Senate Transcript, May 12, 2011

SENATOR STEVE OGDEN: : 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 STEVE OGDEN: A quorum is present. All on the floor and in the gallery please rise for the invocation to be delivered by Reverend Larry Culture Shepherd of the Hills Presbyterian Church of Austin.

PASTOR: Let us pray. Almighty God, in whom we live and breathe and have our very being, we give you thanks for our country and our state. Cause us never to take the freedoms that we enjoy here for granted but, instead, give us a single purpose to use those freedoms with a tended responsibility so that all people can experience the equality of justice and opportunity found here. We ask that you would look with favor upon all who have gathered in these chambers to work to better the lives of the people in the state of Texas. Grant that they may set aside thoughts of self-aggranizement in order to seek the common good. Give them wisdom and discernment in their deliberations that reason may overcome rancor and that the outcomes of their labor may raise the opportunities and hopes and dreams of young and old alike. Give them courage to make the right choices and not simply the expedient ones. Recognize their part in a long history of governance whose combined application set the course of the state that we all love. We ask that you would extend a special measure of your grace to the families of the men and women who serve here. We're grateful for the sacrifices they also make that all who labor here may work the long hours necessary for the Senate and the House to finish well. Finally, Lord, we would ask this: You would unite all of our citizens in a common good of all. That justice and mercy might be the true order of the day, and that the next season our life together may be the best season for our great state.

SENATOR STEVE OGDEN: Thank you, Reverend. Those in the gallery may be seated. Members, Senator Whitmire moves to dispense with 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 message from the House.

SENATOR STEVE OGDEN: Admit the messenger.

MESSENGER: Thank you, Mr. President. 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: HB13 by Kolkhorst, relating to the Medicaid program and alternate methods of providing health services to low income persons in this state. HB272 by Smithee, relating --

SENATOR STEVE OGDEN: Thank you. Senator Eltife, you're recognized for a an introduction.

SENATOR KEVIN ELTIFE: Thank you, Mr. President. Members, please help me welcome a group of constituents from Longview who are visiting the Capitol today. They're employees of Texas Bank and Trust and are participating in Corporate University Day at the Capitol. As part of their learning experience they traveled to Austin to learn about state government and the legislature. If you would please stand and be recognized? Thank you for being here. I'm so proud of my constituents from Longview. Welcome to the Texas Senate.

SENATOR STEVE OGDEN: Senator Van de Putte, Senator Eltife.

SENATOR KEVIN ELTIFE: Members, if we could have your attention for the following resolution? Chair lays out to the the following resolution: Secretary, read the resolution.

PATSY SPAW: Senate Resolution 909. Whereas, the Senate of the state of Texas is pleased to recognize Joemarie Ortiz for his heroic actions in rescuing four people from a burning vehicle and. Whereas, a specialist in the Texas Army National Guard, Joemarie Ortiz was present at the scene when a vehicle passed through an intersection and struck a utility pole head-on, leaving all four passengers of the vehicle dazed and trapped and. Whereas disregarding his own safety, Specialist Ortiz immediately crossed the street, lead onlookers in a rescue effort breaking out windows, cutting seatbelts, and removing the driver and all the passengers only moments before the entire vehicle was engulfed in flames and. Whereas in the performance of this special act, Specialist Ortiz has brought honor to himself, his family, and the Texas Army National Guard. His compassion and selfishness is truly an inspiration to us all and it is fitting that he receive recognition for his extraordinary valor. Now therefore be it. Resolved, that the Senate of the State of Texas, 82nd Legislature, hereby commend Joemarie Ortiz on his bravery and quick thinking and extend to him best wishes to him for all his endeavors, by Ogden.

SENATOR KEVIN ELTIFE: The Chair recognizes Senator Ogden on the resolution.

SENATOR STEVE OGDEN: Members, it's a special honor to recognize Specialist Joemarie Ortiz here on the Senate floor. He's quite an extraordinary story and he's only 19 years old. Despite his selfless and courageous act, Specialist Ortiz credits the Army as a real hero because he said that the experiences changed how a person thinks and acts, and that it was that experience and that training that allowed him to do what he did. He's a member of the Texas Army National Guard Charley Company, 636 Military Intelligence Battalion who's recently returned from Afghanistan. He's currently on active duty supporting the Family Readiness Program. Representing the Texas Army National Guard on the Senate Floor today is Command Sergeant Major La Vida, Jacey McDaniel. Members, it's my also my great pleasure to introduce the survivors of that accident who are on the floor today. Elizabeth Dormas, Christopher Dormas, as well as Clayton and Nicole Julian. In the Senate gallery are members of Joemaria's family. His wife, Bethanny Ortiz, I'd ask you to stand up; his mother, Mardy Ortiz; Joemaria's father, Joemaria Ortiz; his mother-in-law Stacy Rayos and his father-in-law David Rayos; as well as Major General John Nichols, Commender General of the Texas National Guard, Captain Tory House, who's the company commander; First Sergeant Timothy Travis; Staff Sergeant Israel Freeland, Captain Jason Fernandez and Colonel Brian Rey. Members, it's quite an honor for me to recognize this hero and thank him for the work he did and the lives that he saved. And I move adoption of Senate Resolution 909.

SENATOR KEVIN ELTIFE: Senator Van de Putte, you're recognized.

SENATOR LETICIA VAN DE PUTTE: Thank you, Mr. President. Mr. President and members, Senator Ogden, thank you very much for honoring this brave teenager. This young man is still in his teens. I read in the National Guard Magazine, and if you'll allow me, these are the comments that Joemaria made. He's 19 years old, and if the record serves me correctly, if you're been in the Army two or three years you are -- I think he was just out of high school, must have been just been out of the high school when you joined up. But this is what was said in the article: Ortiz says, "I heard the cars hit each other and it was just a big bang." According to the witnesses, the group was traveling east on University Boulevard and, apparently, the driver started having a coughing fit and it was a health problem and passed out, and then drove through the intersection and hit an electric pole head-on smashing the front end of the car. Ortiz said, "I knew at any moment it could explode. I just wanted to get the people out of there before it happened." He ran across the street, rounded up help, knocked out windows, cut the seatbelts, got everyone out seconds before -- seconds before the entire car was engulfed in flames. Ortiz said later people told him, and this is what the passers by said that came, he just kept giving orders. "Come on with me. Go over there. Do that." And other people on the scene were taking orders from this teenager. He got everyone out. And I know that this family is so very grateful. I know that our Guard, and particularly Captain Cory House said that "Specialist Ortiz is one of those guys you read about. He's just a regular guy that when called upon does something extraordinary." I know that the Round Rock Police are planning to give you a great award, but the best reward that you have is this family right here that is alive today because God placed you in the right place at the right time and you had the right training. Thank you to the Ortiz family, to his proud parents and to his wife. Know that God sent you an angel to do a job here on earth that saved these people's lives. Congratulations Joemaria Ortiz.

SENATOR KEVIN ELTIFE: Thank you, Senator Van de Putte. Senator Ogden has moved adoption of the resolution. Is there objection? Chair hears none, resolution is adopted. Thank you Senator Ogden.

SENATOR STEVE OGDEN: Senator Lucio, the Chair recognizes Senator Lucio to introduce the Doctor of the Day.

SENATOR EDDIE LUCIO: Thank you, Mr. President. Members, I'm very very pleased and honored to introduce our Doctor for the Day who comes to us from Senator Wendy Davis' district here in Texas, Dr. Richard Young. Dr. Young was born and educated in Texas and he has been associated with John Peter Smith Hospital for more than 20 years, and is now the director of research and the associate program director for the JPS Family Medicine Residency. He and his wife, Pam, have three children; David, Matthew and Audrey. When he is not practicing medicine or nurturing a family medicine resident, he is attending one of his children's activities. He is extremely involved, and I'm very pleased so, Mr. President and members, if you would please join me in welcoming Dr. Young to the Texas Senate.

SENATOR STEVE OGDEN: Thank you, Dr. Young. Members, if there's no objections 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. The Chair lays out the following resolution by Lucio. Secretary will read the resolution.

PATSY SPAW: Senate Resolution 967. Congratulating Roland Castaneda on his retirement from the Texas Department of Public Safety after 32 years and nine months of loyal service. By Lucio.

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

SENATOR EDDIE LUCIO: Thank you, Mr. President. Members, this is a very, very important resolution and I'm pleased to present it to you, Mr. President. Senate Resolution 967 honors Mr. Rolando Castaneda who, after 32 years of dedicated service, is retiring from his work at the Department of Public Safety. Mr. Castaneda joined DPS with the Trooper Highway Patrol in the Rio Grande Valley down in the valley. I met him back then when I was a County Treasurer back then, then a County Commissioner. But, most important, he knew my father who worked as a Chief Deputy in the Cameron Sheriff's Office. In 1995 he joined the Texas Ranger's Division, assisted local and federal agencies with major criminal investigations. Since 2008 he has served as a lieutenant with the Texas Rangers in McAllen, and as a supervisor of joint operation intelligent center for the Rio Grande Valley sector. He has worked long and hard to protect border communities from drugs and crimes, Senator Williams. His career includes over 3,000 hours of training and 30 years of experience. His institutional knowledge and dedication will sorely be missed, for sure. He is retiring from DPS to become the Chief of Police for the City of Edenburg, the All American City of Edenburg that I represented at one point and, now, Senator Hinojosa does. DPS's loss is certainly Edenburg's gain. However, his example and legacy will always be treasured and remembered from all of us who came in contact with him and respect him so much. Joining with Mr. Castaneda on the floor today is his lovely wife, Estelle, their daughter Monica, his brother-in-law, Alberto Garcia, and his closest friend, ** Garza. And in the gallery, his dearest friends and family in the north gallery. I ask them to rise as well. I will now yield to my colleague, Senator Juan Hinojosa, who I'm sure would like to say a few words on the resolution.

SENATOR JUAN HINOJOSA: Thank you, Senator Lucio.

SENATOR STEVE OGDEN: Chair recognizes Senator Hinojosa.

SENATOR JUAN HINOJOSA: You know, it's always amazing to me that the service that our troopers and law enforcement people provide. And I have to tell you, having worked with law enforcement many years as a prosecutor and also a state official I want to thank y'all for the service, and protecting our families and our communities. And sometimes what happens is people don't realize that even though everyday seems like a normal day, once you make a stop or you try to serve a subpoena, or try to investigate the danger just lurks under the corner. So our officers are risking their lives on a daily basis, and then their families also have to sacrifice. So it's an honor to be here to congratulate Mr. Castaneda for the service to our state, and to have a happy retirement. But, just remember this, even though you may retire from DPS, you need not really retire from doing things you enjoy in life because, otherwise, they tell me, Senator Lucio, I'm not 65 yet, I'm sorry, that you get old real quick as soon as you stop being active. So thank you for your service to our state and community.

SENATOR EDDIE LUCIO: Mr. President and Senator Hinojosa, thank you for your remarks. I just want to say, members, that I've worked with very many over the years that I've been in public office and Mr. Castaneda is second to none when it comes to working with someone who is no-nonsense and someone who would give you a straight talk and someone who would share nothing but the absolute truth about what is happening in our law enforcement agencies here at the state level today. Members and Mr. President, join me in welcoming this outstanding Texan and his family. And I move passage of Senate Resolution 967 at this time.

SENATOR STEVE OGDEN: Is there objection to the adoption of the resolution? Chair hears none, resolution is adopted. Chair lays out the following resolution by Davis. Secretary will read the resolution.

PATSY SPAW: Senate Resolution 892. Commending the Fort Worth Metropolitan Black Chamber of Commerce and its PATHS forward development leadership program.

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

SENATOR WENDY DAVIS: Thank you, Mr. President. It's my pleasure to welcome to the Capitol gallery today the PATHS forward program. As was stated in the title of the resolution, PATHS forward is a leadership development program designed to prepare African American professionals to participate as leaders in the local community. And it is lead by Paula Turner. Primarily, this is a group of individuals who live and work in, and are leaders, in the southeast Fort Worth community. The program introduces the prospective leaders to basic leadership skills, volunteerism, the Tarrant County community and working with nonprofit organizations and other leadership topics. The program spans a nine-month period and includes opportunities to participate in discussion with successful entrepreneurs, corporate businessmen and women, as well as civic leaders. Sabrina Connor, who is the director of constituent services for our Senate District 10 office, is a graduate of this program and I believe it served her incredibly well. I want to welcome all of you to your State Capitol today and say a special thank you to you for working to become -- in Fort Worth. We appreciate tremendously the time, the energy and the service that you're giving to that leadership. Members, please join me in welcoming the PATHS forward group. They're here in the southwest section of the gallery. And, with that, I would move adoption of the resolution.

SENATOR STEVE OGDEN: Is there objection to the adoption of Resolution 892? Chair hears none, resolution is adopted. Thank you, Senator. Chair lays out the following resolution by Seliger. Secretary will read the resolution.

PATSY SPAW: House Concurrent Resolution 154. Congratulating Steven Hartmann of Midland on his retirement as executive director of University Lands for the University of Texas System. By Seliger.

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

SENATOR KEL SELIGER: Thank you Mr. Chairman and members, on our floor today are Steven and Georgia Hartmann who live in Midland Texas. I'm assuming that it was not Ms. Hartmann that gave Mr. Hartmann that cast on his arm but, if you did, he deserved it. He's here to be honored today for his extraordinary service to the people of the State of Texas. Mr. Hartmann is retiring as executive director of University Lands at the University of Texas. Probably one of the least known parts of state government, and one of the most productive over the last several years, under Mr. Hartmann's leadership. He began working for the University of Texas System University Lands in 1976 as a field service representative. He was elected as manager of the University Lands Service Interest, later promoted director, starting in '86. In 1997 he became executive director of University Lands West Texas Operations. And what his office does is manage 2.1 million acres of permanent university fund land located in 19 counties in west Texas. Amongst these many and varied responsibilities he's charged with oversight for oil, gas, mineral operations, grazing, farming, hunting, leases, easement, business sites, extensive oil field operations and accounting supporting these activities. His accomplishments include significant land conservation and restoration efforts, for which he was recognized in 2009 by the USDA National Resources Conversation Service. Numerous cost efficiency enhancements and consolidation of land staff in Midland, with over a 50 percent reduction in personnel. He's implemented a robust GIS system enabling mapping and access of well records. He's created several new revenue sources, including wind power, a vineyard, winery operation and multiple other commercial activities benefiting the university's land system, and a nearly five-fold increase in annual revenue, culminating this year with contributions to the permanent university fund will exceed $800 million. Joining us today in the Senate gallery, and I will ask them to stand, are Steve's parents -- Gertrude Hartmann, thank you. And Steve's two sons, John and Edward. We know how proud that you are. Rest assured, people of the state of Texas are just as proud of the accomplishments of your son and father. Please join me in welcoming the Hartmanns to the Texas Senate.

SENATOR STEVE OGDEN: Senator Seliger moves adoption of House Concurrent Resolution 154. Is there objection? The Chair hears none, resolution is adopted. Chair lays out the following resolution by Watson. Secretary will read the resolution.

PATSY SPAW: Senate Resolution 766. Congratulating Ronnie D. Shores on receiving the 2011 Student of the Year Award from Communities and Schools of Texas. Senate Resolution 767. Congratulating Jennie Grow on receiving the 2011 Teacher of the Year Award from Communities and Schools of Texas. Senate Resolution 768. Congratulating Renya Rivera on receiving the Parent of the Year award from Communities and Schools in Texas. And Senate Resolution 769. Congratulating Suki Steinhouser on receiving the Executive Director of the Year Award from Communities and Schools of Texas. All by Watson.

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

SENATOR KIRK WATSON: Thank you very much Mr. President and members. Today I'd like to recognize some very special individuals from my district. I'm going to start off with two of them, Suki Steinhouser and Jennie Grow. You heard both their names just now. They're standing here in the gallery. Both were recognized by Communities and Schools of Texas. This springs a state leaders in education and student development. Of course you all know Communities and Schools in Texas is part of a nationwide program whose mission is to help young people stay in school, help them learn and help them prepare for a successful life by providing school base services and access to community resources. Suki Steinhouser won this year's distinction as Executive Director of the Year. She's been recognized for her outstanding efforts to reduce dropout rates and to help students prepare for a better future. Suki has worked with CIS for more than 15 years, and under her direction CIS in central Texas has expanded to serve 57 campuses across five counties. Jennie Grow received the 2011 Teacher of the Year Award from Communities and Schools in Texas. She's a very talented, very resourceful teacher at Lamar Middle School in the Austin Independent School District. She goes the extra mile to help her students succeed. I'll give you an example: She's works with the University of Texas Student Engineers Educating Kids program to help her students receive one on one tax test preparation. Two additional recipients of Communities and Schools of Texas awards are also from my district, Ronnie Shore, Student of the Year, and Renya Rivera, Parent of the Year. They weren't able to join us today but I want to take a moment to recognize them and thank them for their hard work and commitment to education. Members, I am honored to recognize these four individuals before the Texas Senate for their amazing contributions to education. Please help me and join me in welcoming them to the Texas Senate. And, Mr. President, I move adoption of each one of the Senate Resolutions.

SENATOR STEVE OGDEN: Senator Watson moves adoption of Senate Resolutions 766, 767, 768, and 769. Is there objection? The Chair hears none, resolutions are adopted. That concludes the morning call. Senator Nichols is recognized for a motion to suspend the regular order of business on committee substitute to House Bill 563.

SENATOR ROBERT NICHOLS: Thank you, Mr. President. I move to suspend the Senate's regular order of business to talk up and consider the committee substitute for House Bill 562. Members, this is a transportation reinvestment zone cleanup bill. In 2007 the legislature authorized cities and counties which intended to do a pass-through finance project option, designated an area adjacent to the road project as a transportation reinvestment zone or tryst. The tryst sponsoring entities are allowed to capture a portion of the growth of the property tax revenue resulting from the increased property value that occurred as a result of the new property tax project. Those can be used by those needing financial support for the project. By designating an area as a tryst, and entering into a pass-through finance agreement, local government can help take care of its own transportation needs. Committee substitute for House Bill 563 amends the transportation code to provide clarification and makes technical corrections to the provisions related to the transportation zones, which were enacted in law in 2007. This bill clarifies that a municipality with such a tryst may designate a year for the purposes of establishing the tax increment as originally intended by Senate Bill 1266, as either the current year or future year. It clarifies that a city or county can contract with a public or private entity to develop a transportation project in the tryst, and may pledge all or our part of the money to that city entity to develop the road. It allows the boundaries of a tryst to be amended in case the alignment of the project is slightly changed and falls outside the boundary of the original zone. It creates a simplified mechanism for the counties to attract an increment of the revenue in the tryst. And currently counties are authorized to establish a road utility district to collect the revenue. This would allow the county to avoid this unnecessary step by collecting that revenue directly. It removes the requirements that the tryst must be attached to a pass-through project, allowing surplus revenue collected by the tryst to be returned to the sponsoring city for redeposit in the general budget, and it allows the city or county to dedicate a portion of the local sales tax revenue growth in the zone. Members, I also have an amendment which states that the city or county must have a public hearing before dedicating any portion of the sales tax growth to a tryst. With that, I move suspension of the Senate's regular order of business.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading committee substitute to House Bill 563. The secretary will read the caption.

PATSY SPAW: Committee substitute to House Bill 563. Relating to purpose and designation of a transportation reinvestment zone.

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

PATSY SPAW: Floor amendment No. 1 by Nichols.

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

SENATOR ROBERT NICHOLS: Members, this amendment simply states that a city counsel or commissioner's court must hold a public meeting and receive public comment before designating any portion of their local sales tax growth toward a tryst. Mr. President I move adoption of Amendment No. 1.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the amendment is adopted. Senator Nichols, you're recognized for a motion.

SENATOR ROBERT NICHOLS: Mr. President and members, I move passage of the committee substitute to House Bill 563 as amended, to engrossment.

SENATOR STEVE OGDEN: Senator Nichols moves passage to third reading. Is there objection? Chair hears none. Senator Nichols is recognized for a motion to suspended the constitutional three day rule.

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

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Thirty-one eyes and no nays, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage, committee substitute to House Bill 563. The secretary will read the caption.

PATSY SPAW: Committee substitute to House Bill 563. Relating to purposes and designation of a transportation reinvestment zone.

SENATOR STEVE OGDEN: Chair recognizes Senator Nichols for a motion.

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

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being thirty one ayes and no nays, the bill is finally passed. Congratulations, Senator.

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

SENATOR STEVE OGDEN: Senator Wentworth is recognized for a motion to suspend the regular order of business on committee substitute to Senate Bill 1164.

SENATOR JEFF WENTWORTH: Thank you Mr. President, I move to suspend the regular order of business to take up and consider the committee substitute for Senate Bill 1164. Current law permits municipalities participating in the Texas Municipal Retirement System to authorize and provide for increased annuities to be paid to retirees and beneficiaries of deceased retirees no more than once every 12 months. For instance, plans can opt to make certain periodic increases and benefits, such as an annual cost of living adjustments. In December 2007, the Texas Municipal Retirement System adopted revised actuarial funding and actuarial funding method from Uni Credit to projected Uni Credit to provide advanced funding of (inaudible) and similar benefits that are adopted on an annually repeating basis. Because these actuarial changes potentially have a significant affect on unfunded actuarial accrued liability, as well as a municipalities contribution requirements, TMRS allow a municipality to adopt plan changes, removing certain annually repeating or periodic benefits. While municipalities are not prevented from adopting either ad hoc or annually repeating benefits in the future, these rules would also require retroactive benefit increases in the future, potentially imposing significant cost on the municipality and discouraging the municipality of from future election benefit of ad hoc or future periodic increases. Committee substitute for Senate Bill 1164 would amend Chapter 853 and 854 of the government code to allow a municipality to provide optional annuity increases or annual supplement payments, without being subject to the current requirement that these benefits increase apply retroactively. This bill would also allow participating municipalities to grant additional payments, for example a 13th check if economic conditions continue to improve and funding is available. I move suspension of the rule, Mr. President.

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 1164. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1164. Relating to optional annuities increases in annual supplemental payments for certain retirees.

SENATOR STEVE OGDEN: Senator Wentworth, you're recognized for a motion.

SENATOR JEFF WENTWORTH: I move passage to engrossment of the committee substitute for Senate Bill 1164.

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

SENATOR JEFF WENTWORTH: I so move, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: There being thirty-one ayes and no nays, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage committee substitute to Senate Bill 1164. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1164. Relating to optional annuity increases and annual supplemental payment for certain retirees.

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

SENATOR JEFF WENTWORTH: I move final passage of committee substitute for Senate Bill 1164.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Thirty-one ayes and no nays, the bill is finally passed.

SENATOR JEFF WENTWORTH: Thank you, Mr. President and members.

SENATOR STEVE OGDEN: Senator Watson is recognized for a motion to suspend the regular order of business on committee substitute on Senate Bill 1572.

SENATOR KIRK WATSON: Thank you, Mr. President. Members, I move to suspend the senate's regular order of business to take up and consider at this time the committee substitute to Senate Bill 1572, that will define fusion centers, put in place a process for DPS to develop and adopt rules to develop the operation of fusion centers in Texas, and provide consistency of operations and privacy policies across the state. This long is agreed to by -- excuse me, by DPS regional fusion centers and Texas Impact. I move suspension of the rules.

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 1572. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1572. Relating to the operations and monitoring of fusion centers in the state.

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

SENATOR KIRK WATSON: I move passage of committee substitute to Senate Bill 1572 to engrossment.

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

SENATOR KIRK WATSON: I move to suspend the constitutional rule that bills be read on three separate days, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: There being thirty-one ayes and no nays, the constitutional three day rule is suspended. Chair lays out on third reading and final passage committee statute to Senate Bill 1572. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1572. Relating to operations and monitoring of centers in this state.

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

SENATOR KIRK WATSON: Mr. President, I move final passage of committee substitute to Senate Bill 1572.

SENATOR STEVE OGDEN: The secretary will call the roll.

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

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

SENATOR STEVE OGDEN: Senator Uresti? Senator Uresti is recognized for a motion to suspend the regular order of business on Senate Bill 270.

SENATOR CARLOS URESTI: Thank you Mr. President and members, committee substitute to Senate Bill 270 is relating to newborn hearing screenings. This bill ensures that all birthing facilities perform a hearing screening on each newborn, and must follow up screening procedures that ensure newborns receive appropriate intervention services. Members, there will be an amendment that we will take to the bill that will address any of the concerns -- all of the concerns that our stake holders have. And, with that, Mr. President, I move to suspend the senate's regular order of business to take up and consider committee substitute to Senate Bill 270.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the rule is suspended. Chair lays out on second reading committee substitute to Senate Bill 270. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1270. Relating to newborn hearing screenings.

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

PATSY SPAW: Floor amendment No. 1 by Uresti.

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

SENATOR CARLOS URESTI: Thank you Mr. President and members, floor amendment No. 1 addresses the concerns of the stakeholders involved to include removing the fiscal note. This amendment eliminates exemptions for birthing centers having to perform a hearing screening on newborns with parental consent, it strengthens the newborn hearing screening follow up process, by setting up screening in which a newborn shall be referred to further diagnostic services. And, lastly, the amendment also provides guidelines for data reporting procedures by birthing facilities. Mr. President, I move to adopt floor amendment No. 1.

SENATOR STEVE OGDEN: Is there objection to the adoption of floor amendment No. 1? Chair hears none, amendment is adopted. Senator Uresti is recognized for a motion.

SENATOR CARLOS URESTI: Mr. President, I move passage to engrossment.

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

SENATOR CARLOS URESTI: So moved, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Thirty-one ayes and no nays, the rule is suspended. The Chair lays out on third reading and final passage committee substitute to Senate Bill 270. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 270. Relating to newborn hearing screenings.

SENATOR STEVE OGDEN: Chair recognizes Senator Uresti.

SENATOR CARLOS URESTI: Mr. President, I move final passage of committee substitute to Senate Bill 270 as amended.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Thirty-one ayes and no nays, the bill is finally passed.

SENATOR CARLOS URESTI: Thank you.

SENATOR STEVE OGDEN: Senator Patrick? Senator Patrick is recognized for a motion to suspend the regular order of business on Senate Bill 1787.

SENATOR DAN PATRICK: Thank you, Mr. President. 1787, Mr. President and members, simply will put in statute instructions police officers give when they arrest someone who has been driving while intoxicated. Currently, an officer asks for a breath test. If the person does not agree to it, at that point the officer can go get a warrant. When they come back, suddenly the person goes, oh, I'll agree to it. So we're putting in statute specifically that the officer lets them know if they do not agree to the breath test that they can get a warrant to take a blood draw. Simply puts it in statute.

SENATOR STEVE OGDEN: Senator Patrick moves to suspend the regular order of business to take up and consider Senate Bill 1787. Is there objection? The Chair hears none, the rule is suspended. The Chair lays out on second reading Senate Bill 1787. The secretary will read the caption.

PATSY SPAW: Senate Bill 1787 relating to the information provided by a peace officer before requesting a specimen that determines intoxication.

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

SENATOR DAN PATRICK: I move to engrossment.

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

SENATOR DAN PATRICK: So moved, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being thirty-one ayes and no nays, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage Senate Bill 1787. The secretary will read the caption.

PATSY SPAW: Senate Bill 1787. Relating to the information provided by a peace officer before requesting a specimen to determine intoxication.

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

SENATOR DAN PATRICK: I move final passage, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being thirty-one ayes and no nays, bill is finally passed.

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

SENATOR STEVE OGDEN: Senator Ellis is recognized for a motion to suspend the regular order of business on Senate Bill 1441.

SENATOR RODNEY ELLIS: Thank you Mr. President and members, currently the tax code lists a number of items that the appraisal review board may correct in the appraisal role on a motion by the appraiser or a property owner. This bill simply adds to that list in an era in which the property owner which is shown as being owned by someone who did not, in fact, own a property on January the 1st of the tax year. The bill grants appraisal review boards power to remove the property from the of a person who is not its owner and to give appraisal districts the opportunity to correct the error and appraise the property in the name of the correct owner, prior to limitations expiring. This ensures that the property at issue will not escape taxation through a rule of non-ownership by the district court. Mr. President, I move to suspend the Senate's regular order of business to take up and consider Senate Bill 1441.

SENATOR STEVE OGDEN: Is there objection? Chair hears none, rule is suspended. The Chair lays out on second reading Senate Bill 1441. The secretary will read the caption.

PATSY SPAW: Senate Bill 1441. Relating to the correction of an ad valorem tax appraisal role.

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

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

SENATOR STEVE OGDEN: Is there objection? Chair hears none, the 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 rule that bills be read on three several days.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Being thirty-one ayes and no nays, the rule is suspended. The Chair lays out on third reading and final passage Senate Bill 1441. The secretary will read the caption.

PATSY SPAW: Senate Bill 1441. Relating to the correction of an ad valorem tax appraisal role.

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

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

SENATOR STEVE OGDEN: The secretary will call the roll.

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

SENATOR RODNEY ELLIS: Thank you, sir.

SENATOR STEVE OGDEN: Thank you, Senator. Senator Carona? Senator Carona is recognized for a motion to suspend the regular order of business on committee substitute to Senate Bill 1843.

SENATOR JOHN CARONA: Thank you Mr. President and members. Members, in 1998 federal legislation was passed and the Internet Crimes Against Children Task Force was created. It started with ten task forces across the nation. Texas happens to have three of these federally funded task forces. The acronym being ITAX*, which receives small grants from the Department of Justice. The work of this operation has been nothing short of amazing, and we have introduced to you earlier in the session those persons behind this organization, what they're trying to do. Senate Bill 1843 would provide limited additional funding to these Texas ITAX and some badly needed tools. Revenues would go into a specially created account to add additional full time investigative positions. There being no appropriations that are required under the passage of this bill, money would come from gifts, grants, donations and it would give administrative authority to ITAX officers -- pardon me, as they process these internet offenders. I move at this time to suspend the Senate's regular order of business.

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 1843. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1843. Relating to investigations of certain offenses involving internet-based sexual exploitation of a minor.

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

SENATOR JOHN CARONA: Mr. President, I move for final engrossment.

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

SENATOR JOHN CARONA: So moved, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Thirty-one ayes and no nays, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage committee substitute to Senate Bill 1843. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1843. Relating to investigations of certain offenses involving the internet-based sexual exploitation of a minor.

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

SENATOR JOHN CARONA: Mr. President and members, I thank you for your support of this bill and especially to Senator Estes who has been enormously helpful. And, at this time, I move final passage.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: Thirty-one ayes and no nays, the bill is finally passed. Senator Williams? Mr. Doorkeeper?

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

SENATOR STEVE OGDEN: Admit the messenger.

MESSENGER: Thank you, Mr. President. Mr. President, I'm directed by the House to unform the Senate that House tas taken the following actions, the House has passed the following measures: HB2194.

SENATOR STEVE OGDEN: Thank you. Senator Huffman is recognized for a motion to suspend the regular order of business on committee substitute to House Bill 2694.

SENATOR JOAN HUFFMAN: Thank you, Mr. President. I move to suspend the Senate's regular order of business to take up and consider the committee substitute to House Bill 2694. The Sunset Commission found that Texas has a clear and ongoing need to regulate environmental quality. The committee statute to House Bill 2694, which reflects the filed version of the bill, continues TCEQ for 12 years and puts structures in place to ensure that TCEQ can identify and take action against regulated entities appropriately, ensure that the commission is more transparent in the way that it makes and communicates decisions, and it ensures that TCEQ has the proper financing mechanisms in place to meet its responsibilities. Consistent with changes made in other sunset bills, the bill transferred some non-core functions to other state agencies. The bill brings predictability and transparency to TCEQ's enforcement processes and improves TCEQ's ability to take enforcement action. The committee substitute to House Bill 2694 revamps TCEQ's approach to compliance history, allowing it to utilize compliance history as a meaningful tool to target regulation. The bill also enhances TCEQ's public assistance function, and would improve the agency's responsiveness to environmental and citizen concern. The bill requires the executive director of TCEQ to ensure that the agency's responsiveness to environmental and citizen's concerns, including environmental quality and consumer protection. It gives the agency tools to remediate ground water contamination from leaking groundwater storage tanks, it transfers the responsibilities from making certain groundwater protection recommendations from TCEQ to the Railroad Commission. It clarifies the executive director's authority to actively manage water right permits and curtails water use during shortages or drought. It creates a structure for the legislate to fund a low level radioactive waste disposal compact commission in future bienniums, and it abolishes the on-site waste water treatment research counsel, continuing its grant-making function at TCEQ. The committee substitute reflects the filed Senate Bill and does not include amendments adopted by the House. I will have one floor amendment that makes purely technical and clarifying connections that were brought to me by the sunset staff counsel, and the commission. With that, Mr. President, I move to suspend the Senate's regular order of business.

SENATOR STEVE OGDEN: All right, members, this is a pretty important bill, got lots of amendments. So, Senator Watson, for what purpose do you rise?

SENATOR KIRK WATSON: I'd like to ask questions of the author.

SENATOR STEVE OGDEN: You're recognized.

SENATOR KIRK WATSON: Thank you, Senator Huffman.

SENATOR JOAN HUFFMAN: Yes, sir.

SENATOR KIRK WATSON: I'm very concerned about a few amendments that were added to this bill over in the House that may become -- they've already been somewhat, but they may even become some important points of negotiations between the House and Senate when it gets to conference committee. You and I have already discussed a number of these provisions, and I want to make sure we're all clear on what your intent is with regard to keeping some of the more objectionable amendments off the bill. First, there was an amendment in the House, it was floor amendment No. 40, that amendment would shift. And, members, you need to hear what this does: What it would do is it would shift the burden of proof away from the applicant for a permit in a contested case hearing. And it's my understanding that you agree that this amendment is an amendment that should not be on the Sunset Bill, I believe that that amendment isn't in the public's interest, and harms the rights of the parties that are affected by a permit application. But you agree that it would -- you would not want to see that as part of the Sunset Bill and would be in a position to not work -- to not allow that amendment to be on that bill. And, frankly, wouldn't be supportive of the TCEQ bill if it was a part of it?

SENATOR JOAN HUFFMAN: That's absolutely true, Senator Watson. I agree with you. It's an inappropriate shifting of burdens. As you know, the EPA had also written a letter expressing concerns to Sunset about that and, of course, it was added on the House. And I want to point out the significance that when I presented this bill to Natural Resources, I stripped the House amendments. So, I stripped all of them, so --

SENATOR KIRK WATSON: I understand. But as we progress through this process, I want to make sure that the members hear what the intent is. And what you just said was that you thought that amendment was inappropriate, and you wouldn't be supportive of it being on the TCEQ bill when it comes back; if that's part of -- comes out of Conference Committee.

SENATOR JOAN HUFFMAN: Absolutely. You're correct, Senator Watson.

SENATOR KIRK WATSON: And I want to put a fine point on something else you just said. When you mentioned EPA, and I do know the environmental protection agency has actually written a letter indicating that this change, that this floor amendment that was made has the potential to cause significant concerns with the federal authorization for the state's permitting programs. And that's one of the reasons you wouldn't be in favor of the TCEQ Sunset Bill if that amendment were part of it, and would vote against it as part of the Conference Committee report.

SENATOR JOAN HUFFMAN: That's correct. It is my intention it will not be on the final bill.

SENATOR KIRK WATSON: Thank you.

SENATOR JOAN HUFFMAN: Yes, sir.

SENATOR KIRK WATSON: There was also another amendment and that was floor amendment No. 39 and, members, what floor amendment No. 39 would do is it would eliminate, do away with the opportunity for a contested case hearing; so your constituents would no longer have an opportunity for a contested case hearing on any amendment to an air pollution permit held by an electric generating facility. It's like coal fire power plant seeking to implement new controls on hazardous air pollutants, such as mercury and air toxic, air toxics. This amendment replaces the contested case with what is essentially a public meeting. It's called a public hearing in the amendment, but it's really more akin to what we know in Texas as a public meeting. And the public comment period, which many see as kind of a public venting process, is about what you would have here. What happened, members, is this process allows for no affected person as -- an affected person is a term of art, allows for no affected person to termination, no referral of case to the state officers of hearing examiners for a quasi judicial proceeding before an administrative law judge, no discovery, no cross examination of witness, no burden of proof on the applicant, no leverage to force any applicant to the negotiating table to try to negotiate greater reduction in emissions of hazardous air pollutants. And the absent TCEQ have already agreed to. Now, with that as background, members, that's important to your constituents, that's big change. So, Senator Huffman, let me ask you, as author of this bill it's my understanding that you also opposed this amendment and would vote against it if it were part of the bill?

SENATOR JOAN HUFFMAN: That's correct.

SENATOR KIRK WATSON: So when we suspend and this passes, and it goes to Conference Committee, and this somehow -- First of all, you're going to fight it in conference committee, but if it comes back over here, you're outvoted; you would help lead voting against that, if that amendment is on the TCEQ Sunset Bill?

SENATOR JOAN HUFFMAN: I'm going to do everything I can to keep it off in conference. I agree with you, it has no place on the Sunset Bill. I agree with you that the concept not a good one, that Representative Chisum was promoting, which was a stand-alone bill, which I think actually died in Calendars over in the House. And I agree with you, it shouldn't be on the bill.

SENATOR KIRK WATSON: Great, thank you.

SENATOR JOAN HUFFMAN: Yes, sir.

SENATOR KIRK WATSON: Let me ask you about another amendment, and that relates to compliance history and notice violations. An issue that the Sunset Report and the Sunset Commission didn't take a position on in their consideration with issued related to as NOVs, what is known as NOVs, what is known as NOVs and compliance history. They didn't take a position on consideration of this bill, but it became an issue again over on the House version of this bill, right?

SENATOR JOAN HUFFMAN: Yes. And Representative Wayne Smith's lengthy amendment on compliance history, yes.

SENATOR KIRK WATSON: Now currently, it's my understanding that TCEQ's penalty policy allows for up to five years of compliance history to be used as a penalty enhancement. In other words, you can look at five years of bad acts, I guess. And I keep that the bill you had, where you and Senator West and Senator Hinojosa had some pretty heated debate, because you were in favor of that bill; of looking at prior bad acts, even though there might not be a conviction. Well, in this instance, currently, TCEQ can look back for five years at past notices of violations and compliance history to make a determination about what the penalty ought to be; is that right?

SENATOR JOAN HUFFMAN: Yes, as I understand it, yes.

SENATOR KIRK WATSON: And what happened is the House bill, the House Bill caps enhancement and escalation of the penalty at 100 percent of the base penalty. And it also says that individual notices of the violation are not to be considered as part of penalty enhancement; is that right?

SENATOR JOAN HUFFMAN: As I understand the reading of the amendment, yes. Or as the engrossed version of the bill as amended, yes.

SENATOR KIRK WATSON: Now, based on the penalties assessed in the year 2010, it's my understanding, and tell me if it's your understanding; that TCEQ's director of enforcement estimates that this will reduce TCEQ's penalty authority by about 20 percent.

SENATOR JOAN HUFFMAN: Let me make sure that's correct, because there's some difference depending on which of those they enacted. Because he had an original -- It says under Smith's original bill TCEQ would lose 40 percent of the administrative penalty. And then the current bill, Yes, I guess the amendment; it would be 20 percent. So I think you're correct, yes.

SENATOR KIRK WATSON: So doing that, doing the math on that, in 2010 the agency assessed $17.1 million in penalties and fines, is my understanding. So what that means is if this amendment is part of the final bill, just using 2010, this would have reduced that to $13.3 million.

SENATOR JOAN HUFFMAN: That sounds about right; yes, sir.

SENATOR KIRK WATSON: Now, it's my understanding, and I want to make sure I know where you are on this, that you support consideration of notices of violation, just like you did in the bill that you had; and you support consideration of compliance history for penalty enhancement, maybe not for five years, but for at least a period of time such as one year.

SENATOR JOAN HUFFMAN: Yes, that's correct.

SENATOR KIRK WATSON: And is that -- when we vote to suspended on this can we count on you, as part of the Conference Committee, when it comes back with something that does away with the ability to make those sorts of considerations?

SENATOR JOAN HUFFMAN: That's correct. And I think what you and I talked about was the one year range. Not saying it might be more than, but it would be at least the one year range.

SENATOR KIRK WATSON: A minimum of one year?

SENATOR JOAN HUFFMAN: Yes, sir.

SENATOR KIRK WATSON: All right. The bill that we have before us calls on the commission by rule to adopt enforcement policies. What's your intent with that provision?

SENATOR JOAN HUFFMAN: Well, I believe that we will still let the commission -- following the guidelines that are set up in statute to establish those rules.

SENATOR KIRK WATSON: Okay. Well, the House adopted -- Let's talk about again one of these House amendments.

SENATOR JOAN HUFFMAN: Yeah. And if you want to direct me to a specific amendment, there's a lot of them.

SENATOR KIRK WATSON: You'll be familiar with this. The House adopted a an amendment that's a slight revision of what appears on the Senate Bill, that will call on the policy to also include penalty calculations that would be a deterrent to prevent the economic benefit of noncompliance. In other words, if you're not complying we don't want you to gain an economic benefit.

SENATOR JOAN HUFFMAN: And I strongly support that concept.

SENATOR KIRK WATSON: Yeah. You and I have discussed that provision, it's my understanding you're supportive of that language staying in the bill, being a part of the bill and being what we ultimately vote on when question comes back from conference.

SENATOR JOAN HUFFMAN: It makes sense; yes, sir.

SENATOR KIRK WATSON: All right. Let me ask you a couple of questions about the public interest counsel.

SENATOR JOAN HUFFMAN: Okay.

SENATOR KIRK WATSON: And what you, as the -- what you deem to be in the public interest. The bill makes some changes to the office of public interest counsel.

SENATOR JOAN HUFFMAN: Yes.

SENATOR KIRK WATSON: And I think the recommendations that lead to these public changes are strong, and I support the changes. I just want to make sure the intent of those changes are clear. The bill clarifies that the primary duty of the office is to represent the public interest and give the commission the right to establish rules that will increase control over OPIC. My only concern is this new authority could limit the independence of this office and could reduce its ability to determine what's in the public interest, and to adequately assist the citizens. So let me ask you a couple of questions about that.

SENATOR JOAN HUFFMAN: Okay.

SENATOR KIRK WATSON: Has OPIC, the Office of Public Interest Counsel, historically provided procedural assistance to the public regarding the contested case hearing process?

SENATOR JOAN HUFFMAN: Yes.

SENATOR KIRK WATSON: And under the revised statutory description of OPICs responsibilities, will OPIC maintain its ability to answer procedural questions from people participating as a party in a contested case hearing?

SENATOR JOAN HUFFMAN: It's my understanding that OPIC will continue to represent the public as a party in contested case hearings.

SENATOR KIRK WATSON: So the language change isn't intended to eliminate the Public Interest Counsel's role in providing public assistance?

SENATOR JOAN HUFFMAN: I believe that it is not.

SENATOR KIRK WATSON: Okay. And that's your understanding, and for legislative intent purposes that would be the legislative intent?

SENATOR JOAN HUFFMAN: That is my understanding. And then, of course, the bill also sets out -- and I'll have to find which page that's on, but it also sets out what factors are to be considered when determining exactly what the functions of OPIC will be. And I'll have to find it in just a minute. And I think it's Section 5.26 of the bills that says factors for public interest representation. And it gives guidance on what factors are to be considered to determine the nature and extent of the public interest.

SENATOR KIRK WATSON: But that's the key part of what I want to make sure we're answering here.

SENATOR JOAN HUFFMAN: Okay.

SENATOR KIRK WATSON: Even though those provisions are there, the language isn't intended to eliminate the Public Interest Counsel's current role in providing public assistance?

SENATOR JOAN HUFFMAN: Correct. It's just setting the perimeters of the issues.

SENATOR KIRK WATSON: Well, let me ask the question slightly differently: Is there any case where we would not want to the protect the ability of the public to participate in the permitting process?

SENATOR JOAN HUFFMAN: Absolutely not. And I really believe that the objective of Sunset and of the commission was to make the process work better. And, you know, if OPIC had been spread thinly, it wasn't really operating like it should operate. So the intent is to make the process better, and that's the legislative intent. Let's make it better, let's make it easier for the public to get information, to find out about the process, to participate in the process. That's the intent.

SENATOR KIRK WATSON: And so you don't see, and there's no intent, you say, in providing procedural assistance to the public during the permitting process, that there's a conflict, conflict of interest somehow between that role providing assistance and OPICs role as an advocate for the public interest?

SENATOR JOAN HUFFMAN: That would be the intention, yes.

SENATOR KIRK WATSON: You don't see a conflict?

SENATOR JOAN HUFFMAN: There should not be a conflict, and it should be set up in such a way that there's not a conflict.

SENATOR KIRK WATSON: The factors that you just listed to require enforcement measures in developing those factors and performance measures, you agree that the commission should also preserve OPICS ability to function independently?

SENATOR JOAN HUFFMAN: You know, I'm going to have to look at the legislation carefully on that, because I don't want to say something I'm not sure of in that regard.

SENATOR KIRK WATSON: Well, the Office of Public Interest Counsel ought to be independent from the commission, otherwise it can't always represent the public interest; right?

SENATOR JOAN HUFFMAN: Well, I agree they should be able to make independent decisions. I guess I'm getting thrown by you saying operating independently, when they may be housed or work with TCEQ and fulfill its functions.

SENATOR KIRK WATSON: In other words, they don't take direction from the commissioners?

SENATOR JOAN HUFFMAN: That's correct, yes.

SENATOR KIRK WATSON: Thank you, Senator Huffman. I appreciate you giving me the time.

SENATOR STEVE OGDEN: Senator Watson?

SENATOR KIRK WATSON: Thank you, Mr. President. Mr. President, I would move that the dialogue and questions and answers between Senator Huffman and me be reduced to writing and entered into the journal for the purpose of legislative intent.

SENATOR STEVE OGDEN: Is there any objection? Chair hears none, so ordered.

SENATOR KIRK WATSON: Thank you, Mr. President. Thank you, Senator Huffman.

SENATOR STEVE OGDEN: All right. Senator Huffman, you're recognized for a motion to suspend the regular order of business.

SENATOR JOAN HUFFMAN: I move to suspend the regular order of business on the committee substitute to House Bill 2694.

SENATOR STEVE OGDEN: Is there objection? Chair hears none. The rule is suspended. The Chair lays out on second reading committee substitute to House Bill 2694. The secretary will read the caption.

PATSY SPAW: Committee substitute to House Bill 2694. Relating to the continuation and functions of the Texas Commission on Environmental Quality.

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

PATSY SPAW: Floor amendment No. 1 by Huffman.

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

SENATOR JOAN HUFFMAN: Thank you, Mr. President. Members, floor amendment No. 1 is just the technical amendment I moved for suspension. These are just technical changes which were brought to my attention by the Sunset Staff, Legislative Council and TCEQ. I move adoption of floor amendment No. 1.

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

PATSY SPAW: Floor amendment No. 2 by Hegar.

SENATOR STEVE OGDEN: Senator Hegar is recognized on his amendment.

SENATOR GLENN HEGAR: Thank you Mr. President and members, the Sunset Commission recommended clarifying TCEQ's executive director's authority to temporarily suspend water use in water shortages and times of drought. This amendment actually represents a compromise for all of the parties that better define the executive director's authority to temporarily suspend water use in times of water shortage and drought. And I think it's acceptable to the author and I move passage of floor amendment No. 2.

SENATOR STEVE OGDEN: Senator Huffman on the amendment.

SENATOR JOAN HUFFMAN: It's acceptable, thank you.

SENATOR STEVE OGDEN: Senator Hegar moves adoption of floor amendment No. 2. It is acceptable to the author. Is there objection? Chair hears none, so ordered. Following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 3 by Eltife.

SENATOR STEVE OGDEN: Senator Eltife's recognized on his amendment.

SENATOR KEVIN ELTIFE: Thank you Mr. Chairman and members, the purpose of this amendment is to give TCEQ and the owner of a dam flexibility in achieving flexibility with dam safety. Currently, once a ruling is made, the dam owner must comply within 30 days. TCEQ does not have the ability to file timelines with the property owner then. It is identical to the floor amendment 1 that was offered by Chairman Smith in the House, and adopted without objection. I believe it is acceptable to Senator Huffman.

SENATOR STEVE OGDEN: Senator Eltife moves adoption of floor amendment No. 3. Senator Williams, for what purpose do you rise?

SENATOR TOMMY WILLIAMS: I'd like to ask Senator Eltife about the amendment.

SENATOR KEVIN ELTIFE: Yes, go ahead, Senator Williams.

SENATOR TOMMY WILLIAMS: Senator Eltife, there's been a lot of discussion and we've had a lot of phone calls in our office about a possible amendment that was related to dam safety, to this bill. And so I am not sure exactly what you're doing here. What I'm concerned about, it does look like you're touching -- and that was the exemption of private dams from inspection. Land this amendment would not address that.

SENATOR KEVIN ELTIFE: That's correct, Senator Williams.

SENATOR TOMMY WILLIAMS: So, under current law in the way it is right now, those dams would still be subject to inspection of the TCEQ?

SENATOR KEVIN ELTIFE: This amendment doesn't change any part of that.

SENATOR TOMMY WILLIAMS: Gives them some flexibility in the timeline. That's all this amendment does. Okay. Thank you.

SENATOR KEVIN ELTIFE: Thank you, Senator Williams.

SENATOR STEVE OGDEN: Senator Huffman is recognized on the amendment.

SENATOR JOAN HUFFMAN: Yes, I believe Senator Eltife's amendment essentially is just an agreement between the dam owner and TCEQ, so it is acceptable to the author.

SENATOR STEVE OGDEN: Senator Eltife moves adoption of floor amendment No. 3. It's acceptable to the author. Is there any objection? Chair hears none, the amendment is adopted. The following amendment. Secretary will read the amendment.

PATSY SPAW: Floor amendment No. 4 by Hinojosa.

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

SENATOR JUAN HINOJOSA: Thank you Mr. President and members. And I think, Senator Williams, this may be the amendment you were talking about. What this deals with, this amendment allows TCEQ to focus its enforcement and monitoring efforts on huge hazard dams that impose a safety risk. This amendment exempts dams located on private property, with a maximum capacity of 580 acre feet that are not classified as high hazard. This exemption applies only to counties that have a population of 215,000 people or less. It also exempts cities, and this exemption expires in two years, a Sunset Provision in two years; and the landowner must apply with operation and maintenance requirements established by the commission. And I would move adoption.

SENATOR STEVE OGDEN: Senator Huffman is recognized on the amendment.

SENATOR JOAN HUFFMAN: Thank you Mr. President, members, the issue that I have with this amendment is that it exempts dams that are classified as a significant hazard. The Texas Administrative Code defines significant hazard dams as a dam that, should it fail there could result of loss of possible human life which result -- which means one in six lives or appreciable economic loss to rural areas. Now, I'm a strong proponent and advocate for private property rights, and I certainly appreciate the fact that private landowners are having to pay for upgrades to their dams, and I appreciate that they're having to pay for these upgrades because folks have moved in downstream through no the fault of the private landowner. The issue that I'm having is those people who have moved in downstream have no way of knowing this dam exists. And, should it break, it could cost them their life or serious property damage. I see both sides of the issue and both arguments have merit, so I'm going to leave this amendment to the will of the Senate, but I will be voting no.

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

SENATOR ROYCE WEST: I'm trying to understand. Senator Hinojosa, explain this amendment again.

SENATOR JUAN HINOJOSA: Yes, sir. The amendment exempts counties with a population of 215,000 or less. It also does not apply to dams that are located inside the jurisdiction limits of a municipality, and it has a Sunset Provision that expires August 13th, 2013. And the landowner has to comply with the operation and maintenance requirements published by TCEQ. And what it also deals with, a dam that has a -- I guess a body of water that has less than 500 acre feet. Most of the dams in the west are located in rural areas and are on private land, there's no population, there's not a lot of people there and mostly cattle and coyotes and what have you.

SENATOR ROYCE WEST: And --

SENATOR JUAN HINOJOSA: And let me add, if I may, one of the things that TCEQ doesn't have the resources to inspect while at the dams, but they're focusing on the larger dams, the ones that are classified as a hazard to the general public. And they're doing a study right now to find ways to deal with this issue and try to exempt those dams on private lands that really do not place anyone in danger.

SENATOR ROYCE WEST: And, I must admit, I don't have any dams, real dams in my district. But when we say we're going to exempt them from requirements related to dam safety, it gives me pause for concern. One thing I do know, that in many instances, when the Trinity would overflow, those individuals living in low-lying areas would end up being the victims of the flooding. And so I'm trying to understand, if we pass this and say they don't have to comply with safety you, know, what are the ramifications and implications of that?

SENATOR JUAN HINOJOSA: Well, let me direct you to line 14 of the amendment. It says notwithstanding Section E1, an owner of a dam shall comply, shall, not may, with operations and maintenance requirements published by commission's rule. And this is an issue that's being looked at by the TCEQ, and that's why I placed a Sunset Provision so that we can come back and look at this issue, either renew it or just let it expire.

SENATOR ROYCE WEST: Okay.

SENATOR JUAN HINOJOSA: You know, I wouldn't carry an amendment that would place somebody in danger. When we talk about 500 acre foot, Service Commission, that's about 1 foot of water. And most applies to very rural areas where you don't have large populations.

SENATOR ROYCE WEST: Thank you, Senator.

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

SENATOR TROY FRASER: Question of the author.

SENATOR STEVE OGDEN: You're recognized to ask a question.

SENATOR TROY FRASER: Members, I hope you're paying attention to this, because this is a very interesting issue. Senator Duncan and I were just having a discussion just then that he made the observation that these are our ranchers and farmers, which obviously I'm -- the area I represent I'm very interested in that. But, realistically, this is not, for the ranchers and farmers, 580 feet a gigantic body of water. That's very large. The stock tanks that a farmer or rancher would have in my area, if they had a hundred acre feet, that's a hundred football fields, I think 25-foot deep. I mean we're talking about a -- it was a hundred acre feet, that's how big a 500 acre feet is 500 football fields, 25 feet deep. These are not little stock tanks. These are large bodies of water. Here would be the question I would make of you: Obviously, this came through my committee, we had a discussion and I had a very, a very, very good discussion with TCEQ on this. I'm very aware of the farmers' and ranchers' rights, and the fact that they shouldn't be having a lot of expense. But that's not what we're talking about here. These are big bodies of water. This issue is already in the House Bill, so when we go to conference, this issue is -- that bill and will be able to be considered. If we put this amendment on lockdown the fact is that we're going to remove their ability to govern this at some level. I'm not comfortable -- Theirs is a thousand acre feet, yours is five hundred acre feet. The real number is probably somewhere around I think a hundred acre feet would be a big body of water. Maybe there's a discussion that should be had there. But, Senator, this is -- what you're asking for is, I think, is bad public policy. I would ask you to consider pulling down this amendment, not running with it; because if we put this on it locks us down and removes the ability of the senator carrying the bill, and I don't want Senator Huffman going to conference to be forced into a discussion. Because I'm very, very aware of the arguments of my constituents, which are farmers and ranchers. I want to help them, but this is a big body of water. I am going -- if you pull it down and amend it to a smaller number it probably would make it better. My section would be probably able to pull it down. Let's take it to conference, because we can always change it in conference and go to a more rational number. I'm just more concerned about passing the bill, moving it forward and it locking us down. If it stays like it is, I'm going to be forced to vote no, even though I agree. I'm sympathetic to what you're trying to do. I just think this is the wrong amendment at the wrong time.

SENATOR JUAN HINOJOSA: Senator Fraser, I would never often an amendment that would put the public in jeopardy but, as we discussed, this amendment, you're telling me that on the House side they have an amendment to the TCEQ bill that sets the limit at I think a thousand acre feet, right? And I try to cut that in half to improve that, but you're telling me that the way status of the bill is right now, we can negotiate that down lower or not talk it at all. I don't have any problems of pulling my amendment down as long as we can discuss in a little over -- I do not agree with the one thousand acre feet that the House is pushing for.

SENATOR TROY FRASER: I'm not in agreement with a thousand. But I'm also saying five hundred acre feet. If we imagined the football field at UT stadium, if we're standing up in the stands and we imagine five hundred of those football fields twenty five feet deep, that's a lot of water. And if you have a dam that someone builds and that dam fails, that's a lot of water that would roll downhill and potentially endanger the public. I think it's just, the number is way, way too large, and I don't see a reason to put this amendment on right now because we're going to be able to discuss that in conference.

SENATOR JUAN HINOJOSA: I do want to clarify something. When you talk about five hundred acre feet, you got to remember that's only about a foot high of water. It's not only just the distance but also the quantity of the water amount.

SENATOR TROY FRASER: I stand corrected.

SENATOR JUAN HINOJOSA: Okay.

SENATOR STEVE OGDEN: All right. Senator Duncan, for what purpose do you rise? Senator Huffman?

SENATOR JUAN HINOJOSA: Let me, if I may, Senator Duncan, yield to Senator Hegar on this issue of the amendment.

SENATOR STEVE OGDEN: All right. Senator Hegar, you have the floor.

SENATOR GLENN HEGAR: Thank you, Mr. President and members. And in part, to Senator Fraser, I just mentioned, this is something that we got brought up in the Sunset Process. We didn't put it in the legislation originally, trying to come up with something that was workable, because of the legislation that passed several years ago that really gave TCEQ more of an ability to deal with reservoirs and dam safety issues. And a lot of them actually are on rural property. And I know five hundred acre feet seems like a significant amount of water, but I can tell you that on my farm we have those. And during the time of the year usually they're not that full. At least I'm talking about the part of the world where I live. In other parts of the would they may be full more times of the year. However, five hundred acre feet is not quite as much as one envisions. And so, you know, as a farm family, which I farm for a living, we have separate reservoirs on our property, and they're not on a major river basin. But one of the requirements is one that is the size -- another one that's about four hundred acre feet, and one that's about three hundred and fifty acre feet. And so, therefore, my point being is these are what are in rural communities. There's some that are stock ponds, which you're talking about, some that are much more significant. And really the issue here is when one person moves downstream they may move downstream and that changes the classification of either significant, low, medium range and all of a sudden that landowner, all of a sudden, because of nothing of their own, because one person moved downstream and the fact that in TCEQ's models they use -- we're not even talking about a hundred year flood, we're talking about a thousand year flood; Noah's ark type scenarios. And so we're really talking worst case scenario. And it seems like we need to strike a much more common sense, middle ground. I completely agree, the thousand acre feet, that's -- I don't think that's good public policy. I don't believe that. And I don't think we need to exempt all reservoirs in the State of Texas. We need to have a common sense approach. But, I personally, just from my own experience, this wouldn't impact me personally, none whatsoever; but I just use that one reservoir as an example, because we do have one. And I think this strikes that balance but I think we need to keep working on this.

SENATOR TROY FRASER: Will the gentlemen yield?

SENATOR GLENN HEGAR: Yes, sir.

SENATOR STEVE OGDEN: Senator Fraser, you're recognized to ask Senator Hegar a question.

SENATOR TROY FRASER: If Senator Hegar would yield?

SENATOR GLENN HEGAR: Yes, sir.

SENATOR TROY FRASER: Well, how -- And the point you're making, I don't disagree with what you're saying, is that a five hundred acre body of water, 95 percent of the time is not a problem. But if you had that thousand year flood and someone dies as a result, there's a concern. And so there's an issue there of when do we get involved? I think five hundred is probably too large, I think it was amended down to somewhere between a hundred and two hundred and fifty. That gets more rational. Right now, we're -- we have the authority I think for all of them.

SENATOR GLENN HEGAR: That's correct.

SENATOR TROY FRASER: I think it would be a pretty large step to do the five hundred. My reasoning on this, again, is it's already in the bill. We're going to be able to talk about it in conference committee, which I'm assuming you're already very likely to be sitting there in the room. We already have it in the bill. I say we don't lock ourselves down. And, more especially, don't lock ourselves down at the five hundred foot level. I'm just asking him to pull this down or, if we need to, vote it down, so that we can go to conference and it would leave our hands free. If we want to go to -- maybe if the number's one hundred, maybe if it's two hundred and fifty, maybe if it's three hundred; I've got a level of discomfort at five.

SENATOR GLENN HEGAR: I could understand that. And that's the reason I just wanted to make sure that -- you know, I made a few comments, and we're talking about trying to make sure it's not in populated areas, it's in truly rural areas. And you're finding that right balance, because we need to have dam safety in this state. That's 100 percent without a certainty. But, at the same time, we don't need to penalize people because one person moves downstream and we take a model of a 10,000 year flood, that's not rational. That's not good government. So, thank you.

SENATOR JUAN HINOJOSA: And, Senator Fraser, if I might just add, this is a very narrow exception, that's why we put in --

SENATOR STEVE OGDEN: Senator Hinojosa?

SENATOR JUAN HINOJOSA: I'm sorry.

SENATOR STEVE OGDEN: I gave the floor back to Senator Hinojosa. What's before the body now is Senator Hinojosa's amendment. Senator, who do you want to talk to?

SENATOR JUAN HINOJOSA: I guess Senator Duncan.

SENATOR JOAN HUFFMAN: Senator Ogden?

SENATOR STEVE OGDEN: Chair recognizes Senator Duncan. For what purpose?

SENATOR ROBERT DUNCAN: Just a question of the author of the amendment. All right. Senator Duncan is recognized for a question.

SENATOR ROBERT DUNCAN: One of the things we haven't yet talked about on the amendment, and I am generally in favor of this, I don't know whether it's five hundred, a thousand, two hundred and fifty or whatever; but what we haven't talked about is the fact that these are not all dams, these are dams that are classified as having a hazard classification of lower significance or are lower in significance. So what I'm trying to understand -- or low or significant. What are those classifications? What does that mean?

SENATOR JUAN HINOJOSA: I think TCEQ categorizes dams across three risk categories. One is high hazard, one is significant hazard and the other is low hazard dams. Those are the three categories that TCEQ uses in categorizing the dams across the state.

SENATOR ROBERT DUNCAN: Does that mean risk, does that measure their risk of -- their condition, or does it recognize their location with regard to a flooding event in the event of a failure of the dam?

SENATOR JUAN HINOJOSA: I think, Senator Duncan, that it deals with the condition of the dam more than the hazards downstream. I'm pretty sure you're dealing with the condition of the dam. If I'm not mistaken, I got TCEQ here, it deals with the condition of the dam. This is why, in the amendment, we have a section that says that the owner of a dam shall comply with operation and maintenance requirements furnished by commission rule. So we have to maintain the dam but they're going to have to rebuild it. That's the way I read the categories that are set out by TCEQ.

SENATOR ROBERT DUNCAN: All right. Thank you.

SENATOR STEVE OGDEN: All right. Senator Huffman, do you want to be recognized?

SENATOR JOAN HUFFMAN: Yes. I just want to say a couple more words on the amendment, if I could, following up with Senator Duncan's question. I just wanted to point out to the members -- I had said this previously, but the definition of a dam that had a significant classification means the possible loss of lives, between one and six persons. I also wanted to point out that this specific amendment would exempt out 3,688 of the approximate 7,200 dams that TCEQ regulates, so we are talking about a significant number of dams that would be regulated.

SENATOR STEVE OGDEN: So Senator Hinojosa, do you want to move?

SENATOR JUAN HINOJOSA: I would ask that maybe we ought amend that to low hazard dams, there's no loss of human life. I mean the significant hazard of loss of human life, one to six lives, and that's over I guess a hundred year floodplain. But I guess I'll leave it to the will of the members. Move adoption.

SENATOR STEVE OGDEN: All right. Senator Hinojosa moves adoption of floor amendment No. 4. The author is against the amendment but is leaving it up to the will of the House. Clerk, call the roll. I mean will of the Senate. Leaving it up to the will of the Senate. The secretary will call the roll.

SENATOR STEVE OGDEN: There being 18 nays and 12 ayes; the amendment fails. Senator Huffman, you're recognized for a motion.

SENATOR JOAN HUFFMAN: Move passage to third reading.

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

SENATOR KIRK WATSON: A quick question of the author.

SENATOR STEVE OGDEN: : All right. You're recognized to ask a question.

SENATOR KIRK WATSON: Yes. Senator Huffman, I'm informed that for legislative intent purposes I would ask you a quick question about what we talked about, and just briefly to summarize as it applies to the Public Interest Counsel. And you and I discussed, and you and I agree that OPIC has historically provided procedural assistance. And under the revised statutory description of the responsibilities in this bill it will maintain its ability to answer procedural questions from people participating in a party in a contested case hearing. And there's nothing here intended to eliminate the Public Interest Counsel's role in providing public assistance and being able, where they could, to protect the ability to participate in the permitting process. And there's not considered to be a conflict with OPIC statutory charge to represent the public interest and be giving that advice.

SENATOR JOAN HUFFMAN: That's correct, yes.

SENATOR KIRK WATSON: Okay. The one other thing I might mention as part of that, is that we discussed two different floor amendments, and a third amendment related to NOCs and compliance history. And you intend that to be part of the legislative intent of what we discussed as well?

SENATOR JOAN HUFFMAN: Yes, yes.

SENATOR KIRK WATSON: Thank you very much, Senator Huffman.

SENATOR JOAN HUFFMAN: Thank you, Senator Watson.

SENATOR STEVE OGDEN: Senator Huffman moves passage to third reading of committee substitute to Senate Bill 2694. The secretary will call the roll.

SENATOR STEVE OGDEN: There being thirty-one ayes and no nays, the bill is passed to third reading. Senator Huffman is recognized for a motion to suspend the constitutional three day rule.

SENATOR JOAN HUFFMAN: So moved, Mr. President.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: There being thirty-one ayes and no nays, the constitutional three day rule is suspended. The Chair lays out on third reading and final passage committee substitute to House Bill 2694. The secretary will read the caption.

PATSY SPAW: Committee substitute to House Bill 2694. Relating to the continuation and functions of the Texas Commission of Environmental Quality.

SENATOR STEVE OGDEN: Senator Huffman, you're recognized for motion.

SENATOR JOAN HUFFMAN: I move final passage of committee substitute to House Bill 2694.

SENATOR STEVE OGDEN: The secretary will call the roll.

SENATOR STEVE OGDEN: There being thirty-one ayes and no nays, the bill is finally passed. Congratulations, Senator.

SENATOR JOAN HUFFMAN: Thank you, members.

SENATOR STEVE OGDEN: Chair recognizes Senator Rodriguez for an introduction.

SENATOR JOSE RODRIGUEZ: Mr. President and members, it gives me great pleasure to introduce to you today, visiting us from El Paso, some students who are with the Harmony Science Academy of El Paso; right here on the west side of the gallery. They're standing up and waving at us. These are five students who were the best of the contestants for an essay, and they're also going to be here joining us as pages this afternoon. I'd like to call out their names,

(inaudible) Barassa, Manuel Lopez. Wave as I call your name. Fernando Menendez, David Lopez, Seth Martin. And with them, their teacher, Elenor (inaudible). Thank you all for being here. And, members, let's welcome them to the Senate. Thank you. Thank you, Mr. President.

SENATOR KEVIN ELTIFE: Thank you, Senator Rodriguez. Senator Van de Putte is recognize for a motion to suspend the regular order of business for SJR14.

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 at this time the committee substitute for SJR14. Members, this SJR is in an effort to honor the sacrifices of Texas 100 percent disabled veterans by allowing the transfer of that 100 percent property tax exemption to the veteran's surviving spouse. This is an issue that Senator Patrick and I have been working on, and what you'll see shortly after this is the recognition of the enabling legislation. But this SJR would have a constitutional amendment that makes sure that we properly honor the sacrifice of the 100 percent disabled veteran, as well as his or her surviving spouse. With that, I move for the suspension of the senate's regular order of business to take up and consider at this time SJR14.

SENATOR KEVIN ELTIFE: Senator Van de Putte moves suspension of the regular order of business to take up and consider committee substitute SJR14. Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading committee substitute SJR14. The secretary will read the caption.

PATSY SPAW: Committee substitute to SJR14. Proposing a constitutional amendment authorizing the legislature to provide for an exemption for ad valorem taxation of the resident's homestead of a surviving spouse of a 100 percent or totally disabled veteran.

SENATOR KEVIN ELTIFE: Chair recognizes Senator Van de Putte for a motion.

SENATOR LETICIA VAN DE PUTTE: Gentlemen, I move passage of SJR14 to engrossment.

SENATOR KEVIN ELTIFE: Senator Van de Putte moves passage to engrossment. Is there objection? Hearing none, committee substitute SJR14 is passed to engrossment. Senator Van de Putte, you're 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: Thirty-one ayes, no nay, the rule is suspended. The Chair lays out on third reading and final passage committee substitute SJR14. The secretary will read the caption.

PATSY SPAW: Committee substitute SJR14. Proposing a constitutional amendment authorizing the legislature to provide for an exemption of ad valorem taxation certain disabled veterans and family members.

SENATOR KEVIN ELTIFE: Senator Van de Putte, you're recognized for a motion.

SENATOR LETICIA VAN DE PUTTE: Thank you. I move final passage of committee substitute SJR14.

SENATOR KEVIN ELTIFE: Senator Van de Putte moves final passage of committee substitute SJR14. The secretary will call the roll.

SENATOR KEVIN ELTIFE: Thirty one ayes, zero nays, SJR14 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, you're recognized for a motion to suspend the regular order of business on committee substitute SB516.

SENATOR DAN PATRICK: Thank you Mr. President and members, I'm working with Senator Van de Putte on her constitutional amendment. This is the enabling legislation which simply states Senate Bill 516 allows for the transfer of 100 percent of the property tax exemptions to veterans' surviving spouse, if they're married at the time of the death. I move suspension of 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 to SB516. Is there objection? The Chair hears none, the rule is suspended. The Chair lays out on second reading committee substitute SB516. The secretary will read the caption.

PATSY SPAW: Committee substitute Senate Bill 516. Relating to exemption of ad valorem taxation of the resident's homestead of the surviving spouse of a 100 percent or totally disabled veteran.

SENATOR KEVIN ELTIFE: Senator Patrick you're recognized for a motion.

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

SENATOR KEVIN ELTIFE: Senator Patrick moves passage to engrossment. Is there objection? The Chair hears none. Committee substitute to Senate Bill 516 is passed to engrossment. Senator Patrick, you're recognized to suspend the constitutional three day rule.

SENATOR DAN PATRICK: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: Thirty one ayes, zero nays, the rule is suspended. The Chair lays out on third reading and final passage committee substitute to SB516. The secretary will read the caption.

PATSY SPAW: Committee substitute to Senate Bill 516. Relating to exemption from ad valorem taxation of the appraised value of the homestead of a surviving spouse of a 100 percent or totally disabled veteran.

SENATOR KEVIN ELTIFE: Senator Patrick, you're recognized for a motion.

SENATOR DAN PATRICK: I move final passage.

SENATOR KEVIN ELTIFE: Senator Patrick moves final passage of committee substitute SB516. The secretary will call the roll.

SENATOR KEVIN ELTIFE: Thirty one ayes, zero nays, committee substitute SB516 is finally passed. Congratulations, Senator Patrick.

SENATOR DAN PATRICK: Thank you, Mr. President. Thank you, members. Thank you, Senator Van de Putte.

SENATOR KEVIN ELTIFE: Senator Fraser is recognized -- Senator Fraser is recognized for a motion to suspend the regular order of business on SB578.

SENATOR TROY FRASER: Mr. President and members, I would move to suspend the regular order of business to take up and consider Senate Bill 578 at this time. Senate Bill 578 enhances the rights of a child under 17 during testimony in criminal cases. The bill requires the court to do the following five things: Administer the oath so that the child fully understands the duty to tell the truth, ensures the questions asked of the child are stated in a language appropriate of the child's age, explain that the child has a right to have the court notified if the child is unable to understand any question and have that question restated, ensure that the testimony occurs at the appropriate time of day, prevent intimidation or harassment of the child by any party. There will be an amendment to the bill clarifying some of the testimony. I will now move to suspend the regular order of business.

SENATOR KEVIN ELTIFE: Senator Fraser moves suspension of the regular order of business to take up and consider SB578. Is there objection? The Chair hears none, the rules are suspended. The Chair lays out on second reading SB578. The secretary will please read the caption.

PATSY SPAW: SB578. Relating to the testimony of children in criminal cases.

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

PATSY SPAW: Floor amendment No. 1 by Fraser.

SENATOR KEVIN ELTIFE: Senator Fraser to explain the amendment.

SENATOR TROY FRASER: Members, the floor amendment being passed out clarifies that the bill does not apply to the testimony of a child in a hearing or proceeding in a criminal case in which that child is a defendant.

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

SENATOR TROY FRASER: I would now move passage to engrossment of Senate Bill 578.

SENATOR KEVIN ELTIFE: Senator Fraser now moves passage to engrossment. Is there objection? Chair hears none, SB578 is passed to engrossment. Senator Fraser, you're now recognized for a motion to suspend the constitutional three day rule.

SENATOR TROY FRASER: I would 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: Thirty one ayes, zero nays, the rule is suspended. The Chair lays out on third reading and final passage SB578. The secretary will please read the caption.

PATSY SPAW: SB578. Relating to testimony of children in a criminal case.

SENATOR KEVIN ELTIFE: Senator Fraser, you're recognized for a motion.

SENATOR TROY FRASER: I would move final passage of Senate Bill 578 as amended.

SENATOR KEVIN ELTIFE: Senator Fraser now moves final passage of SB578. The secretary will call the roll.

SENATOR KEVIN ELTIFE: Thirty one ayes, zero nays, SB578 is finally passed. Congratulations, Senator Fraser. Senator Jackson is recognized for a motion to suspend the regular order of business for committee substitute to SB1175.

SENATOR MIKE JACKSON: Thank you Mr. President and members. This bill deals with the emerging technology fund and the enterprise fund. It's an ominous bill that went through our Committee on Economic Development. Been working on this legislation for quite some time and put a lot of recommendations from a state auditor's report in the legislation. I think all the members have received talking points on this piece of legislation, and I could go -- there's a lot of material in it. But if there's no questions I'd move for suspension of the rules to take up and consider committee substitute for Senate Bill 1175.

SENATOR KEVIN ELTIFE: Senator Jackson now moves suspension of the regular order of business to take up and consider committee substitute SB1175. Is there objection? The Chair hears none, rules are suspended. The Chair lays out on second reading committee substitute SB1175. The secretary will read the caption.

PATSY SPAW: Committee substitute to SB1175. Relating to Texas Enterprise Fund.

SENATOR KEVIN ELTIFE: Senator Jackson, you're recognized for a motion.

SENATOR MIKE JACKSON: I move passage to engrossment of committee substitute to Senate Bill 1175.

SENATOR KEVIN ELTIFE: Senator Jackson now moves passage to engrossment. Is there objection? Chair hears none, committee substitute SB1157 is passed to engrossment. Senator Jackson, you're recognized for a motion to suspend the constitutional three day rule.

SENATOR MIKE JACKSON: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: There being thirty-one ayes, no nays, rules are suspended. The Chair lays out on third reading and final passage committee substitute SB1175. The secretary will please read the caption.

PATSY SPAW: Committee substitute to Senate Bill 1175. Relating to the Texas Enterprise Fund.

SENATOR KEVIN ELTIFE: Senator Jackson, you're recognized for a motion.

SENATOR MIKE JACKSON: Move final passage, Mr. President.

SENATOR KEVIN ELTIFE: Senator Jackson now moves final passage of committee substitute SB1175. The secretary will please call the roll.

SENATOR KEVIN ELTIFE: Thirty one ayes, zero nays, committee substitute SB1175 is finally passed. Congratulations, Senator Jackson.

SENATOR MIKE JACKSON: Thank you Mr. President and members.

SENATOR KEVIN ELTIFE: Senator Williams, you ready? Senator Williams is recognized for a motion to suspend the regular order of business on committee substitute SB1402.

SENATOR TOMMY WILLIAMS: Thank you Mr. President and members. Senate Bill 1402 is a result of the Texas Department of Motor Vehicles and the industry stake holders working together over the past two years. A similar bill was filed, Senate Bill 1507, in the 81st regular session; passed out of the Senate, but died on the House floor. In 1995, Chapters 501, 502, 504 and 520 of the transportation code were codified. Senate Bill 1402 reorganizes these chapters to clarify them and make them easier to understand. And, additionally, it modernizes the motor vehicle statutes that have become outdated in regards to automation and system of payments. I move to suspend the Senate's regular order of business to take up and consider the committee substitute to Senate Bill 1402.

SENATOR KEVIN ELTIFE: Senator Williams moves suspension of the regular order of business to take up and consider committee substitute to SB1402. Is there objection? Chair hears none, the rule is suspended. The Chair lays out on second reading committee substitute SB1402. The secretary will read the caption.

PATSY SPAW: Committee substitute Senate Bill 1402. Relating to motor vehicles.

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

PATSY SPAW: Floor amendment No. 1 by Wentworth.

SENATOR KEVIN ELTIFE: Senator Wentworth to explain the amendment.

SENATOR JEFF WENTWORTH: Thank you, Mr. President. This amendment to committee substitute for Senate Bill 1402 seeks to improve and simplify the process for registering used vehicles. The amendment incorporates the language from Senate Bill 1057, which passed the Senate on the local and un-contested calendar earlier this month. This amendment provides for the termination of the registration period remaining on a motor vehicle at the time of sale or transfer to a dealer, and requires the dealer to register the vehicle for an entire registration year when the vehicle is subsequently resold. As a result, the dealer is not required to calculate a registration period, and the new owner obtains a full year on their vehicle registration. This amendment does not change current law as it applies to private party transactions, in which neither party holds a general distinguishing number issued under chapter 503.B. I believe the amendment is acceptable to the author and I move adoption.

SENATOR KEVIN ELTIFE: Senator Williams on the amendment.

SENATOR TOMMY WILLIAMS: The amendment is acceptable.

SENATOR KEVIN ELTIFE: Senator Wentworth moves adoption of floor amendment No. 1. It is acceptable to Williams. Is there objection? Chair hears none, floor amendment No. 1 is adopted.

SENATOR JEFF WENTWORTH: Thank you, Mr. President.

SENATOR KEVIN ELTIFE: You're welcome, Senator Wentworth. Senator Williams, you're recognized for a motion.

SENATOR TOMMY WILLIAMS: There should be one more amendment out there.

SENATOR KEVIN ELTIFE: Let me check. Thank you, Senator. Senator Williams, the amendment's on its way. We'll hold tight for one sec. The following amendment. Secretary will please read the amendment by Williams.

PATSY SPAW: Floor amendment No. 2 by Williams.

SENATOR KEVIN ELTIFE: We'll make sure the members have the amendment. Senator Williams to explain the amendment.

SENATOR TOMMY WILLIAMS: Thank you, Mr. President. Members, in subsection B, this amendment removes a 5 percent cap and clarifies that the Texas Department of Motor Vehicles is allowed to recoup only its costs that are incurred through electronic funds transfer. There was an inadvertent mistake made in the drafting of the bill that would have had them collecting much more than they should have been able to collect on these transactions. So this just merely clarifies that they can recoup any of their costs for using Texas Online. I move adoption.

SENATOR KEVIN ELTIFE: Senator Williams moves adoption of floor amendment No. 2. Is there objection? Chair hears none, floor amendment No. 2 is adopted. Senator Williams, you're recognized for a motion.

SENATOR TOMMY WILLIAMS: I move passage to engrossment.

SENATOR KEVIN ELTIFE: Senator Williams now moves passage to engrossment. Is there objection? Chair hears none. Committee substitute SB1402 is passed to engrossment. Senator Williams, you're recognized for a motion to suspend the constitutional three day rule.

SENATOR TOMMY WILLIAMS: So moved.

SENATOR KEVIN ELTIFE: The secretary will call the roll.

SENATOR KEVIN ELTIFE: Thirty one ayes, zero nays, the rule is suspended. The Chair lays out on third reading and final passage committee substitute SB1402 as amended. The secretary will read the caption.

PATSY SPAW: Committee substitute SB1402. Relating to motor vehicles.

SENATOR KEVIN ELTIFE: Senator Williams, you're recognized for a motion.

SENATOR TOMMY WILLIAMS: Thank you, Mr. President. I move final passage of committee substitute to Senate Bill 1402.

SENATOR KEVIN ELTIFE: Senator Williams now moves final passage of committee substitute SB1402. The secretary will call the roll.

SENATOR KEVIN ELTIFE: Thirty one ayes, zero nays, committee substitute SB1402 is finally passed. Congratulations, Senator Williams.

SENATOR TOMMY WILLIAMS: Thank you Mr. President, thank you members.

SENATOR KEVIN ELTIFE: The following bills and resolutions on first reading in reference to committee: Secretary will please read the bills and resolutions.

PATSY SPAW: House Bill 272. To Business and Commerce. House Bill 239. To Education. House Bill 590. To Finance. House Bill 1128. To Administration. House Bill 1228. To Intergovernmental Relations. House Bill 1355. To Business and Commerce. House Bill 1359. To Jurisprudence. House Bill 1784. To Health and Human Services. House Bill 1797. To Health and Human Services. House Bill 1951. To Government Organization. House Bill 2078. To Finance. House Bill 2096. To Criminal Justice. House Bill 2098. To State Affairs. House Bill 2102. To State Affairs. House Bill 2103. To Business and Commerce. House Bill 2190. To State Affairs. House Bill 2247. To Education. House Bill 2316. To Intergovernmental Relations. House Bill 2340. To Economic Development. House Bill 2359. To State Affairs. House Bill 2363. To Intergovernmental Relations. House Bill 2425. To State Affairs. House Bill 2492. To Jurisprudence. House Bill 2510. To Natural Resources. House Bill 2595. To State Affairs. House Bill 2702. To Administration. House Bill 2707. To Business and Commerce. House Bill 2746. To Finance. House Bill 2960. To Transportation and Homeland Security. House Bill 2994. To Agriculture and Rural Affairs. House Bill 2996. To Agriculture and Rural Affairs. House Bill 2997. To Agriculture and Rural Affairs. House Bill 3001. To Criminal Justice. House Bill 3036. To Intergovernmental Relations. House Bill 3079. To Transportation and Homeland Security. House Bill 3111. To Intergovernmental Relations. House Bill 3125. To Jurisprudence. House Bill 3152. To State Affairs. House Bill 3216. To Intergovernmental Relations. House Bill 3287. To Economic Development. House Bill 3369. To Health and Human Services. House Bill 3387. To Health and Human Services. House Bill 3399. To Natural Resources. House Bill 3475. To Jurisprudence. House Bill 3595. To Business and Commerce. House Bill 3647. To Finance. House Bill 3723. To Transportation and Homeland Security. House Bill 3730. To Transportation and Homeland Security. House Bill 3797. To Economic Development. HCR42. To Transportation and Homeland Security. HJR109. To Finance.

SENATOR KEVIN ELTIFE: The president's desk is clear. The Chair recognizes Senator Carona for an announcement.

SENATOR JOHN CARONA: Thank you. Actually, Mr. President, with your permission I need to make a motion to suspend some Senate rules.

SENATOR KEVIN ELTIFE: Yes, sir, senator Carona.

SENATOR JOHN CARONA: All right. I move to suspend Senate Rule 1110 and Senate Rule 1118 so that the Senate Business and Commerce Committee members can meet, upon adjournment of the Senate today, at my desk on the following two issues: Senate Bill 1920, by Senator Gallegos. This bill helps the Coastal Water Authority and has been authored by Harris. This bill provides certain private transfer fees and preserves private property rights. Again, this meeting would be at my desk immediately upon adjournment.

SENATOR KEVIN ELTIFE: Members, you heard the motion by Senator Carona. Is there objection? The Chair hears none, so ordered. Thank you, Senator Carona. Senator Duncan, you're recognized.

SENATOR ROBERT DUNCAN: Thank you, Mr. President, members, the Senate Committee of State Affairs will reconvene 30 minutes upon adjournment, or at 2:10, here at the Senate Chamber at our normal meeting place; so we have one resolution left and then we will vote on pending bills. I need a quorum. I don't think the meeting will last that long. That will be at 2:10. Thank you.

SENATOR KEVIN ELTIFE: Thank you, Senator Duncan. Senator Jackson, you're recognized.

SENATOR MIKE JACKSON: Thank you, Mr. President. I move to suspend the 24-hour posting rule in accordance with Senate Rules 1110 and 1118 in order for the Senate Committee on Economic Development to meet at my desk, immediately upon adjournment, to take up pending business.

SENATOR KEVIN ELTIFE: Members, you have heard the motion by Senator Jackson. Is there objection? Chair hears none, so ordered. Thank you, Senator Jackson.

SENATOR MIKE JACKSON: Thank you. And, Mr. President, we will be having a meeting at my desk immediately upon adjournment. Thank you.

SENATOR KEVIN ELTIFE: I'll be there Senator Jackson. Senator Wentworth, you're recognized.

SENATOR JEFF WENTWORTH: Thank you, Mr. President. I move to suspend the 24-hour posting rule in accordance with Senate Rules 1110 and 1118 in order for the Senate's Select Committee on Open Government to meet today, May 12th, immediately upon adjournment, at my desk, to take up pending bills. We only have four or five bills, Mr. President.

SENATOR KEVIN ELTIFE: Members, you heard the motion by Senator Wentworth. Is there objection? The Chair hears none. So ordered. Thank you, Senator Wentworth. Senator Whitmire, you're recognized. Senator Whitmire, you're recognized.

SENATOR JOHN WHITMIRE: Mr. President and members, Criminal Justice will meet in the Betty King room at 2:00 o'clock, and that's it. 2:00 o'clock, Betty King room.

SENATOR KEVIN ELTIFE: Thank you, Senator Whitmire. Senator Williams, you're recognized.

SENATOR TOMMY WILLIAMS: Thank you, Mr. President and members, I move to suspend Senate Rules 11.10 and 11.18 so the Senate Committee on Transportation and Homeland Security can meet at my desk and vote on pending business, immediately upon adjournment.

SENATOR KEVIN ELTIFE: Members, you heard the motion by Senator Williams. Is there objection? Chair hears none, so ordered. Thank you, Senator Williams. The Chair recognizes the Dean of the Senate for a highly privileged motion. Dean Whitmire, one minute please. Senator Seliger, you're recognized for an announcement.

SENATOR KEL SELIGER: Thank you, Mr. President. The Senate Select Committee on Redistricting will meet 30 minutes upon adjournment, in the extension auditorium, room E1.004, to hear public testimony on SB31.

SENATOR KEVIN ELTIFE: Thank you, Senator Seliger. Are there any other 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 10:00 a.m. tomorrow.

SENATOR KEVIN ELTIFE: Senator Whitmire moves that the Senate adjourn until 10:00 a.m. Friday, May 13th. Is there objection? The Chair hears none. The Senate stands adjourned until 10:00 a.m. Friday, May 13th. Thank you, members.

(Adjourned.)