AFFM Member: “As the state that continues to enjoy the most business relocation and expansion projects and is consistently ranked the ‘Best State for Business’ year after year, Texas needs to maintain its world-renowned reputation for being open for business.”
In case you missed it, last week Henry Bell, President of AFFM member Tyler Area Chamber of Commerce, penned a guest column in the Tyler Morning Telegraph commending Texas lawmakers for taking another look at Texas laws that restrict certain companies from doing business with public entities in the Lone Star State. Earlier this month, the Texas Senate State Affairs Committee held an interim hearing on ‘Responsible Investing,’ specifically examining how companies labeled as “boycotters” of the oil and gas industry can be taken off the state’s list of banned companies.
In his column, Bell encouraged lawmakers to follow the data when considering any updates to the law:
“Texas legislators have always prioritized common-sense, pro-business legislation that has propelled our state to become the 8th largest economy in the world. That’s why it’s so important for legislators to continue to examine the data surrounding the economic impact of legislation meant to protect taxpayers, including SB 13 – a 2021 law that bans certain companies from entering into public contracts in Texas if they are deemed to ‘boycott’ the oil and gas industry.
“The facts show that, despite being labeled as ‘boycotters’ of the oil and gas industry, many of the financial institutions that have been targeted under this law are among the world’s largest financiers of fossil fuels – including HSBC and UBS group, which have more than $192 and $210 billion worth of fossil fuel projects, respectively, since 2016. Earlier this year, Lieutenant Governor Dan Patrick – who strongly supported the law that named investment giant BlackRock among the ‘boycotters’ of fossil fuels – acknowledged that ‘BlackRock has been a big investor in the fossil fuel industry.’”
Bell points out the financial impact the state’s ‘Fair Access’ law is estimated to have on taxpayers and local economies if Texas continues broad enforcement against alleged ‘boycotters,’ reducing competition in the municipal bond market and saddling taxpayers with extra, unnecessary debt:
“Policymakers should also consider that shutting banks out of doing business with public entities in Texas inherently reduces competition, which is both antithetical to our state’s pro-free market approach and harmful to consumers, taxpayers and the business community.
“One study found that the law could result in higher interest rates and as much as $500 million in new debt levied on taxpayers. Another study conducted by Texas-based economist Ray Perryman earlier this year found that Texas’ economic losses amounted to more than $760 million in gross product in just the first year after the law’s implementation.”
From an economic development perspective, Bell emphasizes that continuing to attract business expansions in Tyler and across the state means maintaining Texas’ reputation as an affordable place to live, work and raise a family:
“When CEOs consider moving or expanding their operation to Texas communities, they look at important quality of life factors including affordability, property taxes, and quality school districts for their employees’ children. But with laws that limit which companies can do business with Texas public entities, the attractive and affordable economic environment we’ve worked so hard to cultivate is at risk of being undermined.”
To read the full op-ed in the Tyler Morning Telegraph, click here.
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