SB 324 Contingent Payment Passed the House on Thursday, May 17. The bill, after many years of hard work by TMC membership and Texas Construction Association, the Contingent Payment Bill has passed both the House and the Senate. The bill return to the Senate for concurrence by the Senate in a minor House amendment, and expected to concur in the next couple of days. After the completion of concurrence, the measure goes to the Governor. This is great news for TMC members and has been a long awaited valiant effort on the part of Mackie Bounds, Legislative Chairman, and other TMC members who have assisted over the past many years to get this bill to the governor's desk for signature.

SB 346 Indemnity Bill in House Committee. SB 346 is pending in the House Civil Practices Committee and efforts are being made to move the bill to the Calendars Committee. A compromise agreement is being developed to spur movement on the bill.

SB 354 Consolidated Insurance Program. Despite reaching a tentative agreement on SB 354 with opponents earlier in the week, time has run out on moving that bill out of the Senate in time for the House to consider the legislation. TCA worked over the weekend with opponents of the bill and resolved the major differences on Monday. With the May 23 deadline to pass a Senate bill out of the House, time ran out. Despite the fact that the measure did not pass, substantial progress has been made on the issue.

HB 3928 Tax Bill. The tax clean-up bill is now awaiting hearing on the Senate floor. The Senate Finance Committee made some changes to the legislation including creating a new "alternative franchise tax" which a business entity may choose in lieu of the "margin franchise tax" that went into effect this year. The new tax would be at a rate of .63% of total revenue made in Texas. The current margin franchise tax is based upon total revenue less either costs of good sold or costs of compensation which sum is taxed at a 1% rate. This alternative would go into effect if the margin franchise tax was found the unconstitutional. The fate of this proposal is uncertain as to whether it can pass the Senate and whether the House will agree to any changes.