Businesses operating in Texas are affected by decisions -- "policy cuts" -- made at the state and local levels of government every day. Market positioning, operating and opportunity costs, threats, and growth opportunities are impacted by new legislation, administrative action, regulatory changes, licensing requirements, tax policy changes, industry guidance, and public policies generally.
Many companies may seek to manage these matters internally. However, when government decisions create a material impact on a company’s invested operations or desired future, the company leadership should consider hiring an experienced, professional, and credentialed Texas lobbyist.
A qualified Texas lobbyist will demonstrate the legislative context, create a strategic plan with actionable tactics, advocate before policymakers, and provide consistent feedback to further custom tailor the prospective engagement with policy makers. The key is knowing when it is reasonable and necessary to engage a government relations professional.
The most obvious reason to hire a lobbyist is when the company leadership has a reasonable anticipation or expectation that legislation may affect the corporate mission, purpose, operations, or strategic plan. Texas lobbyist Steve Koebele has been advising stakeholders for years, "You may not be looking for government, but government will certainly find you!" (And then he gives stories of true real-world examples.)
Legislation often requires state agencies to propose and adopt regulatory rules, change licensing requirements, alter fees and taxes, create new compliance standards, increase penalties, or otherwise impact the operating environment. Company leaders are very busy running the business. They do not have the time or inclination to consistently and routinely examine and monitor regulatory proposals.
The best Texas lobbyists read the Texas Register (published every week) for proposed rules, adopted rules, and other executive branch activity. Pro Note: When interviewing a Texas lobbyist, ask the open-ended question of the lobbyist, "Tell me about the Texas Register." You will be surprised about the lack of familiarity as one strong indicator of the lobbyist's experience and qualifications.
Regarding legislation, be mindful of the old adage, "If you do not have a seat at the table, you are on the menu." Do not get carved up and served. Year after year, session after legislative session, companies and stakeholders are shocked and blind-sided by legislation that was adopted into law without their input or participation.
A qualified and successful Texas lobbyist can help craft relevant bills and articulate how proposed legislation will impact corporate operations. As part of the engagement, the best positioned and qualified lobbyists are able to access public policy decision makers and deliver information backed with evidence about the potential real-world consequences of a proposal.
Companies operating in heavily regulated industries typically experience more frequent interaction with state government.
Regulations can influence licensing, compliance requirements, professional standards, environmental practices, operations, pricing, reporting requirements, and many other areas.
In these situations, a government relations program should be a part of the company's broader business strategy rather than reacting after problems arise.
A Texas lobbyist can help businesses follow legislative and regulatory developments that could affect their operating environment and inform company management on the specifics of public policy.
Lobbying is not limited to merely opposing legislation and administrative action.
Sometimes businesses encounter outdated laws or regulations that make it difficult to introduce new products, adopt new technologies, expand services, or operate efficiently.
For example, several years ago AT&T and aligned stakeholders sought to meet consumer demand and expand service offerings by entering the video and internet market via offering fiber optic cable (instead of unreliable and inefficient copper wires offered by cable companies).
However, the existing law required AT&T to compensate and ask permission of every Texas city, town, village, and hamlet for right-of-way access to every customer in the jurisdiction. Because that costly and unworkable path was entirely unreasonable, AT&T advocated and achieved a statutory change that required only one application to and approval from the Texas Public Utility Commission.
The results: much lower prices for residential and commercial customers, more consumer choice, better service offerings and technology, and significant investment and new high paying jobs for Texans!
Of note, merely identifying a problem is very different from successfully navigating the legislative process in Texas.
A lobbyist can help determine which policymakers, legislative committees, agencies, coalitions, and other stakeholders may be relevant to the public policy matter and help the company develop the tactics and strategy for presenting its position.
Texas is home to companies across a diverse range of industries, and businesses entering the markets in Texas may encounter an unfamiliar regulatory and legislative environment.
Before making a major expansion, companies should understand whether Texas statutes, administrative rules, licensing requirements, regulatory agencies, or pending legislation could affect their plans. This is particularly important when an expansion involves a regulated industry or significant interaction with state government.
As government relations professionals, qualified lobbyists can provide another layer of creativity and insight alongside a company's legal, financial, and operational advisers.
Large corporations typically employ full-time government relations professionals, but many small and mid-sized companies do not invest the resources or otherwise create an internal government relations department.
However, the need to address public policy challenges still remain.
While company executives may attempt to follow legislative developments themselves, it is factually true that the daily activity of government relations -- developing relationships, filing and killing bills, engaging with legislative committees, preparing for hearings, developing amendment strategies, and the full spectrum of related activities -- requires experience, substantial time commitment, and specialized knowledge.
Hiring a qualified outside contract Texas lobbyist provides government relations expertise without requiring a company to establish an entire internal department of W-2 employees.
Lawmakers and executive agency leaders evaluate public policy affecting many industries, communities, organizations, and constituents. Public policymakers cannot be expected to understand every technical or operational detail of every business sector. Try as they will, you don't want government officials and their fertile imaginations driving the vehicle alone.
Engaged companies play an important role by providing accurate and verifiable information about how proposed policies would play out in real world scenarios.
A qualified Texas lobbyist will help organize and communicate desired messaging and information.
The gaol is not to simply gain access to policymakers. Successful government relations programs involve thoughtful strategies, proven tactics, clear articulation of issues, delivery of evidence-based information, experience with difficult conflicts, and a deep knowledge of the legislative process.
Not every legislative development or administrative agency action requires the engagement of a professional lobbyist. Company leadership should consider the gravity and potential impact of the public policy matter.
If a government decision could significantly affect revenue, operating costs, expansion plans, licensing, market competitiveness, compliance requirements, or the supply chain, professional representation is certainly worth considering.
The greater the potential or actual business impact, the more important it is to have a public policy program and strategy.
With myopic vision, companies commonly make the mistake of considering a government relations program as a reactionary tool to address a newly-encountered problem.
Public policy develops during the course of time, and often in response to others who are actively engaged in the process. For example, the legislative process is like a series of sprints -- bill drafted from concept, filed, vetted in committees, advocacy and information delivered, positions presented, tactics performed, floor votes conducted -- during a marathon.
Developing relationships, knowing the political landscape, and understanding the legislative process well before a crisis is obvious will place a company in a significantly better position when threats to the company emerge.
As an early warning device, a proactive government relations program assists corporate leaders to identify potential risks and threats before costly problems arise.
No single magical moment exists when a company needs to engage lobbying representation. The decision depends on a variety of variables: the industry, relevant issues, the company's goals and objectives, opportunity costs, and the significance of the exposure to the entity.
However, a conversation with a successful and experienced Texas lobbyist is necessary if your business is facing proposed legislation, administrative action, regulatory changes, entry into or expansion in Texas, or a public policy issue with meaningful financial or operational consequences.
Steve Koebele works with businesses, organizations, and individuals seeking to better understand the Texas legislative environment and importance of executive branch agencies. Having an experienced lobbyist with a proven record of major success will help stakeholders become more informed, prepared, and engaged when decisions affecting their future are considered.