Special Session Update

On Wednesday, the Texas Legislature met to start the special session. As we reported last week, the Governor put three items on the call for the special session, and those are the only items legislators may consider during the special session (unless the Governor adds more items to the call, which he has the power to do).

Upon convening Wednesday, the House referred HB 1, HB 2, and HB 3 to various committees, which promptly held hearings on the bills. HB 1 (TXDOT bonds) and HB 2 (sunset safety net) were both voted favorably out of their respective committees. HB 3 (comprehensive development agreements) was left pending in House Transportation. Similarly, the Senate referred SB 1, SB 2, and SB 3 to Senate Finance, which held a hearing on all three bills. It voted out SB 2 (sunset safety net), and left SB 1 (TXDOT bonds) and left SB 3 (comprehensive development agreements) pending in committee. The entire Senate then reassembled, and passed SB 2 without amendment; that bill is now on its way to the House.

Thursday, things are expected to continue their rapid pace. The House is expected to pass HB 1 and send it to the Senate, which will promptly refer it to Senate Finance, hold a hearing, then return it to the floor for a final vote. The House is also expected to move quickly on SB 2, likely holding a formal hearing and possibly voting on the bill as a chamber tomorrow.

HB 3/SB 3, related to comprehensive development agreements, is not moving as quickly as are the other two bills. Opponents of this bill came out in force, focusing primarily on the fact that CDAs are only necessary if Texas is going to enter into agreements with private companies to develop and manage toll roads. Otherwise, the agreements are not necessary. At this point, it is unclear whether HB 3/SB 3 will survive the session. Opposition to the bills is such that the legislators may choose to simply not address the issue. If legislators do pursue those bills, it is unlikely they will finish their work by Friday, as was the original goal.