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Texas leads the nation in job creation, population growth, and attracting business investments from all over the nation and globe. We’ve been the unrivalled top destination for foreign direct investment (FDI) and the nation’s top exporting state for 23 years and counting, due in no small part to pro-business policies that welcome and encourage companies that operate on a global scale to expand and create jobs here.

But legislation that is being considered at the Texas Capitol right now – House Bill 4921 – would restrict Texas businesses’ ability to make capital allocation decisions, effectively penalizing companies that use labor from outside the U.S., even if they still create more jobs here. This ill-advised regulatory burden would undoubtedly undermine the Texas Miracle, which is built on our companies’ ability to compete in all markets.

HB 4921 would also create a new chapter of guidelines for state investment and tax benefit eligibility, increasing compliance burdens and adding administrative complexity by

requiring businesses to track and report detailed employment and business activities. These provisions threaten to cut out businesses from accessing certain tax credits and prohibit investment from state governmental entities like retirement funds.

No other U.S. state – even California – has implemented such restrictive measures. Texas currently enjoys record-high employment and is home to more than 50 Fortune 500 companies. As the nation’s top exporting state, virtually every major company – and even many small businesses – rely on some form of international labor to remain competitive. Enacting HB 4921 would have serious negative consequences for businesses of all sizes, particularly small businesses, which are not exempt from the bill.

TAB joined Texas’ leading business and economic development organizations representing industries across the board in writing a letter urging Texas legislators to vote ‘NO’ on HB 4921, pointing to the broad detrimental impacts to the Texas economy and our state’s job creators:

“We believe this legislation would discourage investment, increase compliance burdens, undermine existing economic development programs, and potentially harm companies engaged in legitimate international operations.”

Just as we are beginning to see signs of progress in advancing trade deals with our global trading partners, businesses need consistency and confidence in our regulatory posture more than ever. Texas is impacted more by global trade activities than any other U.S. state, and our businesses don’t need more uncertainty and regulatory burdens hampering their ability to compete in global markets. Legislation like HB 4921 only undermines our state’s role as the centerpiece of the North American economic bloc under USMCA – the most important trade deal ever negotiated.

The Texas business community has serious and well-founded concerns regarding HB 4921, which should be a non-starter. Texas legislators who pride themselves on helping cultivate our state’s pro-business environment must reject this proposal to keep the Texas Miracle alive and maintain our businesses’ ability to compete across the globe.

–Glenn Hamer, President & CEO, Texas Association of Business

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