CONSERVATIVES TO TEXAS LEGISLATORS:
SB 896 MIGHT MAKE SENSE FOR BIG GOVERNMENT MASSACHUSETTS, BUT NOT TEXAS

AUSTIN, TX—Today, in testimony before the Texas State House of Representatives, American Conservative Union (ACU) Executive Vice President J. William Lauderback discouraged lawmakers from endorsing a series of unnecessary and onerous new regulations that interjects state regulators into private company board rooms.

“SB 896 essentially invites members of the Public Utility Commission into the Board room.  Not only does this defy the principle of economic freedom, it’s a deal-breaker for future Texas investors,” J. William Lauderback said. “If this type of regulation becomes law, Texas might as well tack the scalp of future business on the wall and declare the state officially closed to new enterprise,” he said.

Authored by Senator Troy Fraser (R-Horseshoe Bay) and supported by many GOP lawmakers, Senate Bill 896 violates the central tenet of free enterprise by intervening in mutually agreed upon business transactions such as the acquisition of TXU by private equity firms Texas Pacific Group and Kravis, Kohlberg and Roberts.

“As an example, the TXU deal offers Texans the tangible benefits afforded by free enterprise and competition, starting with rate cuts and environmental commitments,” he said.

Even though current state regulations already allow the Public Utility Commission of Texas (PUCT) PUC to review the transaction, SB 896 takes such regulatory review a step further by loosening the reigns on regulators and giving the Commission unprecedented power to halt such acquisitions.

“Does Texas remain a state committed to the principles of economic freedom or are we here today to loosen the reigns of regulators and cede more individual freedom to the government?” he asked.

As part of his testimony, Lauderback made it clear that ACU’s opposition to SB 896 was due the ripple effect it could have on all business interests as well as the decisions of future investors in the State:

“It would be no different if the legislature was requiring regulatory approval of transactions involving chemical companies, oil companies, timber or technology companies,” he said. 

###

About the American Conservative Union:

Founded in 1964 and based in Alexandria, Virginia, The American Conservative Union is the nation's oldest and largest Conservative grassroots lobbying organization. ACU represents thousands of members in Texas and several hundreds of thousands of conservatives and throughout the United States.

Bill Lauderback is the Executive Vice President of ACU.   A native Texan and graduate of the University of Texas, he served as former Special Assistant to Texas Governor William B. Clemens.