Senate Transcript, April 29, 2011

SENATOR KEVIN ELTIFE: The Senate will come to order. The secretary will call the roll.

PATSY SPAW: Birdwell, Carona, Davis, Deuell, Duncan, Ellis, Eltife, Estes, Fraser, Gallegos, Harris, Hegar, Hinojosa, Huffman, Jackson, Lucio, Nelson, Nichols, Ogden, Patrick, Rodriguez, Seliger, Shapiro, Uresti, Van de Putte, Watson, Wentworth, West, Whitmire, Williams, Zaffirini.

SENATOR KEVIN ELTIFE: A quorum is present. Will all on the floor and in the gallery please rise for the invocation to be delivered by Reverend James Hejl, Taylor Brethern Church of Taylor.

PASTOR: Let us pray. Almighty God, we are here to affirm that the emerging day belongs to You, for You are one who shines light into every dark corner. You are one who reveals what was formerly hidden. You are one who restores what was lost, who mends what is broken, who provides what is needed. We pray that rain will soon fall upon this drought-stricken land. We pray that those devastated by wildfires and the ravages of nature will be comforted, strengthened, and healed. And we pray that Your presence will be felt this day throughout these halls, that Your wisdom will be exercised within these chambers. Please bless and abide with all who labor here and make them equal to every challenge, and please bless and abide with all the people of the great State of Texas and this great nation of which we are a part. Amen.

SENATOR KEVIN ELTIFE: Thank you, Reverend Hejl, for taking the time to be with us today. You may be seated. Members, Senator Whitmire moves to dispense for the reading of yesterday's journal. Is there objection? The Chair hears no objection from any member, so ordered. Mr. Doorkeeper.

MR. DOORKEEPER: Mr. President, there's a messenger from the house.

SENATOR KEVIN ELTIFE: Admit the messenger.

MESSENGER: Mr. President, I'm directed by the house to inform the Senate the House has taken the following action, the House has passed the following measures. H --

SENATOR KEVIN ELTIFE: Thank you, Mr. Messenger. The Chair recognizes Senator Watson to introduce the doctor of the day.

SENATOR KIRK WATSON: Thank you very much, Mr. President. Members, I am really honored to introduce one of my constituents, David Vander Straten, MD. He is here to be our physician of the day. I'm particularly pleased to welcome him because he plays a central role in the provision of health care in Austin by working at community care in the East Austin Community Health Center. He is also -- and I'll give you some more of his credentials in a minute but one of the things that stands out is while he is a member of the American Family Academy Physicians and the Texas Academy, and of course TMA and the Travis County Medical Society, he's also a member and affiliated with the Association of Clinicians for the underserved and of course as we deal with some of the very important items that we're facing in this budget and with the underserved and uninsured in our state, it's particularly gratifying to have Dr. Vander Straten with us because of the role he plays. He did his residency at the Department of Family Practice Hospital in Jacksonville, Florida. Before that he did his internship at the Department of Family Practice Naval Hospital in Charleston, South Carolina. His MD is from Texas A&M University Health Science Center, College of Medicine and he has his bachelors of science from Southwestern University. Members, will you please help me thank him for his service and also welcome our physician of the day Dr. David Vander Straten.

SENATOR KEVIN ELTIFE: Thank you, Senator Watson. And thank you, Doctor, for being our doctor of the day. The following message from the governor. Secretary will please read the message.

PATSY SPAW: To the Senate of the 82nd legislature regular session, I ask the advice, consent and confirmation of the Senate with respect to the following appointments: To be members of the Trinity River Authority board of directors, Harold L. Bernard, Waxohatchee; Christina Melton Crane, Dallas; Michael Cronin, Terrell; Steve Cronin, Shepherd; Amanda B. Davis, Buffalo; Martha A. Hernandez, Burleson; Deidre McClesky, Apple Springs; J. Carol Spillers, Madisonville. To be members of the Texas board of licensure for professional medical physicists: Douglas A. Johnson, College Station; A.L. Schlichtemeier, Plano; Charles Ward Beasley, Bellaire; James R. Marbach, San Antonio; Kiran Shah, Houston. To be a member of the Lower Colorado River Authority: Sandra Sandy Wright Kibby, New Braunfels. To be members of the Assistive and Rehabilitative Service Council: John E. Arnold Garcia, San Antonio; Thomas W. Graham, Tyler; Tommy G. Fordyce, Huntsville. Respectfully submitted, Rick Perry, governor of Texas. To nominations.

SENATOR KEVIN ELTIFE: The Chair lays out the following resolution. Secretary please read the resolution.

PATSY SPAW: Senate Resolution 865. Whereas, the Senate of the state of Texas --

SENATOR KEVIN ELTIFE: Members, if we could have your attention.

PATSY SPAW: Senate Resolution 865. WHEREAS, The Senate of the State of Texas is pleased to recognize the men and women of the United States Armed Forces who so honorably served our nation during the Korean War and to pay tribute to them on the occasion of Korean Veterans Day, which is being celebrated on April 29, 2011; and WHEREAS, The Korean War was one of the earliest conflicts in the proxy battle between the United States and Soviet Union known as the Cold War; some 1,700 Texans made the ultimate sacrifice for their country in Korea, and today, 125,000 veterans of the Korean War make their home in Texas; and WHEREAS, These veterans served bravely and selflessly and distinguished themselves during this conflict through their exemplary valor and fortitude; and, WHEREAS, The men and women who served the nation during the Korean War embodied the highest standards of courage, sacrifice, and devotion to duty, and their heroic actions set a lasting example that will live forever in the annals of American history; now, therefore, be it RESOLVED, That the Senate of the State of Texas, 82nd Legislature, hereby commend the veterans of our nation's military who served during the Korean War and extend to them heartfelt gratitude for their extraordinary service and their commitment to the ideals and principles of this great nation; and, be it further RESOLVED, That a copy of this Resolution be prepared in honor of their dedication and sacrifice. By Van de Putte, et al.

SENATOR KEVIN ELTIFE: The Chair recognizes Senator Van de Putte on the resolution.

SENATOR LETICIA VAN DE PUTTE: Thank you, Mr. President. Mr. President and members, we are honored today to salute some of America's finest. The men you see on the floor today we honor, and they're comrades, their fellow soldiers, airmen, sailors and Marines that are in the gallery are all those members of the fighting forces who fought in our Korean War. Members, the Korean War started on June the 25th, 1950. That's when North Korea that was called the Democratic people of North Korea and South Korea, the Republic of Korea and that was when North Korea invaded South Korea. It stemmed from attempts of both countries to actually reunify Korea but the north and the South Korea believed that they each should be unified under their own administration. The disagreements in the unification talks became intense and resulted in both countries attacking the other by crossing that very famous 38th parallel which was the dividing line. According to the data by the U.S. Department of Defense, by the war's end, July the 27th, 1953, United States had suffered more than 35,000 battle deaths along with over 2500 nonbattle deaths and 8,000 missing in action. Over 1.8 million Americans served in the Korean War and 289,000 of those were Texans. 1800 Texans made the ultimate sacrifice either killed in action or to this day missing in action. These brave individuals should always be remembered for the sacrifices that they have made in our collective name. You and I can stand here on this floor and debate in freedom because these men and women answered the call to duty and they're like other generations of Texans in Americans, they all answer the call. You know, when we think about the Korean War -- and I'm the daughter of a Korean War veteran born at Fort Louis Hospital, Fort Louis Mattigan Hospital in Tacoma, Washington and my mama was too pregnant to come back home. And as you know, Senator Huffman, they didn't let pregnant ladies travel much back then but my grandmother went up there and there were these two ladies who were living on because in these base housing duplex whose husbands were, well, they were fighting for us and they gave each other that support. And so it's not just the Korean War veterans, it is their families, it is their spouses, it is their children who also need to be honored. I -- it's great admiration and respect that I and my fellow senators have filed Senate Resolution 865 to honor and recognize the admirable service, the service -- when you think about it, this was the beginning of a Cold War and it -- they stood for the protection of the American way of life at a time when it was by no means assured to us. The war was waged by the United States on principles that proved more compelling, more worth, more enduring than that of its adversaries. And for the United States that war was fought for the right reasons. I'd like to read from you now, an expert of a book entitled Witness to the War in Korea, written Retired Army U.S. Colonel Rod Pascal and Rod is a Vietnam War vet and he writes, "The Korean War remains America's most misunderstood and ill analyzed conflict. Those who called it the wrong war at the wrong place at the wrong time failed to comprehend that truly just wars are fought not just because they are convenient because -- well, but because a failure to resist, a failure to fight would be morally wrong. There are quite simply conditions worse than war. Those who claimed the war to be the only one America ever had lost failed to acknowledge the conflict's actual results. An aggressor had been deprived of his unlawful gains, had been severely punished and had his own territory reduced. Those who saw the war as a waste failed to see the war in its true light. The Korean War was a hot and bloody opening campaign of the global struggle misnamed the Cold War. That 45 year long struggle retained the vital characteristics of its first campaign to the Victoria Sin. Both the Cold War and the Korean War were waged by the west on principles that proved more compelling, more worth and more enduring than those of its adversary. For the United States the Korean War was fought for the right reasons." It is my pleasure today to recognize the following gentlemen and many of their senators are here and I may yield to them, Mr. President, but with them my dear friend James -- we call him Jim Duncan actually the first commissioner creator of our Texas Veterans Commission. Senator Patrick, you are very, very honored I know to have your constituent here. We have with us Mr. Roy Aldridge and Captain Aldridge is the state president of the Korean War Veterans Association who is Senator Rodriguez's constituent. Chairman Ogden is still, as you know, working on the budget but he has a gentleman here that, Senators, you can recognize because you see his friendly face as you come into the Senate chamber every day. We are so proud of our own sergeant at arms staff Bill Chaver who served in the Korean War and is Senator Ogden's constituent, and I have to say my boyfriend's here too, JC Ernst, who is Senator Watson's constituent and he's my boyfriend because he fought in World War II, he fought in the Korean War and he fought in Vietnam and is a silver star recipient. He tells me he just went where they sent him. And last but not least I'm going to tell you this man has got such character and heart Marvin Olson who is also a Korean and a Vietnam war veteran, a silver star recipient also, constituent of Senator Watson. Mr. President, at this time I would yield to any of my colleagues to recognize their constituents who are here with us. And up in the gallery we have many members of the Travis County Veterans Court, the Korean War Veterans Association, both strong chapters, Texas Lone Star chapters, DFW post, disabled American veterans and many of their family members. Mr. President, at this time I yield to my colleagues.

SENATOR KEVIN ELTIFE: Thank you, Senator Van de Putte. Senator Hinojosa to speak on the resolution.

SENATOR JUAN HINOJOSA: Thank you, Mr. President and members. And I too rise to honor our Korean veterans. You, know throughout history it's really amazing when I look at these older gentlemen and you look at the pictures when they were in Korea and how young people are always willing to step up and fight for our country. And I've seen films of the actual war footage of the Korean War. It's really amazing how bitterly cold it was and it impresses me on the valor, especially those who fought in Korea and Vietnam, American solders, our citizens are willing to fight in the bitter cold or the -- of Vietnam or the deserts of the Middle East. And I thank you for your service and I'm very honor and humbled to have you here with us on the Senate floor because without people like you, without American citizens, who would leave their families back home and step up and risk their lives, in whatever part of the world we had to go and fight, this is why we enjoy our freedoms, this is why we enjoy our families and our way of life. From the bottom of my heart I want to thank you for your service to our country. Thank you.

SENATOR KEVIN ELTIFE: Thank you, Senator Hinojosa. Senator Fraser on the resolution.

SENATOR TROY FRASER: Thank you. Members, I too am extremely honored to have this group here today. I'm very proud of the fact that I grew up in the shadow of freedom. I was born in Abilene close to Dallas Air Force base. As a young child we moved to the Big Springs area where Webb Air Force base and I watched those Air Force jets coming over my house every day as a child. I'm also honored now that as a Senator that I am the Senator to the largest military installation in the free world, and Fort Hood which is generally, as you know, the first responders any time there's a conflict, any time in the world. I also am now serving Dais Air Force base in Abilene. I'm also lucky enough, we've got one of our honorees that's standing up here that I've been friends with for an extremely long time. Jim Duncan and I met early on when I was a young person running for the Texas House and I was both encouraged and honored to have been a part of carrying a resolution that we clarified that the Korean activity, the Korean conflict that had been called was not a conflict, it was war. And I got to play a part in passing that and clarifying in Texas that it would always be referred to as the Korean War and it's a small thing we do to honor this group. Since then, I've watched Jim Duncan lead great activities as the veteran's commission board. He helped with the financing on the World War II monument and his latest drive or latest addition to the Capitol was the Korean War monument was put there. These are hard working people. Not only did they serve all these brave men and women being willing to give the ultimate sacrifice so we can stand here in freedom today but they continue to represent their fellow veterans and soldiers. I also want to make sure I give credit to Senator Van de Putte in her leadership since we have created the Veteran's Committee. Texas to my understanding has been the national leader and legislation has been passed for veteran activities that we are the model around the nation making sure the quality of life is good for these veterans. I'm very honored to be here. Thank you for the service to this country, thank you for all that you did for those not only that are here but are not here and we're very honored to be here with you today.

SENATOR KEVIN ELTIFE: Thank you, Senator Fraser. Senator Patrick, you're recognized on the resolution.

SENATOR DAN PATRICK: Thank you, Mr. President and members. And thank you, Senator Van de Putte for bringing this resolution today. Jim, again, great to have you here from our neck of the woods and thank you for all you've done over the years, as Senator Fraser said. And Bill, you always have a handshake, a firm one, you always have a smile every day and some days aren't easy but you always make me feel better when I walk in the door. And like so many of our other veterans like Steve out there who served in the Marines and members here who don't talk about their service, the other day we had Bum on the floor, all of you men represent a generation that went to war, not a conflict, you went to war, you saw your friend sacrifice everything, you sacrificed everything and you came home and you didn't ask for anything special. You just helped build America and we're honored to have all of you here today. Ronald Reagan said, "I admire a man who's proud of where he's from and loves in a way that his place is proud of him." Each of you I know is proud of Texas and proud of America and you have made Texas and America proud of you in the way you have lived. Thank you and we're honored to have you here with us today.

SENATOR KEVIN ELTIFE: Thank you, Senator Patrick. Senator Rodriguez, you're recognized on the resolution.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. President. I also rise in support of this resolution. I'm very honored that Senator Van de Putte asked me to say a few words and I am also very proud to serve with her in the veteran's committee and especially proud to have here with us Roy Aldridge from El Paso who is the state commander, as you heard, of the Korean War Veteran's Administration but he's also here representing the Joseph C. Rodriguez chapter 249 of the Korean War Veteran's Association of El Paso. As most of us know El Paso is Senator Fraser's becoming the largest military base in this country and will probably overtake Fort Hood pretty soon. We have a lot of veterans in El Paso. We have a military, a lot of military families and we're very supportive in our community of the military and the history that we've had in El Paso. You know, General Pershing served in Fort Bliss back in the early days 1914, went after Pancho Villa in Mexico. And so there's a lot of military history. And I mentioned earlier at the reception about my interest in military history and reading a lot of those books when I was younger and when I was there with you this morning, things started coming back to me, the Showsan reservoir, the Pork Chop Hill, the 38 parallel, all of these things that are associated with the Korean War. And of course General MacArthur. So it is indeed an honor and a privilege to be standing here today. You humble us by your presence and thank you for your service to our country, we really appreciate it. Thank you very much.

SENATOR KEVIN ELTIFE: Thank you, Senator Rodriguez. Senator Birdwell, you're recognized on the resolution.

SENATOR BRIAN BIRDWELL: Thank you, Mr. President. Thank you, members. Thank you, Senator Van de Putte for the opportunity to render honor here. This one is personal in a lot of ways for me. First let me recognize chapter 215 which is the Korean War Veteran Association chapter 215 members who are here from my district. Mr. William Oil the president, Arlington Loyal, Larry Kinard, the National Korean War Veterans Association Chairman, his son Larry, Jr.,, Byron White and Annette White are joining us in the gallery. 1984 I graduated from Lamar University and was commissioned the same day, went to Fort Sill, Oklahoma to be learn how to be a field artillery officer. In November of 1984 I arrived in the second infantry division in the Republic of Korea and would spend my first Korean winter there, and this Texas boy has never been so cold in his life than his first winter in Korea. The terrain that you were on, everything from the Turon Valley, all those places that I didn't fight a war there when I was there but I understood how difficult and brutal that war was and the circumstances in which you were in, in dealing with the difficulties of not only an enemy that was better prepared than we were but the challenge of terrain that even TH Ferrinbach talks about in this kind of war and how difficult it was. Something I think the members should know about the Korean conflict or Korean War as it's been properly phrased, most of us think of old classic military charges, calvary charges, bayonet charges as something of many centuries gone by, the Napoleanic warfare, Civil War, previous wars to those generations. One of the storied veterans of the Korean conflict, Korean War, Captain Miller that passed away just a little over two years ago now, I believe it's just nearly two years ago, and he received his congressional medal of honor because the last American bayonet charge was during the Korean War in one of the many hills, many mountains, these men have conducted difficult operations on. It is a great reminder of a generation that is slowly departing us to have the opportunity to come join us, say thank you because the Korean War is not forgotten in the heart of Texans. Thank you again, Senator Van de Putte.

SENATOR KEVIN ELTIFE: Thank you, Senator Birdwell. Senator Wentworth, you're recognized on the resolution.

SENATOR JEFF WENTWORTH: Thank you, Mr. President. I too was commissioned probably a little earlier than Colonel Birdwell, to be truthful, and my active duty was between the Korean conflict and Vietnam. I was fortunate enough that we were virtually at peace throughout the world. I was going through Fort Bend learning how to become an intricate platoon leader during the Bay of Pigs and was certain I was going to be sent to Cuba until that was resolved. But I just want to say that it's my great privilege this morning to remind everybody of what we're really here about and it's better said by somebody other than me, it was said by Charles Province, "And it is the soldier, not the minister who has given us freedom of religion. It's the soldier not the reporter who has given us freedom of press. It is the soldier not the poet who has given us freedom of speech. It is the soldier not the campus organizer who has given us freedom of demonstration. It is the soldier not the law who has given us the right to a fair trial. It is the soldier not the politician who has given us the right to vote. It is the soldier who salutes the flag, who serves beneath the flag and whose coffin is draped by the flag, who allows the protester to burn the flag." Mr. President, we have no group that we should honor more, I believe, than the veterans of the United States and I salute you.

SENATOR KEVIN ELTIFE: Thank you, Senator Wentworth. Senator Gallegos, you're recognized on the resolution.

SENATOR MARIO GALLEGOS: Thank you, Mr. President. And I too want to join Senator Van de Putte in honoring the Korean vets, those heroes that are here standing on the Senate floor before us, those in the gallery. I do want to recognize one of my constituents that is a Korean vet and I did want to read something that came out in the Chronicle on him. His name is -- and I believe he's watching this on the computer, his name is Army Master Sergeant Joseph E. Ramirez Senior and he was wounded five times and spent almost three years in the prisoner war camp. His platoon leader died in his arms. He was in combat about four months before he was wounded and captured in the battle of Oonsan, North Korea. He spent 33 months as a POW near the Manchurian border near the Alleu River. The prison camp was horrific, he said. And he said in the winter temperatures dropped 30-degrees below zero and prisoners had few warm coat or blankets. He said they were kept in mud huts where they slept on concrete floors without mattresses and huddled together to keep warm. He said they ate cooked barley, cracked corn, maleate and turnips. Many died. He said he dropped to pounds from 150-pounds and he said was a walking skeleton in the prison camp. He was freed in a prisoner exchange in 1953. I just wanted to point that out, honor him and the Korean vets that are on this floor, the heroes, and up in the gallery and thank you very much for your service. And by the way, this master sergeant is my uncle and his son is now the new commandant at the A&M University, General Joe Ramirez, Jr.. Thank you for your service.

SENATOR KEVIN ELTIFE: Thank you, Senator Gallegos. Senator Lucio on the resolution.

SENATOR EDDIE LUCIO: Thank you, Mr. President, Senator Van de Putte and Representative Anderson. Thank you for being here with us today as well and I too read what Senator Wentworth shared with us moments ago and I wholeheartedly agree with that statement. I would hope that both at the federal and state level though, that the politician, the policy maker would understand the significance of veteran's issues, whether they be housing or health care, I was one of those very fortunate products of the greater generation. A father who spoke daily about Americanism and patriotism, who made a difference in my mother and his ten kids. Senator Van de Putte, ever since you took this leadership role, I believe there has been a better understanding of what we should be doing in representing here when it comes to addressing the needs and concerns of the men and women we call veterans and I can't be more proud than I am here today to share that with you under your leadership, you lead through example. You always have a can do attitude about the things that you get involved with and participate in but none more important than the men and women in our country who have made sure that this country stays strong and have helped shape a nation that is revered and looked upon by the whole world as the greatest nation in the world. We enjoy all the things that Senator Wentworth mentioned because of these gentlemen that are on the floor here today and I can't thank you enough for your continued support and your -- using all your energies to make sure that we never forget how important the veterans are to this country. So, I would hope that we can continue to look at every aspect of their lives, whether it's employment, housing, health care, or whatever the needs are for the men and women who took that step forward and decided to put themselves in harm's way for us so that we could enjoy the quality of life we do. Thank you very much.

SENATOR KEVIN ELTIFE: Thank you, Senator Lucio. Senator Uresti on the resolution.

SENATOR CARLOS URESTI: Thank you, Mr. President and members. It's hard to follow some of the eloquent remarks that have been made this morning but as I look around and I see our veterans here on the floor and up in the gallery, both our men and women, I'm reminded of a couple of men in particular. One my father who is a Korean War veteran, very proud of his service but also a friend of mine named Ronny Ron Acre. And some of you may know him. He was a frozen chosen, one of the frozen chosen during the Korean War and after a battle, the Corps men were collecting the bodies of the dead Marines and dead soldiers and they came upon this torso and the Corps men, as you know, they tag the dead, they take their dog tags from either around their neck or off their foot and they picked up this torso and they threw it on front of a Jeep and they thought Sergeant Ronnie Ron Acre was dead because that was all that was left of him. But because of the bitter cold, because of the snow that froze his body essentially when they threw him on the hood of the Jeep, it woke him up and Ronnie Ron Acre was actually alive. And if you talk to him today, he has no legs, he has no digits, but he has the biggest smile of any man I've ever met and the biggest heart of any man I've ever met and that's what makes me proud of being a Marine and that's what makes me proud to have so many veterans like yourselves, the folks up in the gallery, and know that we will never forget your service. Thank y'all very much.

SENATOR KEVIN ELTIFE: Thank you, Senator Uresti. Senator Davis, you're recognized on the resolution.

SENATOR WENDY DAVIS: Thank you, Mr. President. And thank you, Senator Van de Putte, for your recognition today and allowing us an opportunity to be a part of this. I agree with Senator Lucio, I think your leadership of the veteran's affairs committee has really propelled Texas forward, as was mentioned by Senator Fraser, far in advance of what other states are doing in recognition and care of their veterans and I thank you for that and I know all of these veterans that are with us today to thank you as well. I do have a number of veterans here from the city of Fort Worth who served in the Korean War and I wanted to make sure and especially recognize them in the gallery, but I also want to make a special recognition of a person who is very special to me in my life. My former father-in-law who served in both World War II and the Korean War. No one in my family has served in the military and knowing him and learning from him gave me such respect for all the sacrifices that you all make for yourself and for your families on behalf of our country. I'm sure many of you have stories like his traveling all over the world, being based at stations all over the world in service to your country with your families following along and making those sacrifices with you. I couldn't let the moment go by today without making sure to speak his name out loud, he has since passed away but his name is Beverly Early Davis, Jr. and he served our country proudly and it's a great opportunity to make sure and recognize him along with you this morning for the incredible service and sacrifice that you made to us. Thank you very much.

SENATOR KEVIN ELTIFE: Thank you, Senator Davis. Senator Van de Putte to close on the resolution.

SENATOR LETICIA VAN DE PUTTE: Thank you, Mr. President and members. Members, I appreciate your comments and we are so proud to have these men and their families here and I'd like to close by reciting a poem that was written by a Korean War veteran. His name is Francis M. Macy and he entitled this Korea. We didn't do much talking, we didn't raise a fuss, but Korea really happened so please remember us. We all just did our duty, but we didn't win or lose. A victory was denied us but we never got to choose. We all roasted in the summer, in the winter damn near froze walking back near the yaloo with our blackened, frozen toes. Like the surf, the enemy kept coming with their bugles in the night and we fired into their masses praying for the morning light. All of us just had to be there and so many of us died and now we're all but half forgotten and no one remembers how we tried. We grow fewer with the years now and we still don't raise a fuss but Korea really happened so please remember us. We are honored to remember you today and I ask those in the gallery, our Korean War veterans who are here, if you would please rise at this time and accept the grateful thanks of your Texas Senate. Members, thank you very much, move adoption of the resolution.

SENATOR KEVIN ELTIFE: Members, Senator Van de Putte moves adoption of the resolution. Is there objection? Chair hears none, resolution is adopted.

SENATOR STEVE OGDEN: Chair lays out the following resolution. Secretary will read the resolution.

PATSY SPAW: Senate Resolution 870 commending Grupo Fantasma on winning its first Grammy award. By Zaffirini, Ogden, Watson, and Wentworth.

SENATOR STEVE OGDEN: Chair recognizes Senator Zaffirini on the resolution.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. Mr. President and members, I'm proud to join Senators Ogden, Watson, and Wentworth in sponsoring Senate Resolution 870 honoring Grupo Fantasma and congratulating the band on winning its first Grammy award in the best rock alternative urban category. Members, Grupo Fantasma has toured throughout the world and has played at prestigious festivals such as the Montreal Jazz Fest, the North Sea Jazz Fest in the Netherlands and (inaudible). Hailed as one of today's most important bands in the Latin genre, Grupo Fantasma was nominated for a Grammy for its 2009 album Sonitos Gold. They have performed many times with the legendary pop star Prince. The members of Grupo Fantasma are proud of their Texas roots. Like our great state their music blends urban and rural, Anglo, African-American, Latino influences. I am especially proud, members, of three of the band members are from Laredo, my hometown. Grupo Fantasma will perform tomorrow night at 8:00 p.m. at the Paramount Theater here in Austin and you're all invited. Seven band members join us in the Senate today along with their manager. I'll ask them to please step forward when I call their names so that we can welcome them to the Texas Senate. Adrian Quesada, Francisco "Beto" Martinez, Gregory Gonzalez, Matthew "Sweet Lou" Holmes, Josh Levy, Jose Galeano, Mark "Speedy" Gonzales, and their manager, David Lobel. Their friends and families are in the north gallery. Would they please stand and be recognized? Members, please welcome our guests and join me in welcoming them as I move adoption of Senate Resolution 870 recognizing Grupo Fantasma and congratulating them on their Grammy and on all their success. Welcome to the Texas Senate. Bien venitos.

SENATOR STEVE OGDEN: Is there objection to the adoption of Senate Resolution 870? Chair hears none, the resolution is adopted.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President and members.

SENATOR STEVE OGDEN: Members, if there's no objection I'd like to postpone the reading and referral of bills until the end of today's session. Is there objection? The Chair hears none, the reading and referral is postponed. Members, that concludes the morning call. Senator Deuell. Senator Deuell. Senator Deuell is recognized to suspend the regular order of business to take up and consider on third reading committee substitute to Senate Bill 506.

SENATOR BOB DEUELL: Thank you, Mr. President. I move that we suspend the regular order of business in order to take up Senate Bill 506. Members, this is the bill that changes the level at which we warn pregnant women or any person about mercury levels in fish and our lakes. And I move suspension.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: There being 24 ayes and seven nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute to Senate Bill 506. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 506 relating to consumption advisories for mercury contamination in fish.

SENATOR STEVE OGDEN: Following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 1 by Deuell.

SENATOR STEVE OGDEN: Senator Deuell, you're recognized on your amendment.

SENATOR BOB DEUELL: Thank you, Mr. President. This is an amendment for which I held the bill for third reading. It was negotiated with the industry and it assures there's no impact on previous agreements with state or federal government. That was never our intent in the bill to do so but we wanted to clarify this to make the industry a little more comfortable with the bill. I move adoption.

SENATOR STEVE OGDEN: Members, you heard the explanation. Senator Deuell moves adoption of floor amendment No. 1. Is there objection? The Chair hears none, the amendment is adopted. Senator Deuell, you're recognized for a motion.

SENATOR BOB DEUELL: Thank you, Mr. President. I move final passage of the Committee Substitute to Senate Bill 506 as amended.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: There being 24 ayes and seven nays the bill is finally passed.

SENATOR BOB DEUELL: Thank you, Mr. President and members.

SENATOR STEVE OGDEN: Senator West is recognized for a motion to suspend the regular order of business on Committee Substitute to Senate Bill 1511.

SENATOR ROYCE WEST: Thank you very much, Mr. President. At this time I move to suspend the Senate's regular order of business to take up and consider at this time Committee Substitute to Senate Bill 1511. Mr. President and members, research shows that having access to effective educators is the most important school based factor affecting a student's school. Members, education preparation and certification ensure that teachers are well prepared and help reduce costly teacher turnover. This particular bills puts in statute minimum standards for education certification and admission to education preparation programs. It increases the number of semester hours required and the content area for the certification being sought and candidates seeking a generalist certified that covers multiple subjects, it will require them to receive a minimum cut score in each subject on a certification exam rather than simply an overall cut score. I move suspension of the regular order of business.

SENATOR STEVE OGDEN: Is there objection? Hearing none, the rule is suspended. The Chair lays out on second reading Committee Substitute to Senate Bill 1511. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1511 relating to minimum standards for approval of educator preparation programs.

SENATOR STEVE OGDEN: The following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 1 by West.

SENATOR STEVE OGDEN: Chair recognizes Senator West on his amendment.

SENATOR ROYCE WEST: Members, this floor amendment clarifies that candidates may pass a state approved examination as an alternative to meeting the credit hour requirement which is an option that is also offered under the current SBEC rules and require that the survey in this bill is contingent upon the commissioner's ability to seek private funding for it. I move adoption.

SENATOR STEVE OGDEN: Members, you heard the explanation of the amendment. Is there any objection to the adoption of the amendment? The Chair hears none, the amendment is adopted. Senator West, you're recognized for a motion.

SENATOR ROYCE WEST: Move passage to engrossment.

SENATOR STEVE OGDEN: Is there objection? Hearing none, the bill's passed to engrossment. Senator West is recognized for a motion to suspend the constitutional three day rule.

SENATOR ROYCE WEST: So moved.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 29 ayes and two nays the constitutional three day rule is suspended. The Chair lays out on third reading and final passage Committee Substitute to Senate Bill 1511. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1511 relating to minimum standards for approval of educator preparation programs.

SENATOR STEVE OGDEN: Senator West is recognized for a motion.

SENATOR ROYCE WEST: Mr. President, at this time I move final passage of Committee Substitute Senate Bill 1511 a.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 30 ayes and one nay, the bill is finally passed. Thank you.

SENATOR ROYCE WEST: Thank you, Mr. President.

SENATOR STEVE OGDEN: Senator Ellis is recognized for a motion to suspend the regular order of business on Senate Bill 1560.

SENATOR RODNEY ELLIS: Thank you, Mr. President. This bill extends the same protections of limits of liability received by local volunteer fire departments and volunteer EMS organizations and other volunteer emergency services organizations that provide similar function in response to local emergencies and disasters. Came out state affairs committee unanimously. Pretty straightforward. I move to suspend the Senate's regular order of business to take up and consider Senate Bill 1560.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading Senate Bill 1560. The secretary will read the caption.

PATSY SPAW: Senate Bill 1560 relating to liability of certain local emergency management or homeland security organizations.

SENATOR STEVE OGDEN: Chair recognizes Senator Ellis on a motion.

SENATOR RODNEY ELLIS: I move passage to engrossment, Mr. President.

SENATOR STEVE OGDEN: Is there objection? The Chair hears none, bill is passed to engrossment. Senator Ellis is recognized for a motion to suspend the constitutional three day rule.

SENATOR RODNEY ELLIS: Mr. President, I move to suspend the constitutional three day rule.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 30 ayes and one nay, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage Senate Bill 1560. The secretary will read the caption.

PATSY SPAW: Senate Bill 1560 relating to liability of certain local emergency management or homeland security organizations.

SENATOR STEVE OGDEN: Senator Ellis is recognized for a motion.

SENATOR RODNEY ELLIS: I move final passage, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 31 ayes and zero nays, the bill is finally passed. Thank you, Senator.

SENATOR RODNEY ELLIS: Thank you, sir.

SENATOR STEVE OGDEN: Senator Huffman is recognized for a motion to suspend the regular order of business on Senate Bill 530.

SENATOR JOAN HUFFMAN: Thank you, Mr. President. Mr. President, I move to suspend the Senate's regular order of business to take up and consider Senate Bill 530. Members, several investigatory agents of federal departments are granted the authority of special investigators in Texas. Senate Bill 530 acts as designation of special agents of the Social Security Administration, Officer of the Inspector General and would allow for more efficient information practices throughout the state for agents to detect and stop fraud in the collection of federal benefits together with local officials. This designation gives certain federal criminal investigators the powers of arrest, search and seizure while performing their duties in Texas. Currently this designation is extended to the agents of different federal agencies including the FBI, Secret Service, Immigrations and Customs, the DEA and U.S. Marshals. Mr. President, I move to suspend the Senate's regular order of business.

SENATOR STEVE OGDEN: Is there objection? Hearing none the rule is suspended. The Chair lays out on second reading Senate Bill 530. The secretary will read the caption.

PATSY SPAW: Senate Bill 530 relating to granting limited state law enforcement authority to special agents to the Office of the Inspector General and Social Security Administration.

SENATOR STEVE OGDEN: Senator Huffman is recognized for a motion.

SENATOR JOAN HUFFMAN: I move passage to engrossment.

SENATOR STEVE OGDEN: Is there objection? Chair hears none -- excuse me, Senator Hinojosa, for what purpose do you rise?

SENATOR JUAN HINOJOSA: Just to ask Senator Huffman a question.

SENATOR STEVE OGDEN: Senator Hinojosa, go ahead.

SENATOR JUAN HINOJOSA: Senator Huffman, are we giving up our rights to be a state under the 10th amendment?

SENATOR JOAN HUFFMAN: Are we giving up rights?

SENATOR JUAN HINOJOSA: Yes.

SENATOR JOAN HUFFMAN: No, we're just trying to save money and be more efficient. These particular agencies investigates Medicaid fraud and other abuses of the collection of federal benefits and so therefore I think it will bring efficiency, save the state money and free up state and local law enforcement officials to do other work while the federal agents investigate the crimes because some of the crimes they could be a federal crime but the federal prosecutors won't handle unless it's a very large theft. And so this is allowing the state level of prosecution but with the use of federal law enforcement officials. So it saves us money.

SENATOR JUAN HINOJOSA: I guess the bigger question is we're not giving up our state rights, are we, under the 10th Amendment?

SENATOR JOAN HUFFMAN: I don't think so, no.

SENATOR JUAN HINOJOSA: Thank you.

SENATOR JOAN HUFFMAN: Thank you, Senator.

SENATOR STEVE OGDEN: Senator Huffman moves passage to engrossment of Senate Bill 530. Is there objection? Chair hears none, bill is passed to engrossment. Senator Huffman is recognized for a motion to suspend the constitutional three day rule.

SENATOR JOAN HUFFMAN: So moved.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 30 ayes and one nay, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage Senate Bill 530. The secretary will read the caption.

PATSY SPAW: Senate Bill 530 relating to granting limited state law enforcement authority to special agents of Office of Inspector General.

SENATOR STEVE OGDEN: Senator Huffman is recognized for a motion.

SENATOR JOAN HUFFMAN: I move for final passage of Senate Bill 530.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 31 ayes and no nays, the bill is finally passed. Thank you.

SENATOR JOAN HUFFMAN: Thank you, Senator.

SENATOR STEVE OGDEN: Senator Carona is recognized for a motion to suspend the regular order of business on Committee Substitute to Senate Bill 1608.

SENATOR JOHN CARONA: Thank you, Mr. President. Last session, members, the legislature passed House Bill 2012 which stipulated that a person commits a class A misdemeanor if the person causes or is at fault in a motor accident that results in serious bodily injury or death of another person is driving without maintaining liability insurance and is driving with an invalid driver's license. All three of those conditions have to be met in order for this class A misdemeanor determination to be met. But because of an oversight drafting error in the bill, it did not cover the situation where a person does not possess a driver's license even though they're behind the wheel and these accidents occur. So what this bill does is simply correct that oversight. The previous deal dealt with an invalid driver's license, this bill simply adds also that you do not possess a driver's license though you're operating a motor vehicle. I move suspension at this time.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading Committee Substitute to Senate Bill 1608. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1608 relating to operating a motor vehicle without a driver's license or financial responsibility.

SENATOR STEVE OGDEN: Senator Carona is recognized for a motion.

SENATOR JOHN CARONA: Mr. President, I move passage to engrossment.

SENATOR STEVE OGDEN: Is there objection? Hearing none, Senate Bill 1608 is passed to engrossment. Senator Carona is recognized for a motion to suspend the constitutional three day rule.

SENATOR JOHN CARONA: So moved, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 30 ayes and one nay, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage Committee Substitute to Senate Bill 1608. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1608 relating to operating a motor vehicle without a driver's license or financial responsibility.

SENATOR STEVE OGDEN: Senator Carona is recognized for a motion.

SENATOR JOHN CARONA: Mr. President, I move final passage.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 31 ayes and no nays, the bill is finally passed. Senator Jackson is recognized for a motion to suspend the regular order of business on Committee Substitute to Senate Bill 1104.

SENATOR MIKE JACKSON: Thank you, Mr. President. Members, Senate Bill 1104 deals with the Houston ship channel security district. Two sessions ago we passed legislation that dealt with setting up a district that the entire area could use and do the importance of the petro chemical and manufacturing industries along the ship channel. The district's operations are vital, it's working well. This bill is simply a few tweaks to the legislation that we passed before dealing with the board of directors, updates, definitions and it's pretty much a local bill. I move suspension of the regular order of business to take up and consider Senate Bill 1104 at this time.

SENATOR STEVE OGDEN: Is there objection? Hearing none, the rules are suspended. The Chair lays out on second reading Committee Substitute to Senate Bill 1104. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1104 relating to operation, powers and duties of ship channel districts.

SENATOR STEVE OGDEN: Senator Jackson is recognized for a motion.

SENATOR MIKE JACKSON: I move passage to engrossment of Senate Bill 1104, Mr. President.

SENATOR STEVE OGDEN: Is there objection? Hearing none, the bill is passed to engrossment. Senator Jackson is recognized for a motion to suspend the constitutional three day rule.

SENATOR MIKE JACKSON: So moved.

SENATOR STEVE OGDEN: The secretary will call the roll.

PATSY SPAW: Committee Substitute to Senate Bill 1104 relating to the operation powers and duties of ship channel districts.

SENATOR STEVE OGDEN: Senator Jackson is recognized for a motion.

SENATOR MIKE JACKSON: Thank you, Mr. President. I move final passage for Committee Substitute to Senate Bill 1104.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 31 ayes and no nays, the bill is finally passed. Thank you, Senator. Senator Estes. Senator Estes is recognized for a motion to suspend the regular order of business on Senate Bill 1066.

SENATOR CRAIG ESTES: Thank you, Mr. President and members. Members, this bill adds six substances to the penalty group two of the Texas Controlled Substance Act to prevent the creation of the drug bath salts. Now, members, bath salts has nothing to do with taking a bath and nothing to do with salt. It's a synthetic mixture of chemicals that young people ingest and on the packet it says -- the reason it's currently legal is the packet says it's marked not for human consumption to avoid the Federal Analog Act, but bath salts have been described as a legal cocaine giving their users a high like cocaine. They're ingested either by a pill or by snorting and can be purchased on line or in smoke shops for as little as $20. Texas is one of many states looking to outlaw bath salts. This law was modeled after the Florida legislation to make it illegal to make bath salts or have any similar drugs. So at this time I move to suspend the Senate's regular order of business to take up Senate Bill 1066.

SENATOR STEVE OGDEN: Senator Estes moves suspension of the regular order of business to take up and consider Senate Bill 1066. Is there any objection? The Chair hears none, the rule is suspended. The Chair lays out on second reading Senate Bill 1066. The secretary will read the caption.

PATSY SPAW: Senate Bill 1066 relating to adding certain synthetic stimulants to penalty group two of the Texas Controlled Substance Act.

SENATOR STEVE OGDEN: Senator Estes is recognized for a motion.

SENATOR CRAIG ESTES: Mr. President, I move Senate Bill 1066, passage to engrossment.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the bill is passed to engrossment. Senator Estes is recognized for a motion to suspend the constitutional three day rule.

SENATOR CRAIG ESTES: So moved, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 30 ayes and one nay, the constitutional three day rule is suspended. Chair lays out on third reading and final passage Senate Bill 1066. The secretary will read the caption.

PATSY SPAW: Senate Bill 1066 relating to adding certain synthetic stimulants to penalty group two of the Texas Controlled Substance Act.

SENATOR STEVE OGDEN: Senator Estes is recognized for a motion.

SENATOR CRAIG ESTES: Mr. President, I move final passage of Senate Bill 1066.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 31 ayes and zero nays, the bill is finally passed. Thank you, Senator.

SENATOR CRAIG ESTES: Thank you, Mr. President and members.

SENATOR STEVE OGDEN: Senator Davis. Senator Davis is recognized for a motion to suspend the regular order of business on Senate Bill 533.

SENATOR WENDY DAVIS: Thank you, Mr. President and members. I move to suspend the Senate's regular order of business to take up and consider Committee Substitute for Senate Bill 1533. Senate Bill -- excuse me, it's 533. I'm sorry. Senate Bill 533 amends chapter 420 of the government code to clarify that the attorney general has authority to create a certification renewal process for sexual assault nurse examiners by administrative rule and provides consistency between the government code and the Texas administrative code. Mr. President, I move to suspend the regular order of business.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the rule is suspended. The Chair hairs out on second reading Senate Bill 533. The secretary will read the caption.

PATSY SPAW: Senate Bill 533 relating to the minimum standards for the certification of sexual assault training programs and sexual assault nurse examiners.

SENATOR STEVE OGDEN: Senator Davis is recognized for a motion.

SENATOR WENDY DAVIS: Thank you, Mr. President. I move passage to engrossment.

SENATOR STEVE OGDEN: Is there objection? Hearing none, the bill is passed to engrossment. Senator Davis is recognized for a motion to suspend the constitutional three day rule.

SENATOR WENDY DAVIS: So moved, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 30 ayes and one nays, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage Senate Bill 533. The secretary will read the caption.

PATSY SPAW: Senate Bill 533 relating to minimum standards for the certification of sexual assaults training programs and sexual assault nurse examiners.

SENATOR STEVE OGDEN: Senator Davis is recognized for a motion.

SENATOR WENDY DAVIS: Thank you, Mr. President. I move final passage.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being 31 ayes and no nays, the bill is finally passed.

SENATOR WENDY DAVIS: Thank you, Mr. President. Thank you, members.

SENATOR KEVIN ELTIFE: Senator Hinojosa is recognized to suspend the regular order of business on SCR25.

SENATOR JUAN HINOJOSA: Thank you, Mr. President and members. I move to suspend the regular order of business to take up and consider SCR25. This resolution deals with a monument to honor the soldiers who served in Vietnam. You recall the 79th Texas legislature authorized the construction of a monument on the Capitol grounds. Since then a group of veterans from Vietnam have been raising funds, and we haven't quite reached our goal. So this resolution expresses the legislature's continued support for the construction of their monument on Capitol grounds for the location approved by the state regulation board. This is to make sure that we have the authority to continuation money for this very special dedication of a monument to honor all the soldiers who served in Vietnam. I move suspension.

SENATOR STEVE OGDEN: Senator Patrick, for what purpose? Okay, no problem. Thank you, Senator Patrick. Senator Hinojosa has moved suspension of the regular order of business to take were and consider SCR25, is there objection? Chair hears none, the rules are suspended. The Chair lays out on second reading SCR25. The secretary will read the caption.

PATSY SPAW: SCR25 expressing continued support for the conduction of a monument on Capitol grounds recognizing Texans who served in the Vietnam war.

SENATOR KEVIN ELTIFE: Senator Hinojosa is recognized for a motion.

SENATOR JUAN HINOJOSA: Mr. President, I move adoption.

SENATOR KEVIN ELTIFE: Senator Hinojosa moves adoption. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, SJR25 is adopted.

SENATOR JUAN HINOJOSA: Thank you, Mr. President, members.

SENATOR KEVIN ELTIFE: Thank you, Senator Hinojosa. Senator Rodriguez is recognized for a motion to suspend the regular order of business on House Bill 906.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. President and members. House Bill 906 is part of the legislative package to the family law section of the state bar of Texas. This is a bill by Representative Senfronia Thompson. The bill passed the House on local and consent calendar and passed out of the Senate jurisprudence committee unanimously. Under current law it is not clear that an indigent person who is appointed a lawyer in the case involving the parent/child relationship can keep that lawyer through the appeals process. Under House Bill 906 a person who has an appointed lawyer is presumed to remain indigent until there is a material and substantial change in the person's financial circumstances. The bill also provides that the appointed lawyer remains on the case until the suit is dismissed, all appeals are exhausted or waived, or until the court allows the lawyer to withdraw based on good cause. Finally the bill provides that the rules of payment procedure apply and that in cases involving termination of parent/child relationship are accelerated and giving precedence over other civil matters. Mr. President and members, I move that we suspend the regular order of and all necessary rules to take up and consider House Bill 906.

SENATOR KEVIN ELTIFE: Senator Rodriguez moves suspension of the regular order of business to take up and consider House Bill 906. Is there objection? Chair hears none, rules are suspended. The Chair lays out on second reading House Bill 906. The secretary will read the caption.

PATSY SPAW: House Bill 906 relating to appointments made in and the appeal of certain suits affecting the parent child relationship.

SENATOR KEVIN ELTIFE: Following amendment by Rodriguez. Secretary read the amendment.

PATSY SPAW: Floor amendment No. 1 by Rodriguez.

SENATOR KEVIN ELTIFE: Senator Rodriguez to explain the amendment.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. President and members. I have an amendment that clarifies the duration of the appointment language at the request of the Supreme Court commission on children, youth and families and some district judges, in particular Judge Byrne here in Travis County. The amendment clarifies that the appointment is for the duration of the suit and any subsequent appeal. Section two amends the family code section 107.016 instead of 107.14 and in subsection three exchanges the word "and" to "and/or" that's in line 132 of committee report version of the bill. Mr. President and members, if there's no objection, I move adoption of the amendment.

SENATOR KEVIN ELTIFE: Senator Rodriguez moves adoption of floor amendment No. 1. Is there objection? Chair hears none, floor amendment No. 1 is adopt. Senator Rodriguez is recognized for a motion.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. President and members. Members, I move passage of 906 to third reading.

SENATOR KEVIN ELTIFE: Senator Rodriguez moves passage to third reading. Is there objection? The Chair hears none, House Bill 906 is passed to third reading. Senator Rodriguez is recognized for a motion to suspend the constitutional three day rule.

SENATOR JOSE RODRIGUEZ: Mr. President and members, I move to suspend the constitutional rule that bills be read on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes and one nay, the constitutional rule is suspended. The Chair lays out on third reading and final passage House Bill 906. The secretary will read the caption.

PATSY SPAW: House Bill 906 relating to appointments made in and the appeal of certain suits affecting a parent child relationship.

SENATOR KEVIN ELTIFE: Senator Rodriguez recognized for a motion.

SENATOR JOSE RODRIGUEZ: Mr. President, I move final passage.

SENATOR KEVIN ELTIFE: Senator Rodriguez moves final passage of House Bill 906. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes and no nays, House Bill 906 is finally passed. Congratulations, Senator Rodriguez.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Ellis, you ready on 1686? Senator Ellis is recognized for a motion to suspend the regular order of business on Committee Substitute SB1686.

SENATOR RODNEY ELLIS: Thank you, Mr. President. Members, this legislation would allow persons who have been wrongfully convicted and who receive compensation from the state to also be entitled to group health benefit coverage through the Texas Department of Criminal Justice. This bill does not have a fiscal note because exonerees would be required to pay for the health care insurance, and the money would come from the exonerees' annuity payments. Exonerees would be eligible for the number of years they were incarcerated under supervision and wrongfully on the sex offender register. Only the exoneree is eligible, not the family members or other defendants. I move to suspend the Senate's regular order of business to take up and consider the substitute to Senate Bill 1686.

SENATOR KEVIN ELTIFE: Senator Huffman, for what purpose?

SENATOR JOAN HUFFMAN: To question the author please.

SENATOR KEVIN ELTIFE: Senator Ellis yield?

SENATOR RODNEY ELLIS: Yes, ma'am.

SENATOR JOAN HUFFMAN: Thank you, Senator Ellis. Just to clarify this will not cost the counties any money; is that correct?

SENATOR RODNEY ELLIS: Correct.

SENATOR JOAN HUFFMAN: And this does not cost the state of Texas any additional money other than the money that they are already obligated to pay to the exonerees; is that correct?

SENATOR RODNEY ELLIS: That's correct. And I should point out it will save the counties money because if these folks cannot get insurance, the end up on the county charity role.

SENATOR JOAN HUFFMAN: Right. And at the emergency room and so forth.

SENATOR RODNEY ELLIS: That's right.

SENATOR JOAN HUFFMAN: And it's only the exonerees that are the ones that are actually receiving the annuities, right, who have been certified by the comptroller?

SENATOR RODNEY ELLIS: That's right. And we take it based on your direction out of the annuity so there's no question that it will have to be paid.

SENATOR JOAN HUFFMAN: All right. Just wanted to clarify. Thank you, Senator.

SENATOR RODNEY ELLIS: Thank you for your help on cleaning it up, Senator, on this bill.

SENATOR JOAN HUFFMAN: Thank you, sir.

SENATOR KEVIN ELTIFE: Senator Ellis has moved suspension of the regular order of business to take up and consider Committee Substitute SB1686. Is there objection? Chair hears none, the rules are suspended. The Chair lays out on second reading Committee Substitute to Senate Bill 1686. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1686 relating to group health benefits coverage for persons wrongfully imprisoned.

SENATOR KEVIN ELTIFE: Senator Ellis is recognized for a motion.

SENATOR RODNEY ELLIS: Mr. President, I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Ellis now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB1686 is passed to engrossment. Senator Ellis is now recognized for a motion to suspend the constitutional three day rule.

SENATOR RODNEY ELLIS: I move to suspend the three day rule.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute to Senate Bill 1686. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1686 relating to group health benefits coverage for persons wrongfully imprisoned.

SENATOR KEVIN ELTIFE: Senator Ellis is recognized for a motion.

SENATOR RODNEY ELLIS: I move final passage.

SENATOR KEVIN ELTIFE: Senator Ellis now moves final passage of Committee Substitute for Senate Bill 1686. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute to Senate Bill 1686 is finally passed. Congratulations, Senator Ellis.

SENATOR RODNEY ELLIS: Thank you, sir.

SENATOR KEVIN ELTIFE: Senator Nichols is recognized for a motion to suspend the regular order of business on Committee Substitute SB637.

SENATOR ROBERT NICHOLS: Thank you, Mr. President. I move to suspend the Senate's regular order of business to take up and consider Senate Bill 637. Under current law when a water, waste water utility proposes a rate increase, the rate payers are entitled to contest the proposed increase. When a rate payers initiate a contested case hearing through the TECEQ both the utility and rate payers hire legal representation to argue their case. Contested case hearings can continue for long periods which can result in substantial legal fees. Upon resolution of the contested case hearing, utilities are entitled to recovering attorneys fees of the legal expenses from the rate payers. Legal expenses can include compensation for a wide variety of services. TCEQ is allowed to incorporate these expenses to the water and waste water rates. Even if the utility loses the rate case. Ultimately win or lose the customers have to pay for both legal expenses and those of the utility. This provision of law creates a disincentive for a utility to negotiate with the rate payers for an expedited conclusion to contested case hearing. Committee Substitute for Senate Bill 637 will prohibit TCEQ from including vested legal expenses and the rate making formula unless utility receives rated request application. This legislation will ensure fairness to both the utility and the rate payer as both parties will be responsible for their legal expenses. With that I move suspension of the Senate's regular order of business.

SENATOR KEVIN ELTIFE: Senator Nichols moves suspension of the regular order of business to take up and consider Committee Substitute SB637. Is there objection? Chair hears none, rules are suspended. The Chair lays out on second reading Committee Substitute to Senate Bill 637. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 637 relating to recovery of certain rate case expenses by an investor owned water and sewer utility.

SENATOR KEVIN ELTIFE: Senator Nichols recognized for a motion.

SENATOR ROBERT NICHOLS: Mr. President and members, I move passage of Committee Substitute to Senate Bill 637 to engrossment.

SENATOR KEVIN ELTIFE: Senator Nichols now moves passage to engrossment. Is there objection? Hearing none, Committee Substitute SB637 is passed to engrossment. Senator Nichols is now recognized for a motion to suspend the constitutional three day rule.

SENATOR ROBERT NICHOLS: Mr. President, members, I now move to suspend the constitutional rule that bills be heard on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third R5EDing and final passage SB637. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 637 relating to recovery of certain rate cases expenses.

SENATOR KEVIN ELTIFE: Senator Nichols recognized for a motion.

SENATOR ROBERT NICHOLS: Mr. President and members, I move final passage.

SENATOR KEVIN ELTIFE: Senator Nichols now moves final passage of Committee Substitute SB637. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute SB637 is finally passed. Congratulations, Senator Nichols.

SENATOR ROBERT NICHOLS: Thank you, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Ogden is recognized for a motion to suspend the regular order of business on Committee Substitute SB1580.

SENATOR STEVE OGDEN: Mr. President and members, I move to suspend the Senate's regular order of business to take up and consider on third reading Committee Substitute to Senate Bill 1580. Senate Bill 1570 relates to state fiscal matters to the health and human services and state agencies administered health and human services programs. It raises regulatory fees, laboratory fees and child care licensing fees. I move to suspend the regular order of business.

SENATOR KEVIN ELTIFE: Senator Watson, for what purpose?

SENATOR KIRK WATSON: Question of the author.

SENATOR KEVIN ELTIFE: Senator Ogden yield?

SENATOR STEVE OGDEN: I yield.

SENATOR KIRK WATSON: Senator Ogden, yesterday we had a discussion about this bill and the idea that you were raising fees and that in this -- in this budget bill and Committee Substitute to House Bill the fees that were raised by 1580 would go -- are being specifically and directly appropriated. We also talked about how based upon past practices of the legislature that doesn't mean they will be appropriated for their intended purpose in the future. You and I have talked since that point in time and you know that I intend to offer an amendment. And before I vote here on suspension, I wanted to ask about that amendment. And what that amendment would do is it would sunset the fees and the fee increases that are proposed and allowed in this bill by requiring that they revert to the levels before September 1, 2011, at the end of this biennium and you're agreeable to that amendment; is that correct?

SENATOR STEVE OGDEN: I do.

SENATOR KIRK WATSON: Great. Thank you.

SENATOR KEVIN ELTIFE: Thank you, Senator Watson. Senator Ogden has moved suspension of the Senate's regular order of business to take up and consider SB1580. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 27 ayes, three nays, the rule is suspended. The Chair lays out on third reading Committee Substitute SB1580. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1580 relating to state fiscal matters related to health and human services.

SENATOR KEVIN ELTIFE: The following amendment. Secretary read the amendment.

PATSY SPAW: Floor amendment No. 1 by Watson.

SENATOR KEVIN ELTIFE: Senator Watson to explain the amendment.

SENATOR KIRK WATSON: Thank you, Mr. President and members. This is the amendment that Chairman Ogden and I just talked about. This will simply sunset the fees proposed and allowed in this bill by requiring that the fees revert to the levels they'll be at just before September 1, 2011. What this does is it assures that the fees that we are voting for will not be used for some purpose other than their intended or dedicated purpose in the future. I move adoption of floor amendment No. 1.

SENATOR KEVIN ELTIFE: Senator Ogden on floor amendment No. 1.

SENATOR STEVE OGDEN: Mr. President and members, this amendment is acceptable to the author and it is a very significant amendment and I want you to at least think about this because it might be something that this body would want to pursue in the future. What I've been arguing on this floor --

SENATOR KEVIN ELTIFE: Members, could we have some order in the chamber?

SENATOR STEVE OGDEN: Members, this is a pretty significant amendment that I'm going to accept but it tries to address a criticism that we've all been subjected to that we continually raised fees and then use it or not use it for the purpose for which it was intended. Now, the purpose of these bills is to make sure that our method of finance works for Committee Substitute to House Bill 1. It is unnecessary in this biennium to extend those fees beyond the next two years, and so what Senator Watson has amended here is he said, okay, if all you need is the money to get you through the next two years, then I'll sunset the fees two years from now and it's not that bad of an idea frankly. So, the amendment is acceptable to me and I wish you'd think about this as we're going forward trying to finance the budget on whether this type of amendment continues to have merit going forward. I think in many cases it will. So I move -- the amendment's acceptable to the author.

SENATOR KEVIN ELTIFE: Senator Watson moves adoption of floor amendment No. 1. It is acceptable to Ogden, the author of the bill. Is there objection? Hearing none, the floor amendment No. 1 is adopted. Chair lays out on third reading and final passage Committee Substitute SB1580. You're recognized for a motion.

SENATOR STEVE OGDEN: Mr. President and members, I move final passage of Committee Substitute Senate Bill 1580.

SENATOR KEVIN ELTIFE: Senator Ogden moves final passage of Committee Substitute SB1580 as amended. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 28 ayes, three nays, Committee Substitute SB1580 as amended is finally passed. Congratulations Senator Ogden. Senator Ogden is recognized for a motion to suspend the regular order of business on Committee Substitute SB1582.

SENATOR STEVE OGDEN: Mr. President and members, I move to suspend the Senate's regular order of business to take up and consider Committee Substitute to Senate Bill 1582 on third reading. This bill is the fiscal matters bill related to the judiciary. This has -- increased fee authority in it for process servers and it also saves money by reducing the current appropriation to pay jurors. I move suspension of the regular order of business.

SENATOR KEVIN ELTIFE: Senator Watson, for what purpose?

SENATOR KIRK WATSON: Question of the author.

SENATOR KEVIN ELTIFE: Senator Ogden yield?

SENATOR STEVE OGDEN: I yield.

SENATOR KIRK WATSON: Thank you, Mr. Chairman. We've been talking about this bill as well and we yesterday had a discussion about it where again I was asking questions about were there any protections es to assure that the general revenue that would be raised by the fees in 1582 would be assured that they would be used for their dedicated or intended purpose. In fact we even talked specifically about the fees of the process servers and how those fees haven't even been established yet. Since that time you and I have also been talking and we have looked at both the fiscal note to 1582 and to the contingency appropriation rider for certain license fees and those related to the Office of Court Administration. And so I have come up with an amendment that I have shown you that will assure that the fees raised by this bill go only for their dedicated purpose. And it's my understanding that that will be acceptable to you when I offer that if we suspend.

SENATOR STEVE OGDEN: It's acceptable.

SENATOR KIRK WATSON: Thank you, Mr. Chairman.

SENATOR KEVIN ELTIFE: Thank you, Senator Watson. Senator Ogden moves suspension of the regular order of business to take up and consider Committee Substitute SB1582. Is there objection? The secretary will call the roll.

SENATOR KEVIN ELTIFE: 24 ayes, seven nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1582. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1582 relating to state fiscal matters related to the judiciary.

SENATOR KEVIN ELTIFE: Floor amendment No. 1 by Watson. Secretary please read the amendment.

PATSY SPAW: Floor amendment No. 1 by Watson.

SENATOR KEVIN ELTIFE: Senator Watson to explain the amendment.

SENATOR KIRK WATSON: Thank you, Mr. President and members. This is what Senator -- Chairman Ogden and I were just talking about. This amendment does a couple of things. First it requires the state to stop collecting the process server fee as soon as biennial collections reach $500,000 for the biennium. This total represents over -- just somewhat over twice as much as the Senate budget would appropriate from this fee in 2012 and '13, when you do a comparison of the fiscal note with the contingency rider that's in this proposed budget. This amendment that I'm offering would ensure those funds could not be diverted for their intended purpose and hoarded as a way of certifying the budget so the state can spend more money. It would also sunset the fee at the end to the biennium as we just talked about on 1580. Secondly this amendment specifically exempts the judicial and court personnel training fund from the funds consolidation process that allows that fund also to be used to certify the budget. This way the legislature can safely convert this fund into a general revenue dedicated account as the bill would do without the possibility that the money could be used in a way that's not anticipated, dedicated or intended. And I move adoption of floor amendment No. 1.

SENATOR KEVIN ELTIFE: Senator Ogden on floor amendment No. 1.

SENATOR STEVE OGDEN: It's acceptable to the author.

SENATOR KEVIN ELTIFE: Senator Watson moves adoption of floor amendment No. 1. It's acceptable to the author Ogden. Is there objection? Chair hears none, floor amendment No. 1 is adopted. Senator Ogden is recognized for a motion.

SENATOR STEVE OGDEN: Mr. President, members, I move final passage of Committee Substitute to Senate Bill 1582.

SENATOR KEVIN ELTIFE: Senator Ogden now moves final passage of Committee Substitute SB1582 as amended. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 24 ayes, seven nays, Committee Substitute SB1582 is finally passed. Congratulations, Senator Ogden. Senator Zaffirini. Senator Zaffirini is recognized for a motion to suspend the regular order of business on SB1443.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. Mr. President and members, I move to suspend the Senate's regular order of business in order to take up and consider Senate Bill 1443 which relates to the mailing of notices, decisions and reports by the Texas Ethics Commission. Generally the bill would allow the TEC to mail the 30 day late notification letters issued to relate campaign finance reports by certified rather than registered mail. Allow the commission to send the additional or follow up notices, decisions and reports concerning progression of sworn complaints by regular mail or by E-mail, their choice. And the TEC estimates a savings of approximately $9 per letter would be saved by mailing notification letters by a certified instead of registered mail. This is a significant savings for TEC. Mr. President, I move suspension.

SENATOR KEVIN ELTIFE: Senator Zaffirini moves suspension of the regular order of business to take up and consider SB1443. Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading SB1443. The secretary will read the caption.

PATSY SPAW: Senate Bill 1443 relating to the mailing of notices, decisions and reports by the Texas Ethics Commission.

SENATOR KEVIN ELTIFE: Senator Zaffirini is recognized for a motion.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Zaffirini now moves passage to engrossment. Is there objection? Chair hears none, SB1443 is passed to engrossment. Senator Zaffirini is now recognized for a motion to suspend the constitutional three day rule.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move to suspend the constitutional rule that bills be read on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage SB1443. The secretary will read the caption.

PATSY SPAW: SB1443 relating to the mailing of notices, decisions and reports by the Texas Ethics Commission.

SENATOR KEVIN ELTIFE: Senator Zaffirini is recognized for a motion.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move final passage.

SENATOR KEVIN ELTIFE: Senator Zaffirini moves final passage of SB1443. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes and zero nays, SB1443 is finally passed. Congratulations, Senator Zaffirini.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Patrick is recognized for a motion to suspend the regular order of business on Committee Substitute SB841.

SENATOR DAN PATRICK: Thank you, Mr. President and members. I rise to suspend the regular order of business to lay out Committee Substitute to Senate Bill 841, and I appreciate Senator Seliger working with me on this bill as well. We combined our bills. The office of the attorney general cyber crimes division is tasked with criminal investigation of all state computer research network intrusions or breaches of computer security. It s difficult to enforce this statute due to the penalty range defined by a monetary amount similar to criminal mischief and theft. Oftentimes in today's society when a criminal illegally obtains access to federal network it's to steal identifying information, financial information and/or trade secrets which do not necessarily have a monetary amount attached. The Committee Substitute to Senate Bill 841 requires for a penalty for breach of computer security to be determined by the number of computers, computer networks or computer systems accessed without permission rather than monetary standard. The Committee Substitute also adds a definition for critical infrastructure and facility and identifying information and a defense for law enforcement initiating a lawful seizure or search. I believe Senator Ellis has a couple of amendments which is acceptable to the author, and I move to suspend the regular order of business.

SENATOR KEVIN ELTIFE: Senator Patrick moves suspension of the regular order of business to take up and consider Committee Substitute SB841. Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading Committee Substitute SB841. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB841 relating to prosecution of and punishment for the offense of breach of computer security.

SENATOR KEVIN ELTIFE: Following amendment by Ellis.

SENATOR RODNEY ELLIS: Mr. President and members --

SENATOR DAN PATRICK: I can't see over there, Senator --

PATSY SPAW: Floor amendment No. 1 by Ellis.

SENATOR KEVIN ELTIFE: Senator Ellis is recognized to explain the amendment.

SENATOR RODNEY ELLIS: I'm the dark handsome one if you're having trouble seeing me.

SENATOR DAN PATRICK: There's a big crowd in front of you.

SENATOR RODNEY ELLIS: This amendment, which is acceptable to the author, would add a state jail felony level offense if a computer crime involved harm or fraud and the aggregate amount involved was less than $20,000. If the amount involved was $20,000 to a hundred thousand dollars it would be a third degree felony. By removing the word "benefit" we clarify that using a wireless internet connection without the owner's consent will not be enhanced to a felony.

SENATOR DAN PATRICK: It's acceptable to the author, Mr. President.

SENATOR KEVIN ELTIFE: Senator Ellis moves adoption of floor amendment No. 1. It is acceptable to the author Patrick. Is there objection? Chair hears none, floor amendment No. 1 is adopted. Floor amendment No. 2 by Lucio. Secretary please read the amendment.

PATSY SPAW: Floor amendment No. 2 by Lucio.

SENATOR KEVIN ELTIFE: We'll make sure the members have the amendment on their desk first, Senator Lucio. Senator Lucio is recognized to explain the amendment.

SENATOR EDDIE LUCIO: Thank you, Mr. President. Members, this amendment would create a criminal offense based on criminal negligence. It's a crime if it is discovered that quote "identifying information" unquote was left unprotected and unencrypted on a computer network. This is no different than an employee leaving the doors to a bank open and the thieves taking all the money. In both cases the employer or the employee would be charged with a crime. In this case a person charged with a crime would be the individual directly responsible for securing the computer network and encrypting the data. This amendment would also hold those who hold that individual responsible due to negligence in hiring that individual. They would be subject to the same criminal charges. For more than 50,000 individual records being exposed but less than 500,000 records, it would be a class B misdemeanor for 500,000 records being exposed but less than 1 million records. It would be a class A misdemeanor. For over 1 million records being exposed it would result in the state jail felony. This would be perspective, of course, and would not include anything that's happened from the moment this bill becomes law and before.

SENATOR DAN PATRICK: May I ask --

SENATOR KEVIN ELTIFE: Senator Patrick.

SENATOR DAN PATRICK: Senator Lucio, if this amendment were on, how would this impact those currently storing private data?

SENATOR EDDIE LUCIO: Good question, Senator Patrick. It shouldn't impact any individual or businesses that already has the protocols in place to protect this sensitive information. This amendment would only strengthen those protocols, sir.

SENATOR DAN PATRICK: And why do you believe -- if your amendment were to be passed, why do you believe it should be a state jail felony or crime for this violation?

SENATOR EDDIE LUCIO: Well, this would be one charge for a singular act of leaving the data exposed. If this situation did occur, even though protocols are in place to prevent it, the cost to the business, the individuals affected would be comparable to theft. In fact, the amount far exceed the threshold of dollars per theft to be a felony. Even if we estimated that the cost for every one of the million records that would be exposed was worth one penny each, you're still talking about $10,000 being stolen due to a criminal negligence, Senator.

SENATOR DAN PATRICK: Well, let me ask you this. There's been a hot of headlines about the breach at the controller's office, and yesterday the controller clarified that it was the controller's office error. If I read your amendment correctly, if this were law today, she would be facing jail time. Am I not correct?

SENATOR EDDIE LUCIO: That's correct. This is perspective, as I mentioned. Now, I didn't hear all -- hold on. In terms of how this relates to the situation in the controller's office, the situation at the controller's office only highlighted potential problems across the state. Hopefully, it was a wake up call to everyone who houses sensitive data. This amendment would help open those eyes wider to see if any other potential issues still exist and I know I brought it to you a little late and I know that you haven't had a chance to look it over but --

SENATOR DAN PATRICK: Here's what I would respectfully ask and I would ask that you consider pulling it down because we have not had a chance to vet it. I think this is a good bill that I've worked with Senator Seliger on, combining our bills, accepting the amendment from Senator Ellis which we have vetted and I would ask you pull this down, and I think it's something we should revisit the next session or whomever is here in the legislature in the future. I have an issue with when a person makes a mistake, and the mistake made in the controller's office was a huge mistake impacting millions of Texans, but I am not ready right how to say that should be a jail felony. And so I would ask that you pull it down and let's work in the future on this if we need to address it further.

SENATOR EDDIE LUCIO: Well, I want to make it very clear that this is perspective, but I am going to go ahead and honor your request at this point. The process still continues this session. If we can find some middle ground on what I've introduced here today, between now, the House and when it comes back, then I would urge you to please consider this very carefully. I think it's a very good amendment. I think it would strengthen your legislation and it's an important -- it's important for us to address this sort of thing.

SENATOR DAN PATRICK: And Senator, one thing I want to agree with you totally on is that negligence cannot just be brushed aside as gee, we made a mistake, I'm sorry. Because information that's revealed about private individuals whether it's the controller's office or some other agency or some other entity is very serious and I think that this issue at the controller's office and your amendment calls into focus is everyone needs to be very careful when they're processing that data. So I'll continue to work with you. I respect that you will pull it down and thank you for bringing the issue to light.

SENATOR EDDIE LUCIO: I will and I just -- you know, it's very unfortunate what has happened in the controller's office but the impact -- it affects us all and hopefully this conversation we've had -- you know, hopefully we won't have to look back to it as being one that we spoke about and we were worried about in the future. Hopefully we'll overcome all the problems there. Thank you.

SENATOR DAN PATRICK: I agree. Thank you, Senator.

SENATOR KEVIN ELTIFE: Senator Lucio withdraws floor amendment No. 2. Senator Patrick is now recognized for a motion.

SENATOR DAN PATRICK: I move to engrossment, Mr. President.

SENATOR KEVIN ELTIFE: Senator Patrick now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB841 as amended is passed to engrossment. Senator Patrick is recognized for a motion to suspend the constitutional three day rule.

SENATOR DAN PATRICK: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB841. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB841 relating to punishment of breach of computer security.

SENATOR KEVIN ELTIFE: Senator Patrick is recognized for a motion.

SENATOR DAN PATRICK: I move final passage.

SENATOR KEVIN ELTIFE: Senator Patrick now moves final passage of Committee Substitute SB841. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute to SB841 is finally passed. Congratulations, Senator Patrick.

SENATOR DAN PATRICK: Thank you, Mr. President, members, and Senator Seliger.

SENATOR KEVIN ELTIFE: Senator Harris, for what purpose?

SENATOR CHRIS HARRIS: Are we on a break, Mr. President?

SENATOR KEVIN ELTIFE: No, sir, we're about to take up a bill.

SENATOR CHRIS HARRIS: We're what?

SENATOR KEVIN ELTIFE: We're about to take up a piece of legislation.

SENATOR CHRIS HARRIS: Oh, thank you.

SENATOR KEVIN ELTIFE: You're welcome, Senator Harris, thank you. Senator Seliger, are you ready on the redistricting bill? Senator Seliger is recognized for a motion to suspend the regular order of business on Committee Substitute House Bill 600.

SENATOR KEL SELIGER: Thank you, Mr. President. I move to suspend the regular order of business to take up and consider the Committee Substitute to House Bill 600 at this time. Relating to the composition of the districts for election of the members of the state board of education. There are 15 districts each with a population of roughly 1.676 billion people. Roughly twice the size to the state Senate district. The overall deviation or the deviation from ideal in this plan which is before you in a map marked E120 is 5.49 percent. Well, within the acceptable deviation for compliance with the constitution. The plan only splits seven counties in the entire state which we consider a substantial improvement because the current map for the state board of education splits ten counties. Plan E120 is Voting Rights Act compliant. It treats districts one, two, three, and four and 13 favorably. Four out of five districts saw voting rights privileges enhanced in the Senate plan over to the House plan and again and again you will hear the Voting Rights Act invoked, as we have this discussion, because it is critically important and it is the law of the land. And while, Mr. President, there is no attempt to filibuster buster this bill, I would like to describe the districts as they go from one to 15. District one in the far western edge of the maps that you have before us enhances the 2010 Spanish surname border registration. In the House map that we saw, that number was slightly decreased by about percent. We felt that that was inappropriate under Voter Rights Act, so in the map before you it is increased from 62 and a half percent to 64 in a half. We reach these conclusions by a number of ways, but I think accessibility is very important. So we met with the interested parties and people called from all over the state of Texas. I have spoken with members of the state board of education who clearly have an interest in this map, I spoke with representatives of the task force, represented by MALDA and LULAC and took some of their ammunitions and advice as well, as well as the state board of the education and the members of our committee. Moving forward in district two which is based in Corpus Christi, this district is unchanged from the House engrossed version. District three is an important one, it's a Voter Rights Acts district because the House version of House Bill 600 dropped the Spanish surname voter registration by 1.10 percent. Is this a constitutional violation? That's what people discuss in courts, my goal is to have a map that's fair and legal from the day that it is framed and so this particular map enhances that Spanish surname voter registration from 58.7 percent to 59.6 percent. District four which is based in Fort Bend County is also a voter rights district. What our map does is enhances the black voting age population referred to occasionally probably today as B map from 30.4 percent to 33.7 percent. This was largely compiled with the inclusion of more Fort Bend County which is near to the base of the district and lend itself to compactness. District five which is based in San Antonio picked up Kirk County and traded Bexar County precincts to enhance the Spanish surname voter registration in district three as mentioned before. It traded precincts in Travis County, mainly western Travis County with district ten. District six is in the Leo and the Spring area north of Houston. Representative Patricia Harless had an amendment in the House that added part of the Klein Independent School District. What our bill does is it puts the Klein Independent School District together. This is a sort of thing that is desirable and in very many cases where it's possible which we find it is in a lot of cases but not common in the very larger school districts in this state. District seven is very similar to the House engrossed version but loses some precincts in Fort Bend County to district four to enhance district four's black voting age population. It makes up for the population loss in east Texas in two counties that went into district seven. District eight is the Woodlands. And this looks different from the current SBO map because it's a deal more compact and compactness is an interest in redistricting. And it's similar in design to the House engrossed version of this Committee Substitute but it trades precinct in Klein ISD to district six as mentioned before and makes up for that population in the Katie ISD and Harris County and far northwest Harris County. District nine is very similar in concept to the House engrossed version but what this does in east Texas is a district that's far more compact than a House version and far more compact than the district map. District ten which is centered around Georgetown loses McClenon County to district 14 which I'll talk more about in a moment. McClenon County is currently in the 14th district and we sought to put that back together because there was no compelling reason to change it. The Committee Substitute to House Bill 600 restores this configuration and trades some precincts in Travis County with district five. Committee Substitute to House Bill 600 more closely mirrors the current configuration of district ten. District 11 which is centered in Fort Worth loses Denton County to district one for reasons I'll mention here shortly. It makes up that population in northwest Dallas county and part of Arlington ISD. District 12 around Richardson retains Richardson ISD and north Dallas and gains Collin county. District 13 is a voter right's district and enhances the black voter age population from 30.2 percent to 31.3 percent and believe -- and I believe that it meets our obligation to conform in that fashion. District nine loses Collin county to district 12. It is reunited with Denton and McClenon county as within the current configuration. This is one of the things in the map that was shown to us by members of the state board of education. There was no reason to take Denton county out of this district. It has been represented by some time by the office holder in district 14 and so that's what we did. District 15 closely mirrors the design of the House's engrossed version. The most significant change was inclusion of cook county and that was to accommodate for the changes in Denton county. Mr. President, I move suspension.

SENATOR KEVIN ELTIFE: Senator Patrick, for what purpose?

SENATOR DAN PATRICK: Thank you, Mr. President. I'd like to ask questions of the author.

SENATOR KEVIN ELTIFE: Senator Seliger yield?

SENATOR KEL SELIGER: Gladly, Mr. President.

SENATOR DAN PATRICK: Mr. Chairman, on this map as you know, there was -- there's been confusion, confusion always happens, over happens because there are lots of different maps that are out there and passed around and seen and this map is going to be laid out and that map is going to be laid out. And to be frank, there were members currently on the state board of education who thought that you were going to lay out map 118. I'm not sure where that came from but they believe that was the case and they have concerns over your current map and I know you have concerns over 118 and I want to walk through the process of -- because I have some questions. But why did you present map 120 as opposed to 118? Give me your thoughts on that.

SENATOR KEL SELIGER: Map 118, Senator, was presented to me by a state board of education and in it is some perfectly valid architecture and we took some of those things in it. But it's interesting when they laid out the map to me they said we think we might have some voter rights complications in district one which is the district that comes out of El Paso and all the way down toward Webb county and things like that. We analyzed it and found out in fact that there was -- and they didn't try to conceal, that there was a voter rights problem. As I pointed out earlier, that map had a deviation below benchmark on a Spanish surname voter registration. And quite frankly I was unwilling to go there. It's an invitation to go to court and we could do better because we could increase above benchmark Spanish surname voter registration. My impression as vice chairman Gallegos and I looked at things like that, that if you go above the benchmark in both Spanish surname voter registration or black voter age percentage or population that it is a real insulation against accusations and litigation of the Voter Rights About and I think that's extremely important.

SENATOR DAN PATRICK: And things have moved so quickly this week. I think we laid this out on Wednesday, was it Wednesday? And we're all serving on eight, nine or ten committees, but I have not had the opportunity see the map 120. And quite frankly I've been trying to work with the folks on 118 as well as you on 120 and we're moving forward so quickly that I have not been able to get a response from your people or other people with 118. Would you consider holding this until Monday so that we could look at this more?

SENATOR KEL SELIGER: I won't, Senator, respectfully, and here's why. This is essentially a House map. And it came out of the House some time ago and people had a lot of time to see it. And I agree that you got the map on 120 delivered to your office the afternoon before we heard it on Wednesday. But that was Wednesday. Now we're here on Friday and there's been plenty of time. But I'm interested in the fact that members of the SBOE, specific members of SBOE who had map 118 drawn by somebody I've never met before who may be an experienced map maker, he apparently seems to have some skill to me, that their assumption that 118 would be adopted seems to be of whole cloth. We have the same obligation to adopt a map drawn by SBOE as they have to accept our recommendations on textbooks. We do our job as a legislature, they do the job that they are constitutionally and statutorily empowered to do.

SENATOR DAN PATRICK: The issue, just to clarify as you know, because we've been working a lot on the same issues, we have been going -- or my office has been going 12 or 15 hours a day, we start at 8:00, we get home at midnight, we have not had a chance to really spend the time on this as we've looked at budget issues and other important issues in front of us. Let me ask you about district one. One of the concerns that is expressed to me and I'd like you to explain this to the members, and I know a lot of people around the state are watching so I'd like for you to kind of walk through district one. To my knowledge -- and we're very focused on the voter rights issues. We're very focused on the Hispanic population as it's spreading across the state and increasing but in district one you have the only Hispanic member of the board, I believe. Correct?

SENATOR KEL SELIGER: No, Ms. Berlunga, in district two.

SENATOR DAN PATRICK: I'm sorry, the only Republican Hispanic member of the board.

SENATOR KEL SELIGER: I believe that's correct.

SENATOR DAN PATRICK: Charley Garza. Well qualified Naval officer, ran his campaign and we have taken Midland county out in this map, out, and replacing it and some view that this Hispanic Republican would have a hard time winning because there are a lot of Republicans in Midland county that have been removed so while we need to look at the correct deviations, the voter right issues, the Hispanic and the African American issues and I know you and your staff have put a lot of time in these maps and some people from the outside don't realize that it's not as easy as it looks, everything has to work. But it does give me pause for concern that we have a Hispanic Republican and it seems like quite frankly the way this map is drawn losing Midland county, it will be very tough for him to win. And so how does that play into making sure we're looking out for the Hispanic population?

SENATOR KEL SELIGER: When Mr. Garza won this district, it was against substantial odds in the first place and I'll explain why, but let's go first to the issue of the Voting Rights Act requirement in this district. The map that puts Midland county in this district reduces the Spanish surname voter registration. Quite frankly I am unwilling to do that and --

SENATOR DAN PATRICK: Repeat that. So 118 reduces.

SENATOR KEL SELIGER: Yes, it reduces the Spanish surname voter registration.

SENATOR DAN PATRICK: In district one.

SENATOR KEL SELIGER: Yes. And quite frankly I'm willing to do that unless there's a situation, unless it's absolutely unavoidable. If it is unavoidable, there are an awful lot of people and a lot of people bid on litigation would say you have to do it. When you put Hector county into district one it raises that Spanish surname voter registration and I believe section two of the Voter Rights Act one is compelled to do it. But let's talk about the fact that Charlie Garza won an upset victory in district one as a Hispanic Republican. The distinction is important here because if you look at a Republican number and there's a lot of ways we reach Republican numbers and they maybe what's called the orbis or they maybe the McCain numbers reflecting on the results of the last national election in the map E120, the Republican number or percentage is and a half percent and that's with Hector county in district one. If you move Midland county into district one extend, that number only goes to about 48 to 48 and a half percent and what that means is -- let me give you an example. You won your district with an Orbis of about 63 percent, overwhelmingly Republican. Anything under about 52, 53 percent is very hugely contested and under 50 percent there will be an advantage to, in this district, the Democratic candidate. It's a situation that Mr. Garza confronted in November and one which he will have going forward because this is an overwhelmingly Spanish surname district.

SENATOR DAN PATRICK: And I realize that your goal -- and I served with you on the committee that our goal is to draw a fair and legal map and we're not looking at the partisanship of these issues but I've received a lot of e-mails, a lot of phone calls that this was a concern. And so I wanted you on the record and for all the people listening and hearing and will read it to understand why that change was made. Now, I'm going to respectfully present it as an amendment map 118 and let the will of the body decide whether or not to accept it or to stay with 120. But that was an issue that I thought needed to be addressed in committee and because time was short we said we'd do it on the floor here. Let me ask you about district six which overlaps part of the district that I'm proud to represent Senate district seven. In that district, and my Senate district is now the largest in the state with 1,015,000. So obviously when we get to Senate maps I'm going to have to give up about 204,000 people, I don't want to lose one, I love them all but I'm over and others are under. Is the reason that district six was changed in the SBOE map? Was it more to do with having to give up population because that also is a big district over the numbers or was it to do more with other issues?

SENATOR KEL SELIGER: My acceptance of the expansion on the House bill there, and I'm not advised of exactly what the population numbers were with the Harless amendment that put the Klein Independent School District amendment together, it was my impression given the information that I had that that was the over averaging goal in Senate district six was to put the Klein Independent School District together. Interestingly I've heard no different from the office holder.

SENATOR DAN PATRICK: So cutting off part of the western part of the county to put Klein together was also part of -- if you change that, does that change the deviation in your view of all the other districts surrounding it, Democratic and Republican?

SENATOR KEL SELIGER: I'm sorry, I do not have those figures at hand. All I can tell you is the deviation is a legal or constitutional one.

SENATOR DAN PATRICK: Once again, I will respectfully bring up an amendment for 118 and let the will of the body decide. I thank you for your work on this, I thank you for your answers on the floor to these questions.

SENATOR KEL SELIGER: Thank you, Senator.

SENATOR KEVIN ELTIFE: Thank you, Senator Patrick. Senator Gallegos.

SENATOR KEL SELIGER: To save time, I will yield.

SENATOR KEVIN ELTIFE: Senator Seliger yields, Senator Gallegos.

SENATOR MARIO GALLEGOS: Thank you, Mr. President. Senator Seliger, you know, I presented an amendment in committee and I've been asked to do it again and I just want to tell you that I'm going to do it. And had I known -- I just got the phone call a while ago I would have told you, so I want you to please -- apologize to you that I did not tell you. But I believe it's something that needs to be said and the amendment needs to be offered and I offered it in committee and it was voted down eight to six and I'll speak to it at the time of the amendment and my reasons for bringing it forward. Senator, I do like -- obviously the map that you have and all that but I did want to bring forward affects Harris County, the Harris County area only but I think what you've done for the rest of the state is -- you know, I mean, it's a good job that you've done and I approve of the map. But because of the population explosion in the Harris County metroplex and the majority of the population of kids in our school districts are Latina, I do believe they deserve another voice on the state board of education. That is the primary reason and I'll go into my remarks when the amendments come up, Mr. Chairman. And I just wanted you to know that and I'll explain it to the members when the amendment comes up.

SENATOR KEL SELIGER: Thank you.

SENATOR KEVIN ELTIFE: Thank you, Senator Gallegos. Senator Watson, for what purpose?

SENATOR KIRK WATSON: Question of the author.

SENATOR KEVIN ELTIFE: Senator Seliger yield?

SENATOR KEL SELIGER: I will.

SENATOR KIRK WATSON: Thank you, Mr. Chairman. I wanted to talk to you quickly about the map with regard to Senate district ten. Senate district five as it relates to Travis county. Travis county ends up -- and I was listening to your opening comments and went to the committee hearing and you talked out an effort being made across the state not to divide counties. And, of course, Travis county in this map is divided in such a way that a county that has over a million people could serve as the anchor of its own district. In fact, if you just looked at the SMSA for central Texas and dropped Caldwell county out, you could have a district that comes very close to almost an ideal number of people. But can you tell me the reason that Travis county ends up being divided?

SENATOR KEL SELIGER: Well, we'd have to go back years and years and years because Travis county for, I think as long as the body can remember, has been divided. And it is divided today as are almost all large school districts in the state of Texas. Dallas, Fort Worth, Arlington, Houston, San Antonio, all divided. If we were to put all the population in Travis county, there would still be the divisions that you talk about because it would still spill over into another county. And so while what you suggest may be possible, I don't believe that it is legally required, and I don't know that it really changes that much.

SENATOR KIRK WATSON: When you did the dividing line, was there any effort to look at where the line divides the minority community in Travis county? As you and I have discussed, the Travis county minority community is extremely effective at building coalitions to elect candidates of its choice and I'm curious about whether in putting the dividing line and in fact the Committee Substitute changes the dividing line whether or not there was any thought put into the division of the minority population in Travis county.

SENATOR KEL SELIGER: In the context of does this map comply with the Voting Rights Act, yes, it was scrutinized to that degree and that's why we believe this map to be legal.

SENATOR KIRK WATSON: Thank you, Mr. Chairman.

SENATOR KEVIN ELTIFE: Thank you. Senator Seliger moves suspension of the regular order of business to take up and consider Committee Substitute House Bill 600. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 28 ayes, three nays, the rules are suspended. The Chair lays out on second reading Committee Substitute House Bill 600. The secretary will read the caption.

PATSY SPAW: Committee Substitute House Bill 600 relating to the composition of the districts for the election of members of the state board of education.

SENATOR KEVIN ELTIFE: Following amendment. Secretary read the amendment.

PATSY SPAW: Floor amendment No. 1 by Patrick.

SENATOR KEVIN ELTIFE: Senator Patrick to explain the amendment.

SENATOR DAN PATRICK: Thank you, Mr. President. Members, this is the map 118 that I respectfully submit on behalf of SBOE members who feel that this map meets the requirements of the voter's rights issues and it best represents the state in a fair and legal manner and I ask consideration of the amendment.

SENATOR KEVIN ELTIFE: Senator Seliger on the amendment.

SENATOR KEL SELIGER: Thank you, Mr. President. We have a fundamental disagreement because I don't believe it does meet the requirements of the Voters Right Act. Portions of 118 were very much considered in the composition of this map and therefore I respectfully move to table the amendment.

SENATOR KEVIN ELTIFE: Senator Patrick to close on the amendment.

SENATOR DAN PATRICK: Senator Seliger, just one question. Are you confident that 120 meets scrutiny as well of voter rights issues?

SENATOR KEL SELIGER: Given the information that we used in composing this map, I believe this is a both a fair map and a legal map. I think from the time going back at least until 1971 litigation on these things are common but -- and this is going to be a recurring theme as we go forward through state Senate maps and congressional maps. We get these things vetted. I think we have retained some of the best legal redistricting people in the state of Texas and nation. People that -- that vice chairman Gallegos and I have met with at length and traveled with and it is with as much confidence as I can have as a person without that legal expertise that this is a legal map.

SENATOR DAN PATRICK: Well, you are correct. There are a lot of lawyers on this floor, you and I are not two of those and we've had debates here between two very smart lawyers within the same party, Democrats, Republicans, who agree to disagree and obviously the people who have presented map 118 that I'm presenting believes their map does as well and I'm not in a position to argue for or against yours in a legal basis or ours. But I present the map, I've stood alone on the floor a lot in my three sessions of the Senate. I may be a lot again, but I'm going to ask for consideration of the amendment.

SENATOR KEL SELIGER: And you kind of make my case for me, Senator. I certainly don't want to seem ungrateful but when the gentleman who made this map laid it out for me, he said we believe we have a Voting Rights Act a section two -- I don't know what section, a voting rights problem in district one. And indeed on scrutiny from the legal people we consult they believe we did have a voting rights problem in map 118 and that's why I don't really thing we can legitimately consider it.

SENATOR DAN PATRICK: Okay. He did not share that with me and said that he had concerns about 120, but I realize you all have had a lot of discussions about a lot of maps. So I will stand at the will of the Senate here.

SENATOR KEL SELIGER: Move to table.

SENATOR KEVIN ELTIFE: Senator Seliger has moved to table floor amendment No. 1. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 29 ayes, two nays, the motion to table prevails.

SENATOR KEL SELIGER: Mr. President.

SENATOR KEVIN ELTIFE: Yes, Senator Seliger.

SENATOR KEL SELIGER: If it pleases the Senate, the amendment that vice chairman Gallegos is considering is not ready yet and has not been drafted and with respect to the Senator, the process and our committee, I would like to delay consideration of the Committee Substitute to House Bill 600 until 12:30 p.m.

SENATOR KEVIN ELTIFE: Senator Seliger moves to postpone consideration until 12:30. Members, is there any objection? Hearing none, so ordered. Thank you, Senator.

SENATOR KEL SELIGER: Thank you, Mr. President.

SENATOR KEVIN ELTIFE: Senator Ellis is recognized for a motion to suspend the regular order of business on Committee Substitute SB1681.

SENATOR RODNEY ELLIS: Thank you, Mr. President and members. This is a bill that came out of the criminal justice committee unanimously. It does three things. It will approve the appointment of probation revocation appeals about -- and now, it clarifies appointment for probation revocation appeals. It requires trial counsel to advise a defendant of his right to file a motion for new trial or appeal and help the defendant request appointment of replacement counsel if the defendant wishes to do so and it seeks rural counties to authorize any magistrate to give required warnings including about the rate of counsel to persons arrested on motions to revoke probations. I move to suspend the Senate's regular order of business to take up and consider the Committee Substitute to Senate Bill 1681.

SENATOR KEVIN ELTIFE: Senator Ellis moves suspension of the regular order of business to take up and consider Committee Substitute SB1681. Is there objection? Chair hears none, rules are suspended. Chair lays out on second reading Committee Substitute SB1681. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1681 relating to appointment of counsel and the rights of an accused.

SENATOR KEVIN ELTIFE: Senator Ellis is recognized for a motion.

SENATOR RODNEY ELLIS: I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Ellis now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute to SB1681 is passed to engrossment. Senator Ellis is now recognized for a motion to suspend the constitutional three day rule.

SENATOR RODNEY ELLIS: So moved, Mr. President.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1681. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1681 relating to the appointment of counsel and the rights of an accused.

SENATOR KEVIN ELTIFE: Senator Ellis recognized for a motion.

SENATOR RODNEY ELLIS: Thank you, Mr. President. I move final passage.

SENATOR KEVIN ELTIFE: Senator Ellis now moves final passage of Committee Substitute SB1681. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1681 relating to the appointments of counsel and rights of accused.

SENATOR KEVIN ELTIFE: Senator Ellis has moved final passage. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute SB1681 is finally passed. Congratulations, Senator Ellis.

SENATOR RODNEY ELLIS: Thank you, sir.

SENATOR KEVIN ELTIFE: Senator Zaffirini is recognized for a motion to suspend the regular order of business on Committee Substitute SB35.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. Mr. President and members, I move to suspend the Senate's regular order of business in order to take up and consider at this time the Committee Substitute for Senate Bill 35 which relates to the transition and employment services for public school students enrolled in special education programs. Members, this is a bill that we passed in 2009 but it died in the closing days of the session in the House and it's a bill that would provide the transition planning would begin no later than when the student reaches 14 years of age instead of a federally required minimum age of 16 if those students are in a special education program. Mr. President, I move suspension.

SENATOR KEVIN ELTIFE: Senator Zaffirini moves suspension of the regular order of business to take up and consider Committee Substitute SB35. Is there objection? Chair hears none, the rules are suspended. The Chair lays out on second reading Committee Substitute SB35. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 35 relating to the transition and employment services for public school students enrolled in special education programs.

SENATOR KEVIN ELTIFE: Senator Zaffirini is recognized for a motion.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Zaffirini now moves passage to engrossment. Is there objection? Hearing none, Committee Substitute SB35 is passed to engrossment. Senator Zaffirini is recognized for a motion to suspend the constitutional three day rule.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move to suspend the constitutional rule that bills be read on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 29 ayes, two nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB35. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB35 relating to transition and employment services for public school students enrolled in special education programs.

SENATOR KEVIN ELTIFE: Senator Zaffirini is recognized for a motion.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move final passage.

SENATOR KEVIN ELTIFE: Senator Zaffirini now moves final passage of Committee Substitute SB35. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 29 ayes, two nays, Committee Substitute SB35 is finally passed. Congratulations, Senator Zaffirini.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Van de Putte is recognized for a motion to suspend the regular order of business on SB710.

SENATOR LETICIA VAN DE PUTTE: Thank you, Mr. President and members. I move to suspend the Senate's regular order of business to take up and consider at this time Senate Bill 710. Members, this bill is to protect Texas families and requiring the notice of hazardous swimming pool, spa or hot tub drain in a sellers disclosure notice of residential property. It raises awareness of one thing that has occurred with drowning deaths in home swimming pools or hot tubs or spas by making sure that the suction entrapment areas included in the sellers disclosure. We worked a great deal of time with all the swimming pool and spa professionals and with the Texas Association of Realtors. Members, this bill will help protect Texas families and particularly those with children who enjoy their swimming pools. I move to suspend the Senate's regular order of business to take up and consider Senate Bill 710.

SENATOR KEVIN ELTIFE: Senator Van de Putte moves suspension of the regular order of business to take up and consider SB710. Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading SB710. The secretary will read the caption.

PATSY SPAW: SB710 relating to the disclosure of a hazardous drain in a swimming pool or spa.

SENATOR KEVIN ELTIFE: Senator Van de Putte is recognized for a motion.

SENATOR LETICIA VAN DE PUTTE: I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Van de Putte moves passage to engrossment. Is there objection? Chair hears none, SB17 is passed to engrossment. Senator Van de Putte recognized for a motion to suspend the constitutional three day rule.

SENATOR LETICIA VAN DE PUTTE: So moved, Mr. President.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 29 ayes, two nays, the rule is suspended. The Chair lays out on third reading and final passage SB710. The secretary will read the caption.

PATSY SPAW: SB710 relating to disclosure of a hazardous drain in a swimming pool or spa.

SENATOR KEVIN ELTIFE: Senator Van de Putte is recognized for a motion.

SENATOR LETICIA VAN DE PUTTE: Move final passage of Senate Bill 710.

SENATOR KEVIN ELTIFE: Senator Van de Putte moves final passage of SB710. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, SB710 is finally passed. Congratulations, Senator Van de Putte.

SENATOR LETICIA VAN DE PUTTE: Thank you, Mr. President. Thank you, members.

SENATOR KEVIN ELTIFE: Senator Patrick is recognized for a motion to suspend the regular order of business on Committee Substitute SB1200.

SENATOR DAN PATRICK: Been a busy day on this microphone, Mr. President. I rise to suspend the regular order of business and lay out Committee Substitute to Senate Bill 1200. This is a local bill, members. It's bracketed to Harris County and basically what it does is we have a backlog in some of our justice courts, justice of the peace courts, some have a 150,000 cases, some have 15,000, this just allows the county to move the cases around. And I move to suspend the regular order of business and move this local bill forward quickly.

SENATOR KEVIN ELTIFE: Senator Patrick moves to suspend the regular order of business to take up and consider Committee Substitute SB1200. Is there objection? Chair hears none, rules are suspended. The Chair lays out on second reading Committee Substitute SB1200. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1200 relating to the venue for prosecution of misdemeanor cases in justice of the peace courts.

SENATOR KEVIN ELTIFE: Senator Patrick is recognized for a motion.

SENATOR DAN PATRICK: Move to engrossment.

SENATOR KEVIN ELTIFE: Senator Patrick now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB1200 is passed to engrossment. Senator Patrick is now recognized for a motion to suspend the constitutional three day rule.

SENATOR DAN PATRICK: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1200. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1200 relating to the venue of prosecution for certain misdemeanor cases.

SENATOR KEVIN ELTIFE: Senator Patrick is recognized for a motion.

SENATOR DAN PATRICK: Move final passage.

SENATOR KEVIN ELTIFE: Senator Patrick now moves final passage of Committee Substitute SB1200. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute SB1200 is finally passed.

SENATOR DAN PATRICK: Thank you, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Davis is recognized for a motion to suspend the regular order of business on Committee Substitute SB1107.

SENATOR WENDY DAVIS: Thank you, Mr. President and members. I move to suspend the Senate's regular order of business to take up and consider Committee Substitute for Senate Bill 1107. Last session this body passed out legislation that was signed into law which required first time students of to a public or private institutions of higher education who live in on campus housing to provide proof of meningitis vaccination. Members may remember that last week we had on the floor of the family of Nicolas Williams a young man who was not a student living in campus housing and contracted meningitis while a student at A&M and died. The Committee Substitute for Senate Bill 1107 would require all entering students of a public or private institution of higher education to show proof of being vaccinated against meningitis. This would not apply to students who are 30 years old or older or students who are enrolled in online classes and it maintains all current options for refusal of a vaccine that exist under current law. All of our public universities are supportive of this requirement as are the private institutions in the state of Texas. I also do have a floor amendment, Mr. President.

SENATOR KEVIN ELTIFE: Senator Lucio, for what purpose?

SENATOR EDDIE LUCIO: Will the Senator yield, please?

SENATOR WENDY DAVIS: Yes, of course, Senator.

SENATOR EDDIE LUCIO: Senator, I want to publicly thank you for working so hard and this particular issue meningitis is obviously something that is catastrophic to the people that come in contact with it and I appreciate the fact that the bill continues to have Jamie Schanbaum's name on it. A young lady that comes from my area of the state whose family has been very dedicated in working with her. As we witnessed not too long ago she was here on the floor of the Senate after her battle with meningitis, a very rare part of meningitis as we know it. It really affected her but not so much, it didn't affect her spirit because what I saw was certainly a young lady that is totally focused and trying to be an ambassador to this particular disease for the rest of the state and country and world to know that there is hope. I also want to, you know, pay my respects to the young man that you're honoring here as well and to his family but -- and I continue to work alongside of you because I know you put a lot of hours and a total commitment dedication to this particular issue. So I wanted this morning to just congratulate you and thank you for all your efforts that you made on addressing meningitis in our state. Thank you.

SENATOR WENDY DAVIS: Thank you, Senator Lucio. And I know this issue has been a terribly important one to you and you've been such a leader on it and I'm honored to have you as a coauthor on this particular bill. Thank you for your support.

SENATOR EDDIE LUCIO: Thank you.

SENATOR WENDY DAVIS: At this time, Mr. President, I move to suspend the regular order of business.

SENATOR KEVIN ELTIFE: Senator Davis moves suspension of the regular order of business to take up and consider Committee Substitute SB1107. Is there objection? Chair hears none, rule is suspended. Chair lays out on second reading Committee Substitute SB1107. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1107 relating to vaccination against bacterial meningitis of entering students at public and private institution us of higher education.

SENATOR KEVIN ELTIFE: The following amendment by Davis.

SENATOR WENDY DAVIS: Thank you, Mr. President, this amendment -- I'm sorry.

SENATOR KEVIN ELTIFE: Secretary read the amendment.

PATSY SPAW: Floor amendment No. 1 by Davis.

SENATOR KEVIN ELTIFE: Senator Davis to explain the amendment.

SENATOR WENDY DAVIS: Thank you, Mr. President. This amendment seeks to add the names of Jamie Schanbaum and Nicholas Williams. Nicholas who of course succumbed to bacterial meningitis and as Senator Lucio mentioned Jamie Schanbaum who was very dramatically affected by meningitis and has become a spokesperson for this. This would name the act on behalf of both Jamie and Nicholas and I move adoption of the floor amendment.

SENATOR KEVIN ELTIFE: Members, Senator Davis moves adoption of floor amendment No. 1. Is there objection? The Chair hears none, floor amendment No. 1 is adopted. Senator Davis now recognized for a motion.

SENATOR WENDY DAVIS: Thank you, Mr. President. I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Davis now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB1107 as amended is passed to engrossment. Senator Davis is now recognized for a motion to suspend the constitutional three they rule.

SENATOR WENDY DAVIS: So moved, Mr. President.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 28 ayes, three nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1107. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1107 relating to the vaccination against bacterial meningitis.

SENATOR KEVIN ELTIFE: Senator Davis recognized for a motion.

SENATOR WENDY DAVIS: Thank you, Mr. President. I move final passage of Committee Substitute to Senate Bill 1107, the act which shall be known as the Jamie Schanbaum and Nicholas Williams Act.

SENATOR KEVIN ELTIFE: Senator Davis now moves final passage of Committee Substitute SB1107 as amended. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 29 ayes, two nay, Committee Substitute SB1107 as amended is finally passed. Congratulations Senator Davis.

SENATOR WENDY DAVIS: Thank you, Mr. President. Thank you, members. Thank you, Senator Lucio.

SENATOR KEVIN ELTIFE: Senator Shapiro is recognized for a motion to suspend the regular order of business on Committee Substitute SB1534.

SENATOR FLORENCE SHAPIRO: Thank you very much, Mr. President and members. I move to suspend the Senate's regular order of business to take up and consider Committee Substitute to Senate Bill 1534. This bill is a nexus issue. Currently the Texas Work Force Commission requires online institutions to obtain a certificate of approval from the commission before they can maintain, advertise, solicit or conduct any program of instruction in Texas. Committee Substitute to Senate Bill 1534 aligns Texas regulation more closely with other states, adopting a physical presence test for the jurisdiction of online career schools. This bill is limited to only those online schools that are already federally regulated and licensed by their home state. The Texas Deceptive Trade Practices Act already has provisions to deal with false advertising and solicitation requiring therefore bad actors in the academic online industry will continue to be well regulated. Move suspension of the Senate's regular order of business at this time.

SENATOR KEVIN ELTIFE: Senator Van de Putte, for what purpose?

SENATOR LETICIA VAN DE PUTTE: Will Senator Shapiro yield?

SENATOR FLORENCE SHAPIRO: Yes, I will.

SENATOR LETICIA VAN DE PUTTE: Thank you, Senator Shapiro. And I was in the chamber in the hearing room when part of this and the stories of this. And my questions deal specifically with -- as you know many veterans are able to use their higher education benefits entitled to them either through the Montgomery Act, the GI bill because of their service to receive a higher education. I wanted to make sure that those types of regulations that would -- you would have for these online schools would make sure that either --

SENATOR FLORENCE SHAPIRO: I'm sorry, Senator, that's the wrong bill. This is 1534. You're talking about 1472.

SENATOR LETICIA VAN DE PUTTE: I am so sorry.

SENATOR FLORENCE SHAPIRO: That's all right. Thank you.

SENATOR LETICIA VAN DE PUTTE: Thank you. I erase my questions.

SENATOR KEVIN ELTIFE: Thank you, Senator Van de Putte. Senator Lucio, do you wish to be recognized?

SENATOR EDDIE LUCIO: Will Senator Shapiro yield?

SENATOR FLORENCE SHAPIRO: Yes.

SENATOR EDDIE LUCIO: Senator, by changing the definition of a career school for which the Texas Work Force Commission has regulatory authority, how will TWC's regulatory authority change?

SENATOR FLORENCE SHAPIRO: I'm so sorry but you're also on the wrong bill. This is no -- this is 1534 and I think your questions are 1472 or whatever.

SENATOR EDDIE LUCIO: And I apologize, I thought it dealt with this --

SENATOR FLORENCE SHAPIRO: It's the same subject but it's a completely different -- I mean, it's a career school but this is about online only.

SENATOR EDDIE LUCIO: This has --

SENATOR FLORENCE SHAPIRO: This one is about online.

SENATOR EDDIE LUCIO: I apologize.

SENATOR FLORENCE SHAPIRO: That's all right.

SENATOR KEVIN ELTIFE: Thank you, Senator Lucio.

SENATOR EDDIE LUCIO: I'll ask that question later.

SENATOR KEVIN ELTIFE: Senator Shapiro now moves suspension of the regular order of business to take up and consider Committee Substitute SB1534. Is there objection? Chair hears none, rules are suspended. The Chair lays out on second reading Committee Substitute to SB1534. The secretary will read the caption.

PATSY SPAW: Committee Substitute to SB1534 relating to operation and function of career schools or colleges.

SENATOR KEVIN ELTIFE: Senator Shapiro is recognized for a motion.

SENATOR FLORENCE SHAPIRO: I move passage to engrossment of Committee Substitute to Senate Bill 1534 at this time.

SENATOR KEVIN ELTIFE: Senator Shapiro now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute to Senate Bill 1534 is passed to engrossment. Senator Shapiro is now recognized for a motion to suspend the constitutional three day rule.

SENATOR FLORENCE SHAPIRO: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1534. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1534 relating to the operation and certification of career schools or colleges.

SENATOR KEVIN ELTIFE: Senator Shapiro is recognized for a motion.

SENATOR FLORENCE SHAPIRO: Thank you, Mr. President. I move final passage of Committee Substitute to Senate Bill 1534 at this time.

SENATOR KEVIN ELTIFE: Senator Shapiro moves final passage of Committee Substitute SB1534. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute SB1534 is finally passed. Congratulations, Senator Shapiro.

SENATOR FLORENCE SHAPIRO: Thank you.

SENATOR KEVIN ELTIFE: Senator Zaffirini is recognized for a motion to suspend the regular order of business Committee Substitute SB1450.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. Mr. President and members, I move to suspend the Senate's regular order of business in order to take up and consider at this time the Committee Substitute for Senate Bill 1450 which relates to the regulation of crafted precious metal dealers and providing a criminal penalty. Members, I will have a floor amendment that will bracket this only for Laredo and what the bill does it establishes cash for gold dealers under the same regulatory process as peddlers, hockers, and pawnbrokers. Mr. President, I move suspension.

SENATOR KEVIN ELTIFE: Senator Zaffirini moves suspension of the regular order of business to take up and consider which Committee Substitute SB1450. Is there objection? Chair hears none, rule is suspended. The Chair lays out on second reading Committee Substitute SB1450. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1450 relating to the regulation of crafted precious metal dealers and dealerships.

SENATOR KEVIN ELTIFE: The following amendment. Secretary read the amendment.

PATSY SPAW: Floor amendment No. 1 by Zaffirini.

SENATOR KEVIN ELTIFE: Senator Zaffirini to explain the amendment.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. Mr. President and members, as I mentioned in my opening statement this amendment brackets this bill simply for the city of Laredo. Mr. President, I move adoption.

SENATOR KEVIN ELTIFE: Senator Zaffirini moves adoption of floor amendment No. 1. Is there objection? The Chair hears none, floor amendment No. 1 is adopted. Senator Zaffirini is now -- Senator Jackson, for what purpose?

SENATOR MIKE JACKSON: Will the gentle lady yield?

SENATOR KEVIN ELTIFE: Senator Zaffirini yield?

SENATOR JUDITH ZAFFIRINI: I will.

SENATOR MIKE JACKSON: Thank you, Senator Zaffirini. We had this bill -- is this the right bill?

SENATOR JUDITH ZAFFIRINI: Yes, it is.

SENATOR MIKE JACKSON: Okay. I know this bill went through committee and it had some opposition and your solution to taking care of the opposition is bracketed to Laredo. But then I look at your amendment and it strikes all below the enacting clause and substitute the following new bill. Is it the same bill just with a --

SENATOR JUDITH ZAFFIRINI: Correct. Been bracketed for just Laredo.

SENATOR MIKE JACKSON: Okay. And let me just ask you this one question. It does not apply to a person that is required to hold a dealerships license under subchapter B1?

SENATOR JUDITH ZAFFIRINI: It only applies to the city of Laredo and the cash for gold dealers in the city of Laredo.

SENATOR MIKE JACKSON: Okay, thank you.

SENATOR JUDITH ZAFFIRINI: Thank you, sir.

SENATOR KEVIN ELTIFE: Thank you, Senator Jackson. Senator Zaffirini is recognized for a motion.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move adoption -- move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Zaffirini now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB1450 as amended is passed to engrossment. Senator Zaffirini is now recognized for a motion to suspend the constitutional three day rule.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President. I move to suspend the constitutional rule that bills be read on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1450 as amended. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1450 relating to the regulation of crafted precious metal dealers and dealerships.

SENATOR KEVIN ELTIFE: Senator Zaffirini is recognized for a motion.

SENATOR JUDITH ZAFFIRINI: Mr. President, I now move final passage.

SENATOR KEVIN ELTIFE: Senator Zaffirini now moves final passage of Committee Substitute SB1450 as amended. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute SB1450 as amended is finally passed. Congratulations, Senator Zaffirini.

SENATOR JUDITH ZAFFIRINI: Thank you, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Davis is recognized for a motion to suspend the regular order of business on House Bill 861.

SENATOR WENDY DAVIS: Thank you, Mr. President and members. I move to suspend the regular order of business to take up and consider House Bill 861. Oh, I'm sorry. I guess I should --

SENATOR KEVIN ELTIFE: Would you like to describe this.

SENATOR WENDY DAVIS: I'm sorry, my mind is in a million different places right now. Members, House Bill 861 is similar -- it's exactly the same, it's the companion bill to the Senate Bill that we just passed out earlier this week requiring that at least one member of the 17 member governors continuing advisory committee for special education for a director of a special program in Texas public schools. We passed this off unanimously from the Senate floor in the companion Senate Bill. Mr. President, I move to suspend the regular order of business.

SENATOR KEVIN ELTIFE: Senator Davis now moves suspension of the regular order of business to take up and consider House Bill 861. Is there objection? Chair hears none, the rules are suspended. The Chair lays out on second reading House Bill 861. The secretary will read the caption.

PATSY SPAW: House Bill 861 relating to membership of the state continuing advisory committee for special education services.

SENATOR KEVIN ELTIFE: Senator Davis recognized for a motion.

SENATOR WENDY DAVIS: Thank you, Mr. President. I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Davis now moves passage to third reading. Is there objection? Hearing none, House Bill 861 is passed to the third reading. Senator Davis is now recognized for a motion to suspend the constitutional three day rule.

SENATOR WENDY DAVIS: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage House Bill 861. The secretary will read the caption.

PATSY SPAW: House Bill 861 relating to membership of the state continuing advisory committee for special education services.

SENATOR KEVIN ELTIFE: Senator Davis recognized for a motion.

SENATOR WENDY DAVIS: Thank you, Mr. President. I move final passage.

SENATOR KEVIN ELTIFE: Senator Davis now moves final passage of House Bill 861. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, House Bill 861 is finally passed. Congratulations, Senator Davis. Senator Shapiro is recognized for a motion to suspend the regular order of business on Committee Substitute SB1472.

SENATOR FLORENCE SHAPIRO: Thank you very much, Mr. President and members. I would ask to suspend the Senate's regular order of business to take up and consider Committee Substitute to Senate Bill 1472. Last session I authored Senate Bill 174 which created an online resume process for the public institution of the state of Texas. This bill expands the online resume structure to include for profit institutions. The coordinating board and the Work Force Commission already collect information regarding for profit schools but this simply pools these resources and makes the information easily accessible to consumers. Currently TAFC investigates student complaints about career schools. This bill provides an avenue to allow students to make complaints via interactive web connections. The complaints will then be referred to the AG's office for review and resolve. Members, this issue was brought to my attention by a series of Peabody award winning investigative news winning stories by Byron Harris WFAA in Dallas. He uncovered significant problems with unscrupulous sales and solicitations tactics for career certifications. I move suspension of the Senate's regular order of business at this time.

SENATOR KEVIN ELTIFE: Senator Shapiro moves suspension of the regular order of business to take up and consider Committee Substitute SB1472. Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading Committee Substitute SB1472. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1427 relating to the coordinating dissemination of online information.

SENATOR KEVIN ELTIFE: Senator Shapiro is recognized for a motion.

SENATOR FLORENCE SHAPIRO: Thank you, Mr. President and members. I move passage to engrossment of Committee Substitute of Senate Bill 1427 at this time.

SENATOR KEVIN ELTIFE: Senator Shapiro now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB1472 is now passed to engrossment. Senator Shapiro is now recognized for a motion to suspend the constitutional three day rule.

SENATOR FLORENCE SHAPIRO: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 29 ayes, two nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1472. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1472 relating to the coordinating dissemination of certain online information.

SENATOR KEVIN ELTIFE: Senator Shapiro is recognized for a motion.

SENATOR FLORENCE SHAPIRO: Thank you. I move final passage of Committee Substitute to Senate Bill 1472 at this time.

SENATOR KEVIN ELTIFE: Senator Shapiro now moves final passage of Committee Substitute SB1472. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, Committee Substitute SB1472 is finally passed. Congratulations, Senator Shapiro.

SENATOR FLORENCE SHAPIRO: Thank you very much, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Duncan is now recognized for a motion to suspend the regular order of business Committee Substitute SB1667.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. This is another bill that we're doing with the TRS. It's a clean up bill but it also does another thing. It amends section 551.13 of the government code to limit TRS trustees to participate in a board meeting by conference call to no more than one per calendar year. I think Senator Zaffirini had a similar provision in Senate Bill 5 that's still awaiting passage for other types of boards. Provides the TRS executive director powers regarding release of information where the deceased member is not designated in an executive or state administrative. It cleans up various nonsubstantive references such as definition that we now use in current modern terminology which do not subsequently affect anything. It also includes a temporary provision allowing the state to contribute -- and this is the part that is important for our appropriations bill with TRS. It includes a temporary provision allowing the state to contribute less enacted members to the pension fund but only for the year 2012. It includes a temporary provision allowing the state to contribute less than 1 percent as required by the insurance code to TRS care during FY213, 2013 only. These are things we did to be able to continue benefits and manage our TRS care during this tough budget time. With that I move suspension of the Senate's regular order of business to take up and consider Committee Substitute for Senate Bill 16167.

SENATOR KEVIN ELTIFE: Senator Duncan moves suspension of the regular order of business to take up and consider Committee Substitute to Senate Bill 1667. Is there objection? Char hears none, the rules are suspended. The Chair lays out on second reading Committee Substitute SB1667. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1667 relating to the administration of and benefits payable by the Teacher Retirement System of Texas.

SENATOR KEVIN ELTIFE: Senator Duncan is recognized for a motion.

SENATOR ROBERT DUNCAN: Move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Duncan now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute to Senate Bill 1667 is passed to engrossment. Senator Duncan is how recognized for a motion to suspend the constitutional three day rule.

SENATOR ROBERT DUNCAN: Thank you. I move that we suspend the constitutional rule that requires bills to be read on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, rules are suspended. The Chair lays out on third reading and final passage Committee Substitute SB1667. The secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1667 relating to administration of and benefits payable by the teacher retirement system of text.

SENATOR KEVIN ELTIFE: Senator Duncan is recognized for a motion.

SENATOR ROBERT DUNCAN: I move final passage.

SENATOR KEVIN ELTIFE: Senator Duncan now moves final passage of Committee Substitute SB1667. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute SB1667 is finally passed. Congratulations, Senator Duncan.

SENATOR ROBERT DUNCAN: Thank you, Mr. President, members.

SENATOR KEVIN ELTIFE: Senator Duncan is now recognized for a motion to suspend the regular order of business on Committee Substitute SB1414.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. The Committee Substitute for Senate Bill 1414 deals with a youth camps in certain types of training that are required for those who put on youth camps to recognize sexual abuse. The bill would require that certain employees of youth camps that are held on campuses of higher education to complete sexual abuse and child molestation training to provide that same protection and environment that our kids enjoy in our private camps. The bill would apply to youth camps with or more in attendance for four or more days and would exempt volunteers and currently enrolled students. The commissioner for state health service currently establishes criteria and guidelines for the training of course and the department may investigate any program or employee as violations are suspected. With that, Mr. President, I move that we suspend the Senate's regular order of business to take up and consider the Committee Substitute for Senate Bill 1414.

SENATOR KEVIN ELTIFE: Senator Duncan moves suspension of the regular order of business to take up and consider Committee Substitute SB1414. Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading Committee Substitute SB1414. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1414 relating to sexual abuse and child molestation training and examination for certain employees.

SENATOR KEVIN ELTIFE: Senator Duncan is recognized for a motion.

SENATOR ROBERT DUNCAN: I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Duncan now moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB1414 is passed to engrossment. Senator Duncan is now recognized for a motion to suspend the constitutional three day rule.

SENATOR ROBERT DUNCAN: Thank you, Mr. President. I move to suspend the constitutional rule that bills be read on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1414. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1414 relating to sexual abuse and child molestation training and examination for certain employees.

SENATOR KEVIN ELTIFE: Senator Duncan is now recognized for a motion.

SENATOR ROBERT DUNCAN: I move final passage.

SENATOR KEVIN ELTIFE: Senator Duncan now moves final passage of Committee Substitute SB1414. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Committee Substitute SB1414 is finally passed. Congratulations, Senator Duncan.

SENATOR ROBERT DUNCAN: Thank you, Mr. President.

SENATOR KEVIN ELTIFE: Members. We're still waiting on the amendment for the redistricting map. That will be the next bill we take up, but for now, we're going to stand at ease until 12:45. Give everyone a break for now. Thank you, members.

(At ease.)

SENATOR KEVIN ELTIFE: Mr. Doorkeeper.

MR. DOORKEEPER: Mr. President, there's a messenger from the House.

SENATOR KEVIN ELTIFE: Admit the messenger.

MESSENGER: Mr. President, I'm directed by the House to inform the senates that House has taken the following action. The House has passed the following measures SB653 by Whitmire relating to abolishing the Texas youth commission --

SENATOR KEVIN ELTIFE: Admit the messenger -- thank you, Mr. Messenger. Chair recognizes Senator Lucio for a motion to concur on House amendments to SB423.

SENATOR EDDIE LUCIO: Thank you, Mr. President and members. This is the clarification bill on law enforcement survivor family health insurance bill. I'm proud to say that Senate Bill 423 passed both chambers unanimously. The House sponsor Representative Joe Menendez added a House floor amendment to make clear who is supposed to file a death benefits claim with ERS when a public servant is killed in the line of duty. The first part of the amendment simply states that the employing entity or department would file the death benefit claim. The last thing a grieving spouse needs to worry about when a police officer or firefighter has made the ultimate sacrifice is the red tape involved in submitting a death -- state death benefits claim to ERS. Most departments to do this now. The second part of the amendment provides the very narrow window for a person who was otherwise eligible for death benefits but were denied because a benefit claim was not timely filed by the department to reapply for benefits. Members, I feel this is an excellent amendment to a much needed bill and I move at this time that the Senate concur on House amendment to Senate Bill 872.

SENATOR KEVIN ELTIFE: Senator Lucio moves that the Senate concur on House amendments to SB432.

SENATOR EDDIE LUCIO: 432.

SENATOR KEVIN ELTIFE: Secretary call the roll.

SENATOR KEVIN ELTIFE: Being 31 ayes and no nays, motion is adopted. Thank you, Senator Lucio.

SENATOR EDDIE LUCIO: Thank you very much, Mr. President and thank you, members.

SENATOR KEVIN ELTIFE: Senator Carona, are you ready? Senator Carona is recognized for a motion to suspend the regular order of business on House Bill 1956.

SENATOR JOHN CARONA: Thank you, Mr. President. The current deadline for a district judge to conduct a trial on an appeal of an order on a Texas Alcoholic Beverage Commission refusing canceling or suspending a TABC lanes or permit is ten days. This is simply unrealistic given the complexity of preparing for a trial. So what this bill does is extend the time to beyond the ten day period. It's originally filed to extend it to 60 days. There will be a floor amendment offered here momentarily to shorten that.

SENATOR KEVIN ELTIFE: Senator Carona moves suspension of the regular order of business to take up and consider House Bill 1956. Is there objection? The Chair hears none, the rules are suspended. The Chair lays out on second reading House Bill 1956. The secretary will read the caption.

PATSY SPAW: House Bill 1956 relating to the bill of an order of the Texas Alcoholic Beverage Commission refusing, canceling or suspending a license or permit.

SENATOR KEVIN ELTIFE: The following amendment by Carona. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 1 by Carona.

SENATOR KEVIN ELTIFE: Senator Carona to explain the amendment.

SENATOR JOHN CARONA: Members, as I mentioned a moment ago the bill as written extends from ten days all the way out to 60 days. This is the way it came to us from the House. I'm of the belief that going from ten days to 20 days is sufficient so that's what the amendment does. I move adoption.

SENATOR KEVIN ELTIFE: Senator Carona now moves adoption of floor amendment No. 1. Is there objection? The Chair hears none, floor amendment No. 1 is adopted. Senator Carona is now recognized for a motion.

SENATOR JOHN CARONA: I move passage to third reading Mr. President.

SENATOR KEVIN ELTIFE: Senator Carona now moves passage to third reading. Is there objection? The Chair hears none House Bill 1956 is passed to third reading. Senator Carona is now recognized for a motion to suspend the constitutional three day rule.

SENATOR JOHN CARONA: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: Being 30 ayes, one nay, the rule is suspended. The Chair lays out on third reading and final passage House Bill 1956. The secretary will read the caption.

PATSY SPAW: House Bill 1956 relating to the appeal of an order of the Texas Alcoholic Beverage Commission.

SENATOR KEVIN ELTIFE: Senator Carona is recognized for a motion.

SENATOR JOHN CARONA: Mr. President, I move final passage.

SENATOR KEVIN ELTIFE: Senator Carona now moves final passage of House Bill 1956. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, House Bill 1956 finally passed. Congratulations, Senator Carona.

SENATOR JOHN CARONA: Thank you, sir.

SENATOR KEVIN ELTIFE: Senator West is recognized for a motion to suspend the regular order of business on Committee Substitute SB1798.

SENATOR ROYCE WEST: Thank you very much, Mr. President. At this time I move to suspend the regular order of business to take up Committee Substitute to Senate Bill 1798. Mr. President and members, this bill relates to companies incorporated in the state of Texas other than Texas that benefit from electronic sales to consumers in Texas such as Amazon.com and internet retailers. The noncollecting and remitting sales tax to the state of Texas for those purchases. The state comptroller estimates that Texas loses approximately 600 million a year in uncollected online sales tax. As the bill was originally filed we had click through companies and we recognized early on in committee when we had those particular committees come forth that those were not the companies that we were attempting to deal with here. So what we're basically dealing with are out of state companies that attempt to circumvent a state nexus through the use of entity isolations whereby a business type function -- the business state functions that would traditionally be performed by separate divisions within the same company and turn them into separate business and legal entities. So Mr. President, members, I would move to suspend the regular order of business to take up and consider Committee Substitute to Senate Bill 1798.

SENATOR KEVIN ELTIFE: Senator West moves suspension of the regular order of business to take up and consider Committee Substitute SB1798. Is there objection? Hearing none, the rules are suspended. Chair lays out on second reading Committee Substitute SB1798. The secretary will read the caption.

PATSY SPAW: Committee Substitute SB1798 relating to retailers engaged in business and state for purposes of sales or use taxes.

SENATOR KEVIN ELTIFE: The following amendment by Williams. The secretary will read the amendment.

PATSY SPAW: Floor amendment No. 1 by Williams.

SENATOR KEVIN ELTIFE: Senator Williams is recognized to explain the amendment.

SENATOR TOMMY WILLIAMS: Thank you, Mr. President and members. And Senator West, I want to begin by thanking you for working me on resolving this issue. I know all along that was your intention not to have the click through provisions in your bill as you said in your opening remarks. As you know there have been some concern about the language on page one line 58 of the bill that says "or receives compensation" whether that could inadvertently drag through the click through provisions. This amendment will conform this language to the same language I think that we're going to see in the House Bill and it makes also sure that we don't include the so-called click through provision in your bill which I don't believe was ever your intention to do that.

SENATOR ROYCE WEST: That is correct.

SENATOR TOMMY WILLIAMS: I think this is acceptable to you; is that right?

SENATOR ROYCE WEST: It is acceptable.

SENATOR TOMMY WILLIAMS: Okay. And I move adoption.

SENATOR KEVIN ELTIFE: Senator Williams moves adoption of floor amendment No. 1. It is acceptable to the author West. Is there objection? The Chair hears none, floor amendment No. 1 is adopted. Senator West is recognized for a motion.

SENATOR ROYCE WEST: Mr. President, my name is Royce, it's not Arthur West. I apologize. I move passage.

SENATOR KEVIN ELTIFE: Senator West withdraws his motion.

SENATOR ROYCE WEST: I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator West moves passage to engrossment. Is there objection? Chair hears none, Committee Substitute SB1798 as amendment is passed to engrossment. Senator West is now recognized for a motion to suspend the constitutional three day rule.

SENATOR ROYCE WEST: So moved, Mr. President.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 28 ayes, three nays, rule is suspended. The Chair lays out on third reading and final passage Committee Substitute SB1798. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1798 relating to retailers engaged in business in the state for purposes of sales or use taxes.

SENATOR KEVIN ELTIFE: Senator West is now recognized for a motion.

SENATOR ROYCE WEST: Move final passage.

SENATOR KEVIN ELTIFE: Senator West now moves final passage of Committee Substitute SB1798 as amended. The secretary will call the roll.

SENATOR KEVIN ELTIFE: There being 29 ayes, two nays, Committee Substitute SB1798 as amended is finally passed. Congratulations, Senator West. The Chair lays out as a matter of postponed business Committee Substitute to House Bill 600. The secretary will read the caption.

PATSY SPAW: Committee Substitute to House Bill 600 relating to the compensation of the district for the election of members for the state board of education.

SENATOR KEVIN ELTIFE: The following amendment. Secretary please read the amendment by Gallegos.

PATSY SPAW: Floor amendment No. 1 by Gallegos.

SENATOR KEVIN ELTIFE: We'll wait until all the members have the amendment on their desk. Senator Gallegos to explain the amendment.

SENATOR MARIO GALLEGOS: Did everybody get a copy? Thank you, Mr. President and members. Members, this is the amendment I laid out in committee and my primary reasons for offering the amendment are very straightforward. The majority of the Texas public school students are Hispanic and yet only percent of the SBOE receipts, 315 provide Latino voters an opportunity to elect their candidate of choice. In Harris County an even greater number of public school students are Hispanic and by creating a fourth majority Latino opportunity district, this plan would increase Latino opportunity on the SBOE. According to the 2010 census, Harris County has had an increase of 1,671,541 Latino residents, almost exactly the ideal district of an SBOE district. Harris County Latinos are responsible for about 80 percent of the population growth in the county. But we do not have an opportunity to elect one of our own candidates of choice to the SBOE today under the proposed Committee Substitute. What the amendment does is strictly Harris County members create an additional majority Latino opportunity district in district six in Harris County. The -- that fits into the proposed Senate Committee Substitute, the Latino population in this district would be 60.1 percent with a voting age population of 65.6 percent. The amendment also enhances the African American population district four to 34 -- it raises it by two more percentage points as would my new amendment. I believe the district six would move to be an effective Latino opportunity district because it covers areas already represented by Latino elected officials at almost every level of government in Harris County. It also includes areas of Latino rapid growth population elsewhere in the county. And the amendment does fair incumbents to Senate district six and eight to facilitate creation of the Latino opportunity district. So basically, members, that is what the amendment does, Harris County only, and all it does is confirm the census, confirms the population increase in Harris County. Also another reason for my wanting to create another -- a second congressional district, the numbers show that we have the numbers in Harris County and that's why I wanted to offer up the amendment that as I did in committee. Members, I'm open to any questions.

SENATOR KEVIN ELTIFE: Thank you, Senator Gallegos. Senator Lucio, for what purpose?

SENATOR EDDIE LUCIO: Will Senator Seliger yield?

SENATOR KEVIN ELTIFE: Senator Seliger or Senator Gallegos? Senator Gallegos has the floor on his amendment.

SENATOR EDDIE LUCIO: Sorry, I thought he was through. I apologize. I'll wait.

SENATOR KEVIN ELTIFE: Senator Seliger on the amendment.

SENATOR KEL SELIGER: Thank you, Mr. President. Senator Gallegos, let me ask you this. When we pair office holders in six and eight both of whom are Republicans, is this political jury maundering?

SENATOR MARIO GALLEGOS: No, it's not. If you look at the maps, members, it's basically almost the same judicial map that was approved by the courts that I ran -- that was approved that I ran in my Senate district and that Gene Green only with the exteriors in the west and some of the southwest, the Gene Green represents right now that is a Latino opportunity district and he represents that district right now in Congress. So even though I call it a Latino opportunity district, doesn't mean that a Latino's going to win it. Because the same district is represented by an Anglo Gene Green. So the map -- if you look at the map, the proposed map, the north, and the southeast and part of the west is presently in Gene Green's congressional area and is my Senate district. The only areas added is the southwest portion and the west portion, the southwest portion of the Gulf and (inaudible) area which is about percent Latino. And then the west side, the west side edition which includes Spring Branch that has been growing in population as far as Latinos are concerned. So Mr. Chairman, that's basically -- when you say jury maundering, this is the same -- almost the same map that was approved by the courts that I ran in '95 in Senate district six.

SENATOR KEL SELIGER: Thank you, Senator Gallegos. I believe that the map that is presented in the Committee Substitute to House Bill 600, the map marked E120 conforms to the Voters Right Act and that this map cures essentially nothing with this oddly shaped district. And therefore I respectfully move to table the amendment. Unless Senator Lucio has a question of me.

SENATOR KEVIN ELTIFE: Senator Gallegos, would you like to close?

SENATOR MARIO GALLEGOS: Well, I didn't know Senator Lucio has a question.

SENATOR KEVIN ELTIFE: No, sir, he doesn't right now.

SENATOR MARIO GALLEGOS: Okay. Members, once again that was the reason for my amendment on the Latino population in Harris County and the growth -- you know, obviously if look at the census, the reason we have an extra four congressional districts is because of the increase in the Latino population in Texas so and I -- and I wanted to point out the Latino increase in Harris County for that specific fact and I'd also to -- Senator Seliger, I'd like to commend him for improving SBOE district one to prevent retrogression and improve its effectiveness on the rest of the map. But I do respectfully ask to vote no on the motion to table.

SENATOR KEVIN ELTIFE: Thank you, Senator Gallegos. Members, Senator Seliger has moved to table the floor amendment by Gallegos. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 19 ayes, 12 nays, the motion to table prevails. Senator Seliger is recognized for a motion.

SENATOR KEL SELIGER: Mr. President, I move passage to third reading of the Committee Substitute of House Bill 600.

SENATOR KEVIN ELTIFE: Senator Seliger now moves passage to third reading. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 28 ayes, three nays, Committee Substitute House Bill 600 is passed to third reading. Senator Seliger is now recognized for a motion to suspend the constitutional three day rule.

SENATOR KEL SELIGER: Mr. President, I move to suspend the constitutional three day rule that bills be heard on those three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 27 ayes, four nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute House Bill 600. The secretary will read the caption.

PATSY SPAW: Committee Substitute House Bill 600 relating to the composition of the district to the election of members of the State board of education.

SENATOR KEVIN ELTIFE: Senator Lucio, for what purpose?

SENATOR EDDIE LUCIO: Will the gentleman yield?

SENATOR KEVIN ELTIFE: Senator Seliger yield?

SENATOR KEL SELIGER: I will.

SENATOR EDDIE LUCIO: Senator, I just want to publicly thank you for working so hard and working with us all on this familiar redistricting map. I feel that Hispanic surnames and most of these if not all have actually gone up in district one for example Garza and El Paso it enhances the 2010 Spanish surname voter registration the SBSR from 62.5 to 64.5. The only ones that unchanged from the House engrossed version was district two which comes down to the Cameron county area and I obviously have two districts, district one and district two in my senatorial district. My concern -- and I think it's the concern that most of us have down there. The Rio Grande as a whole poor county area is in excess of 1.2 million people and it would be obviously important for us to have a physician or someone elected from that area that would represent us on the state board of education, which I consider one of the most important commissions or boards in the state and I think that with the retirement of Maria Helen Burlango from Corpus Christi that might be accomplished even though the population in that part of district two is still not as populous as the area from Corpus Christi and above. But you know, it's up to the person who decides to run for the position and I hope that it comes to being that someone from that area that gets elected. But I want to thank you for your efforts. I think you've been very fair, very conscious about what you've done here and I want to publicly thank you for that.

SENATOR KEL SELIGER: Thank you, Senator Lucio. And I appreciate it and you make some important observations, some essential observations if we were to engage in a process that's fair and legal and it's going to get more complicated, it's one thing when you have these huge districts that go long distances and quite frankly the voter rights considerations were not huge ones and where we had those considerations we could address them. We're going to be looking at smaller districts obviously when we get into Texas Senate map and the congressional map and you have my assurance and you're going to be right there that the first step that we take as we're looking at these maps and scrutinizing them is measuring everything that's in there based upon what we must do under S2 and five of the Voters Rights Act and at every junction those are the questions we must ask ourselves, every time we move a line or consider a county or city or a voter tabulation district, a city block and I expect to have to answer those questions, I expect to be part of that scrutiny and my goal is that we look as those next two maps, you feel the same way, we will debate the merits of one line or another. But I hope you feel the same way about our adherence to the law.

SENATOR EDDIE LUCIO: When it comes to the education of our children, you'll agree with me that it should be as nonpartisan as possible. Actually it should be nonpartisan and if anything on this floor we should take a bipartisan approach to accomplish the goals. Our goals for having them making sure they have the tools in public education in the state they deserve. So I thank you for your efforts.

SENATOR KEL SELIGER: Thank you very much.

SENATOR KEVIN ELTIFE: Senator Seliger moves final passage of Committee Substitute House Bill 600.

SENATOR KEL SELIGER: Mr. President, I move final passage of Committee Substitute to House Bill 600.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 28 ayes, three nay, Committee Substitute House Bill 600 is finally passed. Congratulations, Senator Seliger.

SENATOR KEL SELIGER: Thank you, Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Rodriguez is recognized for a motion to suspend the regular order of business on SB615.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. President and members. Senate Bill 615 amends the business and commerce code to require tire retailers to render tires unusable when tires do not meet current safety standards. This bill passed out of the Senate committee on transportation and homeland security unanimously with a nine to zero vote. Members, as you might recall Senate Bill 615 is a refile of Senate Bill 617 from last session which passed the Senate from local and uncontested calendar and it was unanimously voted out of the House transportation committee and it was recommended to the House local and consent calendar but did not make it on to the last session of the regular session. Members, this bill simply addresses a public health and environmental issue that I dealt with as an El Paso county attorney for many years. I was responsible for enforcing illegal dumping laws of the state and a lot of the dumping was, of course, tires that breed mosquitos and other health hazards. That is big problem for us. The bill will help prevent the majority of these used tires from accumulating in various parts of the state as well as from crossing the border by requiring tire retailers to render tires unusable when the tires do not meet existing safety standards asset by rule by the Department of Public Safety. This bill makes two exemptions: One for businesses to use a registered bonded tire transporter and one for tires that remain mounted on a vehicle, for example, when you're trading in your vehicle. Mr. President and members, I move that we suspend the regular order of business and all necessary rules to take up and consider Senate Bill 615.

SENATOR KEVIN ELTIFE: Senator Rodriguez moves suspension of the regular order of business to take up and consider SB615. Is there objection? Chair hears none, rules are suspended. The Chair lays out on second reading SB61. The secretary will read the caption.

PATSY SPAW: Senate Bill 615 relating to requiring a retail seller of motor vehicle tires to render certain tires unusable.

SENATOR KEVIN ELTIFE: The following amendment by Hinojosa. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 1 by Hinojosa.

SENATOR KEVIN ELTIFE: Senator Hinojosa to explain the amendment.

SENATOR JUAN HINOJOSA: Thank you, Mr. President and members. This amendment has two provisions. The bill requires scrap -- the amendment requires scrap tire generators that store tires in outdoor bins to place these bins in secured areas and secure the bins with locks. Tire thefts result in added cost to local government and the state. This provision will use the incident of theft of tires. The second provision requires hub cap transporters to bond with TCEQ. Require the bond transporters are held accountable for making sure that stripped tires are transported from a scrap tire generator to a legitimate licensed recycling facility eliminating tire dumping which has become a major issue and major problem in our state. This proposal comes from tire manufacturers increasing recycling efforts to take advantage of this business opportunity use and recycle tire products. And I move adoption.

SENATOR KEVIN ELTIFE: Senator Rodriguez on the amendment.

SENATOR JOSE RODRIGUEZ: Mr. President, it's an acceptable amendment to me.

SENATOR KEVIN ELTIFE: Senator Hinojosa moves adoption of floor amendment No. 1. It's acceptable to the author of the legislation Senator Rodriguez. Is there objection? Chair hears none, floor amendment No. 1 is adopted. Senator Rodriguez is recognized for a motion.

SENATOR JOSE RODRIGUEZ: Mr. President and members, I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Rodriguez moves passage to engrossment. Is there objection? Chair hears none, SB615 as amended is passed to engrossment. Senator Rodriguez is now recognized for a motion to suspend the constitutional three day rule.

SENATOR JOSE RODRIGUEZ: Mr. President and members, I move to suspend the constitutional rule that bills be read on three several days.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: 30 ayes, one may, the rule is suspended. The Chair lays out on third reading and final passage of SB615 as amended. The secretary will read the caption.

PATSY SPAW: SB615 relating to requiring retail seller of motor vehicle tires to render certain tires unusable.

SENATOR KEVIN ELTIFE: Senator Rodriguez recognized for a motion.

SENATOR JOSE RODRIGUEZ: I move final passage.

SENATOR KEVIN ELTIFE: Senator Rodriguez now moves final passage of Senate Bill 615 as amended. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 31 ayes, zero nays, Senate Bill 615 as amended is finally passed. Congratulations, Senator Rodriguez.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. President, members.

SENATOR KEVIN ELTIFE: Senator Huffman is recognized for a motion to suspend the regular order of business on SB152.

SENATOR JOAN HUFFMAN: Thank you, Mr. President. Members, I rise to move suspension to take up Senate Bill 152 -- to suspend the regular order of business. Members, Senate Bill 152 is bill that I brought up about a week ago. Could have been a week and a half ago. It is the bill which would allow for the admission of prior similar sexual offenses in the trial of certain enumerated sexual offenses. I will have a floor amendment which I will propose after we have suspended the regular order of business. This amendment will remove from the bill the ability to use the similar offenses in the prosecutions of adult victims. Therefore the bill will solely be for the prosecution of sexual offenses where children are victims. All the other safeguards which I had previously placed into the bill other amendments will still be in effect but again this will only apply to sexual assault where the children are victims. With that I move to suspend the regular order of business to take up and consider Senate Bill 152.

SENATOR KEVIN ELTIFE: Senator West, for what purpose?

SENATOR ROYCE WEST: I just want to make certain. First of all thank you for letting me know, Senator Huffman, that the bill was coming up.

SENATOR JOAN HUFFMAN: You're welcome, sir.

SENATOR ROYCE WEST: This is the same bill that you're going to accept an amendment to do what?

SENATOR JOAN HUFFMAN: Well, it's going to be my amendment but it's going to remove the -- specifically in the bill where it's allowed to use these type of offenses in the prosecution where you had an adult victim for the offenses of sexual assault and aggravated sexual assault so that will be removed from the bill. Therefore the only application will be in the prosecution where -- that is enumerated in the bill that discusses sexual assault, aggravated sexual assault of a child and then there's others listed in the bill. And this was the amendment that Senator Van de Putte had added which added human trafficking of a child for sexual purposes.

SENATOR ROYCE WEST: Okay. But so that's the only difference between the bill that we've considered and this particular bill?

SENATOR JOAN HUFFMAN: Yes, sir, but again I had amended the bill too. I don't know if you remember that.

SENATOR ROYCE WEST: I do. But again we're allowing any type of "offense" in.

SENATOR JOAN HUFFMAN: If it's enumerated.

SENATOR ROYCE WEST: If it's enumerated in dealing with one of those cases.

SENATOR JOAN HUFFMAN: Yes.

SENATOR ROYCE WEST: So a person can still be -- be tried for several different offenses and if those similar offenses come in and those are considered by the judge, I think you had a trigger the judge has to consider.

SENATOR JOAN HUFFMAN: It is permissive, we have changed it to that as well.

SENATOR ROYCE WEST: Right. And so even if the judge allows those offenses to come in, and a person is found not guilty even after those offenses have come in --

SENATOR JOAN HUFFMAN: Yes.

SENATOR ROYCE WEST: -- double jeopardy does not attach, right?

SENATOR JOAN HUFFMAN: Well, it wouldn't attach to the case for which he was found not guilty of course.

SENATOR ROYCE WEST: You're right about that.

SENATOR JOAN HUFFMAN: And Senator West --

SENATOR ROYCE WEST: Hold on, let me finish.

SENATOR JOAN HUFFMAN: Senator West, let me just tell you this because it's important. Let me -- let the members hear this. No, no, no --

SENATOR KEVIN ELTIFE: Members, please don't talk over each other.

SENATOR ROYCE WEST: Let me finish my question --

SENATOR JOAN HUFFMAN: Okay. Then I'll answer.

SENATOR ROYCE WEST: As it relates to the similar offense, you call them similar offenses.

SENATOR JOAN HUFFMAN: Yes.

SENATOR ROYCE WEST: Same thing as extraneous offenses if a person is tried for those similar offenses and he's found not guilty of the underlying offense, then that person can be retried for those similar offenses that he was tried for in the underlying offense, right?

SENATOR JOAN HUFFMAN: Yes, because jeopardy is not attached on those because they may be charged, they may not be. They could, old or recent. They would be in different situations perhaps.

SENATOR ROYCE WEST: Okay. And I was talking over you and I apologize.

SENATOR JOAN HUFFMAN: Well, I just wanted to point out to the members, and I think this is important because, you know, clearly you have concerns and I respect your concerns. So, you know, I have gone back and researched this carefully. And it's interesting that these rules came into effect in the federal rules of evidence in 1994 under a bipartisan bill that was signed by President Clinton. It went into effect, they have been adopted by 11 states and there's a long line of appellate cases that have looked at the constitutionality of these issues, upholding the federal rules and state rules that have been adopted under other states and consistently the courts have said that this exact type of situation does not violate due process or the equal protection clause. This is an established line of cases that's been in effect since the 90s. My proposal is to bring Texas in line with other states that have adopted these rules with the federal rules that have been upheld constitutionally and I have removed, as I said, the adult victims. So now, we're simply doing it for children. Abused, sexually abused children --

SENATOR ROYCE WEST: Allegedly sexually abused children.

SENATOR JOAN HUFFMAN: Allegedly. Yes, sir.

SENATOR ROYCE WEST: Okay. And let's make certain, members, that you appreciate the magnitude. If a person is found guilty of one of these offenses they can get life in prison, right?

SENATOR JOAN HUFFMAN: For some of these offenses, yes.

SENATOR ROYCE WEST: And so what we're saying is to allow -- and let me back up a little bit. You said that the federal government, when Clinton was president, they adopted this. There was some controversy concerning the adoption of this rule, wasn't there?

SENATOR JOAN HUFFMAN: There didn't appear to be --

SENATOR ROYCE WEST: There was some controversy.

SENATOR JOAN HUFFMAN: Controversy in congress or the Senate or by President Clinton.

SENATOR ROYCE WEST: By the way, they were adopted -- adopted by the Supreme Court or the judiciary, right?

SENATOR JOAN HUFFMAN: Well, I think the congress can give guidance to the judiciary to adopt the rules and can order them to do so. As you know, congress --

SENATOR ROYCE WEST: Without question, without question I agree.

SENATOR JOAN HUFFMAN: Continue to adopt these rulings and I --

SENATOR ROYCE WEST: I agree with that and the reality is (inaudible). The other piece is this. So I just want to make certain for future purposes if the federal government has adopted something, you're going to be supportive of it or what.

SENATOR JOAN HUFFMAN: Absolutely not, sometimes I will be.

SENATOR ROYCE WEST: You're referencing what this particular government has done in this instance.

SENATOR JOAN HUFFMAN: Well, I agree with the federal government this time and I'm also swayed by the fact this has been well vented over 15 years throughout the courts.

SENATOR ROYCE WEST: Okay, and so --

SENATOR JOAN HUFFMAN: And that should make a difference.

SENATOR ROYCE WEST: And so you're saying since 11 other states have done that, then Texas should do it and so is that the litmus test on everything else, the number of states that have adopted that particular law?

SENATOR JOAN HUFFMAN: Absolutely not. No, sir.

SENATOR ROYCE WEST: Okay. So shouldn't be the litmus test here. The litmus test here should be a sense of fairness. And the question is in the state of Texas a person could get life in prison and they should be -- they should, in fact, be a situation where that person is being tried for the underlying offense and our current law in the state of Texas that's well documented, has a lot of court decisions and also is applicable in other states and also to the federal government using extraneous offenses. That's what's done in many other states, more than 11 states in this country. Wouldn't you agree? The use of extraneous offenses?

SENATOR JOAN HUFFMAN: The use, yes.

SENATOR ROYCE WEST: Okay. And so from advantage point if we want to make certain that accused victims get a fair trial, why would we want to turn around and put similar offenses in it and then put similar offenses in the case in chief, that being the main case, and if the person is found not guilty then turn around and say, well, the prosecution can turn around and then go try those cases that person's already had to No. 1, defend themselves against in the underlying cause, that they've been found not guilty. I just find that unfair. Now, you have already said that you have the votes here on the floor. But let me assure you that if it pass here, I will do everything in my power to try to kill it in the House.

SENATOR JOAN HUFFMAN: That would not surprise me. Thank you, sir.

SENATOR KEVIN ELTIFE: Thank you, Senator West. Senator Hinojosa, for what purpose?

SENATOR JUAN HINOJOSA: To ask Senator Huffman a question.

SENATOR KEVIN ELTIFE: Senator Huffman yield?

SENATOR JOAN HUFFMAN: Of course.

SENATOR JUAN HINOJOSA: You know, Senator Huffman, many times when people are going through a divorce the allegations of sexual abuse or sexual misconduct of a father and a child in your -- I guess your bill what safeguards do you have in that type of situation?

SENATOR JOAN HUFFMAN: Well, I think as I said, the judge can be the gatekeeper in the way that I've crafted the bill because the judge has to hear -- well, first of all, the defendant's going to get discovery at least 30 days in advance so there's plenty of time for him or her to look at the evidence and assess the evidence and all the discovery would apply. Secondly the judge is the gatekeeper in that he or she has to have a hearing outside the presence of the jury and the judge has to make a finding that there is evidence present that had would support the finding of proof beyond a reasonable doubt. Thirdly, it's subject to the rule, the 403 balancing test where the judge has to determine that the probative value outweighs any chance of unfair prejudice and make that weighing before they could admit the evidence. So the judge has discretion. So I'm answering our yo question because I believe in a situation where the judge looks at it, doesn't believe it's going to assist the trier of fact, is suspicious of the evidence, doesn't believe the evidence. Then the evidence will be kept out. I mean, I think we have to have some faith in the judiciary as the gatekeeper and I've tried to craft the bill so the judge has put on notice that he or she is to be the gatekeeper and it is to be used judiciously and fairly and it's permissive and so --

SENATOR JUAN HINOJOSA: And I guess you're limiting your bill only for children.

SENATOR JOAN HUFFMAN: Yes, yes.

SENATOR JUAN HINOJOSA: You took out the part dealing with adults and retrying.

SENATOR JOAN HUFFMAN: Yes. And I'll offer that floor amendment as soon as I can suspend. I'll give you my word as soon as I do that.

SENATOR JUAN HINOJOSA: Okay. I'll look at it when it comes up.

SENATOR JOAN HUFFMAN: Thank you, Senator.

SENATOR KEVIN ELTIFE: Thank you, Senator Hinojosa. Senator Duncan, for what purpose?

SENATOR ROBERT DUNCAN: Question.

SENATOR KEVIN ELTIFE: Senator Huffman yield?

SENATOR JOAN HUFFMAN: Of course. Yes, sir.

SENATOR ROBERT DUNCAN: Senator, congratulations on moving the bill forward. I know you made a lot of changes to the bill in response to what I think other members have asked you to do and I think you've improved it quite a bit. I think -- my question is, and here's what I'm concerned about, No. 1, you know, I don't think rules of evidence ought to be written on the Senate floor, on the House floor. I just have a concern with that because of the impact of rules of evidence especially in criminal cases where life and liberty are on the line and we get -- sometimes it's not bedded as well as I think it would be if a judicial commission did it. It's not saying judges are any better, it's just saying that's kind of where those issues ought to be. The question I have for you and, you know, what I'm worried about is I'm worried about the Tim Khol's of the world --

SENATOR JOAN HUFFMAN: The what?

SENATOR ROBERT DUNCAN: The Tim Khol's of the world. When we wrongfully convict somebody, and deprive them of their life, now, we at least -- I think we now compensate them fairly and Senator Ellis has done a good job on that but that's what I worry about. I worry about overzealous prosecution, sloppy prosecution and I'm not saying all prosecutors are that way. Routineness that happens in the bench and things like that where we just don't have the scrutiny that may be. I think you have improved the bill quite a bit though. I think by requiring that the judge make a finding that the similar offense can be proved beyond a reasonable doubt, that's part of --

SENATOR JOAN HUFFMAN: Right, it is. It is. And of course, Senator Duncan, I know you know this but I'd like the other members to hear that under the federal rules the burden there is the preponderance of evidence. And as you know there's a vast amount of difference between proof beyond a reasonable doubt and preponderance.

SENATOR ROBERT DUNCAN: Going back to what Stevens said, you didn't have to use preponderance.

SENATOR JOAN HUFFMAN: Right. So I lifted that up much higher.

SENATOR ROBERT DUNCAN: Right. You've done -- the 30 days is at least something different and now, you're limiting just to child cases.

SENATOR JOAN HUFFMAN: Yes.

SENATOR ROBERT DUNCAN: You have taken out adult cases.

SENATOR JOAN HUFFMAN: Yes. And I will do that with my floor amendment, yes.

SENATOR ROBERT DUNCAN: And cases involving the child abuse are sometimes harder to prove than the adult cases, is that --

SENATOR JOAN HUFFMAN: Absolutely.

SENATOR ROBERT DUNCAN: And how, this is the hardest question I'll probably ask you today, are you willing to keep that?

SENATOR JOAN HUFFMAN: I have given my word to Senator Uresti that I will keep it as only a child --

SENATOR ROBERT DUNCAN: The integrity of the bill is very important.

SENATOR JOAN HUFFMAN: Important to me and I've given my word, sir.

SENATOR ROBERT DUNCAN: All right. Well, thank you, Senator.

SENATOR JOAN HUFFMAN: All right.

SENATOR KEVIN ELTIFE: Thank you, Senator Duncan. Senator Huffman has moved suspension of the regular order of business to take up and consider SB152. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 22 ayes, and nine nays, the rule is suspended. Chair lays out on third reading and final passage SB152. The secretary will read the caption.

PATSY SPAW: Senate Bill 152 relating to the admissibility of certain evidence in the prosecution of certain sexual offenses.

SENATOR KEVIN ELTIFE: Following amendment by Huffman. Secretary read the amendment.

PATSY SPAW: Floor amendment No. 1 by Huffman.

SENATOR KEVIN ELTIFE: Senator Huffman to explain the amendment.

SENATOR JOAN HUFFMAN: Yes, Mr. President. This is the amendment I referred to which removes the adult victims from the bill and makes it a bill just for sexual abuse in children. And move for adoption.

SENATOR KEVIN ELTIFE: Members, you heard the explanation of floor amendment No. 1. Senator Huffman moves adoption. Is there objection to the adoption of floor amendment No. 1? There's no objection, floor amendment No. 1 is adopted. Senator Huffman is now recognized for a motion for final passage.

SENATOR JOAN HUFFMAN: Move final passage of Senate Bill 152.

SENATOR KEVIN ELTIFE: Senator Huffman now moves final passage of SB152 as amended. The secretary will call the roll.

SENATOR KEVIN ELTIFE: 22 ayes, nine nays, SB152 as amended is finally passed. Congratulations, Senator Huffman.

SENATOR RODNEY ELLIS: Parliamentary inquiry.

SENATOR KEVIN ELTIFE: State your inquiry, Senator Ellis.

SENATOR RODNEY ELLIS: Are we on break again? I just want to work.

SENATOR KEVIN ELTIFE: We're waiting on an amendment, Senator Ellis. Senator Duncan is recognized for a motion to suspend the regular order of business on Committee Substitute SB1811.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. I think many of you know that Committee Substitute to Senate Bill 1811 is a bill we traditionally pass every year. It's called a fiscal matters bill and traditionally we use this bill to implement statutory changes that are necessary to accomplish appropriations decisions that are made by the appropriations committee or the finance committee. This year is no different except this is a little bit bigger bill than it used to be. This bill brings in approximately $4 billion for use and certification for the budget this session. If this bill doesn't pass, then we have some significant problems in meeting the finance bill that is awaiting your vote in the Texas Senate. There are several different types of things that we do in the bill, many of them are traditional cash management tools that are used in times when you have short revenue, cash flow problems and we did it in -- a lot of these in 2003 and I think again in earlier years even before my time. There are some new revenue measures that are in here that are -- at least create ongoing revenue of about a billion dollars but none of these -- there are a couple of things in here that are actually tax oriented or raise revenue that would be inappropriate for a Senate Bill or to originate in the Senate. So I will have an amendment to strike those, it will be the first amendment and that would be the, the little cigar, big cigar or little cigar cigarette tax and the exemption where we repeal the exemption for permanent or for residencies in hotels and motels. I know Senator Lucio and Senator Hinojosa raised that issue earlier in the committee and we're pulling it out because two things. No. 1, the -- let me explain this so everybody will understand. The little cigar, little -- or little cigar tax which quite frankly was quite popular in the committee, had a very interesting discussion, that is a new tax and so those types of bills have to originate in the House. The other thing is we are in the permanent residency exemption we are removing an exemption there likewise, that is a revenue measure to the general revenue and that is a type of issue that must also originate in the House. So I say that to understand the theme here is that we are in the Senate, the constitution requires that tax or revenue measures that increase revenue originate in the House so we're going to remove those things. And if there are amendments to that effect, I will have to address that as those amendments come up from other members. One of the more -- one of the things that we talked about quite a bit in this bill is the speedup on the franchise tax. This is -- the matters that in the bill before you now is a similar or identical matter that has passed the House appropriations committee and waiting consideration in the House. The House did a really nice job of negotiating that and we decided to go ahead and put it in this measure as well. After visiting with many of you and I know Senator Patrick, Senator Fraser and several others, we have discussed -- I made the decision and I think in concurrence with others who worked on our subcommittee that we should change that to a different type of threshold and so what we will do is in the bill, the people who are required to prepay and it's only for one time are those folks in the bill, it's at the Efile level which is at $1 million in gross receipts. We're going to -- I'll put an amendment on with your permission that basically moves it to what we call easy form filers who are those filers that have had gross receipts in the past year of $10 million. And what we're trying to do is pull this into the larger type of employers who can basically handle that sort of a prepayment better than the smaller businesses. There are other issues that I'm willing to discuss as we go through. Many of you have amendments. Some of them are acceptable, some of them may not be. I have another amendment that the controller's office has asked for that will increase fees or increase our cost of this budget or -- would increase the revenue for certification budget by about $16 billion which allows her to use a consultant to assist in procurement savings for the state of Texas. So with that brief explanation of the 20 articles that I think many of you are familiar with or should be by now, I will be happy to answer any questions. Otherwise I'll be ready to suspend the Senate's regular order of business to take up and consider the Committee Substitute for Senate Bill 1811.

SENATOR STEVE OGDEN: Senator Watson, for what purpose do you rise?

SENATOR KIRK WATSON: Question of the author.

SENATOR ROBERT DUNCAN: I yield.

SENATOR STEVE OGDEN: Go ahead.

SENATOR KIRK WATSON: Thank you, Senator Duncan. We've been talking together in anticipation of this bill coming up and we have gone through a proposed amendment that deals with budget transparency and accountability and without going into all the detail of that I want to make sure before we have a vote on suspension that you have agreed to accept that as an amendment to this fiscal matters bill so that we can increase the transparency and accountability in the budget process.

SENATOR ROBERT DUNCAN: Thank you, Senator Watson. That's correct. You have done a nice job of crafting that amendment and I think the amendment does really good things and we're certainly going to -- the author's intent to accept that and I think you have support for that.

SENATOR KIRK WATSON: Thank you very much. Thank you, Mr. President.

SENATOR DAN PATRICK: Mr. Chairman, I have my light on.

SENATOR STEVE OGDEN: Senator Patrick, for what purpose do you rise?

SENATOR DAN PATRICK: Question of the author, please.

SENATOR ROBERT DUNCAN: I yield.

SENATOR DAN PATRICK: Thank you, Senator Duncan. As you know, we have worked really hard on this bill together and served on that committee with you and Senator Watson on a couple of the fiscal matter groups and I think you have done a really masterful job in creating nontax revenue that does a very important thing, it generates the dollars we need for classrooms and teachers and nursing homes and public safety. Regretfully I have to be a no because of the business tax speedup issue. I know you're going to have an amendment on that. I'm very concerned about that part of bill because I think our businesses, the other speedups work because people have collected money but on the business tax issue I'm really concerned for our small businesses that they may not have those dollars. So while I agree with everything else in the bill but because of the that issue I will be a respectful no, and I hope in conference you will work to at least set the number high enough so that businesses that would be asked to send in a prepayment would be truly our biggest businesses of Texas which, you know, put in about 80 percent of the money in the business tax to begin with because they do have the cash flow very often to do it, and I am worried about the small businesses, so I'll be a no unfortunately.

SENATOR ROBERT DUNCAN: I understand that and you and I have talked a lot about that and I think this is an issue we can continue to work on especially in the House, I think they've worked real hard on this and I think it's a concept that works. It has general consensus, not 100 percent consensus, among the business -- in the business community and so I want to continue to work on that with you, you have done a lot of good hard work on this and been a great contributor along with Senator Williams, Senator West, Senator Eltife, Senator Zaffirini, and I'm leaving somebody out. You and me and Senator Deuell who has done a lot -- we all did. I think everybody did a good job of screening these issues and coming forward with things that can work that are -- that are appropriate to use. I don't know that we, you know, we never looked to be in a situation where we have to use these cash management tools but we are every once in a while. Economy wax and wane and the good news is we have these tools and I appreciate the work you've done and I want to continue to work on this issue with you and other members who have some -- who would like to see us continue to work on the issue.

SENATOR DAN PATRICK: Thank you, and I'll look forward to working with you on that. Thank you, Senator.

SENATOR STEVE OGDEN: Senator Duncan moves suspension of the regular order of business to take up and consider the Committee Substitute to Senate Bill 1811. There is objection. Secretary will call the roll.

SENATOR STEVE OGDEN: There being 23 ayes and eight nays, rules are suspended. Chair lays out on second reading Committee Substitute to Senate Bill 1811. The secretary will read the caption.

PATSY SPAW: Committee Substitute Senate Bill 1811 relating to state fiscal matters.

SENATOR STEVE OGDEN: The following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 1 by Duncan.

SENATOR STEVE OGDEN: Senator Duncan is recognized to explain his amendment.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. Floor amendment No. 1 deletes the permanent residence exemption that's article five. That is a measure that raises revenue and needs to originate in the House so we're going to pull that out here over this amendment. We also -- as I stated in the suspension discussion that we're going to pull out the little cigar tax which is article 13. So the permanent resident exemption is article five and the little cigars tax issue is in article 13. Unless there are questions I move adoption of floor amendment one.

SENATOR STEVE OGDEN: Senator Duncan moves adoption of floor amendment No. 1. Is there objection? Chair hears none, floor amendment No. 1 is adopted. The following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 2 by Duncan.

SENATOR STEVE OGDEN: Chair recognizes Senator Duncan to explain his amendment.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. As discussed in the suspension motion, this would change the franchise tax provision that's in I think article -- I can't remember what article it is but what this does is this amendment will require a large tax in article 16, the amendment will require a large taxable entity to make a one time prepayment of the margins tax in August of 2013. This speedup does not continue past the next biennium. That was one of the important parts and the reason why there was consensus gained around it. The current definition of large taxable entity provides for those entities -- includes those entities required to pay by electronic funds transfer those entities with tax liability greater than 10,000 to make the prepayment. That -- as in the bill, that would have affected approximately 37,000 entities. This amendment will change the definition to limit this group by further exempting those entities that will utilize easy computations and rate provisions of section 171.1016 of the tax code. This would exempt an entity whose total revenue is not more than million. That would be a tax liability of approximately $57,500. Under this amendment prepayment would only affect 20,400 taxable entities out of approximately 125,000 filers. Now, I want to repeat that because I want members to listen to that. Under this amendment --

SENATOR STEVE OGDEN: Would you listen to the author of the amendment, please?

SENATOR ROBERT DUNCAN: Under this amendment, prepayment that would be -- the taxpayers that would be affected under this bill would only be 20,400 out of proximately 125,000 filers. So as you can see, we are moving fairly aggressively here to try to exclude out the smaller employees who might have a hardship, may or may not, but we're trying to make sure they would not have a hardship with this type of prepayment. With that explanation unless there are questions I move adoption of floor amendment No. 2.

SENATOR STEVE OGDEN: Chair recognizes Senator Jackson for the purpose of asking a question.

SENATOR MIKE JACKSON: Thank you, Mr. President. Do you yield?

SENATOR ROBERT DUNCAN: Certainly.

SENATOR MIKE JACKSON: Okay. I want to further -- if you would help me clarify what this amendment does because we're referring to section 171.1016 in the definition of a large taxable entity. Is the 171.1016 a part of the Senate Bill 1811? Is that outlined within this?

SENATOR ROBERT DUNCAN: I don't think that specific provision is, but the chapter within which we are amending the tax code is in there.

SENATOR MIKE JACKSON: So in all, I guess wrapping this up and simplifying a little bit. A large taxable entity is defined as somebody that's doing business on July 31st, 2013, and does $10 million in revenue.

SENATOR ROBERT DUNCAN: That's -- that's -- well. Has total revenue from its entire business from the regular annual period covered by the report originally due on May 15th, 2012, that exceeds the maximum amount of total revenue presumed by 171.1016 in the --

SENATOR MIKE JACKSON: So what length of time is that measured under?

SENATOR ROBERT DUNCAN: Well, in the calendar year or if the -- if the -- it would be from -- pursuant that they use a calendar year it would be from January 1st to August 13th.

SENATOR MIKE JACKSON: So that would be an eight-month period or an eight and a half-month period?

SENATOR ROBERT DUNCAN: They're going to pay on 25 percent of the previous year's tax liability. Okay?

SENATOR MIKE JACKSON: They're paying that in advance, right?

SENATOR ROBERT DUNCAN: They've already done eight months in their calendar year because it's not due until August of 2013, so if they're a calendar year of business and they operate from January to August, then that would be the revenue that they've generated from them would be used to pay the tax but it would be based upon the 2012, 25 percent --

SENATOR MIKE JACKSON: 2012 taxings which may be close, may not be close of what they did the year before, right?

SENATOR ROBERT DUNCAN: And I think that's why -- and I think this thing is carefully done to only require 25 percent. You're not paying -- and be clear on this. We're not requiring 100 percent or 4/6ths or 2/3ds or whatever. We're asking for here just .25 or a quarter. So a quarter of the tax you paid the year before would be prepaid. It's kind of like -- I don't know if you file an estimated tax return for your business but I do every quarter. I have to file a return and prepay -- actually I prepay every month.

SENATOR MIKE JACKSON: To the federal government, right?

SENATOR ROBERT DUNCAN: Right.

SENATOR MIKE JACKSON: So what we should do is make Texas like the IRS?

SENATOR ROBERT DUNCAN: I don't think anybody wants to do that, but the point I'm trying to make is it's not an unfamiliar concept.

SENATOR MIKE JACKSON: Well, Senator, your amendment makes it better than the original language for sure but I think that we could go and do a lot better than this for people that have just been initiated our new franchise tax system where it's been so confusing in the past. And now, we're not only asking them to continue paying that which they're all doing, but we're going to let them accelerate their payment to us. And I just think it's going to create a lot of hardships and I think that you have some sheets of paper from two or three agencies here that say that's okay but I guarantee you that there are a whole lot of people doing business in Texas that had no idea this is coming and we're going to hear a whole lot about that. And hopefully as this goes on through the process we'll be able to make some adjustments to it but I cannot support --

SENATOR ROBERT DUNCAN: I agree, we need to continue to work. I'm going to also say we're hearing from teachers who are being laid off and, you know, this is a hard time and what we're doing with this bill is basically trying to manage cash so that we can continue critical services for the state which would be public education and our goal here in the Senate has been to not affect the classroom. We're trying to get there. Our goal has been to provide for public safety, your goal has been to require or at least to provide our legal obligations under the Medicaid program to maintain rates in our nursing homes so that we don't neglect that frail part of our society. So I understand this. I agree that this is an issue that we need to continue to discuss, but I do think that it is an appropriate approach given we hit the right spot on who's going to be -- who can afford to do that. So I appreciate your questions, I've enjoyed our discussion about it. You've been very constructive about it, have educated me about some issues that you were familiar with. So thank you for that but again I think we're appropriate here. But I am willing to talk to you and Senator Patrick and others in the House to see if there's another option here with regard to the franchise tax.

SENATOR STEVE OGDEN: Senator Nichols, for what purpose do you rise?

SENATOR ROBERT NICHOLS: To ask the author a couple of questions.

SENATOR STEVE OGDEN: You're recognized.

SENATOR ROBERT NICHOLS: Senator Duncan, I voted to bring this up for discussion. I just want a clarification of a couple of questions. This is not a new tax.

SENATOR ROBERT DUNCAN: That's correct.

SENATOR ROBERT NICHOLS: And this does not increase the tax.

SENATOR ROBERT DUNCAN: Not at all.

SENATOR ROBERT NICHOLS: That's kind of what I thought. So what we're really doing is shifting 14th of it of the tax that's currently going to be owed a little bit earlier.

SENATOR ROBERT DUNCAN: That's right. We're shifting it to August of -- 1/4th of what you paid last year to August, the calendar year of 13.

SENATOR ROBERT NICHOLS: 14th, shift it a little bit earlier and if the bill passes and gets the budget out and all of those things, everybody will have an almost two year advanced notice of this.

SENATOR ROBERT DUNCAN: That's right. And I hope everybody will -- the controllers office will educate our tax filers and certainly our CPAs who prepare a lot of these returns will be aware of this and businesses can prepare for that.

SENATOR ROBERT NICHOLS: I think most large taxpayers make quarterly payments on their taxes anyway that have -- as they're earning money during the year.

SENATOR ROBERT DUNCAN: That's exactly right, we were talking about that with Senator Jackson. I know I send in a quarterly estimate and I don't necessarily -- be like the federal government.

SENATOR ROBERT NICHOLS: Some people are a little confused on this thinking this was a new tax or increase in tax, I just wanted to clarify with you that it is not.

SENATOR ROBERT DUNCAN: Thank you. Very good.

SENATOR STEVE OGDEN: Senator Patrick, for what purpose do you rise?

SENATOR DAN PATRICK: Just a question of the author.

SENATOR STEVE OGDEN: You're recognized.

SENATOR DAN PATRICK: Senator, thank you for bringing this amendment. And while I can't support the bill, at least this is a step in the right direction. Again I just want much larger businesses to be at a much higher threshold so I'm going to support the amendment but I want to continue working with you, I won't be able to support the bill but we're moving the ball down the field, as you and I have been doing. So I would like it to be a much higher threshold but I'll support the amendment and we'll continue to work in conference to get the threshold higher. Thank you.

SENATOR ROBERT DUNCAN: Thank you, Senator.

SENATOR STEVE OGDEN: Senator Duncan moves adoption of floor amendment No. two. The secretary will call the roll.

SENATOR STEVE OGDEN: There being 31 ayes and no nays, floor amendment No. 2 is adopted. Senator Fraser. Senator Duncan. All right, members, the floor amendment No. 2, Senator Fraser had an amendment to the amendment and we didn't -- and basically hammered the amendment through faster than the amendment to the amendment could be considered. So what we're going to do is reconsider the vote by which we adopted floor amendment No. 2 and if you approved that, then we'll lay it back out again and then we'll address Senator Fraser's amendment to the amendment. Senator Fraser moves to reconsider the vote by which floor amendment No. 2 is adopted. He's on the prevailing side. Is there objection? Chair hears none, we're now committee amendment No. 2 is before the body. The following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 3 by Fraser amending floor amendment No. 2.

SENATOR STEVE OGDEN: Chair recognizes Senator Fraser on the amendment.

SENATOR TROY FRASER: Okay. Members, I want to make sure no one is confused about what we're doing here, this amendment we're looking at, the -- I have -- I'm attempting to amend the amendment, his amendment was discounting it. My amendment, all it does -- it's going to strike this -- the business tax totally, the reconnection of this. The vote for this would be that the business tax that we're talking about collecting in advance, I'm opposed to the advanced collection of that. I think it should be taken to the bill and it is the section and this would amend the amendment that would totally remove the collection of this from 1811 and if anybody has a question about what I'm doing, I'd be glad to answer it. If you're voting for this, you're removing the business tax from 1811 from the collection of this.

SENATOR STEVE OGDEN: Chair recognizes Senator Duncan on the amendment to his amendment.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. Members, I want you to listen up on this, this amendment has been negotiated and discussed or this provision article 16 raises $800 million for us to be able to use in certification for the budget. 800 million. If this amendment does not -- if Senator Fraser's amendment passes, we then are now 800 million short of having a balanced budget from Senate Bill 1 or House Bill 1. So I'm telling -- I have advised Senator Fraser, Senator Jackson, Senator Patrick and others that I intend to work with them and with members of the House as we go through and this is community on this amendment. But if you vote, if we pull this out, we are losing $800 million. So with that I move -- let's move to table -- we've got other -- okay.

SENATOR STEVE OGDEN: Senator Duncan, I'll recognize you on that motion in a minute. Senator Gallegos, for what purpose do you rise?

SENATOR MARIO GALLEGOS: Do the gentleman yield?

SENATOR STEVE OGDEN: Senator Fraser, would you yield?

SENATOR TROY FRASER: I would be glad to yield.

SENATOR MARIO GALLEGOS: Talking about the author, the author of the bill.

SENATOR STEVE OGDEN: All right, I'll --

SENATOR TROY FRASER: He doesn't have the floor.

SENATOR MARIO GALLEGOS: Oh, I'm sorry. Wait a minute. Okay. He just explained -- okay. Then I'll ask you the question.

SENATOR STEVE OGDEN: All right. Senator Gallegos, you're recognized to ask the author of the amendment a question.

SENATOR MARIO GALLEGOS: Senator Fraser, your amendment takes out 800 million -- per Senator Duncan's explanation, takes out $800 million from the original proposal that Senator Duncan has laid out?

SENATOR TROY FRASER: You're assuming that money is there and has already been allocated. This is all about trying to collect in advance from businesses going from the norm of what they've always done. They have this money and it's a tax, it's collected and we're asking them to prepay in advance before they do, which is a cash flow problem. As a business guy I can tell you that if I was operating a business today and they did this to me, this is major problematic because it is -- yes, it is $800 million. But that 800 million didn't just fall out of the sky. The reason I did that is because you took cash flow from Texas businesses that need that to operate.

SENATOR MARIO GALLEGOS: Senator Fraser, with all due respect, I don't think Senator Duncan would have put it in there if he thought the money was just going to fall out of the sky. I believe he actually thinks he was going to be able to collect that money and I think if you look at the votes that vote to suspend Senator Duncan's bill is that we actually thought that too and I believe what he puts down, Senator Duncan, I don't believe that you would have put down that 800 million that you thought you were actually going to collect that $800 million and that's why -- to just clarify that, Senator Fraser, your bill whether it's collected or not, I believe it's going to be collected. Takes away the $800 million that's in Senator Duncan's fiscal matters bill that he laid out a while ago.

SENATOR TROY FRASER: The answer is yes, it takes 800 million away from a hard working business people that are having to prepay this in advance, taking away from their cash flow and ability to create jobs for Texans.

SENATOR MARIO GALLEGOS: I understand that and this was passed out of the finance committee, I believe. I don't sit in on finance and was passed out of the finance committee, I just want to make sure it was clarified to the members that your amendment, whether the money is there or not, takes away what the original statement that Senator Duncan made that it creates that 800 for it to fund, to fund the budget. One of the fiscal matters bill, his fiscal matter that triggers and funds part of the budget, budget shortfall that we have now. I just wanted to clarify that. So your answer is yes --

SENATOR TROY FRASER: It takes away 800 million from businesses in the state, yes.

SENATOR MARIO GALLEGOS: Senator Fraser, thank you for the clarification.

SENATOR STEVE OGDEN: Senator West, for what purpose do you rise?

SENATOR ROYCE WEST: A question of the author of the amendment.

SENATOR STEVE OGDEN: Senator West, you're recognized for a question.

SENATOR ROYCE WEST: Thank you very much, Mr. President. Senator Fraser, you're saying that you want to put this amendment on and Senator Duncan has already said that if your amendment goes on, then the effect of it is that we will be $800 million out of alignment for the budget. You're willing to do that?

SENATOR TROY FRASER: I don't think we voted on a budget yet.

SENATOR ROYCE WEST: Well, what he's saying is that the effect of your amendment going on will cost us $800 million toward funding the budget that we have.

SENATOR TROY FRASER: Well, I think they're trying to generate revenue that they can spend that I'm both opposed on both ends. I'm opposed on the collection of it from the businesses but I'm also opposed to the spending that we create. So the answer is yes, I'm trying to stop the --

SENATOR ROYCE WEST: Okay. But you heard this number being $800 million, right?

SENATOR TROY FRASER: I'm sorry?

SENATOR ROYCE WEST: You heard his number being $800 million.

SENATOR TROY FRASER: I think it's 862.

SENATOR ROYCE WEST: Okay. 862 million, I'm sorry about that. 862 million. Now, let me ask you this, your school districts, let's talk about your school districts in your district. How much money are they losing?

SENATOR TROY FRASER: Zero.

SENATOR ROYCE WEST: They're losing zero.

SENATOR TROY FRASER: Zero.

SENATOR ROYCE WEST: Are you certain about that?

SENATOR TROY FRASER: You talking about -- well --

SENATOR ROYCE WEST: Between current funding of school districts and what we're proposing in the budget for funding schools in the state, do you know how much your school districts are losing?

SENATOR TROY FRASER: I don't believe we voted on a budget yet.

SENATOR ROYCE WEST: Well, under the proposed --

SENATOR TROY FRASER: You voted it coming out of committee.

SENATOR ROYCE WEST: On proposed Senate Bill 22, do you know how much your school districts are losing?

SENATOR TROY FRASER: I'm not advised.

SENATOR ROYCE WEST: Okay. Are your school districts losing any money?

SENATOR TROY FRASER: Senator, until a budget comes to the floor and there is a vote by the membership and it goes to conference committee and the two sides get together and it comes back and we confer or conquer, then we will know.

SENATOR ROYCE WEST: All right. Very good. Have you had any telephone calls from your school district talking about the number of teachers that are going to have to be laid off?

SENATOR TROY FRASER: And I'm not in favor.

SENATOR ROYCE WEST: Have you had any telephone calls in your district talking about the number of teachers that are being laid off?

SENATOR TROY FRASER: Okay. You're going to have to repeat that because I couldn't hear you.

SENATOR ROYCE WEST: Have you had any telephone calls from your senatorial district concerning the number of teachers that might have to be laid off if we pass the House budget?

SENATOR TROY FRASER: I'm sorry, I couldn't understand you, could you repeat it one more time.

SENATOR ROYCE WEST: Okay --

SENATOR TROY FRASER: See, all of us are getting calls from concerned teachers and the school people across the state and I'm very aware of the fact -- if you will remember, I was one of the ones who stood in this back room with Senator Shapiro when we requested it. We put $6 billion, $6 billion to restore the funding in the budget.

SENATOR ROYCE WEST: Exactly my point. Exactly my point. To the extent that your amendment goes on, the dollars that we're talking about won't be there in order to restore funding.

SENATOR TROY FRASER: You're making an assumption.

SENATOR ROYCE WEST: No, I'm making an educated assumption and I'm a member of the finance committee, I helped write the budget, Senator Shapiro is too, Senator Duncan is also and we're coming up with quote unquote this nontax revenue in order to fund public education, in order to fund health and human services, to make certain that those individuals that are in nursing homes will be able to keep individuals in nursing homes. And to the extent, you have a right to do it and I respect your right to do it, we'll guard your right to do it. If you want to take revenue out of the budget, then it's your right to do it. I just want to make sure you understand the ramifications because I can assure you that I've looked at some of your school districts, I can assure you that I've heard from some of your school teachers and superintendents about how they want to make certain that we get the Senate budget in order to minimize the cuts in your school district.

SENATOR TROY FRASER: Why don't we amend the bill then --

SENATOR ROYCE WEST: Going by 800 --

SENATOR TROY FRASER: -- and lawyers.

SENATOR ROYCE WEST: Take $800 million, taking $800 million out of nontax revenue will definitely impact our ability in order to fund public schools and also nursing homes in the state of Texas but it is your right to move with this amendment. It's my right to vote against it.

SENATOR TROY FRASER: Would you show me where in this amendment there's any specification this money would come out of the education budget?

SENATOR ROYCE WEST: Well, you know, and Senator Fraser, come on now, you know that's not the way that it's actually done. You know that. The reality is this is $800 million that will be a part of a general revenue that we will collect in order to fund the budget in the state of Texas.

SENATOR TROY FRASER: I would make the case there's a lot of places --

SENATOR ROYCE WEST: So hold on, hold on. What you're saying is that you want to take the 862 million and make certain that it's targeted to financing public schools. Is that what you want to do?

SENATOR TROY FRASER: That was not said at all.

SENATOR ROYCE WEST: But so you want to spend money on public schools in the state of Texas.

SENATOR TROY FRASER: Yes.

SENATOR ROYCE WEST: But you just don't want to spend this money on the public schools in the state of Texas.

SENATOR TROY FRASER: This amendment doesn't address that.

SENATOR ROYCE WEST: It takes $862 million out of the budget, right?

SENATOR TROY FRASER: 862 million.

SENATOR ROYCE WEST: It's taking it out of the budget, right?

SENATOR TROY FRASER: Money that businesses in the past have not had to pay, that they're having to pay in advance.

SENATOR ROYCE WEST: Senator, and you know what, here's the situation. I recognize that we're doing a lot of different things with this budget and there's a lot of things we haven't done in the past because we haven't addressed the structural deficit. Okay? There's not a willingness to address it. You know it and I know it, Senator Ogden laid out a bill in committee yesterday talking about making sure we have a conversation about it. We just haven't been willing to do it. There's not a political will to do it and until we have the political will to have a conversation, until we have the --

SENATOR TROY FRASER: Mr. President, can we have some order? I'm sorry, I can't hear what's going on.

SENATOR ROYCE WEST: And I'll be willing to bet you that the bill that Senator Ogden laid out yesterday, the SJR, to have a discussion about how we raise revenue or in the state of Texas, it's not the political willingness to even get it out of the committee yet, alone get it out of this body and until we address what has been commonly referred to as a structural deficit, we'll continue to play these games on how to fund government, how to fund growth and things of that nature and this is just the latest of the maturation of how we go about doing it. Instead of taking an approach that's holistic, we're taking a patch work approach in order to deal with the budget. And so to the extent that your amendment goes on, that piece of the patch work in terms of funding public education, won't be there. Thank you very much, sir. I'm getting ready to go talk to the secretary of state now.

SENATOR STEVE OGDEN: Senator Patrick, for what purpose to you rise?

SENATOR DAN PATRICK: Question to Senator Fraser.

SENATOR TROY FRASER: I would yield.

SENATOR DAN PATRICK: Senator Fraser, I think that you and I are thinking the same on this issue. This is not about taking money from education, this is about helping our economy rebound by not impacting small business. And if this amendment did pass, we would look for other dollars to fill that gap in other cuts or other opportunities for nontax revenue. You know, my concern has been on the business tax. We know that some businesses that don't make money pay the business tax. So if you didn't make money and you pay the business tax, you're going to have to pay 25 percent even though you didn't make money. And of course many businesses 60 to 70 percent of their entire year is in seasonal sales from Thanksgiving on and they may not have that money. So again this is a complex issue because the overall bill is a good bill. This part is an issue that you and I have. Senator Duncan is moving forward, I'd like to set the threshold higher. So I thank you for bringing this because I think this is an important issue in a time where we're trying to grow jobs, small business needs to be protected. So this is a case where I support Senator Duncan and Senator Fraser on this where we're trying to go and we're trying to hopefully go eventually. So I see where you're going and I'm glad you brought the amendment.

SENATOR TROY FRASER: Thank you, Senator. Well said.

SENATOR STEVE OGDEN: Senator Hegar, for what purpose do you rise?

SENATOR GLENN HEGAR: Does Senator Fraser yield?

SENATOR TROY FRASER: I will yield.

SENATOR GLENN HEGAR: Senator Fraser, help me understand because this is something I've been thinking about quite a while as we're moving forward with different pieces of legislation and this piece as well. Tell me, Senator Patrick made the comment that some businesses do not make money on the franchise tax, the margins tax. And tell me this particular part you're taking out, they're making quarterly payments, correct? So it's an advance of a quarterly payment?

SENATOR TROY FRASER: It is a -- an exception or change from current law that what we've been doing so basically what's going to happen in current law they're going to be --

SENATOR GLENN HEGAR: Quarterly payments.

SENATOR TROY FRASER: They're paying taxes.

SENATOR GLENN HEGAR: Correct, that tax that one time is going to be moved forward one time.

SENATOR TROY FRASER: That is correct.

SENATOR GLENN HEGAR: Is it perpetual into the future forever?

SENATOR TROY FRASER: No.

SENATOR GLENN HEGAR: And is it applying for this particular year? Does it come up in 2011?

SENATOR TROY FRASER: No, it's the next year.

SENATOR GLENN HEGAR: 2012?

SENATOR TROY FRASER: 2013, yes.

SENATOR GLENN HEGAR: I'm sorry, 2013?

SENATOR TROY FRASER: Yes.

SENATOR GLENN HEGAR: So in other words as the Texas economy today stands, the committee is improving in the state of Texas in 2011. Would we be in agreement the economy is improving in 2011?

SENATOR TROY FRASER: Increased is getting better?

SENATOR GLENN HEGAR: Yes.

SENATOR TROY FRASER: The answer is yes.

SENATOR GLENN HEGAR: Increased forecast is that it will get better potentially in 2012 and 2013. When this burden comes into place it's not 2011, it's not in 2012, it's in 2013.

SENATOR TROY FRASER: That's correct.

SENATOR GLENN HEGAR: And they're making quarterly payments on a tax, this tax is moved up a step.

SENATOR TROY FRASER: That's not correct. You don't pay franchise tax in quarterly payments. You're thinking about sales tax.

SENATOR GLENN HEGAR: This tax will be moved up. Moved up slightly in the year?

SENATOR TROY FRASER: And it will affect the cash flow --

SENATOR GLENN HEGAR: Further out in the economic times, not in a down --

SENATOR TROY FRASER: It's an expense they're not prepared for.

SENATOR GLENN HEGAR: Well, they'll have a little time to prepare --

SENATOR TROY FRASER: Based on --

SENATOR GLENN HEGAR: The issue for me, and this is a tough one, but as we look at our choices on whether we're going to raise taxes and to me that's absolutely no. I told my constituents that for over a year. Also at the same time of the almost 70 schools that I represent, the one where I call home, Katie, we had protest, kids walking out of schools, teachers being laid off, more chaos there, more than anywhere else I've seen in my district. I guess if I have to make a hard choice, this is a hard choice to move into a direction to continue to make sure we continue funding those jobs and in out years. Not this year but in out years. And so for that reason I think -- I appreciate the reason you're bringing this. I think it's something that's very important that you're bringing as a discussion but I don't think it's quite doing the damage that you think it is.

SENATOR TROY FRASER: There's nothing in this amendment that says anything about where the money will be directed and this has nothing to do with lowering the amount of money that we send to public schools. And as a business guy you understand very clearly that the way that you create jobs and money back into the whole sector of Texas, you know, for the growth of the economy is leaving that money there in those hard working businesses and that's what I'm attempting to do.

SENATOR STEVE OGDEN: All right. Senator Duncan, you're recognized for a motion on floor amendment No. 3.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. I move to table. And, members, a vote to table would be a vote against the Fraser amendment. So I'm going to ask you to vote aye on the motion to table.

SENATOR STEVE OGDEN: Senator Fraser to close.

SENATOR TROY FRASER: I close.

SENATOR STEVE OGDEN: Members, the motion is -- the motion is to table floor amendment No. 3 to floor amendment No. 2. Secretary will call the roll.

SENATOR STEVE OGDEN: There being 24 ayes and seven nays, the motion to table prevails. Senator Duncan, you're recognized on a motion on floor amendment No. 2.

SENATOR ROBERT DUNCAN: Thank you. Once again I move to adopt floor amendment No. 2.

SENATOR WENDY DAVIS: Mr. President.

SENATOR STEVE OGDEN: Senator Davis, for what purpose do you rise?

SENATOR WENDY DAVIS: Parliamentary inquiry, Mr. President.

SENATOR STEVE OGDEN: What's your parliamentary inquiry?

SENATOR WENDY DAVIS: I'd like to know on the original bill, the original motion on the bill that Senator Duncan advanced, how many Democrats voted against moving forward with Senate Bill 1811 on the motion to suspend.

SENATOR STEVE OGDEN: Senator Davis, we can get you a printout but that's not really a parliamentary inquiry.

SENATOR WENDY DAVIS: I'd be happy to receive that printout and I'd also like to, Mr. President, receive a printout of how many Democrats voted just now in favor of the motion to floor the amendment to the amendment that Senator Fraser advanced.

SENATOR STEVE OGDEN: Yes, ma'am.

SENATOR WENDY DAVIS: Thank you.

SENATOR STEVE OGDEN: All right. Senator Duncan moves adoption of committee amendment No. 2.

SENATOR ROBERT DUNCAN: Floor amendment.

SENATOR STEVE OGDEN: I mean, floor amendment No. 2. Excuse me. Senator Duncan moves adoption of floor amendment No. 2. Is there objection? The Chair hears none, amendment is adopted. Following amendment, secretary read the amendment.

PATSY SPAW: Floor amendment No. 4 by Duncan amending the article on state purchasing.

SENATOR STEVE OGDEN: Chair recognizes Senator Duncan on his amendment.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. This amendment is one I discussed with you during the suspension. The controller procures certain goods and services for the state of Texas. This amendment is a simple contracting tool that permits the controller to pay a third party vendor who contracts for certain goods from the savings realized. The contracting tool will allow us to achieve more savings and the savings that will be generated for the state with this amendment has been given a cost or a saving of $16 million to general revenue over the biennium. This does not increase the current controllers procurement ability. Unless there are questions I would move to adopt floor amendment four.

SENATOR STEVE OGDEN: Senator Williams, for what purpose do you rise?

SENATOR TOMMY WILLIAMS: Mr. President, I don't believe I have a copy of the amendment and I would like an opportunity to review it. I don't know if the other members have received one or not.

SENATOR STEVE OGDEN: I believe it was handed out earlier and we'll make sure you get a copy.

SENATOR ROBERT DUNCAN: Here it is.

SENATOR STEVE OGDEN: Senator Williams, for what purpose do you rise?

SENATOR TOMMY WILLIAMS: I'd like to ask the author of the amendment a question.

SENATOR STEVE OGDEN: Senator Williams, you're recognized for a question.

SENATOR TOMMY WILLIAMS: Senator Duncan, I know you spoke to this earlier but I did not -- I don't recall your reply. By adding this amendment, what is the effect on the bill?

SENATOR ROBERT DUNCAN: It simply allows -- it adds 16 million.

SENATOR TOMMY WILLIAMS: $16 million.

SENATOR ROBERT DUNCAN: Yeah.

SENATOR TOMMY WILLIAMS: Okay, thank you.

SENATOR STEVE OGDEN: Senator Duncan moves adoption of floor amendment No. 4. Is there objection? Chair hears none, floor amendment No. 4 is adopted. Following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 5 by West.

SENATOR STEVE OGDEN: Chair recognizes Senator West on his amendment.

SENATOR ROYCE WEST: Thank you very much, Mr. President. Under current law a municipality may offer a municipal property tax payment to a new business if the new business leases property that is government owned. That is tax exempt. Oddly, the municipality may not offer a tax abatement directly to the new business if the new business will be leasing property that is privately owned. That is taxable property. So this particular amendment is the solution. The amendment adds "or taxable" to the section 3.0124 of the tax code. This will allow cities, all cities to have identical authority to that which counties already have. Counties already have the authority to allow tax exemptions for tax exempt or taxable properties. That's what the amendment does. It only affects municipalities.

SENATOR STEVE OGDEN: Senator Duncan is recognized on the amendment.

SENATOR ROBERT DUNCAN: The amendment is acceptable.

SENATOR STEVE OGDEN: Senator Jackson, for what purpose do you rise?

SENATOR MIKE JACKSON: I got a question.

SENATOR STEVE OGDEN: Senator Duncan has the floor. Who do you want to ask?

SENATOR MIKE JACKSON: I'd like to ask the author of the amendment a question.

SENATOR STEVE OGDEN: All right. Senator West has the floor. You're recognized, Senator Jackson, to ask a question.

SENATOR MIKE JACKSON: Thank you. It was a little bit tough to hear the explanation of your amendment and I heard you said it only affects municipalities and I know it deals with tax payment -- let me -- will you -- tell me whether the net effect of your tax abatement by municipalities is decreased or increased with the -- come over here closer. Okay. I couldn't hear you, I couldn't hear you very well --

SENATOR ROYCE WEST: All right. I can hear you, can you hear me now?

SENATOR MIKE JACKSON: -- when you explained the amendment. I know it deals with municipalities only and it deals with tax abatements but my question is whether the effect of your amendment would give more tax abatement abilities to give more tax abatements by municipalities or would it be reduced?

SENATOR ROYCE WEST: It's pretty much, it gives them the same authorities the counties currently have. Counties can give tax abatements to government owned or privately owned property or businesses now. Cities can only do it as it relates to government owned businesses, and so what this does is it gives cities the same authority counties have.

SENATOR MIKE JACKSON: So it would allow cities the tax abasement --

SENATOR CHRIS HARRIS: Mr. President. Mr. President. The print is so small on this proposed amendment we can't read it.

SENATOR MIKE JACKSON: We're getting old.

SENATOR CHRIS HARRIS: Can we have it blown up or something to where it's legible, even those of us that wear glasses?

SENATOR ROYCE WEST: I'm reading it for you.

SENATOR STEVE OGDEN: Senator Harris, I'm stumped on that one. I'm just stumped. I'm stumped, I can't help you but if you'd like I'd get Senator West to read his amendment.

SENATOR CHRIS HARRIS: I'm not interested in hearing him read it. I would like to be able to have it in front of me in a size of print that is reasonable to read.

SENATOR STEVE OGDEN: Senator West, are you willing to withdraw the amendment and reprint it?

SENATOR MIKE JACKSON: Can you select a larger font?

SENATOR ROYCE WEST: No, I'm trying to figure out. This is what this does. Under current law a municipality may offer a municipal property tax abasement to a new business, a new business -- if the new business leases properties that are government owned. That is government owned is tax exempt. The municipality may not offer a tax abatement directly to a potential new business if the new business will be leasing new property that is privately owned, that is taxable property. So adding "taxable" to it gives cities the same identical authority to that of counties, the counties already currently have.

SENATOR MIKE JACKSON: Okay. So your -- the net intent of your amendment is to allow municipality to give a tax break to a private, privately owned business; is that correct?

SENATOR ROYCE WEST: Gives them a tool to allow that just as a county currently has.

SENATOR MIKE JACKSON: Okay. So a net would mean that would be an economic development tool for that city to attract a business where they could give that business a break from taxes, right?

SENATOR ROYCE WEST: A tax abatement, right. It's an economic development tool, that's what it is.

SENATOR KEL SELIGER: Mr. President -- I'm sorry.

SENATOR STEVE OGDEN: Senator Seliger, for what purpose do you rise?

SENATOR KEL SELIGER: Parliamentary inquiry.

SENATOR STEVE OGDEN: What's your parliamentary inquiry?

SENATOR KEL SELIGER: My parliamentary inquiry is we're talking about tax abatements for funds going to cities and I don't think that has anything to do with a state fiscal matter.

SENATOR STEVE OGDEN: Yes, sir, just a minute. All right. Senator Seliger is -- Senator West please bring your parliamentary inquiry to the parliamentarian. Members, the question is on the germaneness of this amendment. All right. Senator West withdraws his amendment. The following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 6 by Fraser.

SENATOR STEVE OGDEN: Senator Fraser, you're recognized on your amendment.

SENATOR TROY FRASER: Members, in the bill there's a section addressing the collection of taxes having to do with tobacco products. There's a tobacco stamp that certain businesses are put on the tobacco products. We've been allowing them a 3 percent rebate back for doing that. They're collecting this tax in advance of sending it in. They've always had 3 percent on it. There's an attempt to move it from three back to percent. The research we've done on this is we've been told that if you do that there's only -- the bulk of this is done by one company, it could affect their ability to pay for this function. I'm attempting to get it back to a point where this matches up better with what the true cost of doing this. So instead of reducing it by 2/3rds, it would reduce this by 1/3rd, I think making it fairer and I believe, I'm hoping this will be acceptable to the author.

SENATOR STEVE OGDEN: Senator Hegar, for what purpose do you rise?

SENATOR GLENN HEGAR: To ask Senator Fraser a question.

SENATOR STEVE OGDEN: You're recognized to ask a question.

SENATOR TROY FRASER: Yes.

SENATOR GLENN HEGAR: I was just curious when you mentioned research, I was curious was that publications or was that internet research or what kind of research?

SENATOR TROY FRASER: That was actually businesses.

SENATOR GLENN HEGAR: Because I haven't looked into it myself so I was just curious what business --

SENATOR TROY FRASER: The businesses that are actually collecting this, I asked them to come forward, furnish me their data of what their cost was associated with this, how much was collected, what the amount of it was --

SENATOR GLENN HEGAR: So you talked to the businesses themselves and they provided you with that research.

SENATOR TROY FRASER: Yes, the businesses themselves.

SENATOR GLENN HEGAR: Okay. Could you have your staff send that over to my office? I'd be curious to read that too. Thank you, Senator.

SENATOR TROY FRASER: Okay.

SENATOR STEVE OGDEN: Senator Duncan is recognized on the amendment.

SENATOR ROBERT DUNCAN: Thank you, members. This is an issue that we've been discussing with the industry and it's -- here's what happened. They've always been at this 3 percent for this stamping allowance and whenever we raise the cigarette tax to a dollar or but a dollar, we didn't change the percentage and so there was actually a substantial increase in revenue develop. I think that there is an issue and Senator Fraser's trying to address it. I've been talking with the industry to make sure we hit the right spot. I'm willing to accept the amendment, but I want to continue to work with him and make sure the research.

SENATOR TROY FRASER: And I agree with that I want to make sure --

SENATOR ROBERT DUNCAN: And you and I have talked about this and it's something that it is a fairness issue. We don't want to be arbitrary and just get it wrong. So I appreciate you bringing it up and working with me on it.

SENATOR STEVE OGDEN: Senator Fraser offers floor amendment No. 6. It is acceptable to the author. Is there objection? Chair hears none, floor amendment No. 6 is adopted. Following amendment, secretary will read the amendment.

PATSY SPAW: Floor amendment No. 7 by Ogden.

SENATOR STEVE OGDEN: Senator Hinojosa is recognized on the Ogden amendment.

SENATOR JUAN HINOJOSA: Thank you, Mr. President and members. This floor amendment just makes a technical change requested by the comptrollers office to article 19 which is the tobacco fund for the Cancer Prevention and Research Institute of Texas to ensure that the controller will certify the corporates and earnings of tobacco funds are available to be appropriated for the payment of cancer bonds for debt and it's just a suggestion, technical change requested by the comptroller office to the wording that is presently in article 19.

SENATOR STEVE OGDEN: Senator Hinojosa moves adoption of floor amendment No. 7. Is there objection? Chair hears none, floor amendment No. 7 is adopted. The following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 8 by Rodriguez and Wentworth.

SENATOR STEVE OGDEN: Senator Wentworth, you want to explain your amendment? Chair recognizes Senator Wentworth on the floor amendment No. 8.

SENATOR JEFF WENTWORTH: Mr. President, this is the effort that we're trying to make to give some kind of financial support to people that don't have any ability to pay for legal access to the courts and I'm going to defer them to the principle author Senator Rodriguez since he's now on the floor.

SENATOR STEVE OGDEN: Senator Rodriguez is recognized on floor amendment No. 8.

SENATOR JOSE RODRIGUEZ: Thank you, Senator Wentworth. Mr. President and Chairman Duncan, I want to thank you for your hard work on your bill and members, this floor amendment is identical to the amendment that I offered yesterday. It established judicial access of proven account as an account in the general revenue fund for the purpose of funding of basic civil legal services and indigent defense. Again, this amendment is based on House Bill 2174 by Representative Hartnett which was voted out of the House committee on the judiciary and civil jurisprudence by a vote of nine to one last week. Mr. President, I respectfully move adoption of the amendment.

SENATOR STEVE OGDEN: Senator Rodriguez moves adoption of floor amendment No. 8.

SENATOR ROBERT DUNCAN: May we approach the bench?

SENATOR STEVE OGDEN: There is objection. Secretary will call the roll.

SENATOR STEVE OGDEN: There being 17 ayes and 14 nays, the amendment's adopted.

SENATOR JOSE RODRIGUEZ: Thank you, Mr. Chairman and president.

SENATOR STEVE OGDEN: Following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 9 by Watson.

SENATOR STEVE OGDEN: Chair recognizes Senator Watson on his amendment.

SENATOR KIRK WATSON: Thank you, Mr. President. Members, this is the amendment that Senator Duncan and I talked about before we voted on suspension and what this amendment does is it incorporates four pieces of the Committee Substitute to Senate Bill 1652 which was an omnibus piece of legislation I worked on with the lieutenant governor's office, the controller's office and many stakeholders to increase government openness and accountability. It incorporates the measures that have wide support among those who have worked on this effort, groups ranging from Texas Impact to the Texas Public Policy Foundation both of which are fully supportive of Senate Bill 1552 and the amendment does not contain any provision that would have a fiscal note. Specifically this amendment would have the legislative budget board meet annually and get updates from the controller on state revenue and economic trends. Create a section of the General Appropriations Act to break out fee increases in the budget, require the legislative budget board to hold public hearing on interim budget reductions from the governor and legislative leadership, have the controller publish a fee schedule at the end of each fiscal year explaining the use of fee revenue and have the state cash management committee hold a public hearing on the state budget and Texas economy before approving tran debt. Also the committee could meet no more than 90 days and have that approval before the comptroller issues that -- that tran debt. This is acceptable to Senator Duncan, the author of the bill and I move adoption of floor amendment No. 9.

SENATOR STEVE OGDEN: All right. Senator Duncan.

SENATOR FLORENCE SHAPIRO: Mr. Chairman, can I ask a question of the author of the amendment while Elvis comes back to the building?

SENATOR STEVE OGDEN: Senator Shapiro, you're recognized to ask the author of the amendment a question.

SENATOR FLORENCE SHAPIRO: Thank you. Senator Watson, is this a bill?

SENATOR KIRK WATSON: It was a bill and --

SENATOR FLORENCE SHAPIRO: Where is it now?

SENATOR KIRK WATSON: Well, it received a hearing in the Senate finance committee and has not had a vote yet in the Senate finance committee.

SENATOR FLORENCE SHAPIRO: I would much prefer we left this bill stay alive. I would much prefer we let this stay as a regular bill rather than putting it on this fiscal matters bill and my question would be why hasn't it been voted out of committee if it's a good bill?

SENATOR KIRK WATSON: That would be a question you would have to ask the Chair of that committee who I think is okay with this amendment going on the fiscal matter of this bill.

SENATOR FLORENCE SHAPIRO: Well, as long as the chair's okay and the author's okay, I'm not okay.

SENATOR KIRK WATSON: Well, I understand that apparently you're not, but the Chair of the committee held a hearing on it. In fact during that hearing, there was no one in opposition to this and like I say it's received wide support really from both sides of the budget issue and then Senator Duncan is also in favor.

SENATOR STEVE OGDEN: All right. Members, floor amendment No. 9 is before the body. Senator Duncan is recognized on Senator Watson's floor amendment No. 9.

SENATOR ROBERT DUNCAN: Mr. President and members, I think we need to go ahead and move this amendment is -- I've had it bedded and quite frankly I agree that the LBB should meet once every November. I agree with the other issues of it. I think it's -- I think other members have seen this and so I'm going to -- and I want to tell everybody what I'm going to do. Right now I'm going to move that we -- I would say the amendment's acceptable to the author and I would encourage members to vote for it and so then I'll have another motion after that. So I would -- the amendment is acceptable to the author and --

SENATOR KIRK WATSON: May I just make one statement, Mr. President?

SENATOR STEVE OGDEN: No. Senator Hinojosa, for what purpose do you rise?

SENATOR JUAN HINOJOSA: I think I'm on the incorrect amendment.

SENATOR STEVE OGDEN: All right. Senator Watson.

SENATOR KIRK WATSON: I just want to point out and ask Senator Duncan, just so we're clear the discussion that just happened, the offline discussion wasn't related to problems with mine, it was completely -- related to concerns about other actions that have already been taken.

SENATOR ROBERT DUNCAN: Correct. So I would -- yeah, that was, that just happened in the middle of your layout. So the amendment is acceptable to the author.

SENATOR KIRK WATSON: Thank you.

SENATOR STEVE OGDEN: Senator Shapiro, for what purpose do you rise?

SENATOR FLORENCE SHAPIRO: I'd like to speak to the author of the bill.

SENATOR STEVE OGDEN: Well, he doesn't have the floor.

SENATOR FLORENCE SHAPIRO: Okay. Then Senator Watson, I'll ask you. Are you of the opinion that this bill will not pass out of finance committee?

SENATOR KIRK WATSON: No, I'm of the opinion that it will pass out of the committee but as we get later in the session and the work that the finance committee was doing on the budget bill this is an opportunity, this is a germane amendment, each of the amendments are germane, I could have done them as individual amendments chose at the request of Senator Duncan to put them into a single amendment. But this is -- this is directly related to the fiscal matters of the state, this is an amendment that will increase transparency and accountability and I would like to go ahead and put that on this bill in this point of time.

SENATOR FLORENCE SHAPIRO: Do you plan on still running with your bill?

SENATOR KIRK WATSON: I haven't thought about that in candor but sure why not, give us more than one place to do it.

SENATOR FLORENCE SHAPIRO: I'd like to see you go forward with your bill.

SENATOR KIRK WATSON: Well, I may do that.

SENATOR FLORENCE SHAPIRO: Okay. Thank you.

SENATOR KIRK WATSON: I move adoption of the floor amendment No. 9 and I'm really glad that the whole other conversation on the other amendment happened during my amendment.

SENATOR JOHN WHITMIRE: Mr. President.

SENATOR STEVE OGDEN: Members, all right, members, it has been a long day and ladies need to -- well, that's not fair. We'd like to take a recess for all personnel to take a short break and so I'm getting ready to recognize Senator Whitmire for a motion to recess and then I would ask the senators together for a caucus. Senator Whitmire, you're recognized for a motion to recess.

SENATOR JOHN WHITMIRE: I would move -- I would move that we recess for the purpose --

SENATOR FLORENCE SHAPIRO: Parliamentary inquiry, Mr. President.

SENATOR STEVE OGDEN: Yes, Senator Shapiro.

SENATOR FLORENCE SHAPIRO: Is this appropriate to stop in the middle of a vote?

SENATOR STEVE OGDEN: Yes.

SENATOR FLORENCE SHAPIRO: I've been here a long time. I don't recall that we've ever done this in the middle of a vote.

SENATOR STEVE OGDEN: Well, we were in the middle of a vote.

SENATOR FLORENCE SHAPIRO: We got a bill sitting in front of us, we got a floor amendment sitting right in front of us.

SENATOR STEVE OGDEN: But Senator, I haven't called for a vote so we're not in the middle of a vote. All right. Senator Whitmire, you're recognized for a privileged motion.

SENATOR JOHN WHITMIRE: Thank you, Mr. President. Members, I would move -- first of all, I would announce during the recess that the Senate will caucus in the Betty King Room and with that, for procedural discussion, so I would move that we recess until 4:00 o'clock.

SENATOR STEVE OGDEN: All right. Is there any objection? The Chair hears none, the Senate stands recessed until 4:00 p.m.

(Recess.)

SENATOR STEVE OGDEN: All right. The Senate will come to order. When we recessed before the body was floor amendment No. 9 by Watson. We recognize Senator Watson to explain his amendment.

SENATOR KIRK WATSON: Thank you very much for the opportunity to explain this amendment and make sure people are clear on it. Members as I pointed out this and I pointed out in my original statement this has some of the parts of Committee Substitute to Senate Bill 1652. Let me quickly tell you, very quickly tell you what is in this amendment. Currently there's no mechanism in state law requiring that the public and the legislature be given regular updates on the state finances. What this would do is have the legislative board meet publicly once at least once annually to receive updates about the state's fiscal and budget condition. Also there's no provision in law that specific recalls for reporting on fees charged by the state, how those fees change and how the money they generate is used. This would change that and create certain requirements on the reporting of fees. Additionally it would say that when current law which gives the legislative budget board and governor's office authority under a specific process to adjust state appropriations during a legislative interim that there would need to be -- LBB would need to seek a hearing on those input reduction plans before they're implemented. And finally it would say that before the comptroller can issue tax anticipation nodes, what otherwise is known as tran debt, the cash management committee of the state of Texas would need to meet and it could not meet and approve such issuance of that more than 90 days before the controller issues those tax anticipation nodes. I would move adoption of floor amendment No. 9.

LT. GOVERNOR DAVID DEWHURST: Thank you, Senator Watson. The Chair recognizes Senator Duncan on floor amendment 9.

SENATOR ROBERT DUNCAN: Members, we have previously discussed this. The author has no objection to the amendment.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Watson to close.

SENATOR KIRK WATSON: Thank you, Mr. President. I would simply move that we adopt floor amendment No. 9 so we can make the budgeting process in the state of Texas more transparent and have greater accountability.

LT. GOVERNOR DAVID DEWHURST: Thank you, Senator Watson. Members, you heard the moas by Senator Watson, it's acceptable to the author. Is there objection from any member? Chair hears no objection from any member and floor amendment No. 9 is adopted. Chair lays out floor amendment No. 10 by Senator Ellis. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 10 by Ellis. Benefits for survivors of the Texas National Guard.

SENATOR RODNEY ELLIS: Mr. President, it's been a long day and I had a good visit with Senator Birdwell, so I'm going to pull this amendment down.

LT. GOVERNOR DAVID DEWHURST: Okay. Members, Senator Ellis pulls down floor amendment No. 11 -- ten, excuse me. The Chair lays out floor amendment No. 11 by Senator Jackson. It's being passed out, members, as I speak. Floor amendment No. 11 by Senator Jackson. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 11 by Jackson.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Jackson to explain floor amendment No. 11.

SENATOR MIKE JACKSON: Thank you, Mr. President and members. I want to make sure you look at this amendment. This floor amendment is a tool for Texas to use to keep on the path of creating and retaining jobs. As you know our state is the model to other states in the union on how to create a business friendly climate and this floor amendment is going to help us continue that trend by providing critical support to get Texans back to work. The first provision expands the Texas back to work program by allowing businesses to receive an incentive for hiring new employees who make up to or made up to $40 an hour at their last employment now receiving unemployment benefits. Currently the program only applies to businesses who hire employees who made up to $15 an hour. There's $30 million allocated for this program and it will incentivize companies who are thinking about hiring to take the plunge and hire additional employees. It's a very successful program, helped about 13,000 Texans gain employment. The second part of the amendment allocates an additional $15 million to the skills development financed at the Work Force Commission. It requires that at least million be given to small businesses under 100 employees to provide job training skills for employees and according to the comptroller's 2010 incentive report the skills development fund has helped create and retain over 2,000 jobs between 2007 and 2009 at a cost of $1190 a job. This is another effective and efficient program which deserves our support. These businesses can receive up to $1450 per new employee and 725 per retained employee for training cost at a local institution of higher education. The money goes to local institutions of higher education and I would move adoption of this committee amendment No. 11.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Duncan on floor amendment 11.

SENATOR ROBERT DUNCAN: The amendment is acceptable to the author.

LT. GOVERNOR DAVID DEWHURST: Members, the Chair recognizes Senator Jackson to close.

SENATOR MIKE JACKSON: I close. Move adoption.

LT. GOVERNOR DAVID DEWHURST: Members, you heard the motion by Senator Jackson. He moves the adoption of floor amendment No. 11 it's acceptable to the author. Is there objection from any member? Chair hears no objection from any member and floor amendment No. 11 is adopted. Chair lays out floor amendment No. 12 by Senator Davis. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 12 by Davis.

LT. GOVERNOR DAVID DEWHURST: And I believe Senator Davis' amendment is being passed out as we speak. Chair recognizes Senator Davis to explain floor amendment 12.

SENATOR WENDY DAVIS: Thank you, Mr. President. Members, we've been talking over the last few days about this particular Committee Substitute to Senate Bill 1811 and the generation of revenues to help fund what I think most of us would agree is an abysmally lacking budget moving forward. All of us are hearing concerns from our district about education, jobs being lost, health and human service impacts to our community, impacts to our teachers, impacts to our children and I think that merits very serious conversation on our behalf about the use of the current balance in the Texas emerging technology fund in the Texas enterprise fund. Right now those two funds, though they're not going to be additionally funded under Senate -- the House -- Senate -- Committee Substitute to House Bill 1. Those funds currently have about $290 million in the balance of those funds and clearly the funds are created for purposes of providing economic development and jobs in the state of Texas. In the budget that was laid out in the House -- Mr. President, may I please ask attention of the members?

LT. GOVERNOR DAVID DEWHURST: Members, if you would, Senator Davis is speaking.

SENATOR WENDY DAVIS: Thank you, Mr. President. The budget that was laid out in the House, the legislative budget board did an analysis of what the impact to our economy would be of House Bill 1 were to pass and the analysis that was done by the LBB indicated that there was a potential of about 335,000 job losses in the state of Texas for that budget to pass. The Senate bill, of course, dramatically improves upon what the House Bill was proposing in that regard and so let's say that job loss might be half that much or maybe it will be a third that much, that job loss primarily is coming in the educational arena because the multiples of jobs that are lost in the educational arena as well as in the private sector arena because of the ripple impact there. What this amendment would seek to do would be to use those funds that are in the emerging technology fund and the Texas enterprise fund for purposes of financing the general revenue fund, hopefully with the purpose of adding money to education. $290 million would have a very significant impact on public education. Now, if you'll notice the bill proposes that each of those funds would retain $10 million and that was very purposeful on my part because I think it's important that we not zero them out. They are important funds. When I was on the city council of Fort Worth I chaired the economic development committee for a number of years while I was there, because I do understand the importance of using resources to help spur economic development. But we're in a unique time right now and that unique time I believe calls for us to save jobs. This fund is for the creation of jobs but when we know we're threatened with multiple of thousands of job losses, I think it's very appropriate for us to look at economic development funds for the purpose of saving existing jobs. I also think it's important for us to think about the use of those funds today and there's probably no better time for us to take a step back, take a deep breath, look at the way the funds are being administered, and take this opportunity, a two year opportunity to no longer fund those programs, instead to use that money for education, jobs and look at better procedures for the use and the administration of those particular funds. In the paper this morning, there was a reference to an audit on the lack of transparency and accountability in the emerging technology fund and I believe everyone saw that. Last year there was an audit done by the Texans for Public Justice studying the use of the Texas enterprise fund and the demonstration that the job creation promises that were made by companies who received millions and millions of dollars for that fund were not realized. I do think it would provide an opportunity where those funds used for this particular biennium to fund the revenue fund, to give a look at the transparency, the account, the administration, of the enterprise fund and of the Texas emerging technologies fund. With that I would move adoption of floor amendment No. 1 -- or No. 11 -- 12. Floor amendment No. 12. Thank you.

LT. GOVERNOR DAVID DEWHURST: Thank you, Senator Davis. Senator Ogden, for what purpose to you rise?

SENATOR STEVE OGDEN: To ask the author a question.

LT. GOVERNOR DAVID DEWHURST: Will Senator Davis yield?

SENATOR WENDY DAVIS: Yes, of course.

SENATOR STEVE OGDEN: Senator Davis, this is an interesting amendment and I think it will work but I just want to clarify one thing. Currently the Texas emerging technology fund is a general revenue dedicated fund but Senator Watson will appreciate this, the amount of money in that fund does not count toward certification and so that's why you're transferring it to the general revenue fund. I believe that the unexpended and obligated balance is approximately 50 or $60 million not the 200 million plus that you see. A lot of that is already obligated. So, members, if you vote for this amendment it's my opinion you're voting to transfer approximately $40 million into the general revenue fund.

SENATOR WENDY DAVIS: And thank you so much, Senator Ogden, I appreciate that explanation in an attempt to urgently put together what the number was. It's been very hard to determine how much is currently in there waiting for possible approval. I did have a conversation this morning with LBB and that's where I received my 290 million-dollar number in terms of the balance in each of those accounts but they did say there are projects in the cue not quite approved and obviously there will be some decision making there in terms of whether those projects would approve. But to the extent that they're not and to the extent there are moneys left in the dedicated fund that could be moved into the general revenue fund that's what this bill would do. If you would notice it doesn't indicate an absolute amount that would be transferred but to the extent there is an un-obligated balance there it would transfer the un-obligated balance. Thank you for the clarification.

LT. GOVERNOR DAVID DEWHURST: Senator Jackson, for what purpose do you rise?

SENATOR MIKE JACKSON: Will the gentle lady yield?

SENATOR WENDY DAVIS: Yes, of course.

SENATOR MIKE JACKSON: Thank you. I just want to remind you and Senator Ogden the amount that we just adopted, amendment No. 11 utilizes about -- let me make sure here, I think 45 or $50 million out of the same fund so if Senator Ogden's right with his estimate of what's nonobligated in that fund, then with use the money on this amendment that we have, that we just passed there's not really going to be any money there, so just FYI more than anything.

SENATOR WENDY DAVIS: Yes, I understand that, Senator Jackson. Thank you again very much and I think again the question's going to arise in terms of what is unexpended and un-obligated and under your amendment, Senator Jackson, I think it's a very good amendment and would certainly supercede what was un-obligated and un-un-expended. But to the extent that there are funds left in the enterprise and the emerging technology fund that don't go toward what your amendment just sought to do, then this would allow them to go into the general revenue fund.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on floor amendment 12.

SENATOR ROBERT DUNCAN: Do you -- I had a question of the author of the amendment first just to clarify something.

SENATOR WENDY DAVIS: Yes, Senator.

SENATOR ROBERT DUNCAN: It occurs to me that these don't necessarily -- Senator Jackson's amendment and your amendment don't necessarily conflict. Do you agree with that?

SENATOR WENDY DAVIS: I agree with that, yes.

SENATOR ROBERT DUNCAN: The only question that I have is do we have sort of any impairing, any sort of existing obligations of the ATF by doing this or are we just moving it into the general revenue fund?

SENATOR WENDY DAVIS: No, I don't believe we are because of the words un-expended and un-obligated balance are used and we very purposely used those terms. Thank you, Senator.

SENATOR ROBERT DUNCAN: Thank you.

LT. GOVERNOR DAVID DEWHURST: Senator Duncan, I'm sorry, I couldn't hear.

SENATOR ROBERT DUNCAN: I understand there's opposition. I don't know that I have any opposition to it but I will -- I'll let the opposition speak.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Davis to close.

SENATOR WENDY DAVIS: Thank you. I close on the motion to adopt floor amendment No. 12.

LT. GOVERNOR DAVID DEWHURST: Members, you heard the motion by Senator Davis. The secretary -- Senator Jackson, for what purpose do you rise?

SENATOR MIKE JACKSON: Thank you, Mr. President. Just for clarification I just want to make sure everyone knows where we are right here because if we take the money out of both of these funds, one is already very low on funds to operate and continue under the obligations that we now have with the emerging technology fund I had proposed to the chairman finance in the rider bills to put, give the ability between those two funds to allow the larger fund, the big economic fund to be able to transfer some unexpended balance over to the emerging technology fund so they could continue to operate the rest of the year. And I understand what you want to do, but you may be able to keep more teachers employed if you had $200 million to do that but these two funds and that operation are creating jobs as well and they're pretty well documented and if we end up with a very small amount of money that's there that, I honestly don't know any exact numbers for what's obligated and what's not, we may in effect just be shutting down that entire operation and I don't think that's your intent but we need to give credit where credit is due because there have been literally thousands of jobs that have been created with that operation over there. So I would move cautiously or ask the membership to look at this real closely because in effect what we may be doing is just shutting down the entire economic development portion of our government in the state which is the envy of so many other states right now, that we have people coming from other states to kind of see how we're operating and doing this because it's working so well.

SENATOR WENDY DAVIS: Thank you, Senator Jackson. If you'll notice in the amendment, as I've proposed, it proposes that 10 million would remain in the balance of both the emerging technology and the enterprise fund and to the point that you raised, I think it's important to have this conversation. When an audit was done of the Texas enterprise fund looking at the promised jobs in 2009 versus the jobs that were created, the promised jobs were 18,153. There were $118 million -- excuse me, provided for the creation of what were promised 18,000 jobs only 9,000 jobs were created. We spent $118 million out of the Texas enterprise fund, and we created 9,000 jobs.

SENATOR MIKE JACKSON: And how much money did that 9,000 jobs bring into the state of Texas, Senator?

SENATOR WENDY DAVIS: Well, let's talk about that a little bit. Right now what we're talking about, the LBB -- I mean, if we believe the LBB and obviously the LBB comes forward and gives us their best objective advice about the decisions that we make here in the legislature and the LBB has come forward and said that under House Bill 1 the projected job loss if that budget were to pass in the state of Texas is about 335,000 jobs both in the public and the private sector. We've all seen the media reports on that and granted the Senate bill improves that picture by about half. The Senate bill improves the picture. But let's say only half of those jobs are lost. If we have an opportunity to move money out of the enterprise and the emerging technology fund and we save jobs because let's talk about the cost of losing a job. There's certainly importance and again I chaired the economic development committee and the city of Fort Worth for a number of years I believe in investing for economic development, absolutely, I believe in that a hundred percent but I also understand that we're in a terrible position right now as a state and that we potentially will lose thousands, multiple of thousands of educator jobs even under the Senate bill as it's proposed. And those job losses cost even more to our economy because then we're looking at people who are on the unemployment rolls and they also cost us because our schools have to grapple with how they're going to teach our children with fewer teachers, fewer resources, fewer librarians, fewer counselors, fewer administrators so on and so forth. It's creating a unique challenge. This isn't something I would ever typically advocate but because we are in such a uniquely challenging time, I think it's perfectly appropriate for us to look at every available resource which is what I think collectively as a body we have talked about doing. How are we going to get through this two year period, how are we going to do that and we've all been asked to put forward ideas to help advance us through that. And this is an idea that I think deserves our consideration and certainly I leave it to the will of the members whether they agree that it's an appropriate use of these funds but I believe it is. And again, Mr. President I would move adoption of floor amendment No. 12.

LT. GOVERNOR DAVID DEWHURST: Senator Jackson.

SENATOR MIKE JACKSON: Does that mean you don't want to talk to me anymore?

SENATOR WENDY DAVIS: I'm sorry, Senator Jackson.

SENATOR MIKE JACKSON: Okay. Senator Davis, do you know how many projects may be in the development stage over in that office right now that applications have been received and are under consideration, under review and that type thing right now?

SENATOR WENDY DAVIS: Well, that goes to the question that Senator Ogden was talking about a moment ago and how much of these funds may or may not already be obligated based on projects that are in the cue. Getting an answer to that question, I'm finding, is very, very difficult. But again the reasons I very purposely use the words unexpended and un-obligated is to take care of obligations that are currently in the cue for those funds.

SENATOR MIKE JACKSON: Well, I can tell you and members of this body that if everything is swept with the exception of $10 million you're not going to be able to respond and hold our obligations that are in the cue, so to speak, over there and I just think right now without knowing a whole lot more about what the status is of where we are with that, that it may be penny wise and found foolish to throw the baby out with the bathwater until we have a little bit more definite information. And I understand that's the process that we're in here debating and it's why we do it, it's healthy to do that. But I just don't want to err on the side of destroying our economic development engine that we have in place over there on maybe what it may do over here or may not do depending on what happens in conference committee with the difference between the House Bill and the Senate bill on our funding issues so --

SENATOR WENDY DAVIS: Thank you, Senator Jackson.

SENATOR MIKE JACKSON: Thank you.

LT. GOVERNOR DAVID DEWHURST: Senator Shapiro, for what purpose do you rise?

SENATOR FLORENCE SHAPIRO: To ask the author a question.

LT. GOVERNOR DAVID DEWHURST: Will Senator Davis yield?

SENATOR WENDY DAVIS: Yes, of course.

SENATOR FLORENCE SHAPIRO: Thank you, Senator Davis. And I too was the Chair of the economic development board in Plano for many, many years and certainly agree that economic development in a community and in a state is essential, essential to what we do and one of the reasons that I actually was the author of the emerging technology fund for that very reason and I will tell you that I'm mostly concerned about this, not that I don't have some of the same thoughts that you do about the teachers, but I'm mostly concerned about it because do you know what is in the current bandage for the enterprise fund for 12, 13.

SENATOR WENDY DAVIS: I know that those were zeroed out in the current budget.

SENATOR FLORENCE SHAPIRO: Both of these were zeroed out in the current budget. There's no money in them.

SENATOR WENDY DAVIS: There's money in them, there's a balance of about $290 million.

SENATOR FLORENCE SHAPIRO: But --

SENATOR WENDY DAVIS: No new money going in.

SENATOR FLORENCE SHAPIRO: That's correct. That's correct. So that bothers me obviously. I know that it's zeroed out and I have no problem with zeroing them out if we find that we need a little respite from this to make sure that we're doing it in the proper manner, as well in fact I have a bill and Senator Jackson is a coauthor to look at every economic development plan we have throughout the state to really hone in on those and see which ones are working. Some of the questions that you asked are very relevant. How do they work, what's the funds, what are they using the funds for, are we getting a return on our dollar. No doubt in my mind those are very important questions and I think we ought to look at all of our economic development funds from that perspective. But to take this one opportunity in this small but significant way just doesn't seem to me that we're making the right decision based on what we need at least to fill out the next -- the amount of money that's still left in there. They'll be no new money for two more years. The other thing I'd just like to say and you and I feel very strong about keeping our teachers and we have said this over and over and over again. I would plead with you as we talk about that we have a bill sitting on the intent calendar that will help us to keep our teachers at work. Senate Bill 12 is a very important vehicle to do exactly what you just said, keep our teachers in the classroom and I would like to say this is a drop in the bucket compared to actually voting for Senate Bill 12.

SENATOR WENDY DAVIS: Thank you, Senator Shapiro. I appreciate your opinion very much. I respect you very much.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Duncan on the amendment.

SENATOR ROBERT DUNCAN: Senator Davis, I think -- I need to ask you while this discussion was going on, I asked an analyst to look at your amendment with regard to Senator Jackson's amendment and what happens is apparently as I may understand we may want to temporarily postpone and see kind of how this is because I think they don't work together, they conflict.

SENATOR WENDY DAVIS: That's right. I don't want to undo the good work that Senator Jackson did or that he passed.

SENATOR ROBERT DUNCAN: I think what it is your amendment would sweep the money all but ten which would then make his amendment not work. So Senator Davis, perhaps what we should do, whatever the amount of Senator Jackson's amendment was add that to the ten on each side of the enterprise and the emerging technology fund so that we're assured that those moneys are not swept but are left there specifically for the purpose that Senator Jackson's amendment is intended to fund.

SENATOR WENDY DAVIS: And I'll be happy to pull the amendment down momentarily and look at those.

SENATOR ROBERT DUNCAN: I would suggest we do that and see if that works and then Senator Jackson will work with you on that. I would appreciate it.

SENATOR WENDY DAVIS: Thank you.

LT. GOVERNOR DAVID DEWHURST: Members, Senator Davis temporarily pulls down floor amendment No. 12. The Chair lays out floor amendment No. 13 by Senator Davis. The secretary will -- the secretary will read the amendment.

PATSY SPAW: Floor amendment No. 13 by Davis.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Davis to explain the resolution.

SENATOR WENDY DAVIS: Thank you, Mr. President. And really I want to lay this amendment out but be very sensitive to the reasons that Senator Duncan pulled down a couple of pieces, very important pieces from his Senate Bill 1811 earlier today and that was a concern that those funding mechanisms actually would need to be triggered on the House side rather than on the Senate side but I do think it's important to lay these out and talk about the funding that could arise from each of the next two amendments hopefully in urging consideration of the House in its decision making on creating alternative funding sources to fill the holes in the current budget. The first of these amendments amendment No. 13 deals with a sales tax exemption for contract computer programming and really it's an issue of equity. In the state of Texas right now if you are Best Buy or another store that sells computers and you send a technician out to repair or work on or service a computer from your store, the customer has to pay a sales tax for that service. However if you are a contract computer programmer you do not have to collect and the state does not receive sales tax on that particular service. Believe it or not in this biennium alone, taking that sales tax exemption away closing that loophole so that we can fund our priorities, our priority of course being public education would realize $324.8 million that could go into the general revenue for purpose of plugging some of the very, very deep hole that's in the budget today. I'm not going to move adoption of this amendment for the very reason that Senator Duncan pulled two pieces of his Senate Bill 1811 out because I have been told by the parliamentarian that these are tax bills that have to generate or emanate from the House side but I think it's important for us to make a comment that there's $324.8 million available and I hope someone on the House side will take this idea and advance it.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on the amendment.

SENATOR ROBERT DUNCAN: I think Senator Davis is recognized for what the issue and problems with it. I appreciate her bringing it up for discussion on the floor and I would anticipate there will be further discussions. I think you have another amendment as well.

SENATOR WENDY DAVIS: I do. Thank you, Senator.

LT. GOVERNOR DAVID DEWHURST: Senator Williams, for what purpose do you rise?

SENATOR TOMMY WILLIAMS: I wanted to ask Senator Davis a question. Are we talking about your high gas -- high cost gas amendment at this time?

SENATOR WENDY DAVIS: No, Senator Williams, we haven't gotten to that.

SENATOR TOMMY WILLIAMS: They keep throwing these out there, I wasn't sure where we were thank you. I didn't think I heard you talk about that okay.

SENATOR WENDY DAVIS: Mr. President, I pull down floor amendment No. 13.

LT. GOVERNOR DAVID DEWHURST: Members, Senator Davis pulls down floor amendment 13.

SENATOR WENDY DAVIS: I'm sorry, hang on just a moment.

LT. GOVERNOR DAVID DEWHURST: Senator Davis does not pull down floor amendment 13.

SENATOR WENDY DAVIS: Senator Williams, you were correct. The amendment that was passed out a moment ago was the high cost gas exemption amendment that I intended to advance and I've gotten them out of order, I apologize. This particular amendment which is floor amendment No. 13 would seek to reduce by half the sales tax exemption that currently exists for high cost gas well drilling in the state of Texas. We have information from the LBB that by reducing by half the amount of that exemption we would gain $426 million for general revenue over the next biennium and another $633.6 million for the rainy day fund so in to that over a billion dollars would be recovered just by virtue of cutting in half the high cost gas well exemption. Again, for the reason that Senator Duncan pulled out a couple of pieces of his Senate Bill 1811 because tax bills must generate or emanate from the House, I wanted to advance this idea but I'm not going to move for its adoption. I'm going to pull it down again, I raise it for the point of demonstrating that there really is an opportunity here to put some money back int a budget that's woefully short, it's simply closing loopholes, taking away exemptions. Not creating new taxing sources and I think based on the conversations I'm having back home with my constituents, that's what they're hoping and expecting that we will do. It's a shared pain time. Everyone in our state is being asked to feel some pain by virtue of the economy and by virtue of the structural deficit that we have in place and I think it's only fair to ask that those who are receiving some of these sales tax exemptions also share in that pain. Again, I'm pulling it down but I hope that someone in the House will take this and move forward with it so we can realize over $1 billion for general revenue in the 2012, budget cycle.

LT. GOVERNOR DAVID DEWHURST: Members, Senator Davis draws -- withdraws floor amendment 13. The Chair lays out floor amendment No. 14 by Senator Davis. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 14 by Davis taxability of computer programming services.

SENATOR WENDY DAVIS: Thank you, Mr. President. Very, very briefly because I accidentally laid this out previously, this is the contract computer programming sales tax exemption that would generate $324.8 million in the 2012, 13 biennium. I'm told by the parliamentarian that this is an issue that needs to emanate from the House and for that reason and because I certainly don't want to corrupt Senator Duncan's bill and raise a possible point of order on that bill over on the House side, I'm not going to ask for its adoption but I did feel like it was important to lay it out.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes -- I'll have to listen more carefully. Members, Senator Davis pulls down floor amendment No. 14. Thank you.

SENATOR WENDY DAVIS: Thank you, Mr. President.

LT. GOVERNOR DAVID DEWHURST: The Chair lays out floor amendment No. 15 by Senator Gallegos. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 15 by Gallegos.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Gallegos to explain floor amendment No. 15.

SENATOR MARIO GALLEGOS: Thank you, Mr. President and members. This amendment amends section 211 of the tax code to reinstate the inheritance tax will be stopped after December 31st, 2004. Members, the current federal inheritance tax is imposed on states with a gross value of more than $5 million. The amendment would align the state tax with the federal parameters. While the legislative budget board -- what it didn't have at the time that we stopped -- that we did the exemption we were collecting almost a quarter of a billion dollars on this tax and it's safe to say we would probably expect similar revenue by reinstating it today and the amendment also directs those revenues to be given to the foundation school program and I think that what we're trying to generate revenue here and applaud Senator Duncan for carrying this piece of legislation where it allows us to at least come up with some ideas on how to help you raise this money and it's just -- you know, I want a bunch and I think that I echo Senator Davis where we come out with these ideas where we can generate revenue, that can be, you know, directed to the school foundations program obviously where we're lacking and that we can generate this money and give you these ideas, like Senator Davis has and like I have on this one and -- where also I think that I also am cognizant of the fact that tax bills start in the House and that I just would -- I wanted to bring it out to you that in case any other vehicle that we have that we can put this or Senator Davis or any type of revenue that we can generate to at least come up to level funding not only in the school foundation program but all what's lacking in the budget that I wanted to at least have the opportunity to talk about it, bring it out and let you know that's what we're thinking about and that you can -- if possible, add to that or if you're on conference committee let our members in the House know this is the way to revenue -- generate revenue for another quarter of a million dollars. In my opinion to go to the school foundation program.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on floor amendment 15.

SENATOR ROBERT DUNCAN: Thank you, Mr. President, the amendment is -- generates tax revenue -- would increase revenue to the general revenue and would be unacceptable on a Senate Bill and I think Senator Gallegos knows that and I think he plans on withdrawing the amendment.

SENATOR MARIO GALLEGOS: Mr. President, I reluctantly respectfully pull down the amendment.

LT. GOVERNOR DAVID DEWHURST: Senator Gallegos pulls down floor amendment 15. The Chair lays out floor amendment No. 16 by Senator Hinojosa. The secretary will read the amendment.

PATSY SPAW: Floor amendment No. 16 by Hinojosa.

LT. GOVERNOR DAVID DEWHURST: Floor amendment No. 16 is being passed out right now Senator Hinojosa, sorry. Members, floor amendment 16 is being passed out. The secretary will read the caption.

PATSY SPAW: By adding the following appropriate sections subchapter five, fee on cigarettes and cigarette tobacco products manufactured by certain companies.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Hinojosa on floor amendment 16.

SENATOR JUAN HINOJOSA: Mr. President, I am going to pull down the amendment. I'm going to pull down the amendment.

LT. GOVERNOR DAVID DEWHURST: Senator Hinojosa pulls down floor amendment No. 16. The Chair lays out floor amendment No. 17 by Senator Ellis. The secretary will read the amendment.

PATSY SPAW: Floor amendment No. 17 by Ellis.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Ellis to explain floor amendment 17.

SENATOR RODNEY ELLIS: Thank you, Mr. President and members, people have done sufficient a good job of pulling stuff down today, I'm going to admit I'm going to pull my down as well, but I will mention to the natural gas exemption that Senator Davis talked about she had a more toned down version of it. This one's a stronger version of it, Senator Duncan, but also I have in here the sales tax timely filer and early discount for retailers and I want to mention that, members, what this does is give us stability to come up with $200 million. That's what we give away in the next biennium to retailers, many of whom have done fairly well, not as good as they'd like to but fairly well, simply for paying their sells taxes on time. Then we give them another $200 million more to pay their taxes early. This discount was adopted in 1961 when shopkeepers kept their records on paper and it took some time and a lot of trouble to record sales tax collections and remit them to the state. Now of course everything is done electronically this amendment was recommended by the legislative budget board and would reform the prepayment and early files of sales tax discounts to benefit all small businesses in Texas. I know it's not acceptable to the Senator, so I'm going to pull it down but I will mention, Senator, as well you might look at the bill on page four, I think you left one of these bills that would give you a point of order in the bill. This is the one that would rate $10 million on a recurring basis, section 3.04 on page four where you partially implement the recommendation of the LBB gear report on economic development tax refunds. Tax refunds for certain property taxpayers and reinvestment zones. At least while I'm pulling things down you might want to look at that one very closely, Senator, because you might want to send up an amendment to pull that one down. But I'll pull down the amendment at this time.

LT. GOVERNOR DAVID DEWHURST: Members, Senator Ellis pulls down floor amendment No. 17. The Chair lays out floor amendment No. 18 by Senator Nelson. The secretary will read the amendment.

PATSY SPAW: Floor amendment No. 18 by Nelson.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Nelson to explain floor amendment No. 18.

SENATOR JANE NELSON: Okay. Mr. President, could I ask you to read so I know which one is 18.

PATSY SPAW: Added the following section, section one all agencies including institutions of higher education shall implement a hiring freeze for the 2012 and 2013 biennium.

SENATOR JANE NELSON: Right. Thank you, Mr. President. This amendment institutes a hiring freeze at our state agencies over the next two years which would achieve approximately $496 million in savings. This is a significant amount of savings and I think it would help us protect the jobs of the state employees that we already have and more importantly help us prevent deep cuts into other priorities.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on floor amendment 18.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members, the level of budget cuts that we made in higher education as well as in our general budget operates more or less as a -- not a hiring freeze but a limitation on the ability of employers to hire. Here's the problem with the hiring freeze as Senator Nelson has put it and I think it's -- is that we have in the state of Texas huge turnover in our agencies. One of the most problematic agencies is health and human services. Especially like in nursing homes and rather not nursing homes but state supported facilities and other where we employ care givers. And if you put a hiring freeze in an area where you have a 17 percent turnover, you're not going to have a staff sufficient to provide legally acceptable care in those facilities. Same thing goes in TDCJ where you have prison guards and you have turnover there and traditionally we've had high turnover. Currently we're a little better and a little more stable but as you have someone move out I think the way this amendment's worded the hiring freeze would be -- you couldn't rehire a prison guard. We have a DPS officer or trooper retire and let me tell you, right now, our retirement interest in ERS because of the general state of morale in the work force is at an all time low and we are about to see an exodus into retirement. As we see that exodus into retirement this amendment would prevent us from being able to rehire or replace critical jobs. So I would ask that you, I would need to move to table at the appropriate time. I appreciate the amendment.

LT. GOVERNOR DAVID DEWHURST: Senator Nichols, for what purpose do you rise?

SENATOR ROBERT NICHOLS: Ask the author some questions.

LT. GOVERNOR DAVID DEWHURST: Will Senator Nelson yield?

SENATOR JANE NELSON: Absolutely.

SENATOR ROBERT NICHOLS: Listening to the conversation with Senator Duncan, there are emergency situations, situations of public safety, that come up. He was talking about one possible one with guards. But we've got a large fire going in West Texas. Texas Forest Service is out there; we've got Texas Rangers that work on things. So, if we get into an emergency situation, is it your intent that the executive director of an agency can actually file for a waiver with the Legislative Budget Board that would be acceptable?

SENATOR JANE NELSON: Yes, Senator Nichols, and you raise that issue, and I absolutely don't want to interfere with any emergency situations like that that you pointed out. And it is certainly my intent to allow agency directors, if they can't move people around and meet the needs of that emergency, then, yes, in that case I would certainly permit them to do the hire they need.

SENATOR ROBERT NICHOLS: Okay. And Mr. President, can I ask that that be put into the record in writing?

SENATOR JANE NELSON: Yes, Mr. President, I request that conversation be put into writing.

LT. GOVERNOR DAVID DEWHURST: Members, Senator Nichols moves that the exchange between both he and Senator Nelson be entered into the journal. Is there objection from any member? Chair hears no objection, and the motion is adopted.

SENATOR ROBERT NICHOLS: Thank you.

LT. GOVERNOR DAVID DEWHURST: Senator Hinojosa, for what purpose do you rise, sir?

SENATOR JUAN HINOJOSA: To ask Senator Nelson a question or two.

LT. GOVERNOR DAVID DEWHURST: Will Senator Nelson yield?

SENATOR JANE NELSON: Sure.

SENATOR JUAN HINOJOSA: You know, Senator Nelson we have the same amendment offered before the finance committee and it failed and the reason is it's not simple just kind of put a hiring freeze across the board. We have situations right how where universities are on their own. Letting staff go and on top of that we're going to impose a hiring freeze? I mean, we're taking away the flexibility. Many times there may be vacancies not filled but be another area where they have urgent need for a certain type of employee and by this amendment you're tying their hands and not giving them the flexibility.

SENATOR JANE NELSON: And your question is?

SENATOR JUAN HINOJOSA: Well, that's --

SENATOR JANE NELSON: Well, my response is the same it was to Senator Nichols. If it's an emergency situation we certainly will allow the agency to make -- if they can't move somebody over and fill that spot then, yes, we will allow them to create a new position. The point being that we need to have the funds to do the things that our are No. 1 responsibilities and that's educating our children and taking care of those who need our help and we're looking for revenue to do that and we believe -- in fact, I am told that Texas has more full time equivalent state employee positions per capita than large states like California, Florida, Illinois. I just think that for the next two years when we're looking for revenue to do the things that we have to do, we enact this legislation.

SENATOR JUAN HINOJOSA: Well, let me tell you, I disagree and one of the things happening is that this also includes science health centers, higher education and they have doctors, they have instructors, how do you define an emergency?

SENATOR JANE NELSON: You know, well -- and I would leave that up to the agency head but if you remember there were some discussion in the finance committee about one of our health science center directors making $902,000 a year. If that's a position that is so important, I would suggest that they look at some of those salaries and hire some of those people that are so important for them to have.

SENATOR JUAN HINOJOSA: Well, you know, I think the issue with our state employees working for higher education and our health and science centers are more complicated than that. This is a very simple solution to a complicated issue in terms of the needs, the higher education needs. You know, we need to give them flexibility for them to decide whether they need to have a hiring freeze and move around. Your amendment just takes a whack across the board.

SENATOR JANE NELSON: You know, Senator, it is a simple solution but it's one that businesses are doing everywhere. All across the state, all across the nation. They have implemented hiring freezes internally because in these tough times we've got to do that. We can't continue to keep expanding our bureaucracy when we're cutting our teachers and our people that are most vital to what our state's primary role should be and we're just asking this for two years. While we're in these tough times for two years, unless it's an emergency situation, let's stop adding on bureaucrats and get that money to our teachers.

SENATOR JUAN HINOJOSA: Let me respond. First of all universities do train teachers.

SENATOR JANE NELSON: I was one of them.

SENATOR JUAN HINOJOSA: That's right. And the other one is you made the comment about private sector, well, let me tell you, the private sector is there to make a profit. We don't make a profit, the state don't make a profit. But think here, the poor, the disabled and the powerless. Certainly they don't make a profit by teaching doctors and teaching students. So I don't think that's a good analogy. There's a different responsibility.

SENATOR JANE NELSON: You don't think that there's a shortage of teachers who -- professors who teach teachers? There's a shortage of that.

SENATOR JUAN HINOJOSA: You know, I don't have any issues in terms of business making a profit, we're a capital system but our universities are not, our health science centers are not. They have a very different mission than that private sector business and I agree with Senator Duncan. With all due respect, I don't think you're going to move this amendment. Now we're in a situation where it would damage the bill.

SENATOR JANE NELSON: I appreciate your position.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Shapiro. For what purpose do you rise?

SENATOR FLORENCE SHAPIRO: Question of the author.

LT. GOVERNOR DAVID DEWHURST: Will Senator Nelson yield?

SENATOR FLORENCE SHAPIRO: Thank you.

SENATOR JANE NELSON: Me author or him author?

SENATOR FLORENCE SHAPIRO: Author of the amendment. Senator Nelson, is your freeze for two years or.

SENATOR JANE NELSON: Correct. Two years only. Let's get out of this slump, let's stop hiring bureaucrats and have more money to hire teachers.

SENATOR FLORENCE SHAPIRO: All right. And would you accept an amendment to your amendment that said that DPS and the TDCJ would be eliminated from this as well as --

SENATOR JANE NELSON: Exempted.

SENATOR FLORENCE SHAPIRO: Exempted as well as a waiver that Senator Nichols was talking about so if there was any kind of an emergency they would be able to review that at the agency?

SENATOR JANE NELSON: Yes, Senator. In fact, we were going to include that except we were kind of under the --

SENATOR FLORENCE SHAPIRO: Okay. I believe I have an amendment to your amendment and it would be 18A, it's not the most beautiful thing you have ever seen but it's an amendment and it's your intention so I would like to offer that.

SENATOR JANE NELSON: Yes. Thank you, Senator.

LT. GOVERNOR DAVID DEWHURST: Senator Uresti, for what purpose do you rise?

SENATOR CARLOS URESTI: To ask Senator Nelson a few questions.

LT. GOVERNOR DAVID DEWHURST: Will Senator Nelson yield to Senator Uresti?

SENATOR JANE NELSON: Yes, sir.

LT. GOVERNOR DAVID DEWHURST: Did you finish, I'm sorry?

SENATOR FLORENCE SHAPIRO: I think my amendment to the amendment should be sent out.

LT. GOVERNOR DAVID DEWHURST: Oh, are you -- excuse me, are you submitting an amendment to the amendment?

SENATOR FLORENCE SHAPIRO: I was trying to, yes, sir.

LT. GOVERNOR DAVID DEWHURST: All right. Senator Uresti, would you hold just for a moment. I'm sorry.

SENATOR CARLOS URESTI: Absolutely.

LT. GOVERNOR DAVID DEWHURST: All right. I've just been informed by the parliamentarian that they're Xeroxing your amendment.

SENATOR FLORENCE SHAPIRO: All right. And I'll pull it down for right how until it's prepared. Thank you, Mr. President.

LT. GOVERNOR DAVID DEWHURST: Senator Shapiro pulls down her amendment to the amendment. Will Senator Nelson yield to Senator Uresti?

SENATOR JANE NELSON: Yes, sir.

SENATOR CARLOS URESTI: Thank you, Senator Nelson. I want to make sure I understand your amendment, and I've heard some of the dialogue -- let me ask you this. So your amendment you're stating that all state agencies which would include the Department of Family and Protective Services now would implement a hiring freeze for the biennium of 2012 and 2013.

SENATOR JANE NELSON: That is correct.

SENATOR CARLOS URESTI: Okay. As you know because you work on this you're the Chair of health and human services and we've worked on this together for many years starting back in '03, the turnover rate for CPS caseworkers was tremendous. I mean, it was astronomical in Bexar County. The turnover rate for one year was as high as 75 percent. You're aware of that, I know.

SENATOR JANE NELSON: We fixed that with our CPS reform bill.

SENATOR CARLOS URESTI: We did so --

SENATOR JANE NELSON: That you helped me with.

SENATOR CARLOS URESTI: And it was a great reform in Senate Bill 6 that we did, but as I read your amendment, please correct me if I'm wrong, if this hiring freeze is implemented -- well, let me ask you this question. Do you know what the turnover rate is currently for case workers?

SENATOR JANE NELSON: Varies around the state I think it's still way too high and I think about percent now I don't have staff here but I think it's around 28 percent. That might be a little high.

SENATOR CARLOS URESTI: And it varies and I know it's been as high as 38 percent but let's say it's 30 percent, I think that's a safe number. If that turnover rate -- if this amendment goes onto this bill if you have a 30 percent turnover rate the first year and then you have a 30 percent turnover for the subsequent year --

SENATOR JANE NELSON: I'm listening.

SENATOR CARLOS URESTI: I'll use percent if that's better number, we can use percent. You have 28 percent turnover rate the first year and the subsequent year you have 28 percent more, it's 56 percent, although I would argue that if you use percent and you don't feel those caseworkers that turnover rate the next year, as you well know is going to increase dramatically because the case loads are going to increase. So is it your intent of your amendment that we're not going to fill those case workers?

SENATOR JANE NELSON: Two points that I would make. One is if we ever pass the budget out of this body, we did and I am very sensitive to this arena and you have done marvelous work in helping us determine the needs in the child protective services arena. In the budget that will be before us I hope, we restored positions and we added new positions. So I'm not quite as nervous as you are about that with knowing that those additions have been made. But there again, if the head of that agency determines that it is a situation that they consider an emergency and children's lives are in danger, then we are going to allow them the authority to add additional positions but we're separating out emergency situations that deal with lives and other positions that we're hoping with a hiring freeze they can be more efficient. I mean, we're doing it in our businesses, we need to be doing it here.

SENATOR CARLOS URESTI: But Senator Nelson, would you not agree with me that there are very few businesses in this state that could survive one if they had a 28 percent turnover rate and two if it was percent. I mean, do you agree with me? Businesses don't survive the they have a turnover rate that high.

SENATOR JANE NELSON: Well, I wouldn't say they don't but I would say it makes a very difficult.

SENATOR CARLOS URESTI: Very difficult.

SENATOR JANE NELSON: Yes, yes.

SENATOR CARLOS URESTI: We've done so much work on -- all of us have with regard to DFPS, you are aware that last year there were more kids suspected of abuse and neglect in the state of Texas to fill Texas stadiums, the new stadium three times.

SENATOR JANE NELSON: Suspected victims, yeah.

SENATOR CARLOS URESTI: If this amendment goes on, that number you and I both know will increase dramatically.

SENATOR JANE NELSON: No, sir, I don't agree with that.

SENATOR CARLOS URESTI: So what will happen to those children then that are suspected of abuse and neglect if we have a 56 percent turnover rate in Texas which we will in two years, who is going to investigate those cases if you're going to have a percent staff? And I would submit to you that that number -- because people are going to walk off the jobs because there's going to be no way they can handle that task. Case loads will skyrocket and CPS in my opinion will simply shut down if there's a 56 percent turnover rate that you can't fill. What are -- is that an emergency?

SENATOR JANE NELSON: Okay. Senator, let me ask you this. Would it make you feel better and you heard the dialogue between Nichols and myself and he was very sensitive. You know, we all have our areas of sensitivity and, you know, we've had some fires recently and was sensitive to that arena and I understand you and I care both very much about these children. What if we -- would it make you feel better in voting for this if we said any employee that the agency had determined essential we would allow for that? Hiring freeze for any employee that wasn't considered by the agency head essential?

SENATOR CARLOS URESTI: How would you define essential?

SENATOR JANE NELSON: I will leave that up to the discretion of the agency head with the understanding that if they consider their phone answerer essential we may not agree with that. I think Senator Shapiro has an amendment that's going to ease your concerns, Senator. Yeah. Here's -- how about this, if we amend this to say if the agency determines that filling the position is necessary to prevent or alleviate an emergency related to the agency's public purposes, would that make you feel better?

SENATOR CARLOS URESTI: I would like to look at it but again I would ask you how do you define emergency.

SENATOR JANE NELSON: I would allow the agency head -- that's part of their job determining if it's critical or not.

SENATOR CARLOS URESTI: So I'm sure our commissioner would think --

SENATOR JANE NELSON: A front line CPS worker would be essential, I'm sure they would be or they wouldn't be in that position.

SENATOR CARLOS URESTI: An investigative caseworker would be essential.

SENATOR JANE NELSON: Yes, yes.

SENATOR CARLOS URESTI: So in essence this amendment would not affect our CPS agencies.

SENATOR JANE NELSON: Front line. Yes. Individuals who have contact with our children.

SENATOR CARLOS URESTI: How about our family based services workers?

SENATOR JANE NELSON: You know what, there again I'm going to allow for the person with the most expertise in that arena, the agency head, to determine that. I'll give you this language and you carry this, will you vote for my amendment if this language goes on.

SENATOR CARLOS URESTI: If your amendment goes on, are you voting for the bill?

SENATOR JANE NELSON: I don't know, it's getting better.

SENATOR CARLOS URESTI: I'll be happy to look at the amendment, Senator Nelson. Thank you.

SENATOR JANE NELSON: Thank you, Senator.

LT. GOVERNOR DAVID DEWHURST: Senator Duncan, for what purpose do you rise, sir?

SENATOR ROBERT DUNCAN: Question of the author of the amendment.

LT. GOVERNOR DAVID DEWHURST: Will Senator Nelson yield to Senator Duncan?

SENATOR ROBERT DUNCAN: Thank you. And I may want to wait until we see the other amendment, so let me make sure everyone knows, it's always good to read this and maybe read it out loud. It's a very simple amendment. All state agencies including institutions of higher education shall implement a hiring freeze for 2012, 2013. So that includes MD Anderson, I think (inaudible) has got employees, includes UT North Texas, Dallas, and I know there's probably one guy there you might want to freeze but there is -- it includes the state supportive living centers, it includes the TDCJ and are we going to exempt with these amendments, all these people, all these other agencies or who are we exempting?

SENATOR JANE NELSON: Senator, we are -- if you heard the exchange, individuals who are essential as determined by the head of that agency will be exempted. Senator, let me finish responding to you and you enumerated some things that are very important to most of us, if not all of us. We also -- I thought the reason for your filing this bill and it being so important to you was to try to come up with the funding that we need to do the things that we said were most important for us that accomplish. Educating our children, taking care of people who need our help and can't help themselves and public safety and we also said those were our most important things that we're going to try to accomplish and we're trying to come up with money to do that. I'm trying to help you come up with money to do that by saying not that we're going to fire a bunch of people working for all these important entities but we're going to stop hiring right now for the next two years while times are tough so that we have more resources to do those things that we considered most important.

SENATOR ROBERT DUNCAN: Well, you know, okay. But I think we've accomplished it in another way and I think there's another way to do it that makes more sense. First of all, the amendment that you have and I think that Senator Shapiro is working on doesn't take into account the fact that that in 2009 just three years ago we had 3,044 retirements. Right now we're projected to have 5,425 projected retirements in 2011. 2000 employees have retired so far since September but more people become eligible every month. We really don't know exactly -- I can't tell you for sure here on the Senate floor where all these people are retiring but they're retiring for these reasons. No. 1, in 2011 we cut budgets 5 percent. Or in some more in higher education. We cut them even more. This session our budget cuts and agencies and, you know, you've done a fine job on article two we're going to lose some people there. We're going to lose, we've already seen layoffs over at TEA and so we have in effect implemented a hiring freeze by the level of our appropriation, other than for agencies to be able to rehire people that are essential for their services. So this amendment is not necessary. There's a better way to do it, and we have talked about this. You and I and Senator Shapiro and others and it seems to me to make more sense that if the agencies can be encouraged to reduce spending by a number of different methodologies, they can do furloughs, they can do retire, they can do -- whatever the agency needs to be flexible. But what you're doing with this amendment is you're tying their hands and I think you're further damaging the morale of the work force around here. Whenever you have somebody leave employment because either a budget crunch or whatever or they just get another job or retire and you have essential services that are provided by that employee, if you can't rehire somebody to take that place and you're going to double it up on that person, you're not going to give them a raise, we're not doing that and so you're going to I guess for lack of a better word, put a face on the state employee that we're going to give double duties and what we do have done in this budget I think is a pretty rational way to trim the number of employees and a rational way to be able to make sure that your constituents and mine get the services that they need and essential services that I think they expect us to provide. So I don't think you can affix this amendment. But I do think that we can work on this budget in a way to impact a concept of a hiring freeze as a method for agencies to reduce their spending. So I would prefer that -- we looked at all kinds of things in our research groups and in our subcommittee and this is was just not something you could across the board -- hiring freeze was not something that would work logistically. So I understand the point you're making, I don't -- you know, I think there's a lot of people that understand that but again I just don't think I've heard an answer today that satisfies the concerns. We have to manage state government. It's our responsibility to do that and we can't just do it with across the board decision. We've never done that. You can't do it with across the board decision like this. Sometimes you have to do a little across the board cuts. When you take away the flexibility of the agency to manage their work force, you're basically taking away their ability to be efficient.

SENATOR JANE NELSON: Well, and again Senator, we would make an exemption for those positions that agency heads believe are essential, we're not asking that this go on forever, this would be for two years until we get out of this tough budget times that we're in and I do think it's something that is fair to ask of our agencies because it is what is going on in the outside world right now.

SENATOR ROBERT DUNCAN: Do you have your amendment to the amendment yet?

SENATOR JANE NELSON: I don't know. Senator Shapiro, do you have the amendment to the amendment?

LT. GOVERNOR DAVID DEWHURST: Members, the Chair lays out the following amendment to the amendment. Floor amendment No. 19 by Senator Shapiro. The secretary will read the amendment.

PATSY SPAW: Floor amendment No. 19 by Shapiro.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Shapiro to explain floor amendment 19.

SENATOR FLORENCE SHAPIRO: Thank you very much, Mr. President.

LT. GOVERNOR DAVID DEWHURST: It's easy to see it's handwritten.

SENATOR FLORENCE SHAPIRO: As I heard the debate and the dialogue a few minutes ago I thought this would certainly help us in this process. I certainly understand that there are positions that we need because we are having particular concerns about our criminal justice system, about our DPS system, so what I'm asking is that in this process of a hiring freeze that we eliminate TDCJ and DPS from the freeze and I also added the dialogue that took place between Senator Nichols and Senator Nelson that said as well as waiver from other agencies in an emergency. Now, there is some written -- I gave it to somebody, I gave it to you.

SENATOR JANE NELSON: Yeah, and I gave it someone. Senator Uresti has it. He's going to work it up. You have the language that Senator Shapiro gave me?

SENATOR FLORENCE SHAPIRO: What I'm trying to say here if I didn't say it in an appropriate manner and I'm going to repeat it for the record. Is that during this time of two year hiring freeze for 2012, 2013 that eliminated from this hiring freeze would be TDCJ and DPS out of the agencies in the state. At the same time we could allow a waiver from other agencies in the case of an emergency and it is -- thank you very much. It is very clearly written, much more clearly written in an amendment that has not been brought forward but I would certainly offer it. It says that it is the intent of the legislature that a state agency shall fill a vacant position and use to fill this position money appropriated from salary wages so on and so on. This section if the agency determines that filling the position is necessary to prevent or ameliorate an emergency related to the agency's public purposes, it would be my intent to include that into this for the record.

LT. GOVERNOR DAVID DEWHURST: Senator Hinojosa, for what purpose do you rise?

SENATOR JUAN HINOJOSA: Will the lady yield?

LT. GOVERNOR DAVID DEWHURST: Will Senator Shapiro yield?

SENATOR FLORENCE SHAPIRO: Yes, I will.

SENATOR JUAN HINOJOSA: There's still a very, very narrow standard when we're talking about MD Anderson, we're talking about different hospitals, health science centers. Why don't we let the agencies say themselves this employee is essential to our admission and let agencies decide which employees are essential. I think what you're doing is really tying the hands of our different state agencies and what they do.

SENATOR FLORENCE SHAPIRO: With all due respect, Senator Hinojosa, if that individual is essential, they won't be gone. They'll still be at the agency.

SENATOR JUAN HINOJOSA: Well, do you exclude the attorney general's office in that?

SENATOR FLORENCE SHAPIRO: It's every agency, yes, sir.

SENATOR JUAN HINOJOSA: Okay. Well, as you well know, they have a lot of law enforcement there, they do investigation on sexual predators so you're also denying them the ability to replace someone that retires.

SENATOR FLORENCE SHAPIRO: I would suggest if it's necessary and they need to fill that position they get a waiver. That's why I included a waiver in my amendment. Well, it's not an amendment now.

SENATOR JUAN HINOJOSA: Who's all given the waiver?

SENATOR FLORENCE SHAPIRO: The waiver will be given -- the agency will ask for a waiver authorized by the governor and the legislative budget board. All they have to do is authorize it. They just have to tell them they're going to add a waiver. The agency shall notify the governor and the legislative budget board of the nature of the emergency and provide information and that's all that needs to be done.

SENATOR JUAN HINOJOSA: Well, you know, Senator, you created bureaucracy, they have to jump through all these loops and hoops. We debated this amendment in finance as you well know and the votes did not pass because during --

SENATOR FLORENCE SHAPIRO: I don't remember debating it.

SENATOR JUAN HINOJOSA: Yes, I think Senator Patrick put up this amendment and it failed and the reason it failed is because we showed it was more complicated than that, it's not just taking and asking what way of the state agencies. Some of the state agencies perform very general service to the general public.

SENATOR FLORENCE SHAPIRO: And I have no desire to harm those agencies. They're going to have their personnel. We're just going to say you can't hire any new people for two years.

SENATOR JUAN HINOJOSA: But Senator Shapiro, some of them retiring, some of them move on. And as you well know, the LBB doesn't meet on a regular basis, maybe once in a whim. You know, I think you're really -- and there's a better approach to doing this is still making sure that our state agencies don't go and hire people left and right because as you well know we cut state agencies in terms of funding. We cut them about five or 10 percent this biennium and we cut them some more for next biennium and now on top of that you say they don't have the flexibility to hire essential employees, employees that are essential to the administration. That's what you're doing with this amendment.

SENATOR FLORENCE SHAPIRO: Okay.

LT. GOVERNOR DAVID DEWHURST: Senator Van de Putte, for what purpose do you rise?

SENATOR LETICIA VAN DE PUTTE: To ask a question of whoever has the floor at this time with respect --

LT. GOVERNOR DAVID DEWHURST: At this moment in time Senator Shapiro has the floor.

SENATOR LETICIA VAN DE PUTTE: -- the amendment to the amendment. Thank you very much. I understand that the amendment to the amendment and certainly eliminating TDCJ and DPS and your intent. My question is if there is a state agency, where the employees are not paid by GR or by an expenditure, so for example the veterans commission which has direct either Department of Labor or Department of Defense or Department of Veteran Affairs grants and/or subsidies. I wanted to get it for the record to make sure that there are grants and things.

SENATOR FLORENCE SHAPIRO: Everything to do with GR has nothing to do with grants.

SENATOR LETICIA VAN DE PUTTE: But the hiring freeze if there is someones that is currently occupying a position, it is paid for by something other than GR.

SENATOR FLORENCE SHAPIRO: That's not my intent, correct.

SENATOR LETICIA VAN DE PUTTE: Nor mine. Thank you. I don't have any other questions.

SENATOR FLORENCE SHAPIRO: Thank you.

LT. GOVERNOR DAVID DEWHURST: Senator Duncan. The Chair recognizes -- for what purpose do you rise?

SENATOR ROBERT DUNCAN: Well, at the appropriate time to make a motion.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Nelson on the amendment to the amendment.

SENATOR JANE NELSON: I greatly appreciate Senator Shapiro on writing down what we were saying because we were trying very hurriedly to draft this, it certainly puts in writing what our intent is and thank you.

SENATOR FLORENCE SHAPIRO: Thank you.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on the amendment to the amendment.

SENATOR ROBERT DUNCAN: Members, I'm going to ask you to table this amendment to the amendment. This has been -- this issue's been bedded in other forms and nobody has -- I guess I'm trying to tell you, you can -- we are already reducing force with the budget as it is and this will hamstring our agencies and this amendment to the amendment doesn't do what everybody says it does. All it does is say --

SENATOR JANE NELSON: Parliamentary inquiry, Mr. President --

SENATOR ROBERT DUNCAN: TDCJ and DPS --

SENATOR JANE NELSON: Mr. President, parliamentary inquiry.

LT. GOVERNOR DAVID DEWHURST: State your inquiry.

SENATOR JANE NELSON: Isn't it up to the author to the amendment to whether or not accept the amendment to the amendment because -- but he -- I don't think that the bill author can move to table the amendment to the amendment if --

LT. GOVERNOR DAVID DEWHURST: I'm advised by the parliamentarian that any member can make the motion to table.

SENATOR JANE NELSON: Okay.

SENATOR FLORENCE SHAPIRO: But can -- okay.

SENATOR ROBERT DUNCAN: Mr. President, I simply move to table the amendment 19 to amendment 18.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Shapiro on the motion to table.

SENATOR FLORENCE SHAPIRO: Thank you, Mr. President, and I don't want to belabor the point. I think this makes this bill better because it defines the group of agencies it also gives a waiver for the agency and that would be my intent.

LT. GOVERNOR DAVID DEWHURST: Members, the question is on the adoption to the amendment -- the motion to table by Senator Duncan proposed by Senator Shapiro. The secretary will call the roll and this is on floor amendment No. 19. The amendment to the amendment.

LT. GOVERNOR DAVID DEWHURST: There being ayes -- there being 17 ayes and 14 nays, the motion to table prevails. The Chair recognizes Senator Nelson on floor amendment No. 18.

SENATOR JANE NELSON: Okay. We just voted to table Senator Shapiro's amendment which put in writing what my stated intent was, so I am going to restate my intent even though it's not in writing and that is to eliminate TDCJ and DPS from the freeze as well as weigh those agencies in an emergency. Members, we had previous individuals on other amendments mention how important it is that we acquire funds to educate our children, to help those people who cannot help themselves, this amendment would achieve approximately a half billion dollars in savings. I don't think it is unreasonable to ask our state agencies to not agree for these two years while we're in the midst of these tough time so that we can educate our children and this will give us a half billion dollars to do that. So I would ask you to support this amendment.

LT. GOVERNOR DAVID DEWHURST: There are several members who wish to speak. I've just been advised by the parliamentarian that there's an additional amendment to the amendment. So if you could hold just for a moment. Senator Zaffirini, for what purpose?

SENATOR JUDITH ZAFFIRINI: To ask a question of the author of the amendment. Actually parliamentary inquiry.

LT. GOVERNOR DAVID DEWHURST: State your inquiry.

SENATOR JUDITH ZAFFIRINI: My inquiry is we just voted to table by a majority vote the amendment to the amendment by Senator Shapiro. Now, Senator Nelson the author of the original amendment has stated her legislative intent which is consistent which we just voted down by Senator Shapiro. My question is when we vote on Senator Nelson's amendment, does her legislative intent have any authority or does the authority reflected in our tabling of the similar language in the motion by Senator Shapiro bear the ultimate and prevailing authority?

LT. GOVERNOR DAVID DEWHURST: Senator Zaffirini, that's a legal question and I think every member has to evaluate the text of the amendment.

SENATOR JUDITH ZAFFIRINI: That's a legal question?

LT. GOVERNOR DAVID DEWHURST: As to the effect of the legislation that her legislative intent has.

SENATOR JUDITH ZAFFIRINI: I'm asking about the parliamentary authority, not the legal authority.

LT. GOVERNOR DAVID DEWHURST: Senator Uresti, are you withdrawing your amendment to the amendment?

SENATOR CARLOS URESTI: Yes, Mr. President.

LT. GOVERNOR DAVID DEWHURST: Thank you. Senator Ogden, for what purpose do you rise?

SENATOR STEVE OGDEN: To ask the author of the amendment a question.

LT. GOVERNOR DAVID DEWHURST: Will Senator Nelson yield to Senator Ogden?

SENATOR JANE NELSON: Well, first of all I don't know who's asking and second of all I didn't hear the question. I'm sorry, Mr. Chairman, yes.

LT. GOVERNOR DAVID DEWHURST: Senator Ogden rose and would like to ask you a question.

SENATOR STEVE OGDEN: Senator Nelson, have you done the numbers on what this amendment really does?

SENATOR JANE NELSON: On what this amendment does?

SENATOR STEVE OGDEN: Yeah. Do you know what this amendment really does?

SENATOR JANE NELSON: I'm told -- are you talking about how much money --

SENATOR STEVE OGDEN: No. What it does to state employees, do you know?

SENATOR JANE NELSON: What it does to state employees? It doesn't do anything to state employees. It merely tells our agencies that for nonessential positions we're going to freeze hiring for those nonessential positions for two years.

SENATOR STEVE OGDEN: Yeah. But do you know what those words mean?

SENATOR JANE NELSON: Well, I hope what they mean what I just said.

SENATOR STEVE OGDEN: Can I at least tell you what I think they mean?

SENATOR JANE NELSON: I'd be happy to hear what you think.

SENATOR STEVE OGDEN: We have approximately 240,000 state employees. The budget that's on your desk funds 240,000 state employees. There's a slight increase because of Senator Williams' bill but basically the number of employees that we're funding in House Bill 1 is exactly the same as number of employees we have now. What this bill does if you create a hiring freeze is it doesn't allow agencies to replace people through attrition. Now, the attrition rate of state employees in Texas is approximately percent. So what you're talking about is a loss of 25,000 state employees in year one and maybe 20,000 in year two. Now, that's 45,000 state employees with no real precision on exactly what's happening because you're not saying nonessential employees or this employees. But I don't think that I could vote for a freeze that could ultimately result in a 45,000 person reduction in state employees which would basically go from 250,000 to 210. Is that your intent?

SENATOR JANE NELSON: Senator, it is my intent to help you and Senator Duncan get as much money as we can in these tough times to those what we agreed were essential positions. Teachers and people helping individuals that can't help themselves. Now, let me ask you this, do you think there's anybody out there that works for state government that is nonessential that if that position becomes vacant, we could say we're not going to fill that position that year, we're going to keep that money and keep the a teacher in the classroom. I mean, that's the other extreme of the argument but is there anybody like that? There are nonessential positions that I'd look to not fill for two years so we can keep teachers in the classroom.

SENATOR STEVE OGDEN: But this amendment doesn't do that.

SENATOR JANE NELSON: Of course it does.

SENATOR STEVE OGDEN: No, because the savings that you are theoretically achieving -- I'm not sure how it cost, doesn't transfer the foundation school program just sits there.

SENATOR JANE NELSON: Oh, and we can't as legislatures take that money and put that money to education?

SENATOR STEVE OGDEN: Not when we're out of session.

SENATOR JANE NELSON: A budget legislative board can't do that?

SENATOR STEVE OGDEN: No.

SENATOR JANE NELSON: I bet we can get the governor to call a special session just to get this available money to teachers.

SENATOR STEVE OGDEN: All right. Well, I think I've made my point that I think you're talking about a 40 to 50,000-dollar -- 40 to 50,000 employee cut after two years if this amendment goes on.

SENATOR JANE NELSON: We're not cutting employees. We're not cutting employees.

SENATOR STEVE OGDEN: A reduction in the current work force and my concern is that you can do the same exact thing with much less unintended consequence by doing it across the board budget cut. 1 percent, percent, 3 percent, whatever you think is appropriate. In fact I talked to Senator Patrick about that, about how to balance the budget if we ran out of all other options, you could do an across the board budget cut but I think potential unintended consequences of just simply saying we're going to freeze employees could create problems for a more significant than just simply doing an across the board budget cuts. So I appreciate your point but, you know, we talk about state employees as sort of just sort of theoretical people out there. In my district I call them constituents and I don't think this amendment is fair to them.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Nelson on floor amendment 18.

SENATOR JANE NELSON: I'm sorry, Mr. President, you're recognizing me to close on the amendment?

LT. GOVERNOR DAVID DEWHURST: Yes.

SENATOR JANE NELSON: Okay. Members, it is certainly not my intent for people to be fired. I am asking for two years we freeze the hiring for nonessential positions so that we can find the money that we're having such a difficult time finding to pay to keep your teachers in the classroom and I urge you to support this amendment.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on floor amendment No. 18.

SENATOR ROBERT DUNCAN: I would move to table. That means if you oppose to the amendment you would vote aye on the motion to table. If you are for the amendment, you would vote no on the motion to table.

LT. GOVERNOR DAVID DEWHURST: Senator Duncan moves to table floor amendment No. 18. The Chair recognizes Senator Nelson to close.

SENATOR JANE NELSON: I believe I did. I urge you to help us find money to keep teachers in the classroom and this is one suggestion for that.

LT. GOVERNOR DAVID DEWHURST: Thank you, Senator. Members, you heard the motion. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: Members there being 18 ayes and 12 nays, the motion to table prevails. The Chair lays out to the following floor amendment. Floor amendment No. 19 -- No. 20 by Senator Davis. The secretary will read the amendment.

PATSY SPAW: Floor amendment No. 20 by Davis.

LT. GOVERNOR DAVID DEWHURST: Chair recognizes Senator Davis on floor amendment 20.

SENATOR WENDY DAVIS: Thank you, Mr. President. This is the same amendment that we talked about before in terms of taking the available balances from the emerging technology fund and the Texas enterprise fund but it solves two problems that were raised. One for Senator Jackson, you'll notice the amount that would be left in the Texas enterprise fund account has been changed from 10 million to 55 million. That would leave 10 million in the enterprise fund account plus provide the 45 million for the amount that he successfully added onto Senator Duncan's bill previously today. It also satisfies a concern that was raised by another colleague making sure that if new appropriations were provided for the enterprise fund and the emerging technology fund that those would not also continue to be we want and so you'll note on the end of each of the first two paragraphs a clarification that this section would not apply to the appropriations made for the fiscal biennium beginning September 1st, 2011, and subsequent bienniums. And with that I move adoption of floor amendment No. 20. Thank you.

LT. GOVERNOR DAVID DEWHURST: Senator Jackson, for what purpose do you rise?

SENATOR MIKE JACKSON: Will the gentle lady yield?

LT. GOVERNOR DAVID DEWHURST: Will Senator Davis yield?

SENATOR WENDY DAVIS: Yes of course.

SENATOR MIKE JACKSON: Thank you. Senator Davis, we talked about your amendment and basically what you did was change some numbers in there to not effectively sweep out the dollars that were in the amendment No. 11 that we had before but basically you're intent is still to take everything else out with the exception of $10 million for each fund and put that the in the GR.

SENATOR WENDY DAVIS: Yes, to the extent that the funds are not obligated that is correct Senator.

SENATOR MIKE JACKSON: And you also are aware that the finance committee appropriated $0 for each one of these funds for this year.

SENATOR WENDY DAVIS: Yes, Senator Jackson, I am aware of that.

SENATOR MIKE JACKSON: So I guess a vote for your amendment would basically gut the economic development division of the governor's office pretty much all the way.

SENATOR WENDY DAVIS: A vote for my amendment would allow these prods to be used for job preservation during this very difficult time rather than job creation, that's true.

SENATOR MIKE JACKSON: Okay. Did you get any more information about how much money you think you would be transferring to GR after discussing it with anyone?

SENATOR WENDY DAVIS: Again the answer we have from LBB currently $290 million total in those funds.

SENATOR MIKE JACKSON: I'm sorry, I couldn't hear you.

SENATOR WENDY DAVIS: $290 million total are in both of those funds combined.

SENATOR MIKE JACKSON: Okay. But that doesn't include anything that may be obligated, correct?

SENATOR WENDY DAVIS: Correct.

SENATOR MIKE JACKSON: Okay. I did find out that in the emerging technology fund there's about $21 million there now, not counting what is previously obligated so I don't really think you're going to --

SENATOR WENDY DAVIS: That would be $11,000 then, if that was true, Senator, that would mean $11 million would transfer from it to general revenue and 10 million would stay under this amendment. I think transferring $11 million would be quite significant as we're looking for every dollar that we can find.

SENATOR MIKE JACKSON: Okay. Okay. Well, I just want everyone here to understand what we're doing and it's certainly up to the will of this Senate but members, this amendment would effectively wipe out both the emerging technology fund and the economic development fund that the governor's office has now on top of us already zeroing out any new dollars that are going in for the next two years. So I really have big hesitation about doing this because we will end up basically shutting -- they will be unable to operate over the next biennium since we have given them 0-dollar in appropriations, so I would urge that we vote no on the amendment.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on floor amendment 20.

SENATOR ROBERT DUNCAN: Move to table.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Davis to close.

SENATOR WENDY DAVIS: Thank you, Mr. President. The closing argument I would make is this. Yesterday this body voted to take away from juror money the paltry amount that's currently provided to them for serving on jury service in the state of Texas. Reducing it back down from a 10-dollar to a 4-dollar amount. I think we really need to be very careful about our priorities here and who we impact as we make the decisions that we're making about funding this budget. Right now there are moneys in two funds whose specific purpose is economic development and job creation and I think there's nothing more appropriate than seeking the use of those moneys for the preservation of jobs in the state of Texas as is proposed in this floor amendment and I would move for its adoption.

SENATOR ROBERT DUNCAN: Mr. President.

LT. GOVERNOR DAVID DEWHURST: Senator Duncan.

SENATOR ROBERT DUNCAN: Thank you. Let me close a little bit on this. I think Senator Davis has done a good job of working through this issue and explaining it. I think that and when we discover the conflict between Senator Jackson's and your amendment you went and tried to fix it. Here's the problem. We looked at this as well and we weren't sure about how much money we could count on because of what was incumbered or intended to be incumbered so in the working group we decided that we would take it out. The other part of it there are many projects out there and this fund is popular. The ETF while it may be under an attack right now with regard to certain things and in the media, believe it or not, I mean this program has actually been used around the state unlike the enterprise fund. But I know this affects the enterprise fund as well but I think -- we looked at it and decided we shouldn't do it and for that reason that's why I'm going to move to table this. Even though your amendment I looked at it and thought it was a good idea if you're going to do it technically. I believe it's not a god idea that we do this at this time so I respectfully move to table.

LT. GOVERNOR DAVID DEWHURST: Well, I'd already recognized Senator Davis and you wished to speak, so let me go back to Senator Davis to close.

SENATOR WENDY DAVIS: I close. Thank you, Mr. President.

LT. GOVERNOR DAVID DEWHURST: All right. Members, Senator Duncan moves to table floor amendment 20. Senator Davis opposes. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: Members there being 19 ayes and 12 nays, the motion to table prevails. The Chair lays out floor amendment No. 21 by Senator Nelson. The secretary will read the amendment. Floor amendment 21.

PATSY SPAW: Floor amendment 21 by Nelson.

LT. GOVERNOR DAVID DEWHURST: Could you read the first sentence?

PATSY SPAW: All state agencies including institutions of higher education shall suspend longevity pay for all state employees during the 2012, 2013 biennium.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Nelson on floor amendment 21.

SENATOR JANE NELSON: Thank you, Mr. President. This amendment eliminates longevity pay for state employees for the next two years. This provision will save approximately $323 million over the next biennium freeing up resources for us to focus on other priorities. I move adoption.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on floor amendment -- Senator Hinojosa, for what purpose do you rise? Do you wish to speak?

SENATOR JUAN HINOJOSA: I guess I'll ask Senator Nelson a question or two.

LT. GOVERNOR DAVID DEWHURST: Will Senator Nelson yield to Senator Hinojosa and then I'll go to the bill author.

SENATOR JUAN HINOJOSA: I guess -- I guess your amendments going to punish those employees who have been loyal and working for the state for many, many years.

SENATOR JANE NELSON: That's right, that's why we let them keep their jobs.

SENATOR JUAN HINOJOSA: Well, I mean I don't think they're going to be let go, you're just going to suspend longevity pay for state employees for the --

SENATOR JANE NELSON: My point was that they are good employees in a tough market out there where, you know, we've got unemployment, we are certainly -- we value employees, we are keeping them as employees but we are saying that the additional funding that they get right now for longevity pay for the next two years we're not going to give.

SENATOR JUAN HINOJOSA: Do you know how much that is?

SENATOR JANE NELSON: Yes, $323 million.

SENATOR JUAN HINOJOSA: How much?

SENATOR JANE NELSON: $323 million.

SENATOR JUAN HINOJOSA: A hundred?

SENATOR JANE NELSON: $323 million. Think of how much teachers salaries that would pay.

SENATOR JUAN HINOJOSA: Well, we've already discussed this. This is not about teachers, as you well know.

SENATOR JANE NELSON: It is --

SENATOR JUAN HINOJOSA: But this amendment doesn't deal with teachers.

SENATOR JANE NELSON: Sure it does. If we pass this for the next two years we say that the full time state employees who are right now eligible to get an additional $20 a month every two years of up to every four years that is essentially it's a nonmerit bonus is what it is and we're saying for two years we're not going to do that and instead we've got that $323 million now freed up and we can pay for teachers. They're fighting, we are hunting for money everywhere we can to get int our classrooms so we can preserve teachers.

SENATOR JUAN HINOJOSA: Well, do you agree on a support tax increase?

SENATOR JANE NELSON: No, I'm hunting for things. We can't do a tax increase in the Senate anyway. It's got to start in the House and the likelihood for that is unlikely. So I'm truly hunting for things. I don't think this is too much to ask. This is a bonus we give these individuals and we're saying for two years we're not going to give them their just for staying around bonus and we're going to give it to teachers.

SENATOR JUAN HINOJOSA: Well, I agree that we need teachers and we need to support teachers.

SENATOR JANE NELSON: So you support my amendment?

SENATOR JUAN HINOJOSA: If means that you're okay with getting more money on a rainy day fund let's say another billion dollars for teachers? I would.

SENATOR JANE NELSON: Right now before us Senator Duncan's bill is asking for ideas to come up with new revenue and this is one of my suggestions.

SENATOR JUAN HINOJOSA: I have a better one.

SENATOR JANE NELSON: You know you love it.

SENATOR JUAN HINOJOSA: Take another billion dollars out of the rainy day fund and give it to our teachers. Will you support that?

SENATOR JANE NELSON: Well, you'll find the answer out to that when that comes before us on the floor.

SENATOR JUAN HINOJOSA: Thank you, Senator Nelson.

SENATOR JANE NELSON: You're welcome.

LT. GOVERNOR DAVID DEWHURST: Senator Hegar, for what purpose -- Senator Hegar, for what purpose? Okay. Senator Patrick, for what purpose do you rise?

SENATOR DAN PATRICK: Just a comment, question of the author.

SENATOR JANE NELSON: Yes.

SENATOR DAN PATRICK: Senator Nelson, I support our hard working state employees, many who are on this floor but we are asking school districts to take an average of 5 percent in the Senate bill cut, we're asking teachers to take a cut, we're asking school districts to take a cut and we can't even muster support for 20 bucks?

SENATOR JANE NELSON: Well, and Senator Patrick, this really isn't a cut.

SENATOR DAN PATRICK: It's no cut.

SENATOR JANE NELSON: We are giving nonmerit pay just based on how long a person's been with us, longevity salary or addition to their salary and what we're saying is just for two years we can not do that and give it to our teachers.

SENATOR DAN PATRICK: I support you 100 percent. Thank you for bring the amendment.

SENATOR JANE NELSON: Thank you.

LT. GOVERNOR DAVID DEWHURST: Senator Uresti, for what purpose do you rise? The Chair recognizes Senator Duncan on floor amendment 21.

SENATOR ROBERT DUNCAN: Thank you. Members, this amendment I will submit to you as far as public policy in managing work force that our constituents expect us to do is worse than the last one and let me tell you why. Eighteen -- right now looking at us and probably a lot of them are watching us right now on this Senate floor 18,000 active members in ERS are eligible to retire. Now, those persons are the persons that are receiving the longevity pay. The retirement system is already force length of the work of this body, we have made progress in having a healthy retirement system. Probably one of the best in the state or in the country. You pass this bill, and you're going to cause an immediate rush of these persons because No. 1 we're telling them that, you know, go ahead, we're going to cut your pay, they're eligible to retire, acting in their own interest, which many of us would, they would retire. Let me tell you a similar bill, Senator, and I don't know how much research you have done on this but a similar bill has been introduced over in the House and heard and I don't know if you're familiar with it it's Senate or House Bill 3168 and the fiscal note on that and this is what you need to listen to, members. The fiscal note of this amendment would probably attach to this amendment is 100 -- a loss of $160 million to the ERS or retirement state employee system. So I appreciate you're trying to help us raise money, I don't think we know -- you cannot raise -- you're not raising 160 million for the retirement fund in this so the losses here far outweigh any temporary gain because these are permanent loss far outweigh any gain. Now, we are going to continue to pay insurance for these folks and so I would respectfully request -- and members, this is -- we're not, you know, you got to set aside what people say on the outside. This is truly a bad management decision that we would make if we adopted this amendment. So with that I would move to table. A motion to table means that you vote no or vote aye if you are against this amendment, you would vote yes if -- let me start over. I'm getting a little tired. On the a motion to table you would vote for the motion to table. If you're against this amendment you would vote against the motion to table if you're for the amendment. I move to table.

LT. GOVERNOR DAVID DEWHURST: Senator Gallegos, for what purpose do you rise?

SENATOR MARIO GALLEGOS: Will the gentleman yield? He's got the floor?

LT. GOVERNOR DAVID DEWHURST: Yes, he does.

SENATOR ROBERT DUNCAN: I yield.

LT. GOVERNOR DAVID DEWHURST: Well, he's got a motion in front -- I mean, he just, I didn't see your light was on. Do you temporarily withdraw your --

SENATOR ROBERT DUNCAN: I withdraw the motion temporarily.

SENATOR MARIO GALLEGOS: On -- let me ask you on what you just got through explaining on the ERS and that was my concern when I first heard the amendment and of the longevity pay as I understand it. I don't know, you get so much a month and it adds up for the year and a lot of state employees are getting those that have some time are getting between two and some $300 a month extra on that longevity pay and that to me, you know, pays off some of the bills and stuff and they've been accustomed to that longevity pay and it's formulated in their budget, in their everyday budget. So I thought it was formulated in their pension but it's not and that would have been the first concern to me but how --

SENATOR ROBERT DUNCAN: Let me answer your question because here's a good data point in response. Twenty dollars may not be a lot to some of us on the floor a month but to 27 percent of our state employees non higher ED state work work force salaries, 27 percent make under 30,000 a year. Now, members, 30,000 a year if you have a family of four and you're working every day, that $20 a month is a significant amount of money to you. Sixty-eight percent of the work force in the state of Texas makes under 40,000. And 81 percent makes under 50,000. Now, I would submit to you if I'm looking around this floor, I would suggest that each and every one of us enjoy incomes much greater than $50,000 a year. So I would submit to you that longevity pay in cutting the longevity pay not only in the sense of people to retire, it does -- it does cause a hardship on these non higher ED state work force salary.

SENATOR MARIO GALLEGOS: I appreciate you clarifying that for me. I understand what Senator Nelson's trying to do and I respect her for it but when you get it and define it specifically on monthly, on monthly out or state employees get it by the month and over, you know, as far as yearly, I mean, obviously it pays some of the bills and that's the only thing that concerns me on this amendment.

SENATOR ROBERT DUNCAN: Well, thank you for your -- and I think there are many concerns and I understand your concern, Senator.

LT. GOVERNOR DAVID DEWHURST: Senator Lucio, for what purpose do you rise?

SENATOR EDDIE LUCIO: Will the gentleman yield?

LT. GOVERNOR DAVID DEWHURST: Will Senator Duncan yield?

SENATOR ROBERT DUNCAN: I yield.

SENATOR EDDIE LUCIO: Senator Duncan, I asked you a little while ago and I didn't hear the answer but when's the last time we gave state employees a raise?

SENATOR ROBERT DUNCAN: Well, I know the best answer and Senator Ogden can probably tell you this better. My recollection is we did not give them an across the board pay raise last session, I know we did teachers and others but we did not give state employees an across the board state pay raise.

SENATOR EDDIE LUCIO: It's been a while since we really rewarded them. Taking away longevity pay is not a way to reward them. I understand we need to raise more money for public education and I'm one to join with Senator Nelson and everyone else to seek other options that are on the table but this is not one.

SENATOR ROBERT DUNCAN: Senator, I do have one for you. I do have an answer for you.

SENATOR EDDIE LUCIO: And I appreciate your vote to table this amendment -- I mean your position.

SENATOR ROBERT DUNCAN: I'm advised that the last across the board pay raise that we've given to state employees was 2005. Five years ago.

SENATOR EDDIE LUCIO: Thank you. I support your motion to table.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan to motion.

SENATOR ROBERT DUNCAN: I move to table. Again I would urge you to vote aye on the motion to table if you are not in favor of this amendment.

LT. GOVERNOR DAVID DEWHURST: And the Chair recognizes Senator Nelson --

SENATOR JANE NELSON: To close on the amendment.

LT. GOVERNOR DAVID DEWHURST: To close, yes.

SENATOR JANE NELSON: Senator Duncan, you talked about how much money this would cost ERS and what was your figure 100 and --

SENATOR ROBERT DUNCAN: I don't have the floor.

SENATOR JANE NELSON: Do what?

SENATOR ROBERT DUNCAN: I don't have the floor.

SENATOR JANE NELSON: Okay. Well, I think your figure was a hundred and some million. This bill will save $323 million and I think it is a false assumption to assume that any state employee that doesn't get longevity pay is going to quit and retire. I think that's a false assumption. I personally -- and I've owned a business I've run a business. I understand business and I personally think it is very poor practice to pay an employee just for sticking around and the longer they stick around we give them bonuses. You pay for performance. You pay for a job well done and I have great respect and admiration and appreciation for many of our state employees. I'm so grateful for what they do but this longevity pay is handed out to all of them and the longer you stick around the more money you get. Now, I hope the good ones do stick around but I also hope that if they've been with us for a long time or a short time that if this year we can't afford to give that longevity pay because we are trying to keep our teachers in the classroom, I think they'd understand, Senator. So members I'm going to ask you to vote against the motion to table and help us come up with 323 million more dollars that we can pay our teachers in the classroom.

LT. GOVERNOR DAVID DEWHURST: Thank you, Senator Nelson. Members Senator Duncan moves to table floor amendment 21. Senator Nelson opposes. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: Members there being 22 ayes and nine nays, the motion to table prevails. The -- what was that, Senator Gallegos? You wouldn't vote for Senator Whitmire's longevity? No, you'd probably get a consensus on that. The Chair lays out the following floor amendment. Floor amendment No. 22 by Senator Nelson. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 22 by Nelson.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Nelson on floor amendment 22.

SENATOR JANE NELSON: Thank you, Mr. President. Members, I think this is an amendment you can support. This amendment implements a 10 percent pay cut -- thank you.

LT. GOVERNOR DAVID DEWHURST: I'm advised that this is floor amendment 22 by Senator Nelson. By Nelson. I'm advised that some were passing out Senator Patricks.

SENATOR JANE NELSON: This should say Nelson.

LT. GOVERNOR DAVID DEWHURST: All right. I'm advised that -- I'm advise that floor amendment 22 is already on your desk. Would the secretary read the first line please.

PATSY SPAW: Section one. All state agencies including institutions of higher education shall reduce compensation by 10 percent for all employees receiving over 200,000 in annual compensation.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Nelson.

SENATOR JANE NELSON: Thank you, Mr. President, members, this amendment implements a percent pay cut for any state employee making over $200,000 a year. I unfortunately don't have a fiscal note for this but a pay, 10 percent pay cut for all state employees out of generated $865 million in savings so I'm confident that this would help us balance the budget and prevent deeper cuts to basic services. You think any of our state employees macing over $200,000 a year would understand that this one time, this two year time segment only, 10 percent pay cut will help us keep teachers in the classroom and I urge you to support this.

LT. GOVERNOR DAVID DEWHURST: Thank you, Senator. Senator Jackson, did you wish to speak on this amendment? Did you wish to speak on this amendment? All right. The Chair recognizes Senator Duncan on floor amendment 23.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. I guess we could get -- I'm going to move to table at the appropriate time. I think we could probably get all the savings from football coaches I guess with regard to this. Members, for the same reasons, like we have some talented people that make over 200,000 and it's those people that we're lucky to have. Many of these, those are highly talented people that we recruit from the private sector to be able to assist us. I think a lot of -- I think even over I am not sure what the top price is over at

(inaudible) --

SENATOR JANE NELSON: I can tell you your guy is making 902,000 a year that we could ask for 90,000 dollars.

SENATOR ROBERT DUNCAN: Well, you know, the whole theory is if you -- this is a complicated and big state and the issues that we rely on a lot of people to do good things for this state so I would urge you to -- and I'm just going to move to table the floor amendment. We've had these discussions now for about an hour and a half maybe and I think I would move to table floor amendment 22.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Nelson to close.

SENATOR JANE NELSON: Senator Duncan, we have a lot of teachers that I would like to keep in the classroom. I value those employees who are making over $200,000 a year, even those who are making $902,000 a year and I would like for a two year period of time to ask them to take a 10 percent cut so we can keep those teachers in the classroom. Members, I'm asking for you to vote against the motion to table.

LT. GOVERNOR DAVID DEWHURST: Members, Senator Duncan moves to table floor amendment 22. Senator Nelson opposes. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: Members there being 21 ayes and ten nays, the motion to table prevails. The Chair lays out floor amendment No. 23 by Senator Patrick. The secretary will read the amendment.

PATSY SPAW: Floor amendment No. 23 by Patrick. Amending by adding section one all state agencies enclouding higher education shall reduce compensation by 5 percent for all employees receiving over 100,000 in annual compensation.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Patrick on floor amendment 23.

SENATOR DAN PATRICK: Thank you, Mr. President. Members, I would like for you just to pause and take a deep breath and think for a moment. Senator Nelson has valiantly tried to send a message that state employees are important and special and cherished but should not be held at a higher level than school teachers and we continue to vote down these amendments that we simply are asking some people to share the pain. What is so wrong with asking some people who work for the state to share the pain? Why aren't we asking thousands of school teachers to suck all pain up in the school districts? I don't understand. I understand good people can agreeably disagree but we continue to sit here when we know we have our school teachers in our districts and our classrooms back home and our school districts and our parents who want us to help and we have a good budget and Senator Ogden has put together a good budget and we're going to fund our classrooms and we're going to fund our teachers but we could help a little more. And to my Democrat friends, I've heard you say you want to help many. And to my Republican friends I know you want to help. Yet here we are. We don't even want to take a lousy 20 bucks to help. And I realize, Senator Duncan, that 68 percent of state employees make under 50,000 a year but we have a significant number of state employees who make a hundred thousand dollars or more. Up to a million dollars. And we can't ask them to take a 5 percent cut in pay? For two years? I don't understand. I really don't understand. Why not? We're asking teachers maybe to take a 1 percent, a 2 percent, a 3 percent, a 4 percent, a 5 percent cut for low days and they're willing, the school districts are willing. And in the private sector people are taking a cut and I can guarantee you a lot of people in the private sector who make more than 100,000 a year have taken more than a 5 percent cut. In fact many of the private sector of $100,000 a year have lost their jobs and I do not believe that because we ask someone to take a reasonable cut in pay they're going to quit their job. First there aren't a lot of private sector companies hiring a hundred thousand dollar year employees. So I'm sorry to be emotional. I'm tired, I had a bill I wanted to bring up today in front of the Senate. I'm not going to bring it up today but I just don't understand why we're going to say yes, we are going to cut the classroom but no, we won't cut the state a little bit. Just a little bit. I mean, there aren't a lot of people, less than half percent of Americans make less than 200,000 per year and we voted down that amendment. Less than 2 percent of Americans make over a hundred thousand dollars a year and so can we help put a little more money into the budget so that we can pass this budget, Senator Ogden, at some point fund our schools and nursing homes and public safety and do all the things Democrats and Republicans in the Senate want to do. We have a better budget than the House and I believe we will come together at some point, some way, some manner, some day soon and pass the budget. I hate to think we're going to go home to our districts and say, you know what, we've been in Austin so long we just don't wan to impact and ask the sacrifice from anyone in Austin because I don't think that's right. So I would humbly, softly, quietly ask you to support cutting the pay by 5 percent of state employees for two years that make over 100,000 dollars a year so we could have more money in the budget. Thank you, members.

SENATOR JUAN HINOJOSA: Mr. President.

LT. GOVERNOR DAVID DEWHURST: Thank you, Senator. The Chair recognizes Senator Hinojosa on the amendment.

SENATOR JUAN HINOJOSA: To ask Senator Patrick a question.

LT. GOVERNOR DAVID DEWHURST: Will Senator Patrick yield?

SENATOR JUAN HINOJOSA: Senator Patrick, that was a great campaign speech. Let me tell you, I'm sorry, buddy, we're going to share the pain. Why shouldn't we share the pain across the board by taking more money out of the rainy day fund and raising the revenue?

SENATOR DAN PATRICK: Senator Hinojosa.

SENATOR JUAN HINOJOSA: I mean, you --

SENATOR DAN PATRICK: Let me respond. You asked a question. Let me respond. There is no one who I consider a better friend than you or someone I respect more than you and you have used that tag line in finance very often. Senator, that sounds like a campaign speech. Well, you know because what I say on the campaign is what I say on the Senate floor because I believe it in August and I believe it in session. So if it is a campaign speech, it's because I'm consistent. And in terms of the rainy day fund the reason I'm against spending the rainy day fund, I support the budget but the reason I'm against spending the rainy day fund is because I believe in my heart of hearts is that this 2013 we're going to come into this body ten to billion behind again and we need every dollar we can muster to be able to pass a budget in 2013. So it's not a political vote, I believe it. I believe we need to hold on every dollar and I believe that we can find the dollars to support this budget without the rainy y day fund and so it has -- it's apples and oranges, Senator.

SENATOR JUAN HINOJOSA: Senator Patrick, let me tell you, unfortunately many times campaign speeches don't evolve and turn into good public policy. What we're facing now, we're facing a crisis. As you well know we have 8 or $9 billion sitting in the rainy day fund and they're (inaudible) to use money for public education funding. So you can't say, you know, let's cut state employee salaries when we already cut state agencies by ten, 15 percent and then say, well, we don't want to touch rainy day fund because we're looking four, six, eight, ten years down the line at issues.

SENATOR DAN PATRICK: I'm not looking four to six years down the line, I'm looking at 2013.

SENATOR JUAN HINOJOSA: No, if you don't know, we also have a problem with margin tax. Are you willing to fix that?

SENATOR DAN PATRICK: Absolutely. I was not here when it passed but I would have voted against it then.

SENATOR JUAN HINOJOSA: Well, you know in finance you were opposed to using money from the rainy day fund.

SENATOR DAN PATRICK: Yes. Look, I make no apologies to wants to hold on to every dollar for the future. It's just like a person, a family, it's like a small business. When you're in tough economic times you don't go to your bank account and drain every dollar out of it. That is not wise, that is not good family or personal policy and I don't think it's good public policy to take 2/3rds out of the rainy day fund. I just don't. But I support you and I support the chairman to do everything I can to support a budget that fully funds what we have passed out of the Senate or what we passed out of the committee. So I don't disagree with you on the money, it's the approach. I don't disrespect your approach, don't disrespect mine. I believe we need to hold on to every dollar moving forward and I support spending the rainy day funds to spending this year's bills. That's the obligation and that's what it's for.

SENATOR JUAN HINOJOSA: Senator Patrick. I don't disrespect what you're saying. Let's be a little more honest of what's going on here. The projections are the -- continue to be high 110, $120 per by. As you well know the market is about $70 per barrel. Projections solve about 12 billion plus money rainy day fund. Whatever money we take is going to quickly replenish because the oil and the crisis in the Middle East so I don't understand why if we're so worried about teachers which I am and I will take more money from the rainy day fund, you're not. This is just symbolic. This is just symbolic, what do you want to help? Public education. And I don't want to deal with symbolic issues, I want to deal with reality. Let's take another billion dollars from rainy day fund and give it to education if you're so worried about our teachers. I'm willing to do that but you're not.

SENATOR DAN PATRICK: Senator, I don't offer amendments that are symbolic and that is disrespectful to suggest that. I honestly believe that we have enough employees in this state who make over $100,000 a year who can absorb a five percent cut for two years to help put more money in the budget. My good friend, we just disagree. I believe we need to hold on to the rainy day fund for the future and while oil prices are up I got it and while sales taxes are climbing, I got it. But property taxes aren't increasing, we're going to have Medicaid increases, potentially because of federal health care, we're going to have another 80,000 students next year, we do have the deficit in the business tax, we're going to have a lot of issues that we come back with that we're going to have to fund and so you know what? If we keep the rainy day fund and only pay this year's bills, we'll have about roughly 6 billion left or 5 billion left. I'd rather have -- you may be right, you may well be, I'd get a couple billion come back in 2013 with eight and not come back with five and so we're just good people who agree to disagree. But I really, I really don't understand why we don't want to ask someone who makes 120, 130, 160,000 dollars a year to take a 5 percent cut but will ask a schoolteacher who makes 44,000 a year to take a one or 3 percent cut or lose -- take a hundred percent cut. Explain that to me.

SENATOR JUAN HINOJOSA: Well, I am for the same reason that I do not understand why you want to leave a couple of billion dollars sitting there in the rainy day fund. We agree with the different approach that we have. When our teachers are suffering, when we're not taking care of growth and don't you don't want to take money out of the rainy day fund. I think we just have a disagreement.

SENATOR DAN PATRICK: Well, we do and talking about campaign speeches, Democrats often campaign on taking care of the poor and not helping the rich. By voting on this amendment you're hurting the poor and you're helping the rich.

SENATOR JUAN HINOJOSA: I don't think you hear me -- campaign do the same thing and come here to the Senate floor.

SENATOR DAN PATRICK: Senator, we remain friends, we just agree to disagree. I urge adoption of the amendment.

LT. GOVERNOR DAVID DEWHURST: Senator Birdwell, for what purpose do you rise?

SENATOR BRIAN BIRDWELL: Just to speak on behalf of the amendment, Mr. President.

LT. GOVERNOR DAVID DEWHURST: Does the Senator have questions? We have other people that may have questions if you will hold just for a moment. For what purpose, do you rise Senator Uresti?

SENATOR CARLOS URESTI: To ask Senator Patrick a few questions.

LT. GOVERNOR DAVID DEWHURST: Will Senator Patrick yield?

SENATOR DAN PATRICK: Yes.

SENATOR CARLOS URESTI: Thank you, Mr. President. Senator Patrick, just to follow a little bit on what Senator Hinojosa asked you about sharing the pain and I don't want to beat a dead horse but I think it's important though if we going to share the pain, explain to me then how do we tell our teachers many of them that just got pink slips this last week about sharing the pain when we have according to your numbers $5 billion that's going to be left in the rainy day fund. I mean what do we tell those teachers about sharing the pain when you don't want to spend the $5 billion that's in the rainy day fund?

SENATOR DAN PATRICK: And Senator, I just believe you should not use all or nearly all of our reserves on the hopes that oil continues to go higher and higher and on the hopes that property taxes rebound and on the hopes that the sales tax -- I hope all those things happen, it's just -- I'm a conservative guy. I believe having some money in the bank for a rainy day and we're going to spend money for this rainy day to pay our bills and we're going to pass a good many of these teachers who are being pink slipped today if we eventually pass the budget and I hope Democrats will join with Republicans to do so. 85 percent of them will be hired back and most of the ones that aren't going to be hired back are the ones who were hired with one time stimulus money that should have never been hired.

SENATOR CARLOS URESTI: Well, you say Democrats should join the Republicans, but I would submit to you that I would hope that Republicans like yourself would join the Democrats in spending some of that money in the rainy day fund to keep our teachers from ever getting pink slips. Are you going to vote with the Democrats and other members to keep teachers from getting ping slips and using the rainy day fund in the first place?

SENATOR DAN PATRICK: No, but I am going to continue to find ways because what we're talking about on the rainy day fund is about 3 billion of the budget and I believe we can find other ways, Senator Hinojosa and Senator Uresti to fill that gap. Please understand I do not want the budget that we pass out of here or the budget that comes out of finance to be less than what Senator Ogden and the committee passed. And I believe there are other ways to get there. You know, the House would have to lead with this or we could do this in conference, I have recommended that we increase sales taxes by a penny and a half, it gets up seven and a half billion dollars in revenues and we reduce property taxes by 5 percent. Would cost about a billion dollars to do so or so, we would net $6 billion. So I am offering -- I am offering ideas.

SENATOR CARLOS URESTI: And I appreciate that and, Senator Patrick, though don't you agree with me that a sales tax is regressive tax against the people of the state?

SENATOR DAN PATRICK: No, I don't.

SENATOR CARLOS URESTI: You don't. So you don't think that people, for example, in my district in district in Texas per capita income of $12,500 a year you don't think that one and a half sales tax increase is regressive on those poor folks of Texas?

SENATOR DAN PATRICK: I believe, I believe Senator that and all of us in this room I think and Senator Duncan is right most people in this room are blessed and do well in life, but I think most of us at some point in our life have been broke or poor or close to it.

SENATOR CARLOS URESTI: That wasn't my question.

SENATOR DAN PATRICK: But my point is and we -- you've to do the math on what a penny and a half would cost a person that's poor and it could cost them or 30 or $40 a year in addition. That's true.

SENATOR CARLOS URESTI: Let me ask you this, Senator Patrick. What do you propose then to the Senate to the legislature that we do with the 5 billion or plus dollars that's sitting in the rainy day fund. You said we need to hold on onto it.

SENATOR DAN PATRICK: I believe we do.

SENATOR CARLOS URESTI: Hold on it to for what purpose?

SENATOR DAN PATRICK: First of all as we've seen in the tremendous storms we've had and tragedy in Alabama in the south, we're not immune from those, whether it's tornadoes or hurricanes, they come with a price tag, we have wild fires, we have hurricane season but more than that, Senator, what I believe in my heart is we come into the next session is ten to billion behind again and we need as much in the bank to prepare for that event. And if I'm wrong, that's great news. But if I'm right and we spent the rainy day fund down to two or 3 billion, and we come into the next session with 15 in the hole and maybe we pick up another one or two from higher old prices so we're back to four or five I'm telling you it's going to make decisions even tougher then and here again. Let me ask you this. With all due respect you're not asking me about my amendment, you're asking me about a philosophy like Senator Hinojosa is. Let me ask you. What is wrong with people that make more than $100,000 a year for a two year period to take a 5 percent pay cut so that we can put a cut into the budget to pay more teachers?

SENATOR CARLOS URESTI: I think for one, folks are on tight budgets to begin with. You're assuming because someone makes over $100,000 that they're wealthy people but they may have a mortgage, they may have kids in college, they may have other expenses, they may have a sick family member that they're helping pay their medical bills for. So yes it's a nice salary but we just can't discount the fact that they may have expenses that we don't know about or we don't care. So it's not fair to them to say we're going to cut your salary but it's a philosophical argument I understand. But we can't on the one hand say we all need to share in the pain but on the other hand not be willing to help them ease that pain because there's $5 billion sitting in the rainy day fund that can help people ease that pain. And that's the problem I think Senator Hinojosa and others have with the argument that you're making to support your amendment.

SENATOR DAN PATRICK: But so far what I've heard today listening to all the senators of all the amendments is the only answer is to spend our savings. We don't want to have a hiring freeze, we don't want to cut pay to employees who make over 200,000 a year. We don't want to cut people who make over 100,000 a year, we're willing to cut teachers, we don't want a sales tax for people who make 20,000 a year, we don't want to hurt people who make over 100,000 a year. Basically what I'm hearing from all the Senators who continue to vote these issues down, we don't want to do anything. We don't want to do anything except spend all the money we have in the bank or most of it.

SENATOR CARLOS URESTI: Well, I'll let the other senators speak to that. I will submit to you that they're going to disagree to what you just said because Senator Ogden, Senator Duncan, a lot of other senators on this floor have done a lot of things other than what you just stated. So I would disagree completely with what you said, Senator Patrick, and I don't think that's an accurate statement because a lot of members in this body have done a lot to try to make up that difference but --

SENATOR DAN PATRICK: But.

SENATOR CARLOS URESTI: Let me finish, Senator Patrick. Your don't lay off teachers, you don't lay off teachers when $5 billion in the bank. I don't think anybody in this room wants to spend all the money. I don't. But you don't leave 5 billion in the bank and lay off our teachers. I just want to ask you one more question. The if your amendment goes on, are you going to vote for this bill?

SENATOR DAN PATRICK: No, I'm not going to vote for the bill. But it doesn't mean as we always do you can make a bad bill better or a good bill worse with an amendment.

LT. GOVERNOR DAVID DEWHURST: Senator Lucio --

SENATOR KEL SELIGER: Mr. President, you have to recall the previous question.

LT. GOVERNOR DAVID DEWHURST: Members, Senator Seliger moves the previous question, are there seconds? There being no -- there being one second the motion is not an order.

SENATOR JUAN HINOJOSA: I'll second that.

LT. GOVERNOR DAVID DEWHURST: Right. But we need five. We need five seconds. All right? Senator Lucio, for what purpose to you rise?

SENATOR EDDIE LUCIO: Does Senator Patrick yield?

SENATOR DAN PATRICK: Yes.

SENATOR EDDIE LUCIO: I want to thank you because for the first time this session I had to lower my hearing aid and I can hear you loud and clear, thank you. Senator Patrick, you're a member of the finance committee and as I am and we heard compelling testimony from the health science centers. I remember specifically Dr. Kyeser willing us how they're losing some of their best personnel, Professors, medical personnel because other states are able to offer our people who are the top of the line in the country better salaries and they're leaving. Your amendment obviously helps that to happen even more in my opinion. And you know, the other day you spoke very eloquently and lengthy I should say about MD Anderson when they were on the floor and I agreed with you. I surely agreed with you and you said that we absolutely need, it's essential that we support their efforts and make sure that they fund, you know, their operation and I agree with you. The one thing I remember on Senate Bill 1 coming out of the finance committee is that we both voted no. I think there was a difference on the vote though. I voted no because I thought that the cuts were way too much and you voted no because you didn't want to use the rainy day fund and you felt that the cuts weren't enough. That's the difference on our vote against Senate Bill 1 and I'm listening to all that you're saying, Senator, and I'm at a loss here because I understand you think that the top 1 percent of Texas to share the burden with your remarks. And I want to thank you for agreeing with Texas Obama's plan to ask the wealthiest to share in the pain and to eliminate the Bush tax cuts. That's where I think your conversation is leading us. Thank you.

LT. GOVERNOR DAVID DEWHURST: Senator Seliger. Did you wish to speak?

SENATOR KEL SELIGER: No, sir.

LT. GOVERNOR DAVID DEWHURST: Senator Ellis, for what purpose do you rise?

SENATOR RODNEY ELLIS: Couple of questions Mr. President and I'll be brief.

LT. GOVERNOR DAVID DEWHURST: Will Senator Patrick yield?

SENATOR RODNEY ELLIS: Senator, I've already missed my flight so I'm going to stay here tonight. It's an interesting discussion. How much would your amendment raise?

SENATOR DAN PATRICK: I would have to go back and double check the figures but it's somewhere over 150 million.

SENATOR RODNEY ELLIS: And you want this money would go to help pay teachers?

SENATOR DAN PATRICK: Yes. Well, it would absorb back to the general fund and as Senator Nelson asked or answered earlier when she was questioned about it we can find a way to make sure that money goes to where we need it to go.

SENATOR RODNEY ELLIS: Well, you made such a compelling and sincere speech and you think it will raise 150 million so I'm sending up at the appropriate time an amendment to your amendment which will add another 152 million and it will do that by repealing that early filer taxing exemption. Now, this would not be subject to a point of order because it is not a tax increase coming from the Senate. This will be keeping someone from getting a refund. So because you made such a compelling speech about helping the folks on the early bus by having us lose all of these folks at the medical center who I represent who make over $100,000 a year. Folks in New York and California and Louisiana would take them, I'm wondering whether or not you would be amenable to my amendment to your amendment to show that you are really sincere as I'm sure you must be and this would bring in. We know it's an LBB recommendation. It will bring $152 million so I want to know whether or not you would use your same eloquence and grace to support my amendment to your amendment. It is germane.

SENATOR DAN PATRICK: And I will find out if it's germane.

SENATOR RODNEY ELLIS: But surely you wouldn't raise the point of it being germane because you want to help the teachers, right?

SENATOR DAN PATRICK: Well, you have an amendment, you can bring it up separately, that's what I recommend --

SENATOR RODNEY ELLIS: No, no, no.

SENATOR DAN PATRICK: And I will surely take a look at that.

SENATOR RODNEY ELLIS: When we worked together in a bipartisan fashion from your corner of the chamber over here to my corner of the chamber, I'm sure the two of us working together, I have serious revelations about your amendment which you think will bring in 150 million but if you'll take in mine which brings in 152 and we know it. It's a bill, hasn't gotten a hearing, it's an LBB recommendation printed out in the LBB book, this will be $302 million and that money can go to help the teachers and the folks on the early bus and all the of the great things you said.

SENATOR DAN PATRICK: And, Senator, I'm not saying I reject that, I have not looked at your amendment, I have not thought about your amendment, I'm focused on this amendment and I would be happy to give it great consideration if you bring it up as a separate amendment.

SENATOR RODNEY ELLIS: Well, they'll bring it over to you because it is an amendment to your amendment because I mentioned to you the other day I can't take all this rejection particularly when I missed my flight to go be with my family --

SENATOR DAN PATRICK: Well, we're all missing something tonight.

SENATOR RODNEY ELLIS: You're right, but it will be good. The amendment to the amendment is coming up and I'm adding it to yours and we can ride this together. Thank you.

LT. GOVERNOR DAVID DEWHURST: The Chair lays out the following -- Senator Gallegos, for what purpose do you rise?

SENATOR MARIO GALLEGOS: Will the gentleman yield?

LT. GOVERNOR DAVID DEWHURST: Will Senator Patrick yield although we're about to lay out the amendment to the amendment.

SENATOR MARIO GALLEGOS: Senator Patrick, let me -- okay. I was just waiting until you read it. Let me -- I'm not going to ask you a question, I just wanted to tell you that while you were talking in a loud pitch that Senator Whitmire was telling me -- are you listening to him? Because that's the way I sound when I get up and talk and I just wanted to tell you that I'm glad you do that because you live on the West side of Houston, I live on the east side and we like to be heard and I really respect you when you get up. You talk, talk loudly. Senator Lucio has to turn down his ear machine, his ear machine. And that's the way you're supposed to when you represent your district. And I just want to applaud you how you speak up for the West side and your district and all that. While I may not agree with you, applaud you because at least I can hear you the media can hear you and everyone -- everybody in this room can hear you and I guarantee you your constituents hear you.

SENATOR DAN PATRICK: Well, thank you, Senator. I usually -- as you know, in three sessions I'm pretty soft spoken on the floor but it's been a long day and I just wanted to get everyone a little awake. Thank you.

LT. GOVERNOR DAVID DEWHURST: The Chair lays out to the following floor amendment. Floor amendment No. 24 by Senator Ellis. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 24 by Ellis amending amendment No. 23.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Ellis to explain amendment to the amendment 24.

SENATOR RODNEY ELLIS: Thank you, Mr. President. This is the amendment to the amendment offered by Senator Patrick and to be honest with you I don't think I could say it better. Can't be as articulate or as flamboyant, I believe it is acceptable to the author. As I was saying, Senator Patrick did such a great job, I believe it's acceptable to the author. I move adoption at this time.

SENATOR DAN PATRICK: I would -- I'm not sure which author you're talking to but not this author.

SENATOR RODNEY ELLIS: Let's vote.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes -- Senator Duncan, for what purpose?

SENATOR ROBERT DUNCAN: To I guess address the amendment to the amendment.

LT. GOVERNOR DAVID DEWHURST: Will Senator Ellis yield?

SENATOR RODNEY ELLIS: Yes, I will.

SENATOR ROBERT DUNCAN: Thank you, Senator Ellis. I think you have got this off the internet traveling list that we had out there. These sort of discounts they're really for a reason. No. 1 there is an expense and we expect our retailers to collect this tax for us so it is a service and it is expense. It is not only a mechanical IT expense but also it is a personnel expense. The reason that we have an early filer discount is this. Is simply the time value of money. We -- many -- I think you know this because you are chairman of finance but we have cash flow management for the state of Texas and we -- in order to make sure that we pay our bills on time and sometimes our revenue have different schedules than our bills, we often have to go do a tran. You know, what a tran is. Tax revenue and anticipation. Well, those cost money to do and so in order for the state to save money, we encourage -- we encourage a discount to our retailers and other persons to send that money in. To in essence if we put your amendment on it would have a negative fiscal impact on the bill. We looked at this because it looked good. Somebody said, I don't know if it was in some report done by some outside agency or whatever. We looked at it and said hey, this is a good idea and then we started understanding it, it's the time value of money. If you don't have these discounts in the -- especially the large retailers like Wal-Mart and others that are sophisticated it is in their best interest to hang on to the money because they can earn more, they can earn a return on it, what happens is we can lose either the return of the money or we have to pay interest on a tran so that's why we didn't do it and that's why it would be objectionable and probably because a reduction in revenue in this revenue raiser.

SENATOR RODNEY ELLIS: Well, Senator, I appreciate your take on it. This is an LBB recommendation and I would say with all due respect it's not as much of a problem as some of the other things that we're going to do in your bill which I have agreed to vote for but in the event Senator Patrick's amendment does get on which I know will wreak havoc on my medical center, our medical center in particular I just want -- Senator Patrick's not listening -- use in opportunity to make the point, this is a tough one for members to vote on because I think most of them see both sides of the argument so I'm not going to force a vote on it, Senator Patrick. Senator Patrick, I'm not going to force the members to vote on my amendment. I'm willing to hope to get at least as many votes that you get on yours because I know it puts members in a very awkward position but mine really will generate $152 million according to the LBB and it is no more than a problem, not as much of a problem as a lot of the other stuff that we're going to do in this bill that I have agreed to vote for because we need the money. So I'm going to pull mine down, I hope you follow.

SENATOR DAN PATRICK: I appreciate you pulling yours down, but we're going to have a vote. Move forward.

LT. GOVERNOR DAVID DEWHURST: Senator Ellis pulls down amendment 24. Members, the issue before us is the adoption of floor amendment No. 23 by Senator Patrick. The Chair recognizes Senator Duncan on floor amendment No. 23.

SENATOR ROBERT DUNCAN: Thank you, Mr. President and members. I appreciate Senator Patrick's work this session on things but here's the problem. No. 1 we're all talking about wanting to give more money to our teachers. Well, the reason we don't give more money to our teachers is because our school finance system is broken. Senator Patrick and I have had many discussions about that and until we fix the school finance system, and the way we fund schools, our teachers are always going to be paid less than we would want them to be paid. We're starting -- we did in Senate Bill 22 and good work Senator Patrick and Senator Shapiro, Senator West, Senator Davis and others, we have worked hard to try to mitigate the issues to teachers as well as reform the school finance system, there's a much more to do but we've got to do that. If we cut employees of state agencies making over $100,000 a year of course we impact a lot of people that are probably sitting in this room but we also impact -- I will put a face on this one is our higher Ed. We have invested greatly in higher education. Recruiting good faculty to do research or to teach our students in higher education or be at a higher -- you know we're not funding higher education or the health related institutions with any increase this session. We cut them in 2011 and 12. I think most of the cuts that we took in 11 were from higher Ed. So here's what's going to happen is higher Ed is a highly competitive employment and we're going to lose -- if we cut our faculty at our higher Ed institutions, we're going to lose a lot of those people and a lot of the people that we've recruited and so my thought is let's pass this bill, let's not -- there are other ways to achieve the economies that we want to achieve but let's don't send this message to our higher Ed and other state employees. So I would move to table floor amendment No. 23. A vote to table is a vote against the amendment so I would ask you vote I to table floor amendment 23.

LT. GOVERNOR DAVID DEWHURST: Thank you Senator Duncan. Before you do that, I'm going to recognize Senator Birdwell who had asked to speak and then I'm going to go to Senator Patrick to close.

SENATOR BRIAN BIRDWELL: Mr. President, thank you members. I've been observing our challenges over the past two hours realizing how long we've been here. But the last several minutes or amendments that we've been dealing with I think are setting a very dangerous tone. Senator Duncan's right, we've got a lot of folks in the higher education arena, a lot of great state employees out there but in not asking our state employees to share in that burden, we are actually beginning the process of setting two different classes of people that pay the price. Those that are not in state government are subject to that pain, those in state government are not subject to it. I have great concern that if in doing that, in making sure that we protect state employees to the point that they're untouchable, that we have set a do as I say not as I do standard to those who are not state employees. And as to the rainy day fund, Senator Patrick, I absolutely concur that we need to save as much as that, not dip into it. As a member of the armed forces we're always tight you must retain a reserve because our objective in this session isn't just to simply survive this session, it is to make sure that we set the conditions for success for the next session and making sure that we have that reserve to do so is paramount in the exchange between you and Senator Uresti. We spoke about you know hoping for the best and one of the things I know we all learned long ago is hope is not a method. So we got to make sure we take care of this, keeping rainy day fund in place, ask our state employees just as we would the regular citizenry of Texas to pay that price to be prepared to do so now. Thank you Mr. President.

LT. GOVERNOR DAVID DEWHURST: Thank you Senator Birdwell. The Chair recognizes Senator Patrick to close.

SENATOR DAN PATRICK: I'll be very brief and what I would just respond members to what Senator Duncan has said that we're going to lose people it's interesting by all statistics we have over 1200 people a day moving to Texas and they're moving here because the tuns in Tex for a exceed those in the other 49 states. I believe people are flocking to Texas for one because we do not have a state income tax. I believe people are coming here because we have affordable housing and I believe they're coming here because Texas does have hope for them and their families. So Senator Duncan I don't think by asking for any of the things we asked today that we would see this huge exodus of people going to California or Michigan or New York or Illinois or anywhere where it's cold as a matter of fact. I think that while I respect your concern on that, I think that concern that has been voiced all day is some what over stated. I don't think we'd have a mass exodus but again all of us in here today it's very interesting Republicans with Republicans, Democrats are against each other on various amendments, all 31 of us are trying to get to the same place. We just have different ways of getting there and that doesn't mean, Senator Hinojosa, or Uresti or Senator Nelson or Ogden or West or Williams doesn't mean any of us are wrong, just means we have a different point of view and I think the point of view that Senator Birdwell just spoke of that we can ask some state employees to help is not too much to ask and weed out everything else. We voted against longevity, we voted against a hiring freeze, we voted against across the board pay cuts, we voted against pay cuts and this is a small group of people that could help so members I would ask rough to consider that. I don't think it's too much to ask. Thank you Mr. President.

LT. GOVERNOR DAVID DEWHURST: Members Senator Duncan moves to table floor amendment No. 23. Senator Patrick opposes. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: There being ayes and ten nays, the motion to table is sustained. Senator Ogden. I'm going to recognize you on a motion to reconsider. The Chair recognizes Senator Ogden for a motion to reconsider the vote by which floor amendment No. 8 was passed.

SENATOR STEVE OGDEN: Members, I request to reconsider the vote by which we passed amendment No. 8 which had to do with collecting a fee for indigent legal services and one of the reasons that I'm going that is that I was presiding when this occurred and I made a mistake, I failed to recognize Senator Duncan on the amendment and as a result there was very little debate on it and I think in order to fully consider the issue and but still allow Senator Rodriguez the chance to pass his amendment. I move to reconsider.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Rodriguez on the motion to reconsider the vote.

SENATOR JOSE RODRIGUEZ: Thank you Mr. President, Senator Ogden I appreciate your motion to reconsider and I understand that there are members here who feel like there has not been enough debate on this motion but the reality is that we've had a very long day, I know everybody's tired, I've been hearing the comments some have been made here in the other debates that we've been having and so in the interest of moving along I would suggest that -- I would suggest that we vote against the motion to reconsider and engage the vote that way and then we can -- however the critical vote that I think is the vote that Senator Duncan wants which is on his bill. I believe that we have already had two times when we've debated this particular issue. Once when I filed my original bill Senate Bill 726 and we had extensive debate on it. We had some more debate on it yesterday, just yesterday on my amendment to your bill Senator Ogden and so I don't think that debate is going to necessarily change people's minds. I would hope it would. I feel very strongly about funding civil legal services and indigent defense. I think it's an obligation that we have in the case of indigent defense, it's a constitutional obligation that we have and it is just a puzzling thing to me that some people who are opposed to my bill and Senator Wentworth's bill on the grounds that it's increasing fees just yesterday voted for Senate Bill nine that imposed they host the fees on driver's licenses and other matters and we know that there's other bills that are also increasing fees. So I really think it's time for us to just simply vote this up or down and I would suggest this members that if you still support legal services and indigent defense, then vote against the motion to reconsider and then we'll know whether we can go forward or not. I want to get to a vote on Senator Duncan's bill. Thank you Mr. President.

LT. GOVERNOR DAVID DEWHURST: Thank you Senator Rodriguez. What I understand if I heard correctly Senator Ogden said that the he had not seen Senator Duncan's light and didn't recognize him on the amendment and so I'm going to go to the bill sponsor and I'm going to recognize Senator Duncan to speak on the motion.

SENATOR ROBERT DUNCAN: Thank you Mr. President. I would suggest that we need to -- I would urge the members to vote in favor of reconsidering amendment No. 8. I think that it needs to be debated, I think we need to vote it up or down without a motion to table and then I think we need to move on to the business at hand so I would -- the author of the bill is in support of the motion to reconsider.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Rodriguez to close. Senator Rodriguez did you wish to add? Did you wish to close?

SENATOR JOSE RODRIGUEZ: Yes, sir, Mr. President, I think that in the interest of moving on that we ought to just simply go ahead and vote on the motion to reconsider. I would urge people to vote against it and that way we will determine whether we can move on to Senator Duncan's bill or not which you think is the bill that we all want to talk our vote on. Thank you Mr. President.

LT. GOVERNOR DAVID DEWHURST: Members you heard the motion by Senator Ogden, the question is on the motion to reconsider the vote by which floor amendment No. 8 was adopted. Senator Rodriguez opposes. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: There being ayes and 14 nays the motion to reconsider prevails. The Chair recognizes Senator Rodriguez to lay out floor amendment No. 8. Well, the Chair lays out floor amendment No. 8. All right. We're on eight so the Chair recognizes Senator Rodriguez to explain floor amendment eight.

SENATOR JOSE RODRIGUEZ: Thank you Mr. President and members. Again I want to thank Senator Duncan for all the hard work that he's putting into this bill that we're all trying to get to. Mr. President and members this floor amendment is identical to the amendment that I offered yesterday to Senator Duncan's bill. It establishes the judicial access and improvement account as an account in the general revenue fund for the purposes of funding basic civil legal services and indigent defense. Again this amendment is based on House Bill 2174 by Representative Hartnett by which was voted out of the House committee on the judiciary and civil jurisprudence by a vote of nine to one last week. Mr. President I respectfully move adoption of the amendment.

LT. GOVERNOR DAVID DEWHURST: Senator Lucio for what purpose do you rise?

SENATOR EDDIE LUCIO: Will the gentleman yield?

LT. GOVERNOR DAVID DEWHURST: Will Senator Rodriguez yield?

SENATOR JOSE RODRIGUEZ: Yes, sir I will.

SENATOR EDDIE LUCIO: I am not an attorney and you are, you've been in a courtroom many times I'm sure. Is it a constitutional right for citizens of this state who are indigent to have counsel?

SENATOR JOSE RODRIGUEZ: Senator Lucio, it is a constitutional obligation imposed on counties to provide indigent defense representation to all of those who cannot afford a lawyer when they have been charged with a crime. Your county and the county of each and every member here on this floor is obligated by the constitution to furnish legal representation to a person accused of a crime who is indigent. The problem that we have, sir, is that those funds have become very limited. Similarly the funding for civil legal services has become very limited. There's a shortfall. What we are attempting to do here is to fulfill that constitutional obligation as well as the duty and responsibility and I would add moral responsibility to provide representation to all who node it whether it's in the civil arena or in the criminal arena. Now, just as I was here when chief justice Jefferson gave his state of the judiciary address and he pleaded with us to put funding into civil legal services and indigent defense and in fact Justice Jefferson was very eloquent. He said we have a system essentially where I'm paraphrasing where the powerful and the wealthy can have access to our courts and a system where some of the most vulnerable can have access to the courts but yet we are in a time when veterans cannot access legal services, victims of family violence can't access legal services, the elderly who are in need of legal support cannot access legal services, only one out of five of our members of our community who cannot afford lawyers are able to access our courts. And members I saw a lot of young people here earlier today. I guess they're all gone because we've been here a long time but there are a lot of young people today who I'm sure being thought in their schools as we all were and we all recognize that this is a country where we provide equal justice for everyone. And so --

SENATOR EDDIE LUCIO: What happens, Senator Rodriguez, what happens in this session if we don't properly fund or help find the necessary funds to help these indigents or to help these poor people that need help with legal rural aid let's say to be able to have these legal services. What happens to them in your opinion?

SENATOR JOSE RODRIGUEZ: Well, what's going to happen to the clients, if you will, not be able to get representation. The woman who is the victim of domestic violence of family violence is not going to be able to get her representation to go into court to get a protective order and to get support from the court system. That woman is going to be subjected not only potentially to serious bodily harm, potentially as I witnessed many times as county attorney in El Paso who handle -- in that jurisdiction, women who are getting killed and they get killed every day across this country. So not to debate my answer to your question because you're asking a very good question to what's going to happen to them, that's what's going to happen to them personally. But what's going to happen to the rest of us apart from the moral implications of not having been there to provide the assistance that these folks need is that we as taxpayers are going to have to end up paying money for that person who's going to end up in the emergency rooms. For that elderly person who needs access Medicaid or other services that they're entitled to.

SENATOR EDDIE LUCIO: Well, I just want to tell you I think it's late in the session and if we ever had a chance to make a difference to that segment of the community of the population of this state, we have it now and it's unfortunately, it appears obviously at this point that was short of having the support we need to make sure we do the right thing for those who need the help. So I thank you for your efforts. Thank you.

SENATOR JOSE RODRIGUEZ: Thank you. I do want to add Senator Lucio that there's a lot of support for this bill from all sectors of the state of Texas from our state bar association, from our justice of the Supreme Court and other justices in the court

(inaudible) who came before the me and testified in favor of the bill from the various bar associations from your communities, there is a lot of support for the need for funding for legal services and for indigent defense and so I don't want to give the impression that there is because there are some people here who don't provide the support that there's not support for this out there.

LT. GOVERNOR DAVID DEWHURST: Senator Ellis for what purpose do you rise, sir?

SENATOR RODNEY ELLIS: To ask a few questions Mr. President.

LT. GOVERNOR DAVID DEWHURST: Will Senator Rodriguez yield?

SENATOR JOSE RODRIGUEZ: I yield Mr. President.

SENATOR RODNEY ELLIS: Senator you put a lot of time into this and a lot of effort and a lot of work and I know you're very sincere about it. I think you got a lot of support. Some members might have some concerns about the method of finance mentioned to Senator Duncan earlier obvious because we do have fees in so many areas to pay for so many things that creates heartburn, but this is an area where I think all of us realize it is so important because if people on the civil as well as the criminal side, members, don't have access to the courts, it cost us money in the long run because we end up with more people incarcerated as he mentioned battered women and other issues. So I'm hoping members will just forget about a lot of the other issues that have gone on during the day if you didn't get a chance to make your case earlier, you'll still get a chance as this bill works through the process. It is interesting that it is Representative Hartnett on the House side who is carrying this bill as Senator Rodriguez mentioned strong support for bar associations all across the state, it in a lot of ways has not done merely enough in terms of these issues so I'm hoping that members in addition to strongly considering voting with Senator Rodriguez on this amendment tonight, even if we don't make it tonight you'll help us look for other revenue streams, other methods of finance because we simply cannot afford not to put more money in the indigent defense and also I want to say to some of you are who are more conservative than others if you pass this, at least you can come back in two years and sweep it somehow, there'd been a -- to do that. You may want to pass so you get the money two years from now. So I hope you'll help our friends who have to catch the early bus, Senator Ogden, on this. So that's sort of my question to you Senator Rodriguez. You got a good bill. I hope you get it adopted. If not I hope many of our colleagues that have talked to us about this bill are committed to helping you find another method of finance or another vehicle it's an important issue so thank you for bringing it up.

SENATOR JOSE RODRIGUEZ: Thank you Senator.

LT. GOVERNOR DAVID DEWHURST: Thank you senators. Members the Chair recognizes Senator Duncan do you wish to -- the Chair recognizes Senator Duncan.

SENATOR ROBERT DUNCAN: The -- I guess he needs to move to adopt then I would be recognized.

LT. GOVERNOR DAVID DEWHURST: I'm sorry I thought he had. The Chair recognizes Senator Rodriguez for a motion.

SENATOR JOSE RODRIGUEZ: Mr. President and members, the funding that is asked for in this bill would provide level funding for legal services and indigent defense. That's all that we're talking about here. About $32 million out of a bill that we need to vote on that's $4 billion. I move, Mr. President, and respectfully for the adoption of the amendment.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan on floor amendment eight.

SENATOR ROBERT DUNCAN: Members we've had a lot of discussion on this today and I don't think given the discussion and we've had that it's appropriate for a motion to table and since it's coming up for a motion to reconsider I'm going to leave this to the will of the body.

LT. GOVERNOR DAVID DEWHURST: Members Senator Rodriguez moves for the adoption of floor amendment No. 8. The bill sponsor, Senator Duncan leaves it to the will of the body. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: Now Whitmire I thought you always wanted me to be slow on the gavel. You wanted me to be deliberate, thoughtful. We have a question on this. That's exactly what we're -- that is exactly the issue we're discussing. Members there being 17 ayes and 14 nays, the -- floor amendment No. 8 is adopted. Members, the Chair recognizes Senator Duncan for a motion to pass Committee Substitute to Senate Bill 1811 to engrossment.

SENATOR ROBERT DUNCAN: Thank you Mr. President I move to passage to engrossment.

LT. GOVERNOR DAVID DEWHURST: Members you heard the motion by Senator Duncan. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: Members there being 22 ayes and nine nays, Committee Substitute to Senate Bill 1811 as amended passes to engrossment. President's desk is clear. Excuse me the president's desk is not clear. The following motion in writing by Senator Whitmire. Secretary will read the motion.

SENATOR TOMMY WILLIAMS: Mr. President.

LT. GOVERNOR DAVID DEWHURST: Senator Williams, for what purpose?

SENATOR TOMMY WILLIAMS: I would like to know how the vote was cast. I'm curious if we had strict enforcement on that last vote or not.

LT. GOVERNOR DAVID DEWHURST: Senator Williams, if you'd approach the podium. The secretary will read the motion in writing by Senator Whitmire.

PATSY SPAW: Permission to introduce bills. Mr. President, I move suspension of Senate 7.07 to permit the introduction of the following bills. Senate Bill 1921 by Lucio relating to the development hosting and management of the computer software for sate agencies. Senate joint resolution 53 by Ellis proposing a constitutional amendment requiring the periodic review of state and local tax purposes providing an expiration date for certain tax preferences. Motion by Whitmire.

LT. GOVERNOR DAVID DEWHURST: Thank you Madam Secretary. Members you heard the motion in writing by Senator Whitmire. Is there objection from any member? The Chair hears no objection from any member and the motion is adopted. Senator Duncan for what purpose do you rise, sir?

SENATOR ROBERT DUNCAN: I would rise to move to suspend the constitutional three day rule that we take up and consider Committee Substitute for Senate Bill 18 -- you think I'd remember the number -- 1811 on third reading.

LT. GOVERNOR DAVID DEWHURST: Members Senator Duncan moves to suspend the constitutional rule that bills be read on three several days. The secretary will call the call.

LT. GOVERNOR DAVID DEWHURST: Members there being 26 ayes and five nays, the rule is suspended. The Chair lays out on third reading and final passage Committee Substitute to Senate Bill 1811 as amended. Secretary will read the caption.

PATSY SPAW: Committee Substitute to Senate Bill 1811 relating to state fiscal matters.

LT. GOVERNOR DAVID DEWHURST: The Chair recognizes Senator Duncan for a motion.

SENATOR ROBERT DUNCAN: I move final passage.

LT. GOVERNOR DAVID DEWHURST: Thank you Senator Duncan. Members you heard the motion by Senator Duncan. The secretary will call the roll.

LT. GOVERNOR DAVID DEWHURST: There being ayes and ten nays a Committee Substitute to Senate Bill 1811 as amended is finally passed. Members, the president's desk is clear. Are there announcements? Chair recognizes Senator Ogden for an announcement.

SENATOR STEVE OGDEN: Mr. President and members the finance is scheduled to meet 30 minutes upon adjournment. We will cancel that meeting and finance will post for 9:00 a.m. Monday morning.

LT. GOVERNOR DAVID DEWHURST: Thank you Senator. Members are there additional announcements? There's a motion -- Senator Ogden moves that Senator Whitmire meet. Are there any additional announcements? Hearing no additional announcements the Chair recognizes the dean of the Senate for a highly privileged motion.

SENATOR JOHN WHITMIRE: Mr. President I move that the Senate adjourn until 11:00 a.m. Monday pending the reading and referral of bills.

LT. GOVERNOR DAVID DEWHURST: Thank you, dean. Members you heard the motion by Senator dean Whitmire. Is there objection from any member? The Chair hears no objection from any member and the Senate will stand adjourned until 11:00 a.m. Monday morning pending reading and referral of bills. Senator Watson objects.

PATSY SPAW: Senate Bill 1921 by Lucio relating to the development hosting and management of computer software for sate agencies to government organization. Senate Bill 1922 by Lucio Relating to the creation of the Port Isabel Improvement District No. 1; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain. To international relations and trade. SJR53 by Ellis proposing a constitutional amendment requiring the periodic review of state and local tax preferences and providing an expiration date for certain tax preferences to finance. House Bill 3 to criminal justice. House Bill 34 to education. House Bill 91 to intergovernmental relations. House Bill 157 to state affair is. House Bill 240 to natural resources. House Bill 260 to criminal justice. Healthcare 384 to transportation and homeland security. House Bill 470 to criminal justice. House Bill 559 to transportation and homeland security. House Bill 649 to criminal justice. House Bill 663 to intergovernmental relations. House Bill 692 to education. House Bill 772 to criminal justice. House Bill 787 to transportation and homeland security. House Bill 896 to intergovernmental relations. House Bill 969 to intergovernmental relations. House Bill 1053 to higher education. House Bill 1061 to state affairs. House Bill 1120 to intergovernmental relations. House Bill 1162 to intergovernmental relation. House Bill 1163 to higher education. House Bill 1207 to jurisprudence. House Bill 1381 to criminal justice. House Bill 1486 to transportation and homeland security. House Bill 1541 to transportation and homeland security. House Bill 1601 to criminal justice. House Bill 1633 to jurisprudence. House Bill 1651 to intergovernmental relations. House Bill 1658 to criminal justice. House Bill 1682 to education. House Bill 1694 to intergovernmental relations. House Bill 1795 to transportation and homeland security. House Bill 1822 to criminal justice. House Bill 1854 to health and human services. House Bill 1859 to business and commerce. House Bill 1887 to finance. House Bill 1907 to criminal justice. House Bill 1964 to criminal justice. House Bill 2135 to education. House Bill 2138 to transportation and homeland security. House Bill 2139 to government organization. House Bill 2315 to intergovernmental relations. House Bill 2325 to transportation and homeland security. House Bill 2354 to criminal justice. House Bill 2457 to economic development. House Bill 2468 to business and commerce. House Bill 2469 to transportation and homeland security. House Bill 2600 to finance. House Bill 2619 to business and commerce. House Bill 2632 to government organization. House Bill 2662 to criminal justice. House Bill 2717 to intergovernmental relations. House Bill 2734 to transportation and homeland security. House Bill 2809 to intergovernmental relations. House Bill 2908 to higher education. House Bill 2910 to higher education. House Bill 2959 to state affairs. House Bill 3065 to health and human services. House Bill 3141 to business and commerce. House Bill 3302 to economic development. House Bill 3314 to jurisprudence. House Bill 3336 to health and human services. House Bill 3389 to business and commerce. House Bill 3404 to government organization. House Bill 3577 to higher education. House Bill 3806 to intergovernmental relations. House Bill 3809 to intergovernmental relations. House Bill 3816 to intergovernmental relation. House Bill 3817 to intergovernmental relations.

SENATOR BRIAN BIRDWELL: Pursuant to the motion previously adopted the Senate stands adjourned until Monday morning at 9:00 o'clock.

(Adjourned.)