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The Senate Committee on Business & Commerce met on August 9 to discuss SB 14 (Creighton) relating to the regulation by a municipality or county of certain employment benefits and policies. SB 14 was voted out at the end of the hearing.

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

SB 14 (Creighton) Relating to the regulation by a municipality or county of certain employment benefits and policies

  • Creighton – Bill is the lifeline to Texas’ small business who need certainty and predictability
  • The COVID-19 pandemic has caused more damage to them than Hurricane Harvey
  • Prohibits political subdivisions from mandating small business provide certain employee benefits
  • Private business to ask important questions about the applicant’s criminal history
  • Does not take away anyone’s current benefits
  • Does not impact public employee or current OSHA laws
  • Is a jurisdictional issue; will prevent a patchwork of regulation
  • Is the exact version that passed this committee in March

 

Public Testimony

Anna Sandoval, San Antonio District 7 – Against

  • One of the greatest obligations as a council member, uphold standards of service
  • This version potentially prohibits from the municipality from exceeding state standards
  • San Antonio for example has mandatory drug testing and professional certifications

 

Teri Castillo, San Antonio District 5 – Against

  • Essential workers have been pivotal for continued operations during COVID, SB 14 would get in the way of retaining workers by removing ability of cities to enact safety regulations

 

Stephanie Gharakhanian, Worker’s Defense Action Fund – Against

  • Would prevent cities and counties form enacting water break ordinances, other safe4ty regulations
  • Would forever eliminate abilities of cities & counties to keep public safe during a pandemic
  • Governor is robbing locally elected officials of authority to protect citizens

 

Fidel Guzman, Worker’s Defense Action Fund – Against

  • Has been working in construction for 15 years, city safety regulations re necessary

 

Anna Isabel Garcia, Worker’s Defense Action Fund – Against

  • Highlights Worker’s Defense in protecting low-wage worker safety
  • Had to take off work to testify, angry that children could be at risk in schools

 

Jonathan Lewis, Every Texan – Against

  • Removes ability of local elected officials to respond to needs of their communities
  • Nichols – When cities pass ordinances it can be confusing for corporations, e.g. with different wage laws
    • Part of doing business in any jurisdiction
    • Understand there are challenges, asking businesses to recognize that local communities are instituting protections for their communities
  • Nichols – Want uniformity

 

Thomas Kennedy, Texas State Building & Construction Trades Council – Against

  • Opposes SB 14, was able to operate safely during the pandemic due to city regulations

 

Witness

  • Worked on fair hiring ordinance for city of Austin
  • If we’re concerned about policies, can work together on policies that benefit workers and employees, rather than eliminate progress in local municipalities
  • Creating situation where certainty and predictability are not available for workers

 

Jorge Renaud, LatinoJusticePRLDEF – Against

  • 2 important components for previously incarcerated individuals are employment and recognition that you can improve
  • Fair chance ordinances are important, businesses typically look over formerly incarcerated individuals
  • Johnson – You think the state should have a statewide provision for this?
    • Yes, some of the mythology surrounding this can be detrimental
  • Johnson – Wouldn’t have that patchwork problem
    • No, you wouldn’t; have it now with zoning and don’t see anyone doing anything about that
  • Johnson – Have it now with sales tax

 

Carol Johnson, City of Austin Civil Rights Officer – Against

  • SB 14 would prohibit cities from banning discrimination and extending NDOs or sick time & other safety regulations
  • Austin’s NDO is an economic dev tool and why so many companies choose to move to Austin

 

Rene Lara, Texas AFL-CIO – Against

  • AFL-CIO is completely opposed to SB 14, prohibits local cities and counties from passing protective ordinances
  • Exactly the wrong time to be prohibiting paid sick leave ordinances which are critical to health & safety

 

James Atkins, Self – Against

  • Helped put together the Austin fair chance ordinance, jobs can help reduce recidivism

 

Skeeter Miller, County Line – For

  • County Line has standardized work schedules, consistent employment regulations are essential to economic recovery
  • Johnson – Concerned about making these provisions state and federal, not all employers are as good as you; what administratively would help you?
    • Regulations that would get in the way of company policy
  • Johnson – Is it general or are there specifics
    • Hate to mention paid time off, County Line doesn’t make employees work & they can rotate schedules; policies that don’t need doctor’s notes, etc. could cause issues
  • Johnson – County Line rotates schedules?
    • County Line has fixed schedules, can trade schedules with other employees
  • Johnson – If they’re sick they don’t get paid?
    • No, but they have ability to come back and work extra shifts
  • Johnson – Do you use worker’s comp?
    • No, pay 100% of employee injuries
  • Johnson – So you’re self-insured essentially; what would you think of a program where employees could subscribe to a state-run sick leave insurance program and you wouldn’t have to administer?
    • Always open to ideas that could help the business run efficiently
  • Creighton – you’re here today as a good actor, successful business person, how long have you been in business?
    • 46 years
  • Creighton – There are days where every business owner worries about keeping doors open, if Austin was to pass scheduling ordinances when you’re trying to start up & delegated subpoena authority to city employees it could’ve derailed your business; difficult for small businesses to deal with patchwork from jurisdiction to jurisdiction?
    • It would be, have federal and state regulations
  • Creighton – Goal is to have this jurisdiction be statewide for things that have merit; have seen instances where employees were laid off after municipal ordinances were passed, legislation like this is priority for NFIB

 

Scott Norman, Texas Association of Builders, Alliance for Securing and Strengthening the Economy of Texas – For

  • SB 14 is about venue and jurisdiction, uniform regulation is important for business
  • Some issues have merit and TAB may not oppose them, but should be decided at a state level
  • Johnson – Share concerns about the patchwork, if the bill doesn’t pass, hope you would participate in a conversation about statewide regulation
    • TAB has been engaged for 75 year run
  • Whitmire – Home Depot testified at the White House about 3 years ago, testified that one of the smartest things they did was get rid of black box HR, allowed them to consider a new batch of good employees; would be good if you would break down some of the issues that would improve the lives of workers
  • Whitmire – Will prevent some communities from having local control over matters unique to their communities
    • Agree with a lot of what you said, construction has a massive shortage of labor; have been in conversations with TDCJ and others trying to get construction trade in prisons
    • Other side is ultimately this is about private employers and private employees and these parties should make some of these decisions
    • Needs to be a statewide policy discussion on many of these matters; patchwork is the greatest concern

 

Closing Comments

  • Campbell – Bill protects jobs and private businesses, federal law already covers nondiscrimination
  • Regulations burden small business; costs must be made up somewhere
  • Studies show paid leave ordinances in Connecticut led to decreased benefits and hours
  • Patchwork is difficult for small business, private business is the best party to decide what benefits are affordable
  • Creighton – Appreciates Gov adding this to the call

 

SB 14 voted out (6-2)