The State Legislature is back in session. Below are just three legislative priorities for AGC members:

Margins tax/cost of goods sold - High profile, ongoing issue with Comptroller's office over whether supervisory labor is tax deductible or not. Sources report that there will be a favorable agreement, but if it falls through, expect a full legislative battle.

State's breach of contract - The State is the only governmental entity in Texas that can breach contracts and not be sued. Legislation will be pushed to put the State on the same footing as all other governmental entities, and hold it legally accountable for breaching construction contracts.

School background checks portability- Public schools require some construction workers to pass full-blown DPS fingerprint background checks. School districts vary widely on how they implement and enforce these requirements, and multiple background checks are often required simultaneously on the same worker. Legislation will be pushed to make these checks portable and either uniform or reciprocal between entities.

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Construction employment grew by 8 percent, or 3,300 jobs in the San Antonio area from December 2011 to December 2012. Some predict it will reach 47,600 by the end of the year.

Nationally, the four-week moving average for unemployment claims has fallen to the lowest level since March 2008. Initial claims were down by 5,000, indicating a slowdown in layoffs. Additionally, despite a slight pullback, several leading economic indicators are trending upward, signaling future growth according to the Wall Street Journal. It's "the best-looking contraction in U.S. GDP you'll ever see," Paul Ashworth, chief U.S. economist for Capital Economics said in a research note. "The drag from defense spending and inventories is a one-off."