a scale that is rarely possible, and House Bill 100 was the vehicle intended to provide the increased funding.

Over the course of the legislative session, House Bill 100 was amended and substituted several times to add new provisions, such as Education Savings Accounts and teacher performance incentives, after bills addressing those issues failed to win their respective votes.

The final version of House Bill 100 provides pay raises for Texas educators, improves special education funding, establishes the Texas Teacher Residency Program, and increases funding for the Teacher Incentive Allotment, which is performance-based pay for teachers.

The bill would infuse $3.8 billion in new funds to public schools, including $300 million annually, into special education to better meet the needs of districts and students. House Bill 100 also allocates $500 million of general revenue-related funds into new school choice programming, allowing public school students to use up to $8,000 in state funds to pay for private or home school.

Teachers & Workforce

Senate Bill 9

FAILED TO PASS

Senate Author: Senator Brandon Creighton (R-Conroe)

House Sponsor: Representative Harold Dutton (D-Houston)

Would increase teacher pay across the board and expand the Teacher Incentive Allotment.
Establishes a “teacher time study” to study non-teaching activities that teachers must engage in and ways to minimize those burdens.
Provides mechanisms to mitigate classroom disruptions.
Establishes a grant program so that districts can rehire veteran teachers.

During the 2021 session, the legislature established the Teacher Vacancy Task Force, charging it with exploring the issues surrounding the teacher shortage Texas is experiencing. The task force, comprised of dozens of current and former educators, recommended the state address teacher compensation, working conditions, and teacher training and support to improve teacher recruitment and retention. Senate Bill 9 includes provisions to tackle each of these issues.

Senate Bill 9 would provide all teachers with pay raises between $2,000 and $6,000, and expand the Teacher Incentive Allotment, which is performance-based pay for teachers. Resources for classroom safety and teacher apprenticeship and mentorship programs are also included in the bill.

Although many of the provisions in Senate Bill 9 were popular among teachers, businesses, and legislators, the bill was unable to cross the finish line in time to become law.

Produced Water Consortium

Senate Bill 1047

SIGNED BY THE GOVERNOR

Senate Author: Senator Charles Perry (R-Lubbock)

House Sponsor: Representative Carl Tepper (R-Lubbock)

Provides funding for two pilot projects under the Texas Produced Water Consortium.

Water is Texas' most precious resource, and this session, the Legislature advanced a bill that would authorize two pilot projects under the consortium. The first utilizes technology to clean water at existing produced water collection sites, treating at least 500 barrels a day from the Midland and Delaware basins. The second will test more novel technologies and field testing of treated water on rangeland, non-food and food crops.

In 2021, the Partnership supported the creation of the Texas Produced Water Consortium. The consortium of industry, agricultural, environmental, and other interests will be housed at Texas Tech University to study the economic and technological feasibility of transforming millions of gallons of oil and gas wastewater into viable, clean, and potable water. In addition to benefiting future water supply, recycling produced water would also reduce induced seismicity earthquakes.

Senate Bill 1047 garnered support from both chambers and Governor Greg Abbott signed the bill into law, effective immediately. A report on the results of the pilot program is due to the legislature in October 2024.

Advanced Recycling

House Bill 3060

PASSED

House Author: Representative Ed Thompson (R-Pearland)

Senate Sponsor: Senator Kelly Hancock (R-North Richland Hills)

Updates existing statute to support advanced recycling.

Advanced recycling is a critical component of the circular economy as it diverts waste from landfills by converting hard-to-recycle plastics into new products.

House Bill 3060 modernized and updated the current advanced recycling statutes to include two new technologies and remove barriers to widespread adoption. The law would also legislatively recognize advanced recycling as a necessary technology to increase the number of recycled materials and authorizes the Texas Commission on Environmental Quality (TCEQ) to identify third-party verification systems to validate the quantity of certified-circular plastics generated.

Local Climate & Energy Ordinances

Senate Bill 784

PASSED

Senate Author: Senator Brian Birdwell (R-Granbury)

House Sponsor: Representative Brooks Landgraf (R-Odessa)

Grants the State exclusive jurisdiction over the regulation of greenhouse gas emissions and prohibits a municipality or other political subdivision from enacting or enforcing a measure directly regulating greenhouse gas emissions.

Senate Bill 1860

PASSED

Senate Author: Senator Bryan Hughes (R- Mineola)

House Sponsor: Representative Tom Craddick (R-Midland)

Requires legislative approval for proposed municipal climate charters and defines "climate charter" as any overarching or comprehensive ordinance, rule, or other policy statement that addresses climate change or environmental impact on areas such as water, energy, and emissions.

Senate Bill 1017

SIGNED BY THE GOVERNOR

Senate Author: Senator Brian Birdwell (R-Granbury)

House Sponsor: Representative Brooks Landgraf (R-Odessa)

Prevents ordinances, orders, regulations, or similar measures which would limit access to specific fuel sources or prohibit the sale of engines based on their fuel source.

This session, lawmakers passed a series of bills aimed at “preventing a patchwork” of rules and ordinances relating to climate change, greenhouse gas emissions, and local control. The Partnership and its member companies worked closely with the City of Houston on its Climate Action Plan in 2020. Under the newly enacted law, both the City of Houston and Harris County will need to verify if they will need legislative approval to continue working on their climate plans prior to September 1, 2025.

Highway Funding

Senate Bill 1232/ Senate Concurrent Resolution 2

PASSED

Senate Author: Senator Robert Nichols

House Sponsor: Representative

Postpones the end of funding transfers from the state’s Rainy Day Fund to the State Highway Funds, consistent with Proposition 7 from 2015.

Senate Concurrent Resolution 2 allows for the extension of Proposition 7, a constitutional amendment supported by the Partnership in 2015, which provided funds from certain state revenue streams to the State Highway Fund. This provision diverts portions of tax revenue which would have gone to the Economic Stabilization Fund (ESF), also known as the Rainy Day Fund, to be moved to the State Highway Fund. This is a critical move as the ESF Fund is expected to reach its cap.

Proposition 7 was set to sunset on August 31, 2032, unless a future legislature voted to extend it. Senate Concurrent Resolution 2 extends the provisions of Proposition 7 for 10 years. The State Highway Fund is a constitutionally dedicated fund for surface transportation projects. As the state’s roads and highways continue to age and the cost of construction increases, funding sources such as the SHF are becoming more critical as routine paving and maintenance is not enough to keep road surfaces in good condition. Dividing the state oil and gas production tax revenue evenly between the ESF and the SHF supports the state’s growing transportation needs.

Water Infrastructure

Texas Water Fund

Senate Bill 28

PASSED

Senate Author: Senator Charles Perry (R-Lubbock)

House Sponsor: Representative Tracy King (D-Uvalde)

Invests significant funding to support water infrastructure across the state by providing access to funding to replace, repair, or build new water systems.

Texas faces concerns about the expected water demands due to its rapid population growth, decline in existing water supplies, and its aging water system. Senate Bill 28 establishes the New Water Supply for Texas Fund, the Texas Water Fund, and the Statewide Water Public Awareness Account, all to be administered by the Texas Water Development Board (TWDB) to address these concerns.

According to the most recent State Water Plan, the population in Texas is expected to grow by 73 percent from 2020 to 2070 while the water demands are projected to rise by approximately nine percent. However, the existing water supply is expected to decline by around 18 percent. The result would be a crisis level water shortage of 6.9 million acre-feet per year by 2070. Water supply development requires long-term planning and is an expensive endeavor. The creation of the new water supply funds will help to address these future shortfalls by enabling the state to take on new water infrastructure projects.

CHIPS

House Bill 5174

PASSED

House Author: Representative Greg Bonnen (R-Friendswood)

Senate Sponsor: Senator Joan Huffman (R-Houston)

Establishes the Texas Semiconductor Innovation Consortium and the Texas Semiconductor Innovation Fund.

Recently, the U.S. Congress made a significant investment in research and development of the U.S. semiconductor industry. For Texas to maximize the opportunities presented in this federal CHIPS Act, the state needs a strategic long-term plan to take advantage of the competitive federal funding opportunities available for semiconductor innovation projects.

House Bill 5174 creates the Texas Semiconductor Innovation Consortium and the Texas Semiconductor Innovation Fund. The consortium will serve as an advisory panel to the governor and the legislature and is charged with the development of a comprehensive strategic plan for semiconductor innovation. It will also look to sustain the leadership of the state in advanced semiconductor research, design, and manufacturing; attract investment in the state related to semiconductors; identify opportunities for workforce training; and establish a forum for stakeholders in the semiconductor industry. The fund will enable state entities and public institutions of higher education to access the funding needed as matching funds for the federal appropriations.

Texas Space Commission

House Bill 3447

PASSED

House Author: Representative Greg Bonnen (R-Friendswood)

Senate Sponsor: Senate Joan Huffman (R-Houston)

Establishes the Texas Aerospace Research and Space Economy Consortium and the Texas Space Commission.

Texas has been a leader in the U.S. space program for generations. However, Texas is facing strong competition as the country enters a new phase in space exploration and commercialization. House Bill 3447 is designed to provide the needed resources to maintain Texas’ leadership role in aerospace and space operations. The bill establishes the Texas Space Commission. The commission, consisting of higher education institutions, will identify research opportunities for entities within Texas to strengthen the state's proven leadership in civil, commercial, and military aerospace activity, enhance its position in aeronautics research and development, space commercialization, and space flight infrastructure, and enhance the integration of the space, aeronautics, astronautics, and aviation industries into Texas’ economy.

The Texas Space Commission promotes innovation in the fields of space exploration and commercial aerospace opportunities, including the integration of space, aeronautics, and aviation industries into the Texas economy.

Courts

House Bill 3474

PASSED

House Author: Representative Jeff Leach (R-Plano)

Senate Sponsor: Senator Bryan Hughes (R-Tyler)

House Bill 3474 is the omnibus courts bill which addresses multiple aspects of the state’s court system.
Included in the bill are six new criminal courts for Harris County.

Public safety is critical to the strength of the business community and the ability to do business, retain employees, and recruit new businesses to the region. Coming out of the COVID-19 pandemic, all major cities saw a rise in crime and a criminal court case backlog; however, Harris County was also struggling with the compounding impacts of Hurricane Harvey damage. Additionally, Harris County has seen dramatic population growth over the decades, yet its court system has not kept pace with that growth. Harris County has only added one court since 1984, back when the county’s population was 2.7 million. Today, the county boasts more than 4.7 million people.

While the Harris County Commissioners Court has taken steps to mitigate the felony case backlog, including adding visiting judges, associate judges, and infusing funding into the system, it has not been enough to address the structural deficits of the county’s court system. Harris County needs a significant number of new courtrooms. In a recent analysis by the state’s Office of Court Administration, the recommended need for Harris County was 39 new criminal courts.

Due to cost, the County Commissioners Court approved a resolution asking the state to create six new courts in an effort to provide more capacity to the court system. House Bill 3474 establishes the six new criminal courts for Harris County, with the first three courts will be set up on October 1 to align with the County’s budget. The Governor will appoint the new judges who will sit until the next election. The additional three courts will be up and running the following fall.

House Bill 19

PASSED OR FAILED TO PASS

House Author: Representative Andrew Murr (R-Junction)

Senate Sponsor: Senator Bryan Hughes (R-Tyler)

Creates a new district court to hear business cases involving transactions of $10 million or more.

Business cases, especially those valued in the millions, are often complex, take years to complete, and require a specific expertise in business law, however, these cases currently are addressed by either general law district courts or civil law district courts. Large business cases can delay a court’s docket and cause a severe backlog. House Bill 19 works to address these complexities and issues by creating a specialized business court.

This specialized court would have seven judges appointed by the Governor for two-year terms, and appeals would go before a newly created specialized appeals court. Establishing a new business court system would transform the state’s judicial process and help the district court system manage its caseload. Specialized business courts reserved for complex cases would have judges with expertise in business law to help provide consistent rulings on complex cases. Under the current system, these complex cases often overwhelm the general jurisdiction courts and can take multiple years to resolve. Texas joins 26 other states in having created a specialized business court system.

City Infrastructure

GRB Renovation Funding

Senate Bill 1057

PASSED

Senate Author: Senator John Whitmire (D-Houston)

House Sponsor: Representative Sam Harless (R-Spring)

Allows the City of Houston and Houston First to receive funds for much-needed improvements to the George R. Brown Convention Center.

The George R. Brown Convention Center first opened its doors in the fall of 1987, and despite some notable renovations over the years, it has become clear that the convention center needs a significant modernization effort to remain competitive to attract large conventions. Senate Bill 1057 allows the City of Houston and Houston First to access portions of certain downtown hotel taxes. Other large cities in Texas, like Dallas and Fort Worth, have enjoyed the same opportunity through similar legislative action.

The additional funding provided by Senate Bill 1057 could be used to expand and modernize the convention center, create indoor/outdoor spaces, and fund projects for the downtown area supporting the convention center. An updated and expanded convention center helps to keep Houston competitive in attracting large-scale conventions and events which often bring visitors to Houston for the first time and can open doors for economic development. Additionally, the new funding could be a boon to the proposed 30-acre cap park, which is part of the North Houston Highway Improvement Project, the reconstruction and relocation project for I-45 North. These projects have a huge potential in connecting downtown with the East End neighborhoods and spurring greater development and walkability around the convention center district.

Broadband Infrastructure Fund

House Joint Resolution 125/House Bill 9

PENDING

House Author: Representative Trent Ashby (R-Lufkin)

Senate Sponsor: Senator Joan Huffman (R-Houston)

Constitutional amendment creating the broadband infrastructure fund to expand high-speed broadband access and assist in the financing of connectivity projects.
The proposed constitutional amendment would be submitted to the voters for consideration on the November 2023 ballot.
Makes historic investments in the expansion of broadband infrastructure around the state.

Equitable access to reliable, high-speed broadband is essential for students and the workforce and provides economic opportunities to all Texans. The Partnership has consistently supported long-term state investment in broadband to address the digital divide and serve local communities.

House Joint Resolution 125 and its enabling legislation, House Bill 9, create the broadband infrastructure fund to assist in the financing of connectivity projects in the state. Voters will go to the polls this November to vote on creating the broadband infrastructure fund and making this significant investment in broadband for all Texans.

The Texas Broadband Infrastructure Fund along with the federal Infrastructure Investment and Jobs Act funding will provide an unprecedented amount of funding that the Houston region could compete for to bring funding to the local communities.

Senate Bill 1238

PASSED

Senate Author: Senator Robert Nichols (R-Jacksonville)

House Sponsor: Representative Trent Ashby (R-Lufkin)

Updates 2021 broadband legislation to align with newly implemented federal guidelines.

Last legislative session, the Texas Legislature prioritized broadband investments and passed a bill to expand broadband service in areas across the state which lacked basic broadband access. In recent years, the federal government has also made historic investments in broadband funding available under the Infrastructure Investment and Jobs Act. Senate Bill 1238 will better align state statutes with the new federal guidelines relating to mapping and availability to best position Texas to pull down federal funding to address the state’s broadband needs.

Research & Economic Development

Inventory Tax

Senate Bill 2289, Senate Joint Resolution 87

PASSED

Senate Author: Senator Joan Huffman (R-Houston)

House Sponsor: Representative Greg Bonnen (R-Friendswood)

Exempts the state’s pharmaceutical, medical device, and PPE manufacturers from inventory and equipment taxes.

Texas is home to the world's most innovative centers for health care and health research. However, the state struggles to compete with medical and biomedical manufacturing centers in North Carolina, Massachusetts, Tennessee, Pennsylvania, and Illinois due to Texas’ burdensome inventory tax structure in relation to the equipment-intensive environment of the industry. Until this session, pharmaceutical, medical device, and PPE manufacturing in Texas was taxed on property, equipment, and inventory – ballooning the effective tax rate for this industry to 28.3%. This is compared to a tax rate of no more than 13.5% in the state’s largest rivals.

Senate Bill 2289 exempts from property taxation tangible personal property used or produced by medical or biomedical manufacturers with the goal of encouraging increases in capital investments and expansion of those industries in Texas.

House Bill 15, House Joint Resolution 135

FAILED TO PASS

House Author: Representative Senfronia Thompson (D-Houston)

Senate Sponsor: N/A

Establishes the Mental Health and Brain Research Institute of Texas.
Invests $3 billion over 10 years to expedite innovative research to prevent, treat, and cure mental health and brain-related diseases and disorders.

During the 80^th state legislative session, leaders in Texas recognized the unique challenges in treating and curing various forms of cancer and in response created the Cancer Prevention and Research Institute of Texas (CPRIT), which supports innovation and attracts talent to Texas through grant funding.

In a similar way, elected officials in Austin over the last few years have turned their focus on addressing the diseases and disorders of the mind and brain with multiple attempts to create the Mental Health and Brain Research Institute of Texas (MBRIT). This session, House Bill 15 would have created MBRIT to propel Texas forward as the leader in various areas of cerebral research as well as expand the resources available to Texans to receive innovative treatment and care. The institute would receive $3 billion over 10 years to provide scientists with the necessary tools and funding to learn more about brain ailments and treat their root causes.

Unfortunately, after a successful run in the House, MBRIT failed to move in the Senate.

House Bill 2466

PASSED

House Author: Representative Angie Chen Button (R-Richardson)

Senate Sponsor: Senator Royce West (D-Dallas)

Establishes the Texas Technology and Innovation Program.
Provides eligible businesses which have received grants or contracts from the federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs with an additional state matching grant.

The federal government’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs fund a diverse portfolio of startups and small businesses across technology areas and markets to stimulate technological innovation, meet federal research and development (R&D) needs, and increase commercialization to transition R&D into impact. Through a competitive awards-based program coming from 11 different federal agencies and totaling $4 billion annually, SBIR and STTR grants enable small businesses to explore their technological potential and provide the incentive to profit from its commercialization.

Currently, 29 states have matching programs which provide some level of funding to the state-based companies that receive federal SBIR/STTR awards. Texas is not one of these states, leaving entrepreneurs at a disadvantage in the first – and most critical – stages of innovation and growth.

House Bill 2466 established the Texas Technology and Innovation Program, allowing the state to provide matching grants to Texas-based small businesses that receive federal grants. By supporting Texas small businesses, which make up 99.8% of all businesses in the state, the Texas Technology and Innovation Program will help enable greater economic diversification and enhance existing industries across the state.

Maternal Health

Postpartum Medicaid Expansion

House Bill 12

PENDING

House Author: Representative Toni Rose (D-Dallas)

Senate Sponsor: Senator Lois Kolkhorst (R-Brenham)

Extends postpartum Medicaid coverage for new mothers to 12 months.

In December 2022, the Maternal Mortality and Morbidity Review Committee and the Department of State Health Services submitted a joint report that found 44 percent of maternal death cases in Texas occur within one year of pregnancy. Additionally, the report found 90 percent of those deaths could have been prevented.

To reduce the number of maternal deaths, House Bill 12 would extend state Medicaid coverage for postpartum women from two months to 12 months. Increasing the amount of time Texas mothers have access to state care will ensure women aren’t dying from patient, provider, facility, system, or community factors; often, these factors are preventable. Additionally, extending coverage will help address many of the racial disparities that currently exist during- and following a pregnancy.

Last session, the Legislature extended postpartum coverage from two months to only six months. However, when the Health and Human Services Commission, the state entity charged with its implementation, sought to obtain a waiver with the federal Centers for Medicare and Medicaid Services to fully implement the change, the federal government rejected the request in August 2022, leaving Texas mothers in limbo and without an extension in coverage. The federal agency indicated it would only accept a 12-month waiver.

Letter of Support, House Bill 12 to Health Care Reform Committee members

Workforce

Nurse Grant Program

Senate Bill 25

PASSED

Senate Author: Senator Lois Kolkhorst (R-Brenham)

House Sponsor: Representative Stephanie Klick (R-Fort Worth)

Amends the Education Code to allow part-time nursing faculty to be eligible for loan repayment assistance.
Removes the repayment from a cap of $7,000 annually to a figure to be determined by the Texas Higher Education Coordinating Board (THECB).
Extends Nursing Innovation Grant Program (NIGP) until 2027.

According to data gathered prior to the COVID-19 pandemic, Texas has a shortage of roughly 30,000 nurses; however, this number is not believed to reflect the true shortage post-pandemic. Additionally, Texas’ nursing shortage is expected to balloon to approximately 57,000 nurses by 2032.

The nursing workforce pipeline has endured many challenges, both in attracting talent and retaining it, over the last several years. The COVID-19 pandemic only exacerbated these issues. Senate Bill 25 relieves many of the bottlenecks in the nursing education pipeline to increase the number of graduates going into the workforce. The legislation would achieve this by awarding scholarships, offering loan repayment assistance to nurses acting as part-time faculty, and extending the Nursing Innovation Grant Program to 2027.

Workplace Violence in Health Care

Senate Bill 240

SIGNED BY GOVERNOR ABBOTT

Senate Author: Senator Donna Campbell (R-New Braunfels)

House Sponsor: Representative Donna Howard (D-Austin)

Addresses rising workplace violence in health facilities by tightening preventative safety measures.
Mandates health workers have access to the services and care they need following potential violent incidents.

Recently, there has been a steady rise in the number of reported violent acts targeting healthcare workers. These violations can range from verbal abuse to physical harm and have come from patients, their family members, and even coworkers. Senate Bill 240 requires all health facilities in the state to adopt, implement, and enforce a written workplace violence prevention policy as well as a written workplace violence prevention plan to protect health care providers and employees from violent behavior and threats of violent behavior occurring at the facility. Critically, the mandated violence prevention plan must come from an internal committee composed of a diverse cross section of the facility.

See the Partnership's Full Legislative Agenda

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Greater Houston Partnership

87th Legislative Session Summary

Learn how key elements of the Partnership's legislative agenda fared during the 87th Texas Legislative Session.

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Meet Us at an Upcoming Event

Membership

Future of Texas

6/12/23

Join us for a conversation featuring Harris County Precinct 4 Commissioner Lesley Briones. Commissioner Lesley Briones is a former Harris County Civil Court Judge, now representing Harris County as Commissioner for Precinct 4. Since being sworn into this office in January 2023, Commissioner Briones has made public safety and flood control top priorities for Precinct 4, which is home to 25% of Harris County's total population. In a special keynote, Commissioner Briones will share her office's work towards these priorities and more during her first four months in office.

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