Skip to main content

Legislative Session Update: Week 11

Published Mar 22, 2019 by Taylor Landin

During the 86th Legislative Session, the Partnership will provide a weekly update on our top executive priorities and other newsworthy items from Austin. 

Legislation related to the Partnership’s two executive priorities took significant steps forward this week. On Wednesday, the Senate unanimously passed Senate Bill 7 that creates the Texas Infrastructure Resiliency Fund. After passage of the bill, Lt. Governor Dan Patrick credited Senator Brandon Creighton (R-Conroe) for his leadership by stating, “I really do believe this is one of the most important bills this body has ever passed for the entire state of Texas and our future."

Concerning the Partnership’s other executive priority, school finance reform, the House Public Education Committee unanimously approved House Bill 3. The bill contains $9 billion in new state funding for education with a portion of those dollars directed to areas of high impact such as early childhood education.
 

PARTNERSHIP EXECUTIVE PRIORITIES
FLOOD RESILIENCE
On Monday, the House Natural Resources Committee heard House Bill 13, authored by Representative Dade Phelan (R-Beaumont). HB 13 appropriates $3.26 billion out of the Economic Stabilization Fund (ESF) to create a statewide flood infrastructure fund. The fund would provide financing options for local communities to construct flood mitigation projects to protect their residents, and call for cross-jurisdictional flood planning and an expedited process to get the funds on the ground as quickly as possible. The bill was passed unanimously out of committee.

As referenced above, the Senate moved forward on its Hurricane Harvey bill package. The Partnership has been primarily focused on Senate Bill 7, which creates the Texas Infrastructure Resiliency Fund, which provides state funding for future flood mitigation projects. The Senate supplemental budget contains $840 million in initial funding for the Texas Infrastructure Resiliency Fund. It is still to be determined how the House and Senate funding approaches will be reconciled. We will know more after House Bill 13 is voted on by the House. 

SCHOOL FINANCE REFORM
This week the House Public Education Committee unanimously voted out House Bill 3, Chairman Huberty’s school finance reform legislation. Prior to the vote, Chairman Huberty offered a committee substitute for the bill that included changes for clarity but also in substance. Notably, the substitute removed a provision from the original legislation that dedicated funding to increase pay for teachers who are identified as high-performing and excel in improving student success. This provision was one of the Texas Commission on Public School Finance’s recommendations to the Legislature late last year but was subject to significant debate when the committee heard testimony on the bill. The substitute bill also excluded specific strategies to financially reward school districts whose students meet key academic proficiency milestones.

The Partnership, in coordination with Metro 8, a coalition of the eight largest metropolitan chambers in the state, sent a joint letter of support for HB 3 to Speaker Dennis Bonnen. We expressed our appreciation for the efforts of the House to include $9 billion in new funding directed toward equitably increasing the state’s share of funding public education and reducing the local burden of recapture. We expressed our support for the members of the House to consider including a provision that would allow school districts to develop a local teacher evaluation system and reward teachers who drive students' achievement. The bill is expected to be debated on the floor of the House during the first week of April.
 

WEEK IN REVIEW
Texas Public Information Act

House Bill 2189, by Representative Giovanni Capriglione (R-Southlake) was heard by the House State Affairs Committee on Wednesday. Representative Capriglione and Senator Kirk Watson (D-Austin) are determined to close many of the perceived loopholes in the Public Information Act laws they feel were opened by the Boeing v. Paxton and Greater Houston Partnership v. Paxton Texas Supreme Court rulings in 2015. The bill was left pending in committee. Although the Partnership no longer has any governmental contracts, and does not accept public funds, we are working closely with members of the Legislature, other chambers of commerce and economic development entities to craft consensus legislation which will protect our ability to promote the region, while providing the public access to government records. The Senate companion bill, Senate Bill 943, has not received committee hearing.

Economic Development – Chapter 312
Reauthorization of the Chapter 312 tax abatement program utilized by cities and counties took an important step forward on Wednesday. The House Ways & Means Committee heard House Bill 360 to reauthorize the program for 10 years. If the program is not reauthorized, it will expire in September. The Partnership, along with many other business and economic development organizations from across Texas registered in support of the bill, authored by Representative Jim Murphy (R-Houston). The committee also heard testimony on House Bill 2438, authored by Representative Dade Phelan, which would reauthorize both Chapter 312 and Chapter 313. Simultaneous reauthorization would provide much needed certainty for economic development in Texas.

Stay up-to-date with our Policy Team throughout the 86th Legislative Session by opting-in to this weekly update or follow the team on Twitter @GHP_Policy

Related News

Education

Texas Lawmakers Continue Reforming Small Colleges to Add More ‘Credentials of Value’

6/23/25
Houston is one of the nation’s biggest hubs for young professionals, thanks to strong job growth and an affordable cost of living. Between 2020 and 2024, the region added an estimated 240,000 new jobs, part of a broader economic boom across Texas. Now, a new law aims to build on that momentum by expanding access to workforce training and education programs. Senate Bill 1786 (SB 1786) was signed into law on May 27 and takes immediate effect to remove barriers for Texans seeking to enroll in local community and junior college programs. Additional provisions, including regional job demand studies and data analysis, will take effect on September 1. Free Courses for Disadvantaged StudentsSB 1786 expands free dual credit courses for economically disadvantaged students in grades 9–12, helping more Texans earn college credit before graduation. The law also addresses delays in the Texas Higher Education Coordinating Board’s rulemaking for financial aid, speeding up access to grants and loans. It improves coordination across state and federal programs, including Jobs and Education for Texans (JET), P-TECH early college high schools, and TRUE reskilling programs. These changes will begin with the 2025–26 school year. Aligning Funding with Workforce Needs SB 1786 builds on the 2023 overhaul of the state’s community college finance system by tying funding to student outcomes, specifically: Earning degrees or industry-recognized credentials that lead to well-paying jobs Successfully transferring to four-year universities Completing targeted dual credit coursework Supporting  Business Growth and Regional Competitiveness By strengthening access to high-value credentials and aligning education funding with workforce outcomes, SB 1786 reinforces the region’s position as a destination for business investment and expansion. These reforms help ensure Houston has a pipeline of skilled talent ready to meet the needs of employers in high-growth sectors such as energy, life sciences, advanced manufacturing, and technology. As the Partnership works to attract companies and jobs to the region, these policies send a strong signal that Houston is preparing its people for the careers of tomorrow. The law also strengthens the definition of a “credential of value” as one that helps a student earn more than a high school graduate and justifies the cost of their education. Credentials in high-demand sectors, such as healthcare and education, may also qualify. These updates will take effect in the 2027–28 school year. Workforce-Driven Reform The goal of SB 1786 is to reduce redundancy, maximize impact, and ensure postsecondary programs are aligned with the needs of Texas employers. By supporting this legislation, Houston’s business community is helping to sustain a robust talent pipeline for years to come.  
Read More
Education

Texas Lawmakers Expand Focus on High-Growth, High-Wage Job Training for High Schoolers

6/23/25
This week, the Partnership highlighted the Texas Legislature’s work to deliver a new pathway for college, career, and military readiness in public schools. House Bill 120 expands programs that enable high school students to focus on career-oriented education. Building on that foundation is House Bill 20 (HB 20), which prescribes the types of high-growth, high-wage jobs for which Texas students can now earn high school credit. The goal of the bill is to improve outcomes for high school juniors and seniors by allowing them to focus their classwork on industry-aligned skills rather than solely traditional courses. Prescribed Career Programs HB 20 specifies 20 targeted high-wage, high-growth occupations. Here’s the list of eligible career fields: Automotive technology  Aviation maintenance Carpentry Construction management and inspection Diesel and heavy equipment Electrical Electronics technology Heating, ventilation, and air conditioning Industrial maintenance and processes Information technology and cybersecurity Manufacturing and industrial technology Masonry Mechanical and aerospace engineering Oil and gas exploration and production Plumbing & pipe fitting Refining and chemical processes Robotics and automation Sheet metal Transportation, distribution, and logistics Welding Partnering with Local Colleges and Universities The bill requires public school districts to partner with local colleges and universities to offer these courses. This builds on the Legislature’s work from the 2023 session to expand the ability of community colleges to provide credentials of value. One key change is that students participating in these courses will receive high school credit, and the classes will be factored into the per-student funding formula for school districts. Students may also earn a Level 1 or Level 2 certification, credentials that can make them immediately hirable for in-demand job opportunities after graduation.  Prepared to Extend the Program HB 20 limits the program to a five-year pilot period ending in 2031. However, lawmakers have the authority to extend the program based on the outcome. The Texas Education Commissioner is also authorized to adjust the prescribed industries every five years to match job market needs.   Ready to Explore High-Growth Careers? Start Here. Do you have a Texas high school student or recent graduate exploring their career path? The Kinder Institute offers a Workforce Demand Dashboard that highlights high-demand jobs and career clusters, with a focus on specific industries. This tool helps students make informed decisions using real-time data on skills, wages, and opportunities. 
Read More

Related Events

Diversity and Inclusion

Inclusion Solutions: Thriving Culture as a Talent Strategy

In today’s competitive talent landscape, inclusive workplace cultures are more than a value—they’re a strategic advantage. This interactive session is designed for human resources professionals and people leaders who…

Learn More
Learn More
Executive Partners