As the 89th Legislature’s Second Special Session winds down, several very controversial bills still face an uncertain future. While it appeared earlier that the session would end this week, that now appears not to be the case as the Speaker has announced that he will see members on Tuesday after the holidays.
Three of the most closely watched issues include:
- The property tax cap bill, which is currently being debated in a Senate/House Conference Committee.
- The THC regulation bill, which appears not to be moving at all.
- A legislative redistricting initiative, which also shows no movement.
Property Tax Cap Measures
Cities and counties will soon be even more restrained from raising property tax revenue under the Republican property tax cap bill that is likely headed to Gov. Greg Abbott’s desk.
During this session Senate Bill 10 was originally filed by Local Government Chair Paul Bettencourt. It would have lowered the rollback rate for larger cities and counties from 3.5 percent to 2.5 percent. That reduction signaled another drop from the higher rate that passed to restrict cities and counties in the 2019 legislative session. At that time, lawmakers reduced the rate also known as the “no new revenue rate,” from 8 percent to the current 3.5 percent amount.
Democrats who opposed the measure during the current session warned it would significantly impact cities and counties that are already struggling with budget deficits and a lowered tax rate cap from the last session.
The Bettencourt bill that passed the Senate moved the property tax increase down from 3.5% to 2.5%. However, when the House took up the measure earlier this week, lawmakers approved an amendment from Representative Jared Patterson of Frisco that lowered the overall limit for all cities and counties – regardless of size – from 2.5% to 1%.
This change, if signed by the Governor, will have a chilling effect on the affected cities and counties as inflation will easily outstrip the new cap placed on raising property tax rates. With no policy preference stated by Gov. Abbott, the bill is currently in a conference committee while members of both chambers attempt to settle on a compromise version. As is so often the case, the conference committee report will likely determine the outcome, and the bill will move to the governor’s desk to be signed or vetoed.
Another measure dealing with property taxes also received approval in the House this week. House Bill 17 by Ways & Means Committee Chair Morgan Meyer deals with transparency. It requires taxing units – including school districts – to mail detailed notices to property owners showing how proposed tax rates compare to inflation, population growth, and prior levies. This is another mandate that public officials at the local levels of government are watching carefully.
THC Ban
Meanwhile, a plan to ban hemp-derived THC products in Texas has stalled in the Legislature as Gov. Abbott and Lt. Gov. Dan Patrick remain at an impasse over the issue.
While the Senate has passed a bill to ban all THC products again and sent it to the House, that legislation has since not moved. Depending on the end date of this special session, it puts this piece of legislation at long odds of passing. That is, however, not the outcome the Lt. Governor is seeking.
Patrick, who presides over the Senate, is still pushing hard for a full ban on all THC products, insisting they are dangerous and cannot be regulated. But, Abbott vetoed Patrick’s argument just two months ago after the regular session ended, saying he wants a more regulated approach to THC but not a full ban.
Redistricting and Possible Third Special Session
Finally, just this week, a group of 31 House Republicans from the caucus’ right flank sent a letter to Gov. Abbott asking him to call a third special session to redraw state House districts.
“Simply redistricting congressional seats does not go far enough,” the members wrote. “If congressional house seats are unfair to Texans, then so too are the state house districts.”
Their argument to the governor is that redistricting for statewide house districts should be done simultaneously with congressional redistricting. This request singles out 22 state House districts as targets where Hispanic, Black and Asian residents together make up a majority of the population. All 22 house districts are currently held by Democrats.
If those districts are redrawn as GOP-leaning, together with the current 88 seats held by the party, Republicans could win more than 100 seats – enough for a supermajority. With that threshold, the Republican caucus could pass constitutional amendments and prevent quorum breaks without needing any votes from Democrats.
The Labor Day holiday weekend will provide a much-needed break for legislators but, interestingly enough, this is the weekend that most political campaigns kick off aggressively. There will likely be little rest for some of the stakeholders.
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