The House Committee on Appropriations 79th Legislature February 28, 2005 7:00 a.m. Capitol Extension, E1.030 Pursuant to a notice posted on February 23, 2005, the House Committee on Appropriations met in a public hearing and was called to order by the chair, Representative Pitts, at 7:06 a.m. The roll was answered as follows: Present: Representatives Pitts; Luna; Berman; Brown, Betty; Brown, Fred; Chisum; Davis, John; Edwards; Gattis; Guillen; Haggerty; Hamric; Hegar; Hope; Hopson; Menendez; Pena; Pickett; Truitt; Turner (20). Absent: Representatives Branch; Crownover; Dukes; Isett; King, Tracy; Kolkhorst; Martinez; McClendon; Smith, Todd (9). A quorum was present. Testimony was taken. (See attached witness list.) (Representative Crownover now present.) (Representative Martinez now present.) (Representative McClendon now present.) (Representative Smith, Todd now present.) (Representative Kolkhorst now present.) Department of Transportation The chair recognized Representative Hamric to lay out the recommendations for the Department of Transportation. The chair pended the recommendations. (Representative Branch now present.) Railroad Commission The chair recognized Representative Hamric to lay out the recommendations for the Railroad Commission. Representative Hamric moved the adoption of the Legislative Budget Board [hereinafter "LBB"] recommendations with the following changes: Technical adjustment to Rider 1, Performance Measure Targets; Technical adjustment to Rider 7, Unexpended Balance and Estimated Appropriation Authority: Oil Field Cleanup Account; Technical adjustment to Rider 10, Appropriation Limited to Revenue Collections: Surface Mining Permits; Amend Rider 3, Unexpended Balance and Estimated Appropriation Authority: Alternative Fuel Research and Education Account; Amend Rider 6, Appropriations Limited to Revenue Collections and Contingent Revenue: LPG/CNG/LNG Fees; Add Federal Funds and Capital Budget Expenditures Rider; Items for Future Consideration: Oil and Gas Migration capital budget project, Contingency rider providing funding for the following items: Targeted Salary Increase, Oil and Gas Migration Capital Budget project, Information Technology Infrastructure Upgrade project, Oil and Gas Monitoring and Inspections, and Replacement Vehicles; Adjust performance measure targets to conform with the committee's funding decisions. Without objection, the motion was adopted. Commission on Environmental Quality The chair recognized Representative Hamric to lay out the recommendations for the Commission on Environmental Quality. Representative Hamric moved the adoption of the LBB recommendations with the following changes: Increase funding for the Water Resource Permitting Strategy; Technical adjustment to Rider 18, Appropriation: Low-Income Vehicle Repair Assistance, Retrofit, and Accelerated Vehicle Retirement Program; Amend Rider 14, Federal Funds and Capital Budget Expenditures Rider; Add Authorization: Water and Air Program Fee Rates Rider; Add Reimbursement of Advisory Committees Rider; Amend Rider 16, Waste Tires; Amend Rider 19, Statewide Implementation Plan Credit; Delete Rider 21, Appropriation: Operating Permit Fees; Add Contingency Appropriation: Revenue from Increased Fee Rates at Watermaster Offices; Items for Future Consideration: Texas Emissions Reduction Plan, Pended to watchlist: moving the Texas River Compact Commissions within the agency; Adjust performance measure targets to conform with the committee's funding decisions. Without objection, the motion was adopted. Water Development Board The chair recognized Representative Hamric to lay out the recommendations for the Water Development Board. Representative Hamric moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Rider 2, Capital Budget; Amend Rider 12, Appropriation: Agricultural Water Conservation Account; Items for Future Consideration: Increase funding for Disadvantaged Communities Program, Fort Bliss Water Infrastructure Needs, and O.C. Fisher Lake; Adjust performance measure targets to conform with the committee's funding decisions. Without objection, the motion was adopted. Debt Service Payments - Non-Self Supporting G.O. Water Bonds The chair recognized Representative Hamric to lay out the recommendations for the Debt Service Payments - Non-Self Supporting G.O. Water Bonds. Representative Hamric moved the adoption of the LBB recommendations with the following changes: Increase funding for payment of debt service for the Economically Distressed Areas Program; Amend Rider 3, Payment of Debt Service: Economically Distressed Areas Bonds; Adjust performance measure targets to conform with the committee's funding decisions. Without objection, the motion was adopted. Historical Commission The chair recognized Representative Hamric to lay out the recommendations for the Historical Commission. Representative Hamric moved the adoption of the LBB recommendations with the following changes: Delete Appropriation: Courthouse Preservation Program Rider; Technical adjustment to Rider 5, Registration of Historic Cemeteries; Amend Rider 2, Capital Budget; Amend Rider 6, Preservation Trust Fund; Items for Future Consideration: Funding for Heritage Tourism; Adjust performance measure targets to conform with the committee's funding decisions. Without objection, the motion was adopted. Ethics Commission The chair recognized Representative Hamric to lay out the recommendations for the Ethics Commission. Representative Hamric moved the adoption of the LBB recommendations. Without objection, the motion was adopted. Texas Incentive & Productivity Commission The chair recognized Representative Hamric to lay out the recommendations for the Incentive & Productivity Commission. Representative Hamric moved the adoption of the LBB recommendations. Without objection, the motion was adopted. Cancer Council The chair recognized Representative Pickett to lay out the recommendations for the Cancer Council. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Rider 3, Appropriations of License Plates Balances and Receipts. Without objection, the motion was adopted. Bond Review Board The chair recognized Representative Pickett to lay out the recommendations for the Bond Review Board. Representative Pickett moved the adoption of the LBB recommendations as amended. Without objection, the motion was adopted. At 9:54 a.m., on the motion of the chair and without objection, the meeting was recessed until final adjournment of the house. The committee reconvened at 11:51 a.m. and was called to order by the chair, Representative Pitts. The roll was answered as follows: Present: Representatives Pitts; Berman; Brown, Betty; Brown, Fred; Chisum; Davis, John; Hamric; Hegar; Hope; Hopson; Menendez; Pena; Pickett; Smith, Todd; Truitt; Turner (16). Absent: Representatives Luna; Branch; Crownover; Dukes; Edwards; Gattis; Guillen; Haggerty; Isett; King, Tracy; Kolkhorst; Martinez; McClendon (13). A quorum was present. Testimony was taken. (See attached witness list.) (Representative Guillen now present.) (Representative Gattis now present.) (Representative Kolkhorst now present.) General Land Office and Veterans' Land Board The chair recognized Representative Pickett to lay out the recommendations for the General Land Office and Veterans' Land Board. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Rider 11, Contingency Appropriation for GR-Dedicated Coastal Protection Account No. 027. Without objection, the motion was adopted. (Representative Haggerty now present.) Trusteed Programs within the General Land Office The chair recognized Representative Pickett to lay out the recommendations for the Trusteed Programs within the General Land Office. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Coastal Erosion Grants Strategy; Technical adjustment to Rider 9, Contingency Appropriation for GR-Dedicated Coastal Protection Account No. 027; Amend Appropriation of Receipts: Real Property Sales and Mineral Royalties Rider; Add State Energy Marketing Program Rider. Without objection, the motion was adopted. (Representative Crownover now present.) Commission on State Emergency Communications The chair recognized Representative Pickett to lay out the recommendations for the Commission on State Emergency Communications. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Add Contingent Revenue: General Revenue -Dedicated Advisory Commission on State Emergency Communications Rider; Add Contingent Revenue: General Revenue-Dedicated 911 Service Fee Account No. 5050 Rider; Items for Future Consideration: Increased Network Reliability. Without objection, the motion was adopted. (Representative Branch now present.) (Representative Luna now present.) Public Finance Authority and General Obligation Bond Debt Service The chair recognized Representative Pickett to lay out the recommendations for the Public Finance Authority and General Obligation Bond Debt Service. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Increase funding for Agency Operations, Bond Debt Service Payments for the Texas Building and Procurement Commission, and Bond Debt Service Payments for the Texas Department of Criminal Justice; Technical adjustment in General Obligation debt service. Without objection, the motion was adopted. (Representative Martinez now present.) 5 House Committee on Appropriations 2/28/2005 (Representative McClendon now present.) (Representative Edwards now present.) Building & Procurement Commission The chair recognized Representative Pickett to lay out the recommendations for the Building & Procurement Commission. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Increase funding for Utility Payments, Custodial Services, Leasing Services and Deferred Maintenance; Technical adjustment to Facilities Operation Strategy; Technical adjustment to Rider 3, Capital Budget; Technical adjustment to Rider 4, Unexpended Balances of Bond Proceeds for Deferred Maintenance; Technical adjustment to Rider 9, Texas Building and Procurement Commission's Revolving Account; Technical adjustment to Facilities Management Strategy; Technical adjustment to Custodial Strategy; Modify Capital Budget Rider. Without objection, the motion was adopted. Revenue Bonds for Lease Payments The chair recognized Representative Pickett to lay out the recommendations for the Revenue Bonds for Lease Payments. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Technical adjustment to General Revenue appropriations; Technical adjustment to GR-Dedicated Department of Insurance Companies Operating Fund Account No. 36; Technical adjustment to Rider 2, Informational Listing of Appropriated Funds. Without objection, the motion was adopted. (Representative Isett now present.) (Representative Dukes now present.) Texas Lottery Commission The chair recognized Representative Pickett to lay out the recommendations for the Texas Lottery Commission. Representative Pickett moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Rider 11, Local Bingo Prize Fees; Technical adjustment to Bingo Prize Fee Allocations Strategy; Reinstate Appropriation of Increased Revenues Rider with amendments; Items for Future Consideration: Instant Ticket Vending Machine Lease Expenses. Without objection, the motion was adopted. 6 House Committee on Appropriations 2/28/2005 Soil & Water Conservation Board The chair recognized Representative Chisum to lay out the recommendations for the Soil & Water Conservation Board. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Increase funding for board members' per diem; Amend Allocation of Grant Funds Rider; Items for Future Consideration: Restore 5% Reduction. Without objection, the motion was adopted. Office of Rural Community Affairs The chair recognized Representative Chisum to lay out the recommendations for the Office of Rural Community Affairs. The chair pended the recommendations. Comptroller of Public Accounts The chair recognized Representative Chisum to lay out the recommendations for the Comptroller of Public Accounts. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Increase funding for Taxpayer Information Strategy, Tax Hearings Strategy, Claims and Payments Strategy, and Fiscal Research and Studies Strategy; Increase the FTE cap. Without objection, the motion was adopted. Fiscal Programs - Comptroller of Public Accounts The chair recognized Representative Chisum to lay out the recommendations for the Fiscal Programs - Comptroller of Public Accounts. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Miscellaneous Claims Strategy; Technical adjustment to Reimburse - Beverage Tax Strategy; Technical adjustment to Tort Claims & Fed. Court Judgments Strategy; Technical adjustment to Rider 2, Appropriation from the Compensation to Victims of Crime Auxiliary Fund; Technical adjustment to Rider 3, Appropriation, Payment of Miscellaneous Claims; Technical adjustment to Rider 4, Appropriation, Payment of Tort Claims; Technical adjustment to Rider 5, Limitation, Payment of Tort Claims; Technical adjustment to Rider 10, Oil Overcharge Funds Settlement. Without objection, the motion was adopted. Social Security and Benefit Replacement Pay 7 House Committee on Appropriations 2/28/2005 The chair recognized Representative Chisum to lay out the recommendations for the Social Security and Benefit Replacement Pay. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Technical adjustment to State Match - Employer - Public Education Strategy. Without objection, the motion was adopted. Department of Agriculture The chair recognized Representative Chisum to lay out the recommendations for the Department of Agriculture. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Amend Child Nutrition Program Rider; Amend Appropriation of Receipts: Yardage Fees Rider; Items for Future Consideration: Feral Hog Abatement Program. Without objection, the motion was adopted. Office of the Governor The chair recognized Representative Chisum to lay out the recommendations for the Office of the Governor. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Increase funding for Support Governor and State Strategy; Technical adjustment to Rider 5, Unexpended Balances Between Biennia; Add Travel Expenses for Protocol Services Provided by the Secretary of State Rider. Without objection, the motion was adopted. Trusteed Programs within the Office of the Governor The chair recognized Representative Chisum to lay out the recommendations for the Trusteed Programs within the Office of the Governor. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Reduce funding for Disaster Funds Strategy; Technical adjustment to Economic Development and Tourism Strategy; Technical adjustment to Emergency and Deficiency and Disaster Grants; Technical adjustment to Appropriation of Balances, Revenue, Fees and Investment Earnings for the Texas Economic Development Bank; Technical adjustment to Appropriation of Earned Federal Funds; Technical adjustment to Federal Grants; Technical adjustment to Unexpended Balances Between Biennia; Technical adjustment to 8 House Committee on Appropriations 2/28/2005 Texas Enterprise Fund; Technical adjustment to Unexpended Balances Between Biennia for the Texas Military Value Revolving Loan Account No. 5114; Technical adjustment to Texas Music Foundation Plates Account No. 5113 and Daughters of the Republic of Texas Plates Account No. 5115; Technical adjustment to Appropriation of License Plate Unexpended Balances and Receipts; Add Report on Use of Money in the Texas Enterprise Fund Rider; Items for Future Consideration: Create Emerging Technologies Fund, Implement Texas Film and Tourism Incentives, and Increase Funding for the Texas Enterprise Fund. Representative Haggerty objected to the motion. The chair pended the motion. Animal Health Commission The chair recognized Representative Chisum to lay out the recommendations for the Animal Health Commission. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Items for Future Consideration: Contingency Appropriation for Bovine Brucellosis 1st Point Testing. Without objection, the motion was adopted. Texas River Compact Commissions The chair recognized Representative Chisum to lay out the recommendations for the Texas River Compact Commissions. Representative Chisum moved the adoption of the LBB recommendations with the following changes: Items for Future Consideration: Full Funding of Agency, Transfer of the commissions to the Commission on Environmental Quality. Without objection, the motion was adopted. (Representative Chisum in chair.) Commission on the Arts The chair recognized Representative Berman to lay out the recommendations for the Commission on the Arts. Representative Berman moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Rider 6, Texas, State of the Arts License Plates; Add Appropriation: Texas Cultural Endowment Fund Interest Earnings Rider. Without objection, the motion was adopted. 9 House Committee on Appropriations 2/28/2005 Veterans Commission The chair recognized Representative Berman to lay out the recommendations for the Veterans Commission. Representative Berman moved the adoption of the LBB recommendations with the following changes: Increase funding for Claims Assistance; Technical adjustment to Rider 2, Appropriation of License Plate Balances and Receipts; Increase the FTE cap. Without objection, the motion was adopted. (Representative Pitts in chair.) Employees Retirement System The chair recognized Representative Berman to lay out the recommendations for the Employees Retirement System. Representative Berman moved the adoption of the LBB recommendations with the following changes: Items for Future Consideration: Increase funding for ERS Retirement (Normal Cost) and for ERS Retirement (Actuarial sound funding over 30 years). Without objection, the motion was adopted. (Representative Chisum in chair.) (Representative Pitts in chair.) Texas Workforce Commission The chair recognized Representative Berman to lay out the recommendations for the Texas Workforce Commission. Representative Berman moved the adoption of the LBB recommendations with the following changes: Amend Capital Budget Rider; Delete Continuing Education Rider; Amend Budget and Performance Report Rider; Delete Travel Expenditures Rider; Items for Future Consideration: Increase funding for At-Risk Child Care for Families Working or Training for Work Strategy. Without objection, the motion was adopted. Reimbursement to the Unemployment Compensation Benefit Account The chair recognized Representative Berman to lay out the recommendations for Reimbursement to the Unemployment Compensation Benefit Account. Representative Berman moved the adoption of the LBB recommendations. 10 House Committee on Appropriations 2/28/2005 Without objection, the motion was adopted. Fire Fighters' Pension Commissioner The chair recognized Representative Berman to lay out the recommendations for the Fire Fighters' Pension Commissioner. Representative Berman moved the adoption of the LBB recommendations with the following changes: Items for Future Consideration: State Contribution for Unfunded Actuarial Accrued Liability (UAAL) for the Texas Statewide Emergency Services Retirement Act. Without objection, the motion was adopted. Secretary of State The chair recognized Representative Berman to lay out the recommendations for the Secretary of State. Representative Berman moved the adoption of the LBB recommendations with the following changes: Reduce funding for Protocol/Border Affairs; Amend Number of Processed Requests for Information on Business, Commercial, and Public Filings performance measure; Amend Average Cost per Business, Commercial, and Public Filings Transaction and Information Request performance measure; Delete Border Affairs Coordinator Rider; Delete General Revenue Transfer to the General Revenue-Dedicated Election Improvement Fund Rider as amended; Add Travel Cap Exemption for the Secretary of State and the Secretary of State's Staff Rider. Without objection, the motion was adopted. Office of State-Federal Relations The chair recognized Representative Berman to lay out the recommendations for the Office of State-Federal Relations. Representative Berman moved the adoption of the LBB recommendations. Without objection, the motion was adopted. Parks & Wildlife Department The chair recognized Representative Menendez to lay out the recommendations for the Parks & Wildlife Department. Representative Menendez moved the adoption of the LBB recommendations with the following changes: Increase funding for Proposition 8 General Obligation Bonds as amended (Critical Repairs, San Jacinto Monument, East Texas Freshwater Fish Hatchery, Debt Service), Game Warden Academy as amended, and 11 House Committee on Appropriations 2/28/2005 Government Canyon State Natural Area; Technical adjustment to Number of Major Repair/Construction Projects Completed performance measure; Technical adjustment to Rider 9, Construction and Land Owner Incentive Grants Rider; Amend Capital Budget Rider; Amend Appropriation: State-Owned Housing Authorized Rider; Add Appropriation: East Texas Fish Hatchery Rider; Add Appropriation: Game Warden Academy Rider as amended; Add Capital Budget Expenditures from Federal and Other Funding Sources Rider; Add Appropriation of Receipts out of General Revenue-Dedicated Accounts Rider. Without objection, the motion was adopted. Library & Archives Commission The chair recognized Representative Menendez to lay out the recommendations for the Library & Archives Commission. Representative Menendez moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Rider 7, Texas Reads License Plates: Appropriation of All License Plate Unexpended Balances and Receipts; Add Number of Cubic Feet Stored/Maintained performance measure; Items for Future Consideration: Appropriation for TexShare Databases. Without objection, the motion was adopted. State Office of Risk Management The chair recognized Representative Menendez to lay out the recommendations for the State Office of Risk Management. Representative Menendez moved the adoption of the LBB recommendations with the following changes: Amend Appropriation of Unexpended Balances for Cost Containment Rider; Items for Future Consideration: Increased funding for staff salaries, operating expenses and agency operations. Without objection, the motion was adopted. Workers' Compensation Payments The chair recognized Representative Menendez to lay out the recommendations for Workers' Compensation Payments. Representative Menendez moved the adoption of the LBB recommendations. Without objection, the motion was adopted. Department of Housing & Community Affairs The chair recognized Representative Menendez to lay out the recommendations for the Department of Housing & Community 12 House Committee on Appropriations 2/28/2005 Affairs. Representative Menendez moved the adoption of the LBB recommendations. Without objection, the motion was adopted. Department of Information Resources The chair recognized Representative Menendez to lay out the recommendations for the Department of Information Resources. Representative Menendez moved the adoption of the LBB recommendations. Without objection, the motion was adopted. Preservation Board The chair recognized Representative Menendez to lay out the recommendations for the Preservation Board. Representative Menendez moved the adoption of the LBB recommendations with the following changes: Technical adjustment to Manage State History Museum Strategy; Technical adjustment to Rider 5, Appropriation: Debt Service for Construction of State History Museum. Without objection, the motion was adopted. Pension Review Board The chair recognized Representative Menendez to lay out the recommendations for the Pension Review Board. Representative Menendez moved the adoption of the LBB recommendations. Without objection, the motion was adopted. At 6:45 p.m., on the motion of the chair and without objection, the meeting was adjourned until 8:00 a.m., March 2, 2005. ________________________ Rep. Pitts, Chair ________________________ Cristina Self, Clerk 13 House Committee on Appropriations 2/28/2005 14