81st Legislature, First Called Session

On July 1, 2009, legislators returned to the Capitol for a two-day special session to address the transportation and sunset safety net issues left unresolved at the close of the 81st Regular Session. Both chambers unanimously approved the sale of $2 billion in highway bonds, which had already been approved by Texas voters. There was also unanimous support for the legislation to prevent five agencies from being "sunsetted" at the beginning of the 2011 fiscal year. The Texas Department of Transportation, Texas Department of Insurance, the Racing Commission, State Affordable Housing Corporation, and the Office of Public Insurance Counsel will all be scheduled for legislative review again during the 82nd Legislature.

Governor Perry also wanted legislators to address comprehensive development agreements (CDAs), which are public-private partnerships used to build toll roads. Many members were not convinced this was a critical need for the state, and both the House and Senate adjourned without taking action on the issue.

The following are summaries of the two bills that were passed:

HB 1 by Pitts/Carona - Relating to certain sources of revenue for the funding of highways and transportation projects.   HB 1 authorizes the issuance of Proposition 12 general-obligation bonds to pay for costs of highway improvement projects.  These funds may not be used cannot be used to convert non-tolled roads or highways into tolled roads or highways.  The bill also amends TxDOT Rider 60 in the general appropriations act to allow the appropriation of $2 billion in Proposition 12 bond proceeds for highway project and $100 million in general revenue for debt service on the bonds.  The bonds and related records have to be submitted to the attorney general for approval.

SB 2 by Hegar/Isett - Relating to the governmental entities subject to the sunset review process.  SB 2 changes the Sunset review date from 2009 to 2011 for six agencies that had been evaluated in preparation for the 81st Legislature.  These agencies include Equine Research Account Advisory Committee; Texas Racing Commission; Texas State Affordable Housing Corporation; Texas Department of Insurance; Office of Public Insurance Counsel and the Texas Department of Transportation.  The bill limits the reviews of these agencies to a review of the appropriateness of recommendations already made by the Sunset Commission.  The bill also subjects the Texas Forest Service to the Sunset process, to be reviewed in 2011.  In addition, the bill balances the Commission's workload by moving the Sunset review dates from 2013 to 2011 for certain environmental agencies and pushing back sunset dates for criminal justice and health and human services agencies.  SB 2 requires a special purpose review of the Electric Reliability Council of Texas (ERCOT), as part of the 2011 review of the Public Utility Commission, stipulates that ERCOT and the Capital Metropolitan Transportation Authority (as required by SB 1263, 81st Legislature, Regular Session) will pay the costs incurred by the Sunset Commission of performing those Sunset reviews.