Texas House Alters Property Tax Relief Proposal

This week the Texas House changed their property tax relief proposal to include a significant increase in the homestead exemption. This move puts the House closer to the Senate’s proposal. However, the new House plan still includes an adjustment to appraisal caps that the Lt. Governor previously stated would be “dead on arrival” in the Senate.

“New” House Property Tax Proposal (Included in House’s substitutes for Senate Bill 3 and Senate Joint Resolution 3):

• Rate Compression - Provides 15 cents of school district tax rate compression, leading to an over 25-cent compression when coupled with the 10-cent compression already contained in House Bill 1, the state’s proposed budget for the next biennium.

• Homestead Exemption – Raises the homestead exemption on school maintenance and operations taxes from $40,000 to $100,000 for all Texas homeowners. Texans over the age of 65 will see an even higher homestead exemption due to the $10,000 exemption currently in place for elderly and disabled homeowners.

• Appraisal Cap - Provides a 5% annual cap on the taxable assessment of residential and commercial property. Under current Texas law, there is a 10% appraisal cap for homeowners and no cap for owners of commercial property.

Status Update on Lt. Governor Patrick’s Priority Bills

Senate Bill (SB) 1 - State budget. / Status: HOUSE COMPANION ALIVE AND IN CONFERENCE COMMITTEE. The designation of the final budget bill traditionally alternates between the Senate and House. This Session, House Bill 1 is the General appropriation’s bill that will ultimately pass. House Bill 1 is currently in conference committee and the final version of HB 1 is expected to be released to the public and considered for a final vote by both chambers no later than Friday.

SB 2 - Restore voter fraud to a felony. / Status: DEAD, unless amended to another bill. The bill passed the Senate, but was never given a hearing in the House Elections Committee.

SB 3 - Increase homestead exemption on school property tax to $70,000, from $40,000. / Status: ALIVE. The bill passed the Senate and House and is likely headed to a conference committee.

SB 4 - Reduce school districts’ maximum compressed property tax rates by 10 cents per $100 assessed value. / Status: PROPOSAL ALIVE; BILL DEAD. Compression of school property tax rates is included in both SB 3 and HB 1.

SB 5 - Increase business personal property tax exemption to $25,000, from $2,500. / Status: DEAD. The bill passed the Senate, but was never given a hearing in the House Ways and Means Committee.

SB 6 - Adding new natural-gas-fired, electricity generating plants. / Status: DEAD. The bill passed the Senate, but was never given a hearing in the House State Affairs Committee. However; a bill filed late in the Session as an alternative proposal - Senate Bill 2627 – passed the Senate and will be considered by the full House on Monday. The bill would use state money to provide low-interest loans and pay companies a bonus for connecting new natural-gas-fired plants to the electric grid by a certain date.

SB 7 – Improving reliability of the ERCOT power grid. / Status: ALIVE. The bill passed the Senate and will be considered by the full House on Monday.

SB 8 - School choice — education savings accounts for parents. / Status. DEAD. The bill passed the Senate and was given a hearing but never passed out of the House Public Education Committee.

SB 9 - Teacher recruitment and retention. / Status: ALIVE. The bill passed the full Senate, passed the House Committee on Public Education and was reported to the House Calendars Committee on 05/20/2023.

SB 10 - Add cost-of-living adjustment and one-time 13th check for retired teachers. / Status: ALIVE; IN CONFERENCE COMMITTEE.

SB 11 - School safety. / Status: ALIVE. The bill passed the full Senate, passed the House Committee on Public Education and was reported to the House Calendars Committee on 05/20/2023.

SB 12 - Ban children from attending drag shows. / Status: ALIVE. The bill passed the full Senate, passed the House State Affairs Committee, and passed the House on second reading. It will likely pass the House on third reading on Monday and will go to a conference committee since the House’s substitute for the bill is significantly different than the Senate’s version of the bill. The House version now relates to any sexually oriented performance on public property or in the presence of an individual younger than 18 years of age, not just specifically drag shows.

SB 13 - Prohibit sexually explicit books in school libraries. / Status: PROPOSAL ALIVE; BILL DEAD. The bill passed the Senate but was never given a hearing in the House State Affairs Committee. However, House Bill 900 covers the same topic, passed the full House and will be considered by the Senate this week.

SB 14 - Prohibit certain gender-related procedures and treatments on children. / Status: PASSED both Chambers and sent to the Governor.

SB 15 - Restrict transgender athletes’ in collegiate sports. / Status: ALIVE. The bill passed the Senate and House and is headed back to the Senate for concurrence or request for conference committee.

SB 16 - Ban critical race theory instruction in state universities. / Status: DEAD. The bill passed the Senate, but was never given a hearing in the House Higher Education Committee.

SB 17 - Ban diversity, equity and inclusion, or DEI, policies in higher education. / Status: ALIVE. The bill passed the full Senate, passed the House Higher Education Committee, and passed the House on second reading. It will likely pass the House on third reading on Monday and will go to a conference committee.

SB 18 - Eliminate tenure at four-year state universities. / Status: ALIVE. The bill passed the Senate and will be considered by the full House on Monday.

SB 19 - Create new Higher Education Endowment Fund (initially, Texas Tech and University of Houston systems would benefit) / Status: PROPOSAL ALIVE; BILL DEAD. This issue is being handled through House Bill 1595 and House Joint Resolution 3 that have passed both chambers and will go back to the House for concurrence or request for conference committee.

SB 20 - Remove district attorneys who say they won’t prosecute certain crimes. / Status: HOUSE COMPANION ALIVE. House Bill 17, the House companion to SB 20, passed both chambers and will go back to the House for concurrence or request for conference committee.

SB 21 - Remove judges who are seen as refusing to enforce state law. / Status: ALIVE. The bill passed the Senate and is set on the House calendar for consideration by the full House on Monday.

SB 22 - Higher pay, better equipment for county sheriffs in rural Texas. / Status: ALIVE. The bill passed both chambers and will go back to the Senate for concurrence or request for conference committee.

SB 23 - Mandatory 10-year minimum sentence for offenses committed with a gun. / Status: DEAD. The bill passed the Senate but was left pending in the House Criminal Jurisprudence Committee.

SB 24 - Expand Alternatives to Abortion, which includes pregnancy crisis centers. / Status: ALIVE. The bill passed the Senate and passed the House on second reading. It will be considered for third reading and passage by the House on Monday.

SB 25 - New student loan forgiveness for registered nurses. / Status: ALIVE. The bill passed the Senate and is set on the House calendar for consideration by the full House on Monday.

SB 26 - Additional mental hospital beds across Texas, especially in rural areas. / Status: ALIVE. The bill passed the Senate and is set on the House calendar for consideration by the full House on Monday.

SB 27 - Establish state business court. / Status: HOUSE COMPANION ALIVE. House Bill 19, the House companion to SB 27, passed both chambers and will go back to the House for concurrence or request for conference committee.

SB 28 - Water infrastructure. / Status: ALIVE. The bill passed both chambers and will go back to the Senate for concurrence or request for conference committee.

SB 29 - Ban on local COVID-19 mandates. / Status: ALIVE. The bill passed the Senate and is set on the House calendar for consideration by the full House on Monday.

SB 30 - Supplemental appropriations bill to plug holes in current two-year budget. / Status: ALIVE AND IN CONFERENCE COMMITTEE.

Status Update on House Speaker Phelan’s Priority Bills

House Bill 1 (HB 1) - State budget. / Status: ALIVE AND IN CONFERENCE COMMITTEE.

HB 2 - Property tax rate cuts and tightening of appraisal cap. / Status: PROPOSAL ALIVE; BILL DEAD. The House amended Senate Bill 3 to include their new property tax relief proposal that includes tax rate compression, increased homestead exemption and lower appraisal caps.

HB 3 - School safety. / Status: ALIVE. The bill passed the House and will be considered by the full Senate as soon as today.

HB 4 - Data privacy. / Status: ALIVE AND IN CONFERENCE COMMITTEE.

HB 5 - Economic development — a replacement for Chapter 313 tax abatement. / Status: ALIVE. The bill passed the House and the Senate Business and Commerce Committee has voted out a committee substitute that is significantly different than the House version of the bill. If the bill passes the Senate, it is highly likely that the House will request a conference committee.

HB 6 - Fentanyl manufacture, delivery — increased penalties. / Status: PASSED both Chambers and sent to the Governor.

HB 7 - Create Legislative Border Safety Oversight Committee, fund to compensate landowners. / Status: ALIVE. The bill passed the House and the Senate Border Security Committee voted out a committee substitute that is significantly different than the House version of the bill. If the bill passes the Senate, it is highly likely that the House will request a conference committee.

HB 8 - Community college performance funding. / Status: ALIVE. The bill passed both chambers, was amended in the Senate, and will go back to the House for concurrence or request for conference committee.

HB 9 - Broadband infrastructure. / Status: ALIVE. The bill passed both chambers, was amended in the Senate, and will go back to the House for concurrence or request for conference committee.

HB 10 - Water supply, infrastructure. / Status: SENATE COMPANION ALIVE. Senate Bill 28, the Senate companion to HB 10, passed both chambers and will go back to the Senate for concurrence or request for conference committee.

HB 11 - Teacher recruitment and retention. / Status: PROPOSAL ALIVE; BILL DEAD. A similar bill, Senate Bill 9, This issue Compression of school property tax rates is included in both SB 3 and HB 1.

HB 12 - Medicaid eligibility time extension for new mothers. / Status: ALIVE. The bill passed the full House, passed the Senate Health and Human Services Committee, and has been placed on today’s Senate intent calendar.

HB 13 - More funding for school safety, requiring active shooter plans and first aid training of educators. / Status: PROPOSAL ALIVE; BILL DEAD. A similar bill, Senate Bill 11, passed the full Senate, passed the House Committee on Public Education and was reported to the House Calendars Committee on 05/19/2023.

HB 14 - Faster approval process for zoning, building permit requests. / Status: ALIVE. The bill passed the House, passed the Senate Local Government Committee without amendment and should be considered by the full Senate this week.

HB 15 - Texas Mental Health and Brain Research Institute. / Status: DEAD. The bill passed the House but was never referred to a committee in the Senate.

HB 16 - Keeping juvenile offenders closer to home. / Status: DEAD. The bill passed the House but never received a hearing in the Senate State Affairs Committee.

HB 17 - Bar district attorneys from saying they won’t enforce certain criminal offenses. / Status: ALIVE. The bill passed both chambers and will go back to the House for concurrence or request for conference committee.

HB 18 - Regulate social media algorithms harmful to teens, require parental opt outs. / Status: ALIVE. The bill passed the House, passed out of the Senate State Affairs Committee, and will likely be considered by the Senate this week.

HB 19 - Establish state business court. / Status: ALIVE. The bill passed both chambers and will go back to the House for concurrence or request for conference committee.

HB 20 - Create Texas Border Protection Unit, let governor declare migrant invasion, make illegal entry a third-degree felony. / Status: DEAD; though a similar concept is included in House Bill 7 that is still moving through the legislative process.

HB 90 - Bishop Evans Act — worker’s compensation and death benefits for National Guard soldiers. / Status: ALIVE. The bill passed both chambers and will go back to the House for concurrence or request for conference committee.

HB 100 - Change from attendance to enrollment as the key to school funding; increased aid for special education,

Transportation. / Status: DEAD. The bill passed the House but never received a hearing in the Senate Education Committee.

HB 200 - Re-establish Prosecuting Attorneys Coordinating Council, to probe incompetency and misconduct by prosecuting attorneys. / Status: DEAD. The bill passed the House Judiciary & Civil Jurisprudence Committee but was never set on the House Calendar.

HB 300 - Exempt from sales tax menstrual products, diapers, maternity clothes, baby products. / Status: PROPOSAL ALIVE; BILL DEAD. A similar proposal is included in Senate Bill 379 that passed the Senate and will be considered by the House on Monday.

HB 400 - Mental and behavioral health workforce shortage. / Status: ALIVE. The bill passed the House, passed the Senate Committee on Health & Human Services and has been placed on today’s Senate intent Calendar.

HB 600 - Cost of living adjustment for retired teachers. / Status: SENATE COMPANION ALIVE. Senate Bill 10 has passed both chambers and is in conference committee.

HB 800 - Set 10-year mandatory minimum for human smuggling; 5 years, for operating stash houses. / Status: ALIVE. The bill passed the House, passed the Senate Border Security Committee, and may be considered by the Senate this week.

HB 900 - Rating system to keep sexually explicit books out of public school libraries. / Status: ALIVE. The bill passed the House, passed the Senate Education Committee and is placed on today’s Senate intent calendar.

HB 1600 - Make it a third-degree state jail felony to enter from Mexico any place other than port of entry. / Status: DEAD, unless amended to another bill. The bill passed out of the House State Affairs Committee, but was never placed on the House calendar for consideration by the full House.

Upcoming Legislative Deadlines

Sunday, May 21^st - Deadline for the House to distribute last House Daily Calendar with Senate Bills and Senate Joint Resolutions

Monday, May 22^nd - Deadline for the House to distribute last House Local & Consent Calendar with Senate Bills

Tuesday, May 23^rd - Last day for the House to consider 2nd reading Senate Bills and Senate Joint Resolutions on the Daily or Supplemental Calendar

Wednesday, May 24^th - Last day for the House to consider local and consent Senate bills on 2nd and 3rd reading and all 3rd reading Senate Bills and Joint Resolutions on the Supplemental Calendar

Wednesday, May 24^th - Last day for senate to consider all bills and JRs on 2nd or 3rd reading

Thursday, May 25^th - Deadline for the House to distribute Senate amendments

Friday, May 26^th - Last day for the House to act on Senate amendments (concur or request a conference committee)

Friday, May 26^th - Deadline for the Senate to print and distribute Senate copies of conference committee reports on tax, general appropriations, reapportionment bills

Saturday, May 27^th - Deadline for the House to distribute House copies of all conference committee reports

Saturday, May 27^th - Deadline for the Senate to print and distribute Senate copies of all conference committee reports on bills other than tax, general appropriations, reapportionment bills and all House amendments to Senate Bills and Joint Resolutions that did not go to a conference committee

Sunday, May 28^th - Last day for the House to adopt conference committee reports or discharge House conferees and concur in Senate amendments

Sunday, May 28^th - Last day for the Senate to concur in House amendments or adopt conference committee reports

Monday, May 29^th - Last day of the 88^th Regular Session of the Texas Legislature (Sine Die); only corrections may be considered in the House and Senate

Sunday, June 18^th – Last day the governor can sign or veto bills passed during the regular session