“Taxpayers Will Pay the Price” of Texas’ New Anti-Business Law
FOR IMMEDIATE RELEASE: January 2, 2024
Washington, D.C. – President and CEO of the North Texas Commission and leader of the North Texas Regional Chamber Coalition, Chris Wallace, is calling out Texas’ anti-responsible investing law, SB-13. for threatening Texas’ pro-growth business climate in an op-ed for the Dallas Business Journal.
In 2021, Texas Governor Abbot signed legislation requiring state entities to divest from businesses that “cut ties” with big polluters. In October of 2023, Texas Attorney General Ken Paxton released guidance which explicitly prohibited Texas governmental entities from entering into contracts with these businesses for the purchases of goods or services with a value of $100,000 or more. In response to the ban, five major municipal bond underwriters withdrew from the state.
“Nonsensical enforcement of Fair Access laws that target certain financial institutions due to their corporate governance policies could threaten the pro-growth groundwork we have laid by tightening our municipal bond market, costing Texas taxpayers, municipalities and businesses,” Wallace writes in his op-ed.
He goes on to cite a 2022 study which found Texas’ anti-responsible investing laws would result in up to $500 million in undue interest over the first eight months of enforcement, costs which would ultimately be borne by taxpayers in the state.
“Anti-competitive policies are not the solution,” Wallace writes. “I encourage Texas lawmakers and officials to consider our future growth and well-being of our state when considering tightening our bond market and reducing competition, or our business, reputation, and taxpayers will pay the price.”
Wallace isn’t the only business leader who believes that Texas’ law hurts investors and people. JPMorgan CEO Jamie Dimon recently said that Texas’ anti-business law is “bad for business,” joining 85% of investors who think responsible investing leads to “better returns, resilient portfolios and enhanced fundamental analysis.”
To read the full op-ed, click HERE.
