Transcript Highlights:

• It was also very costly, not just the permit fee, but the consultant fees.
• They have a greater permit fee; however, if you spread that permit fee over five years, it provides a
• They have a greater permit fee.
• Our first 180-day permit had engineering fees of about $50,000.
• Our first 180-day permit had engineering fees of about $50,000.

Summary: The hearing focused on oversight of AB 658 and the State Water Resources Control Board’s five-year temporary permits for groundwater recharge. Assembly Member Arambula and committee members discussed how the permits are intended to help capture high flows during wet periods, support SGMA implementation, and store water underground for later use. The State Water Board chair said the five-year permits have become an important tool, with seven five-year permits issued this season and over 43,000 acre-feet authorized, but noted that actual recharge depends on hydrology and that the board is open to improvements. Members and witnesses discussed several possible changes to make the program more effective: allowing a two-year delay before the five-year permit clock starts, codifying CEQA exemptions that have been used through executive order, and shifting from a public objection model to a public comment model to reduce delays. There was also discussion of water availability analyses, with some members asking whether the state could develop a broader statewide assessment to reduce consultant costs and make permitting more predictable. The board said such an effort would be large and costly, but could potentially save applicants money and improve consistency. District representatives described their experiences. Stockton East said the five-year permit was more cost-effective than repeated 180-day permits, but that the 90-20 methodology, consultant costs, and a burrowing owl survey condition made use difficult. Omaha-Hartnell Water District said its recharge work depends on simple, low-cost infrastructure and that five-year permits, CEQA reform, and lower upfront fees would help small districts. A consultant working with Scott Valley and Sierra Valley said five-year permits can work well in different basins, but local infrastructure, stakeholder coordination, streambed alteration agreements, and upstream flow constraints can limit recharge. Members also raised concerns about basin connectivity, downstream water rights, and the need to pair recharge with sustainable groundwater pumping and broader water storage planning.

Transcript Highlights:

• First, the bill clarifies that there's a single fee for local food. and local alcohol permits.
• A food manager to pay a local fee or get a local permit when they are already certified by the state.
• The bill also addresses duplicative permits and fees by. sound permits for restaurants that are simply
• . because they're charging a duplicate fee for the same permit.
• a duplicate fee for the same permit.

Bills: SB264, SB542, SB924, SB1008, SB1029, SB1036, SB1057, SB1058, SB1185, SB1202, SB1358, SB1364, SB1376, SB1569, SB1664, SB1697, SJR50

Keywords: SB 264, Texas Workers' Compensation Act, group self-insurance, self-insured groups, workers' compensation, Texas Department of Insurance, commissioner of insurance, certificate of approval, guaranty fund, trust fund, wind down, dissolution, labor code, insurance regulation, employer coverage, risk pool, business and commerce, trade workforce economic development, property owners' association, water conservation

Transcript Highlights:

• Do you know if Fargo charges state facilities permitting fees?
• Do you know if Fargo charges state facilities permitting fees, or plan inspection fees?
• But the city does charge a permitting fee from my understanding. I can't tell you what that fee is.
• The fee process in the community development and building department, the permit fee, I'm not completely
• I've applied for permit fees personally.

Keywords: 908, all

Transcript Highlights:

• That typically sets the fee amounts at the final plat, and then charges the building permits.
• This building permit activity is also important to note. Impact fee revenue is separated.
• the most are not review fees, but project impact fees.
• Things like parkland dedication fees, affordable housing fees, drainage fees, fees for gray water use
• fees.

Keywords: 1184, house, all

Summary: The committee met to monitor implementation of several housing-related bills from the 89th session, with the chair emphasizing Texas’s housing shortage and the need to review land-use laws. For House Bill 24, witnesses from the Texas Public Policy Foundation, Reason Foundation, a church-affordable housing project, Habitat for Humanity, developers, and housing advocates said the bill’s higher protest threshold and simpler council override had reduced procedural barriers to rezoning, helped projects move forward, and supported lower rents and more multifamily development. Public testimony largely praised HB 24 as working as intended, and the chair noted it had passed the committee 6-1, the House 83-56, and the Senate unanimously. The committee then heard testimony on Senate Bill 1567, which preempted certain municipal occupancy limits based on unrelated-adult restrictions. Supporters, including Texas Public Policy Foundation, Texas Realtors, Texans for Housing, and Texas A&M student leaders, said the law improved clarity, reduced arbitrary local limits, and helped students and property owners use existing housing more efficiently. Opponents from College Station and Bryan-College Station neighborhood groups argued the law has encouraged investor purchases, tear-downs, and “stealth dorms,” displaced working-class residents, and harmed family homeownership. The chair noted SB 1567 had passed the committee 5-1, the House 101-19, and the Senate 30-1. The committee also reviewed Senate Bill 15, which reduced minimum lot sizes in covered jurisdictions. Ed Pinto of AEI said the law had already led to thousands of new small lots and lower-cost starter homes, while recommending expansion to more counties and broader application to attached housing. Other witnesses from builders, Pew, and housing advocates said smaller lots can increase affordability, but some cities, such as College Station and Grand Prairie, were adding local standards that could blunt the bill’s effect. City representatives from El Paso described how they implemented the law by reducing lot sizes and widths, while urging broader applicability to more of the city. The chair said SB 15 had passed the committee 7-0, the House 86-43, and the Senate 24-7. Finally, the committee began hearing testimony on Senate Bill 840, a by-right multifamily redevelopment measure. City officials from Garland and Plano described how they had updated local standards to comply while preserving design and setback rules, and said the bill could help redevelop built-out commercial corridors and add housing without expanding city footprints. The transcript ended as the committee continued taking testimony on SB 840.

Transcript Highlights:

• The minimum fee for an on-site electrical inspection was updated from $35 to $55 last year, and the fee
• These changes simply update the cross-references to the fee schedules that the investigation fee is based
• The minimum fee for an on-site electrical inspection was updated from $35 to $55 last year, and the fee
• <00:03:46.080> for year's fee schedule updates, the fee for year's fee schedule updates, the
• fee for 16 or for 15 circuits. fee for 16 or for 15 circuits.

Keywords: 1187, senate, all

Transcript Highlights:

• Do you know if Fargo charges state facilities permitting fees?
• But the city does charge a permitting fee from my understanding. I can't tell you what that fee is.
• pay those fees for permitting and plan reviews?
• That's frustrating to me, if it is. pay a permitting fee. That's part of this mix.
• I've applied for permit fees personally.

Summary: The committee first received a general fund and revenue update from the Office of Management and Budget. Staff reported that the state started the biennium about $176 million above prior estimates, but year-to-date revenues were now running below legislative forecast, mainly due to lower individual income tax and sales tax collections. The budget stabilization fund was above its cap, the legacy fund continued to grow, and oil revenues were slightly above forecast overall. Members also asked about federal funding uncertainty and mineral leasing variability, and OMB said agencies would be asked to address potential federal reductions case by case during budget preparation. The committee then reviewed compliance reports and trust fund analysis materials, followed by a bill draft for a fixed-route city transportation grant program. Testimony from transit officials in Fargo and Minot supported the proposal, saying state aid would help match federal transit funds and support operations, but members raised questions about the funding source, fare structures, and whether the program should be limited to the current four fixed-route cities or allow future eligible cities. Several members asked for more time to study the formula and possible funding options before moving the bill forward. Next, the committee approved a bill draft repealing obsolete language related to a proposed North Dakota-South Dakota bi-state authority. Staff explained the provision had been unused for about 30 years and that existing law likely already allowed joint powers agreements without the specific language. The committee voted to adopt the repeal bill draft. The Department of Commerce and the Northern Plains UAS Test Site then provided an update on uncrewed aircraft system initiatives, including the Vantis radar data enclave, the drone replacement program, and future revenue models. Officials said North Dakota had received FAA approval to operate the radar data pathfinder, had begun replacing non-compliant drones from restricted foreign sources, and was working on phased procurement and cost-recovery plans. Members asked about deadlines, funding, supply-chain issues, and how the system would be used; staff said the federal restrictions were already in effect and that Vantis was being positioned as infrastructure for future beyond-visual-line-of-sight operations. Finally, the Department of Corrections and Rehabilitation presented on the design of a new minimum-security prison and on a reentry housing task force. The new facility is planned for the penitentiary grounds, with a reduced estimated cost of about $263 million, 600 beds initially, possible expansion to 732 beds, and completion projected around 2031 if funded in 2027. The reentry housing task force described a data-driven effort to identify housing needs for people leaving incarceration, with the goal of reducing homelessness and recidivism through targeted housing support and possible subsidies. Members asked about staffing, site selection, housing duration, and whether employment and transportation needs would be included in the assessment.

Transcript Highlights:

• We will have tables with permitting fees.
• These factors will influence the different permitting fees.
• The fees are roughly split between general permits and individual permits.
• All states with NPDES primacy have permit fees.
• Lemon mentioned, of the 47 other states with permit fees, NPDES program permit fees, the vast majority

Transcript Highlights:

• Do you know if Fargo charges state facilities permitting fees?”
• But the city does charge a permitting fee from my understanding. I can’t tell you what that fee is.
• The fee process in the community development and building department, the permit fee, I’m not completely
• That's frustrating to me, if it is. pay a permitting fee. That's part of this mix.
• I've applied for permit fees personally.

Summary: The committee began with roll call, introductions of a new fiscal analyst and a new member, and approval of the March 19 minutes. The first major presentation was from the Office of Management and Budget on the state’s general fund and special fund status through May. OMB reported general fund revenues were running below the legislative forecast by about $76 million, driven largely by weaker individual income tax and sales tax collections, though the projected ending balance remained positive and above the budgeted level. The budget stabilization fund was above its cap and would transfer excess earnings to the general fund, and the legacy fund balance continued to grow. Members also asked about federal funding uncertainty and mineral leasing revenue variability. The committee then reviewed compliance reports and trust fund analyses, followed by discussion of a bill draft for the fixed-route city transportation network study. The draft would create a $15 million general fund grant program with a formula-based distribution to eligible fixed-route transit cities, intended to support operating and capital needs and help match federal transit funds. Transit officials from Minot and Fargo testified in support, explaining local fare and match structures and the difficulty of replacing aging buses and securing federal matching dollars. Several members questioned whether the program should be limited to the current four cities or broadened to future eligible urban areas, and whether local funding sources should be explored further. The committee did not finalize the bill draft at that point and planned to continue discussion at a later meeting. The committee also approved a bill draft repealing obsolete language related to approval of a bi-state authority with South Dakota, after staff explained that no agreements had ever been implemented and the provision appeared outdated. A roll call vote was taken and the motion carried. Later, the Department of Commerce and the Northern Plains UAS Test Site presented updates on uncrewed aircraft systems initiatives, including the Vantis radar data enclave, the drone replacement program, and efforts to build a revenue model for Vantis. Test site officials said FAA approval had been secured for the radar data program, replacement of noncompliant drones was underway, and future revenue could come from state and external users once pricing and intellectual property arrangements are finalized. Members asked about Chinese-made drones, supply chain issues, automation, and how the system would manage beyond-visual-line-of-sight operations. The Department of Corrections and Rehabilitation then presented on the design of a new minimum-security prison and a reentry housing study. Officials said the proposed facility would relocate the minimum-security prison to the penitentiary campus, reduce costs from an earlier estimate, and provide more beds and programming space, with construction potentially beginning in 2027 and opening around 2031. They also described staffing needs, the planned move of women to the New England facility, and possible expansion of men’s housing there. The parole and probation chief described a reentry housing task force studying housing needs for people leaving incarceration, with a goal of developing data-driven recommendations for subsidies and support services; a representative from Protection and Advocacy closed by expressing general support for fixed-route and paratransit funding.

Transcript Highlights:

• the inspector's fee, but there's no discount from our $350 building permit fee.
• Permit fees will be reduced by 40%.
• permit fees. fees. fees.
• <01:10:27.120> by review permit fees will be reduced by review permit fees will be reduced
• section 110 permit fees shall be reduced section 110 permit fees shall be reduced by<01:10:34.600

Keywords: 1189, house, all

Transcript Highlights:

• Members of the Railroad Commission of Texas requested this bill to modernize its permitting fee structure
• fees and authorize the railroad commission to collect permit application fees ranging from $500 to $3000
• Anyone who hauls waste in this state must have a waste hauler permit, and they The fee for a waste hauler
• So every year they file a $250 fee plus surcharge and we process their permit and they're allowed to
• And so that is a drain on whatever revenue source, so the intent was to have permit fees.

Bills: HB16

Keywords: judicial administration, court reform, juvenile diversion, court security, mental health services, drug offenses, constitutional amendments

Transcript Highlights:

• We understand that nobody likes paying impact fees.
• After 20 years of not raising an impact fee, when that impact fee does finally get adjusted for growth
• You know, this isn't about not paying impact fees.
• Every person I talk to is willing to pay impact fees.
• Senate Bill 1234, building permits and inspections.

Summary: The committee met with a quorum present and heard a series of bills, mostly local claims and growth-management or permitting measures. SB 16, SB 14, and SB 24 were uncontested claims bills providing relief for injuries or damages involving the City of St. Petersburg and Miami-Dade County; each was described as settled or favorably reported by a special master, and each was reported favorably without debate. SB 288, a negotiated bill on rural electric cooperatives, was presented as a clarification to protect co-op authority over generation and power purchases while preserving consumer protections; it drew support from industry stakeholders and was reported favorably. SB 830 created a public-records exemption for certain local administrators and their families’ personal information, citing threats against city managers, and it also passed favorably. The committee also considered several land-use and permitting bills. SB 1138 would create a registry of qualified professionals to conduct pre-application review for plats and development, aiming to reduce delays and backlogs; local government groups raised concerns about preemption and preserving quasi-judicial authority, but the bill passed favorably with one no vote. SB 168 expanded public nuisance law to include gambling houses, increased penalties, and authorized attorney’s fees and foreclosure of unpaid fees; it was reported favorably. SB 686 revised the agricultural enclave statute to create a public-hearing process for certain residential projects in urban service areas, with a sunset date later amended to June 30, 2026; conservation and planning groups raised concerns about local planning authority and public participation, but the bill passed favorably. SB 548, a growth-management and impact-fee cleanup bill, clarified plan-based methodology, extraordinary circumstances, interlocal agreements, and refund procedures for impact fees. Local government and development stakeholders testified that it would improve predictability while preserving flexibility, though some sought further refinement on fee increases and refunds; the bill was amended and then reported favorably. SB 1234 addressed building permits and inspections, including permit validity, small-project exemptions, temporary hurricane protection, standardized permit forms, and expanded use of private providers; county officials objected to reduced oversight, while builders and private-provider advocates supported the measure. After testimony and debate, the bill was reported favorably. At the end of the meeting, Senator Jones requested to be recorded on several votes, and the committee adjourned after no further business.

Transcript Highlights:

• those can take up to—there are timelines for air permits, but not for water permits—and so that can take
• Over the last 13 years, we've applied for several permits and permit amendments to build and expand our
• Pursuing these permits.
• And there's a premium processing fee that permits you to staff up. Your thoughts on that.
• If more than 90 days have passed since expiration, renewal is permitted at a higher fee of up to twice

Summary: The committee first heard House Bill 1904, which would classify intentionally released helium balloons as litter and create criminal penalties for balloon releases. The author and supportive witnesses argued that balloon releases harm wildlife, livestock, waterways, and infrastructure, and that the bill would close a loophole in current litter law. Several members questioned whether criminal penalties were appropriate, and the author said he was willing to work toward civil penalties and fines instead. No vote was taken, and HB 1904 was left pending. The committee then took up several pending bills and reported them favorably to the full House, including HB 3249, HB 3866, HB 4112, HB 1768, HB 1499, HB 573, and HB 464. These measures dealt with topics such as TCEQ contested-case procedures, outdoor storage containers, high-level radioactive waste, concrete plant permitting and grants, unannounced concrete batch plant inspections, and a scrap tire grant program. Most were adopted with substitutes and passed on recorded votes, generally with unanimous or near-unanimous support. A major portion of the meeting focused on HB 3997, which would create expedited permitting timelines for LNG facilities and related wastewater permits. Industry witnesses said the bill would provide certainty for multibillion-dollar projects without eliminating public participation, while environmental groups opposed parts of the bill that they said could limit contested-case participation and be unrealistic for SOAH timelines. TCEQ staff described the current wastewater permitting process and said some of the bill’s timing provisions could be workable, especially with an expedited fee. The bill was left pending after the author said he would continue working on committee substitute language. The committee also heard HB 1237 on extending the renewal window for expired TCEQ occupational water licenses, and HB 4519, a TERP consolidation bill that would combine several clean transportation grant programs into fewer programs. HB 1237 was left pending without testimony, while HB 4519 drew broad support from environmental and industry witnesses who favored simplifying the program, though some asked for stronger emphasis on particulate matter and hydrogen funding. The committee withdrew the substitute on HB 4519 and left it pending. Finally, HB 5033, which would eliminate the motor vehicle emissions inspection and maintenance program if federal authority changes, drew opposition from environmental and inspection-industry witnesses who warned it would weaken air-quality protections and could remove an important enforcement tool. The author said the bill was intended as a trigger mechanism and would be refined, and HB 5033 was left pending. The committee also heard HB 1227 on municipal solid-waste franchise fees and private-provider access; the author said he would bring a substitute after hearing concerns from cities, and the bill was left pending.

Transcript Highlights:

• Section 858, fees. This section changes the existing statutory fee structure.
• Registration fees, permits exempting certain product categories from registration fees, and establish
• Section 858, fees. This section changes the existing statutory fee structure.
• Fees will be annual. The CCB may prorate fees over a longer period of time.
• CAFO permit in process. CAFO permit in process.

Keywords: 926, house, all

Summary: The House took up Senate Bill 323, suspending the rules to consider it immediately. The bill was described as a broad agricultural measure with committee amendments and fiscal implications, and it was reported favorably by the Agriculture, Food Resiliency, and Forestry Committee, Ways and Means, and Appropriations. Members outlined sections dealing with milk market corrections, farm-to-school language, repeal of the obsolete pest control compact, pesticide applicator licensing changes, seed law updates, the Vermont Agricultural Credit Program, hemp regulation, and CAFO-related provisions. The Agriculture committee reported the bill out 7-0-1, and the effective date was described as July 1, 2026, except for the hemp provisions, which would take effect upon passage. Much of the discussion focused on the hemp sections. Supporters said the bill updates Vermont law to reflect federal changes and shifts hemp oversight from the Agency of Agriculture to the Cannabis Control Board. The hemp provisions would create registration and licensing requirements for hemp producers, processors, and certain hemp products; set fees; authorize testing, inspections, stop-sale orders, and administrative penalties; and allow rulemaking on product standards, labeling, insurance, additives, and age restrictions. Speakers said the changes were intended to help Vermont’s hemp industry maintain access to banking, insurance, and interstate commerce while improving consumer safety and regulatory clarity. Other agricultural provisions were also explained in detail. The bill would clarify milk producer hearing rights, update farm-to-school grant/contract language, remove outdated pest-control compact language, and adjust pesticide applicator exam and fee rules, including removing the limit on retakes and eliminating certain government applicator fees. It would also modernize seed labeling and definitions, transfer the Vermont Agricultural Credit Program into a new statutory structure under VEDA, and make conforming cross-reference changes in tax and cannabis fund statutes. The final sections would add a CAFO permit working group and require consultant training for state agencies on CAFO inspections, with those provisions contingent on future funding. Ways and Means noted the bill’s fee changes could affect state revenues, including an estimated hemp-related impact of roughly $10,000 to $90,000, though the exact effect was uncertain.

Transcript Highlights:

• I guess I'm gonna ask my own city, so we collect permit fees without a plan?
• Well, you collect permit fees, you don't anticipate that you will have this amount of money.
• And then I'm looking at the six-month waiver of permit inspection fees, which just happens to equal the
• So I'm kind of curious as to how the six-month waiver fee waiver of permit inspection fees, that was
• So I don't understand how we're building $20 million with impact fees and using $8 million of permit

Summary: The committee first took up a long-running audit finding involving the City of Daytona Beach’s unexpended building permit fund balance, which has exceeded the statutory cap for several years and was reported at $10.8 million in the latest audit. Mayor Derek Henry and city staff said the city had analyzed the fund, adopted a corrective action plan, waived more than $5.5 million in permit and inspection fees, used some excess funds for a training facility rehabilitation, and is pursuing a $9.4 million City Hall expansion that they say is allowed under a November 2024 Attorney General opinion permitting construction of a building to house the building code enforcement function. Committee members repeatedly questioned whether the city was simply trying to spend down the money, whether the proposed uses were truly lawful, why the balance kept growing despite fee waivers, and where the interest earnings were going. The mayor and deputy city manager said the city’s growth and staffing needs justified the plan, but several members expressed frustration and skepticism. A public commenter also urged accountability and raised concerns about the city’s spending plans and the size of the remaining balance. The committee then received an Auditor General presentation on the Town of Greenville, which found 31 operational audit findings and described pervasive control failures, possible fraud, waste, and abuse. The findings included election paperwork problems that left a council seat vacant, conflicts of interest, late financial disclosure filings, related-party transactions, inadequate meeting notices and minutes, quorum and voting documentation problems, council members’ involvement in day-to-day operations, missing ethics training, budget adoption and monitoring deficiencies, inaccurate accounting records and bank reconciliations, utility billing and rate issues, grant compliance problems tied to an unfinished grocery store project, weak personnel and contracting controls, improper severance and compensation issues, late vendor payments, weak procurement and P-card controls, vehicle-use and property-control weaknesses, poor public records access, and IT access and fraud-policy gaps. Greenville’s mayor and staff said the audit largely reflected the prior administration and that the current council and staff are taking corrective action. They said the town terminated the former manager, adopted seven new policies since the audit began, and is working with the Auditor General to improve procurement, financial controls, inventory management, grant oversight, and ethics compliance. The town attorney said he had alerted federal authorities earlier about concerns, and committee members noted that FDLE has received a criminal referral and is investigating. Several members praised the new leadership’s cooperation but also suggested the town consider consolidation or dissolution if problems persist.

Transcript Highlights:

• or a connection fee.
• So you have to start the conversation about impact fees and what's a fair fee with the question of what
• Things like just garden-variety building permits or construction permits are not part of the 5290 process
• Not every permit is required, and also some permits represent multiple housing units.
• This also saves cost on permit fees, as they do not have to pay for plan review.

Summary: The Senate Housing Committee heard presentations on a range of housing finance, permitting, and affordability tools. Chattanooga described its affordable housing PILOT program, which uses a per-unit property tax abatement tied to the rent loss from providing affordable units, with a 15-year term and annual compliance monitoring. Committee members asked about the program’s structure, whether it had been used elsewhere, and who was participating; the presenter said the first mixed-income project would bring 278 units with 42 affordable units and that the model was attracting private market-rate developers. Shoreline then described its MFTE and inclusionary zoning approach, emphasizing that longer tax exemption periods and station-area zoning changes had helped spur development, with most current pipeline projects concentrated near light rail stations. The committee also heard from the Municipal Research Services Center and the Department of Commerce on tax increment financing, proportional impact fees, and permit timelines. Commerce explained that TIF can fund public improvements such as roads, utilities, broadband, and some affordable housing or child care facilities, while proportional impact fee guidance is intended to help jurisdictions charge fees more closely aligned with actual project impacts. On permit timelines, Commerce presented its first annual report under recent law changes, using 2024 as a baseline year and noting that reported timelines were generally longer than statutory goals; members asked about outliers, paper versus electronic processing, and whether back-and-forth between applicants and staff was driving delays. Commerce said it would follow up with more data, including on CHIP funding and permit reform practices. Several local governments then shared permitting process improvements. Auburn reported relatively short review cycles and described its move to fully electronic permitting, internal performance standards, and a stock plan program that speeds review for repeated home designs. Bellevue described an AI permitting pilot with a local startup to help with pre-application questions, document triage, and plan review, aiming to reduce incomplete applications and revision cycles. Seattle presented a pilot for accessory dwelling unit co-development in which a mission-driven partner would help homeowners split lots, finance, build, and manage ADUs, with the homeowner eventually buying out the partner and retaining ownership; committee members asked about rent setting, management fees, and default risk, and staff said they would follow up. The committee also heard brief overviews of community land trusts and limited equity cooperatives as permanent affordability models, with presenters urging continued state and local funding support and policy recognition for these approaches.

Transcript Highlights:

• I guess, and I guess I'm gonna ask my own city: so we collect permit fees without a plan?
• Well, you collect permit fees, you don't anticipate that you will have this amount of money.
• never increased your fees.
• And then I'm looking at the six-month waiver of permit inspection fees just happens to equal the remaining
• So I'm looking at, so I'm kind of curious as to how you, how the six-month waiver fee, waiver of permit

Summary: The Joint Legislative Auditing Committee first heard a long-running audit finding involving Daytona Beach’s unexpended building permit funds, which have exceeded the statutory limit for several years and were reported at $10.8 million in the most recent audit. Mayor Derek Henry and city staff said the city has analyzed the fund, adopted a corrective action plan, waived more than $5.5 million in permit and inspection fees over several periods, and used some excess funds for a training facility rehabilitation and a proposed City Hall expansion. Committee members repeatedly questioned whether the city was simply trying to spend down the money, raised concerns about the legality and necessity of proposed expenditures, and asked about interest earnings, truck purchases, and the lack of detailed tracking for training-facility use. The city said an Attorney General opinion allows construction of a new building for building-code functions but not purchase of an existing building, and that if the city cannot comply through permissible construction it would have to return the funds. No vote was taken, but members expressed strong frustration and urged the city to resolve the issue quickly and lawfully. The committee then received the Auditor General’s presentation on the Town of Greenville, which found 31 findings and described pervasive control failures, possible fraud, waste, and abuse. The findings covered elections and quorum issues, conflicts of interest, late or missing financial disclosure forms, related-party transactions, poor meeting notices and minutes, council involvement in day-to-day operations, missing ethics training, budget and accounting deficiencies, weak bank reconciliations, improper utility billing and rates, grant compliance problems tied to a grocery store project, personnel and compensation issues involving the town manager, late vendor payments, weak procurement and P-card controls, vehicle-use and property-control problems, public records issues, and IT/fraud-policy weaknesses. The auditor said the review focused mainly on October 2022 through February 2024 but went back further for some grant-related matters. Greenville’s mayor and staff said the audit reflected actions of a previous administration and that the current council and staff have already adopted seven new policies to improve procurement, financial controls, inventory management, grant oversight, and ethics. They said the town has a new manager and clerk, that the former manager was terminated, and that the town referred matters to FDLE, which is investigating. Committee members asked about the manager’s salary increase, severance, P-card use, and whether the town should consider consolidation or dissolution. The mayor said the town is on a better path, that most of the prior leadership has been voted out, and that the town is working with auditors and an outside accounting firm to correct the problems.

Transcript Highlights:

• reviews these alteration of terrain permits, and they can issue basically a fee requirement for mitigation
• I mean, you're removing the fee, not the requirement for the permit, so you have to still do the permit
• fee pay to Dees permit but there'd be no fee pay to Dees that's<01:42:22.440> what<01:42:22.599
• <01:58:57.599> fees<01:58:58.000> that<01:58:58.119> may increase in permitting
• fees that may increase in permitting fees that may result<01:58:58.880> so<01:58:59.599> if

Keywords: 1191, senate, all

Transcript Highlights:

• So those can take up to, there are for air permits, but not for water permits.
• Over the last 13 years, we've applied for several permits and permit amendments to build and expand our
• These permits get issued. It's not a question of the permit not getting issued.
• that permits you to staff up.
• If more than 90 days have passed since expiration, renewal is permitted at a higher fee.

Transcript Highlights:

• <00:33:32.000> fees<00:33:32.399> going<00:33:32.679> up the permitting fees
• the fees for that the the um permit the fees for that the the um permit fees<00:36:09.880> this
• there<00:36:14.839> the ...the application fee, but the permit fee, I think, went from
• It's exempt from permitting, so there's no fees because they don't even come in for a permit, whether
• It's exempt from permitting, so there's no fees because they don't even come in for a permit, whether

Keywords: 928, house, all

Summary: The committee first took up a House Bill 2 amendment to remove a bail-related section that had already passed in another bill and was now considered duplicative. Members discussed the earlier change to how bail commissioners are reimbursed, concerns that the Judiciary was losing money collecting the fees, and whether the magistrate-related language would still be needed. They noted the bill had already crossed over to the Senate, that the section was obsolete, and that any remaining issue about magistrates’ five-year terms might need to be raised with the Criminal Justice Committee. Amendment 997H, deleting section one, was moved, seconded, and adopted unanimously. The committee then reviewed a package of HB 1 position transfers involving the Department of Environmental Services, Fish and Game, and the Department of Natural and Cultural Resources. Staff explained that several positions were being shuffled to correct position numbers and align permitting functions, including one Fish and Game position moving back to Fish and Game, one DEES position remaining funded after ARPA money ends, and adjustments to hours for permitting and environmental services positions. Members discussed whether the Fish and Game position had been intended to be temporary, but ultimately agreed to accept the first four Environmental Services items and the last two Natural and Cultural Resources items as a package; that motion passed unanimously. They then also accepted sections 2 through 8 of HB 1 with the related amendments and footnote language. The committee next turned to dredge-and-fill fee changes in section 11, where one member objected to a 50% fee increase for seasonal docks, arguing it could discourage permitted work and might apply to repairs that only require notification. Staff said the increase was intended to help cover the cost of additional positions in future biennia, but members decided to hold that section for more information, including how many seasonal dock repair fees are actually collected. Finally, the committee began discussing HB 215 and a proposed tipping-fee/surcharge structure to make a solid waste accounting unit self-funded, with members saying the fee could offset about $2.9 million in general fund costs and support the grant program, but no final action was taken on that item in the portion of the meeting provided.

Transcript Highlights:

• We want to know that the water and sewer tap fees, the sewer fees, the stormwater runoff fees, those
• Impact fees. Impact fees! Wow.
• TCEQ's air permitting program includes a fee-based expedited model that supports faster processing, and
• So, with permitting—no, sorry, without permitting.
• We support expedited permit review fees to help offset the increased workload.

Summary: During the meeting, legislative members discussed the practice of municipalities diverting water and sewer revenues to their general funds, which impacts infrastructure maintenance and project delays. Vice Chair Sparks proposed limiting public testimony to two minutes, which was adopted without objection. The committee heard from various witnesses, including Perry Fowler from the Texas Water Infrastructure Network, who emphasized that utility revenues should primarily support water services and that transfers should be transparent and justified. He noted that many utilities face financial pressures that could hinder infrastructure projects. Larry French from the Texas Public Policy Foundation highlighted the significant financial impact of water loss and general fund transfers, estimating the annual loss at $1.5 billion. He argued that these transfers can create disincentives for municipalities to address water loss issues. Brian Butcher, Assistant City Manager of Sugar Land, defended the city's cost allocation model for general fund transfers, asserting that they are necessary for equitable service provision and operational efficiency. The committee also discussed the implications of rising construction costs and the need for better procurement processes to ensure effective use of taxpayer dollars. The second part of the meeting focused on the New World Screwworm and the state's preparedness to manage potential infestations. Dudley Hoskins from the USDA outlined the federal response efforts and the importance of collaboration with state agencies. He emphasized the need for ongoing surveillance and the production of sterile flies to combat the pest. Dr. Philip Kaufman from Texas A&M discussed the historical context of the screwworm and the challenges posed by its potential reintroduction, urging proactive management strategies among livestock producers. The committee acknowledged the need for increased resources and research to effectively address the threat of the screwworm.