Defeating bathroom bill tops their agenda
Business leaders fear Texas could lose billions in economic activity
Texas business leaders are gearing up for a fight with state lawmakers over Lt. Gov. Dan Patrick’s push to bar transgender Texans from bathrooms tied to their gender identity.
Business groups vehemently oppose the legislation, which they say would discriminate against the LGBT community, make the Lone Star State less attractive for businesses, drive away major events and tourists and hamper the state’s ability to retain young, top-tier workers who view LGBTworkplace equality as a must-have.
If the bill became law, business leaders say, it would flush away up to $8.5 billion in economic activity while distracting lawmakers from more pressing issues, such as cutting and reforming taxes and bolstering the state’s economic incentive funds. The business leaders didn’t say if that would be an annual amount.
“Many are questioning why we’re even bringing it up when it’s not needed,” Chris Wallace, Texas Association of Business president, said in a phone interview. “Why are we spending a lot of taxpayers’ money on these types of issues when we have too many other core issues to
be concentrating on?”
Patrick has named Senate Bill 6 — authored by state Sen. Lois Kolkhorst, R-Brenham, and dubbed the “Texas Privacy Act” — one of his top priorities for the state’s legislative session that begins Tuesday. The bill would require public entities to designate use of restrooms and locker rooms based on biological sex, not gender identity. It also blocks local governments from enacting ordinances dealing with the issue.
“The privacy and safety of Texans is our first priority, not political correctness,” Patrick said at a news conference Thursday announcing the bill’s filing.
Business leaders fear economic fallout similar to what North Carolina saw after Gov. Pat McCrory signed House Bill 2 into law last year. AUniversity of California-Los Angeles study published in May estimated North Carolina could lose $5 billion a year because of the law.
PayPal pulled out of plans to add 400 jobs — and an estimated annual payroll of $20 million — in Charlotte, N.C. German banking giant Deutsche Bank nixed a $9 million expansion in Cary that would have added 250 employees. The NBA yanked its All-Star Game from Charlotte in July, and the Atlantic Coast Conference pulled its college football championship and woman’s college basketball tournament from the state.
Almost 1,200 companies — including Microsoft, Texas Instruments, Whole Foods Market, SeaWorld San Antonio and Amazon — have signed the Texas Competes pledge, which states that long-term economic competitiveness and productivity in Texas are tied to creating a fair environment for the LGBT community. Texas Competes Managing Director Jessica Shortall said the bathroom bill could undercut that goal.
Outside of the transgender bathroom bill, Texas business leaders have other priorities they’d like to see legislators tackle within the next several months. Oil and gas
The state’s oil and gas sector has its own concerns as it recovers from the industry’s downturn. Todd Staples, president of the Texas Oil & Gas Association, said lawmakers should “keep Texas on the right track” by reauthorizing the Railroad Commission, enacting only “stable, science-based” regulations and keeping taxes low, and focusing on the critical infrastructure needed to keep up with the state’s growth.
“We will be urging lawmakers to hold fast to policies that are protecting the environment while keeping Texas on top as the nation’s leader in oil and natural gas production, pipeline miles and refining capacity,” Staples said in a statement. “Smart policy that promotes growth in the oil and natural gas sector is key to securing our economy, our environment and our future.” Taxes
Also high on the list is lowering and perhaps eliminating of the state’s business margins tax, known as the franchise tax. Lawmakers cut the tax by $2.6 billion last session and plan to take further action this year
Senate Bill 72, authored by state Sen. Jane Nelson, R-Flower Mound, would cut the rate by 2.5 percent each year if the state posts a revenue surplus. Another proposal, Senate Bill 178 by state Sen. Craig Estes, would repeal the tax entirely.
Retailers hope lawmakers take an ax to the state’s inventory tax, said George Kelemen, CEO and president of the Texas Retailers Association. The state is one of seven that allow property tax levies on unsold inventory. House Bill 425 — filed by state Rep. Angie Chen Button, R-Richardson — would exempt inventory intended for sale from property taxation.
Businesses also are concerned about proposals to raise the state’s minimum wage of $7.25 an hour. Two resolutions in the House and Senate call for a constitutional referendum on raising the minimum wage to $10.10 an hour. Incentives
Business are calling on the Legislatures to continue appropriations to the Texas Enterprise Fund, which provides cash incentives for outside companies to place investments and jobs in the state.
At least one lawmaker is targeting the fund along with the Texas Moving Image Industry Incentive Program and the Major Events Trust Fund. State Sen. Bob Hall, R-Edgewood, has introduced legislation to nix incentive funds. “The role of government,” Hall said, “is to stay out of the way, keep taxes low, keep regulations to a minimum and let the free enterprise system drive the economy, not the government stepping in to pick winners and losers using taxpayer money.”
Wallace, the Texas Association of Business president, said incentive funds help the state attract investment and stay competitive with other states.
“We’re really not picking winners and losers,” Wallace said. “We’re making sure that we’re in the game.” Agricultural issues
Texas farmers and ranchers have handed their Austin lobbyists a full plate of issues this session, whether it’s being able to fix their own high-tech tractors to claiming their share of grain left when an elevator goes bust.
But the resounding concern of the approximately 2,000 agricultural producers weighing in on a Texas Farm Bureau survey was water and private property rights. As urban populations continue to grow in the Lone Star State and the energy sector remains an economic driver, many are feeling trampled by eminent domain.
Jim Reaves, the Texas Farm Bureau’s state legislative director, said Senate Bill 18, the eminent domain measure passed during the 2011 session, needed to be revisited to address issues such as legal expenses and appraisals. Landowners given lowball offers in the name of pipeline easements, high-speed rail or other public projects may successfully fight for a better price, only to find a chunk of the money going to lawyers, he said. Real estate
The real estate industry is hoping the Legislature will reform how property taxes are collected in Texas to make it simpler for property owners to understand, said Tray Bates, former president of the South Texas Commercial Association of Realtors.
Senate lawmakers have billed property tax reform one of their top priorities this session. State Sen. Paul Bettencourt, R-Houston, filed Senate Bill 2 in November — a comprehensive reform package that creates a statewide property tax advisory board that reports to the comptroller’s office and oversees appraisal districts and tax offices among other aspects.
Owners often have trouble figuring out how much they will pay because of how many taxing districts have jurisdiction over their property, Bates said. Industry members feel that the system benefits the districts over the taxpayers. The industry will also fight efforts in the Legislature to require the disclosure of real estate sale prices that would be used to appraise the value of properties, Bates said. Banking
The Independent Bankers Association of Texas , which represents community banks, is working with the Texas Association of Realtors in hopes of getting legislation that would increase the amount homeowners can borrow under a home equity line of credit. Right now, the amount can’t exceed 50 percent of the property’s appraised value.
The trade group has proposed rasing the limit to 80 percent, the same as other types of home equity loans. Lynn Brezosky, Patrick Danner, David Hendricks and Jennifer Hiller contributed to this report.