Texas lawmakers ended their regular session after passing a $248 billion budget and a bill requiring banks and underwriters to support the firearms industry to qualify for state business.
Lawmakers redefined the competitive landscape for the municipal bond industry by banning the largest players from underwriting issues in the state.
Senate Bill 19 would bar Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and U.S. Bancorp from receiving money from the state unless they support the firearms industry. Although the companies are not listed by name in the bill, House sponsor Rep. Giovanni Capriglione, R-Keller, said they would be targeted.
Abbott, who has made gun owners' rights a top priority, is expected to sign the legislation.
The bill would prevent any company with at least 10 employees from benefiting from any state or other government contract valued at least $100,000 unless the company verifies in writing that it has no policy "that discriminates against members of the lawful firearm or ammunition industries.”
The Texas Bond Review Board, headed by Abbott, would decide whether a bank was sufficiently supportive of the firearms industry before allowing them to lend money to local or state issuers. All issues in Texas require approval from the state attorney general, verifying absence of litigation that would interfere with the bond issue.
Capriglione in floor debate acknowledged the bill would result in slightly higher interest rates on bond debt.
Although no specific government agencies are cited in the bill, this law would also affect state and local pension plans.
The budget for the next two fiscal years, beginning Sept. 1, passed last week. It lowers spending by about $13.5 billion from the current two-year budget and does not tap the $10 billion rainy day fund. The plan includes $116 billion in state general funds.
At a special session next fall, lawmakers will appropriate $16.1 billion in federal funds for the pandemic and try to pass election restriction rules that failed in the final day of the regular session.
A walkout on the last day of the 87th Regular Session Sunday prevented a vote on Senate Bill 7, designed to add restrictions on voting by limiting mail ballots and transportation to the polls, and to impose harsh penalties for failing to enforce restrictions.
Abbott said he expected lawmakers to pass the voting bill when they return in the fall.
"I expect legislators to have worked out their differences prior to arriving back at the Capitol so that they can hit the ground running to pass legislation related to these emergency items and other priority legislation," he said.
Republicans led by former President Donald Trump claim without evidence that widespread voter fraud allowed President Joe Biden’s election. Trump, himself, demanded that Georgia election officials "find" enough votes to show him winning the election in that state.
Before the session ended, Republican lawmakers approved an $800 million loan to the Electric Reliability Council of Texas to cover overcharges during a February freeze, which utilities have refused to pay.
They also approved bills requiring winterization of power plants and other measures designed to keep the main electrical grid operating.
When the legislature returns in the fall, lawmakers, their staff and others will apparently have to work without pay, as Gov. Greg Abbott said he would line-item veto funding for the legislature as punishment for not passing Senate Bill 7 containing the voting restrictions he identified as an “emergency” item.
“Punishing working class office staff, maintenance, and other support services because he didn’t get every single one of his demands is very on-brand for Texas Republicans,” State Rep. Gene Wu, D-Houston, wrote on a social media post.
Abbott said he would also demand lawmakers pass the voting restrictions but did not include Lt. Gov. Dan Patrick’s call for legislation targeting transgender children.
