Locke Lord Top Law Firm Lobby Practice

Locke Lord Again Named No. 1 Texas Law Firm Lobby Practice; 5 Public Law Members Included in Capitol Inside’s Top Rankings

January 25, 2013 – Locke Lord is the No. 1 law firm lobby practice in Texas and has held this top spot for the last decade, according to Capitol Inside’s 10th Annual Texas Lobby Power Rankings. In addition, Partner Robert Miller, Chair of Locke Lord’s Public Law section, is ranked No. 5 out of approximately 2,000 Texas lobbyists, and four additional Public Law lawyers and professionals from Locke Lord are listed in the Power Rankings.

Capitol Inside, a closely followed Texas political and governmental affairs website based in Austin, calls Locke Lord’s Public Law team “the epitome of teamwork in the public advocacy profession here.”

The publication credits Miller as “the traffic cop maestro of a Locke Lord team that’s been ranked first on the Law Firm Lobby Practice list for most of the past decade,” and states that Miller has “amassed a significant amount of the clout he wields by virtue of the strength of the team that he’s personally crafted and its members’ unique abilities and individual riches.”

“Our Governmental & Public Affairs Practice continues to get outstanding results for our clients and has raised the bar on best practices and ethical standards in lobbying,” said Firm Chair Jerry Clements. “This is an incredibly strong showing – by the team and so many of its individual members – and reflects how well-respected our Public Law section is and why it’s the go-to lobbying team in Texas.”

Miller has established a stellar reputation in the last 25 years via his lobbying efforts on behalf of local, state and federal governments, as well as public and private concerns. He successfully worked to keep the Houston Astros in Houston through creation of a Sports Authority, which led to the construction of a retractable roof stadium. He has also served in a variety of top level leadership positions, including four years as chair of the Metropolitan Transit Authority of Harris County, Texas. Miller writes a popular and well-read Texas Public Law Blog called “View From the Gallery,” which is distributed and posted on Locke Lord’s homepage.

Also cited in this year’s Texas Lobby Power Rankings are:

• Governmental Affairs Consultant Yuniedth Midence Steen is ranked No. 15 on Capitol Inside’s Hired Guns list. She is former Chief of Staff to State Sen. John Whitmire and        has been with Locke Lord for more than 12 years. Capitol Inside calls her “one of the Austin lobby’s youngest superstars” as well as one of the best and most popular lobbyists in Austin, and the second highest-ranking woman on the Hired Guns list, predicting she will rise to the Top 10 in the next two years.
• Gardner Pate is No. 5 on the Rising Stars list. Capitol Inside says Pate has emerged “as the GOP’s leading expert on political money issues and ethics law in Texas. Pate’s expertise in that area has been in increasing demand despite the fact that he’s only 30 years old.” Pate is chief campaign finance advisor and attorney for the Texas Attorney General Greg Abbott Campaign and also serves as campaign finance advisor for the Comptroller Susan Combs Campaign and numerous Texas legislators.
• Senior Policy Advisor Walter B. Smith Jr., who works out of the Firm’s Austin and Washington, D.C., offices, is ranked No. 17 on the Rising Stars list. He is a former aide to Congressmen Henry Bonilla, Chet Edwards and Larry Combest, and was an appointee of President George W. Bush to the U.S. Department of Agriculture, where he served as a legislative liaison between the Administration and the House and Senate.
• Consultant Nef Partida is No. 6 on Capitol Inside’s Consultants Who Lobby list. He has served as a communications consultant and strategist to Republican and Democratic campaigns.
  
  
  Capitol Inside's Lobby Power Rankings http://tinyurl.com/atxjcra

Serious Issues for the 83rd Texas Legislature

2013 is upon us, which means one thing:  the 83rd Texas Legislature has convened! 

There only bill the legislature must pass is a balanced budget for the 2014 - 2015 biennium.  Texas Constitution Article 3, Section 49a(b) states that "Except in the case of emergency . . . no appropriation in excess of the cash and anticipated revenue of the funds from which such appropriation is to be made shall be or is valid." 

Fortunately, Texas’ revenue forecast is robust.  Comptroller Susan Combs currently estimates that the state will have an $8.8 billion cash surplus at the end of the current biennium on August 31, 2013, and $101.4 billion in revenue will be available for the next biennium -- a 12.4% increase over the current biennium.  The Economic Stabilization Fund, commonly known as the Rainy Day Fund, is also projected to contain $11.8 billion at the end of FY 2015.

However, Texas’ spending demands are also robust.  Medicaid requires an additional $4.7 billion by the end of March or the program will run out of money.  Appropriators intend to reverse an accounting shift that originally delayed by one day a $2.3 billion payment owed to the public schools on August 31, 2013, so that the expenditure would not be made until FY2014.  Throw in costs for the recent wildfires and criminal justice healthcare cost increases, and the legislature will probably need to pass a $7 billion supplemental appropriations bill by the end of March.

After passing the supplemental appropriations bill, the legislature will still have approximately $5 billion more available this session than it did in 2011.  Some of the major issues competing for those dollars are education, transportation, water -- and tax relief.

Education

Approximately 600 hundred school districts are suing the state claiming the current method of financing the public schools is unconstitutional.  The lawsuit is likely to be ultimately decided by the Texas Supreme Court sometime next fall.  Most observers expect the school finance system to be held unconstitutional, requiring the legislature to meet in special session and appropriate billions more to the public schools.  Accordingly, expect the legislature to reserve some of the available dollars to meet an anticipated adverse court judgment on education funding.

The 2011 legislature did not fund approximately $5.4 billion that would have been due to the public schools under the then current school finance funding formulas.  There have been calls by Democrats, teacher groups and others to restore the $5.4 billion, but legislative leadership so far has thrown cold water on that proposal.  However, the legislature is expected to fund enrollment growth for the next biennium.

Transportation

The legislature must address a large and growing highway construction and maintenance funding shortfall.  Under current funding projections, by 2014 we will be barely able to maintain our current highway system and there will be no money for new construction.

The current gas tax of 20 cents per gallon has not been raised since 1991, and it is the primary source of state funding for State Highway Fund 6.  Revenues are shrinking even as the number of vehicles on Texas’ roads increases, because cars are much more fuel efficient and there are a growing number of alternative fueled vehicles.  Proposals to increase revenues for transportation infrastructure include eliminating diversions from the State Highway Fund to the Texas Department of Public Safety, the Texas Education Agency and others; dedicating some or all of the 6.25% motor vehicle sales tax to highway funding; and increasing motor vehicle registration fees by $50.

Water

Texas is one of the fastest-growing states in the nation, with 1,200 people a day moving to Texas.  By 2040, Texas is projected to have a population of 35.8 million -- up from 25.1 million recorded in the 2010 census.  As our population grows, there will be increasing demands on state water resources by residential consumers.  The demands of industry, agriculture and the environment for water also continue to increase.

The Texas Water Development Board has developed a state water plan to address Texas’ future water resource needs.  The plan has a $53 billion price tag, which has not been funded.  Yet the 2010 - 2011 drought, the worst 1-year drought in the state’s history, has provided legislators impetus to beginning funding the plan.

Multiple proposals have been made to withdraw up to $2 billion from the Economic Stabilization Fund to provide seed capital and begin a revolving loan program for water infrastructure investments.  With the backing of legislative leadership, look for Texas to initiate funding of its water plan this session.

Tax Relief

The rosy revenue picture has also led to calls for tax relief.  Proposals include phasing out the margins tax and raising the school property tax homestead exemption.  Eliminating the margins tax entirely would cost $5.6 billion.  Increasing the homestead exemption to $25,000 from its current $15,000 would cost $1.2 billion.

Conclusion

Speaker Joe Straus has said that “Texas needs to get serious about serious issues.”  With seasoned leadership from Lt. Gov. Dewhurst on the other side of the rotunda and a strong revenue forecast, look for the 83rd Texas Legislature to begin tackling some of the serious issues facing our state.

Port of Houston Logjam has Broken!

Janiece M. Longoria is expected to be elected Chairman of the Board of Commissioners of the Port of Houston Authority next week.  A joint meeting of the Harris County Commissioners Court and Houston City Council is planned for January 8 at 9:30 a.m. at the County Administration Building.  Mayor Parker and Judge Emmett will preside over the meeting.  If Commissioner Longoria is elected, she will be the first woman to Chair the Port Commission as well as the first minority. 

Longoria was originally appointed to the Port Commission by Houston City Council in September 2002. Since 1997, she has been a partner in the law firm of Ogden, Gibson, Broocks & Longoria, L.L.P., where she focuses her practice on the trial, arbitration and appeal of a broad range of commercial litigation cases. Earlier in her legal career, Longoria was a city of Houston municipal court judge, and a prosecutor in the Harris County district attorney’s office.

Longoria also serves on the Board of Directors of CenterPoint Energy, Inc., and previously was a Regent of the University of Texas Systems from 2008 – 2011.  She is the daughter of the late Sen. Raúl Longoria, a longtime Democratic political leader in Hidalgo County.

She will be replacing James T. Edmonds, who has served as Chairman since June 2000.  Chairman Edmonds did not seek reappointment.

2013 Houston Mayor's Race

Update:  The posting originally stated that Wayne Dolcefino was handling communications for Dr. Hall.  The posting has been updated to state that Dolcefino is handling investigations and opposition research.

The City of Houston mayoral election is not until November 5, 2013, but former City Attorney Ben Hall has declared his intention to challenge Mayor Annise Parker when she seeks a third and final two-year term.  Hall was initially a candidate for mayor in 2009, but withdrew his candidacy early on in February of that year and threw his support behind former City Attorney Gene Locke.  Parker defeated Locke in a December 2009 runoff 52.8% to 47.2%.  Parker was reelected to her second term in 2011 besting a field of six candidates with 50.8% of the vote.

Dr. Hall has a BA in Religious Studies from the University of South Carolina; a M.Div and a Ph.D from Duke University; and a J.D. from Harvard University.  He is a successful and wealthy plaintiff’s attorney and an ordained minister in the congregation of the Progressive Church of Our Lord Jesus Christ.  A deeply religious man, Hall has strong ties with many of Houston’s religious leaders as well as deep roots in Houston’s African-American community.

Candidates for Houston municipal offices may not begin soliciting or receiving contributions until February 1, 2013.  As of June 30, 2012, the last available campaign finance report, Parker showed cash on hand of approximately $1.3 million.  I believe the Mayor will end the year with approximately $1 million in her campaign account, and she should easily raise another $1 million in February alone when the restricted period for contributions ends.  Hall indicates that he will spend $3 million of his own money on the race plus aggressively fund raise.

Since the advent of term limits in Houston, no mayor has been defeated and each has served the maximum six years allowed -- Bob Lanier (1992 - 97); Lee Brown (1998 - 2003); and Bill White (2004 - 09).  The last mayor to be defeated in Houston was Kathy Whitmire in 1991, when she finished third to Bob Lanier and Sylvester Turner and failed to make the runoff:  Lanier 43.66%; Turner 35.97%; and Whitmire 20.11%.

It promises to be a tough race, although I give the initial edge to Parker as the contest commences.  Parker, who is fiercely competitive, has said that when you run against an incumbent “it is personal.”  Hall has hired Wayne Dolcefino to handle investigations and opposition research.  Dolcefino recently ended a 26-year career at KTRK-TV, where according to the Houston Chronicle, he was “arguably the most controversial and most accomplished investigative reporter in the recent annals of Houston television.”  Ironically, Dolcefino aired the controversial story in 1991 that blew up Turner’s mayoral campaign and sealed the election for Lanier.

Just when you thought it was safe to go back into the water, another expensive race looms for Houston’s political swimmers.

Season’s Over -- Preparations Begin for Opening Day 2013

The 2012 fundraising season ended at midnight December 8 for Texas statewide executive and legislative candidates.  Texas law prohibits the giving or receiving of political contributions beginning 30 days prior to a regular legislative session and continuing through 20 days after final adjournment.  Tex. Election Code § 253.034.  The usual flurry of end of season hunts (fundraisers) were held as officeholders stocked up for the winter (legislative session).

Fundraising shots are still ringing out in Senate District 6, which officially became vacant December 6 when Gov. Perry canvassed the vote.  Perry how has until December 26 to order an expedited election to replace the deceased Sen. Gallegos.  After December 26, Lt. Gov. Dewhurst is authorized to order the election.  Tex. Const. Art. III, § 13.  The election must occur on a Tuesday or a Saturday within 21 to 45 days after the writ of election is issued.  I believe that Perry will call the SD 6 election for Saturday, January 26.  Candidates in the SD 6 expedited election may continue to raise money until they are sworn into office.  Tex. Election Code § 253.034(c).

As soon as the 2012 fundraising season ended, preparations began for June 17, 2013, otherwise known as Opening Day.  Ferocious 2014 Republican primary contests are expected for many or all of the Texas statewide offices.  Candidates will have two more fundraising bag counts before those races get underway in earnest in July 2013:  January 15, 2013, when candidates disclose their cash on hand as of December 31, 2012; and July 15, 2013, when candidates disclose their cash on hand as of June 30, 2013.

The following are the last cash on hand numbers for likely 2014 Republican statewide candidates reported as June 30, 2012 (in millions):  Abbott $14.5; Combs $6.7; Perry $3.4; Branch $2.1; Staples $1.6; Hegar $1.3; Patrick $1.2; Dewhurst $.8; Patterson $.7; and Hilderbran $.4.  Each of these officeholders was aggressively raising money prior to the December 8 cutoff and presumably will report increased amounts on January 15.

When the fundraising season reopens on June 17, 2013, each of these candidates will try to bag as many big donors as they can in the two week period prior to June 30.  Strong cash on hand numbers reported July 15 will either scare potential opponents out of their race, or allow them to convince donors that they are the likely winner and thereby raise more money than their opponent.

Texas fundraising is over (mostly) for 2012, but plans are already being drawn up to maximize the June 2013 hunt.

Republican Voters are Key

The race to replace the late Sen. Gallegos is in full swing in Houston.  There are three announced candidates:  State Rep. Carol Alvarado; R. W. Bray, the Republican nominee in the November 6 general election posthumously won by Sen. Gallegos; and former Harris County Commissioner Sylvia Garcia.  Two other significant players are considering the race:  Col. Rick Noriega, the Democratic nominee for the U. S. Senate in 2008; and HCC Trustee Yolanda Navarro Flores.  Flores received 46.07% of the vote when she ran against Sen. Gallegos in the 2004 Democratic primary.

It is my understanding that Gov. Perry is planning to canvas the votes of the November general election on December 6.  The canvas will trigger the vacancy and start the 20-day time period for the Governor to issue a writ of election.  The election must be held on a Tuesday or Saturday between 21 and 45 days after the Governor orders the election.

At this point, the likely date for the election appears to be January 22, although it could be as late as February 5.

The Governor’s writ of election will also set the deadline for candidates to file to run in the special election.  Texas Election Code Sec. 201.054(a) requires that the filing period be at least five days.  Candidates will all be listed on the same ballot, although they will have a D or an R after their name.

The two clear frontrunners are Rep. Alvarado and Comm. Garcia.  They are evenly matched and equally credentialed Democrats.    The outstanding question is whether a runoff will be necessary to determine the winner because neither Alvarado or Garcia receives more than 50% of the vote in the election.

Although Senate District 6 is heavily Democratic, there are pockets of Republican vote comprising about 30% to 35% of the electorate.  Rep. Wayne Smith, for example, resides in SD 6.  I expect that 5 or more candidates will ultimately file to run in the SD 6 special election, and that Republican voters will not support either Alvarado or Garcia in the first round.  The number of candidates running plus the Republican vote will likely require a runoff between Alvarado and Garcia.

It is ironic that in this heavily Democratic district, there will be an opportunity for the Republican voters to determine the runoff winner.

Procedure for Expedited Election to Replace Sen. Gallegos

Sen. Gallegos passed away last month, but his name remained on the ballot because the deadline to remove it had passed.  The Senator was posthumously reelected on November 6 receiving 70.94% of the vote to 29.05% for Republican nominee R. W. Bray.  Under Texas law, the votes cast for Sen. Gallegos count and a vacancy in Senate District 6 (SD 6) occurs when the votes are canvassed.  Texas Election Code Sec. 145.005.  All Sec. references hereafter are to the Texas Election Code unless otherwise noted.

Gov. Perry must conduct the state canvas for the November 6 election no earlier than November 21 and no later than December 6.  Sec. 67.012.  After the canvas, Gov. Perry must call a special election within 20 days to fill the vacancy in SD 6.  Texas Constitution Article III, Section 13.

Because the vacancy occurs within 60 days of the convening of the 83rd Legislature, the special election is an expedited election.  Sec. 203.013.  An expedited election must be held on a Tuesday or Saturday between 21 and 45 days after the date the election is ordered.  The Texas Military and Overseas Voter Empowerment Act does not apply to this election.  Sec. 101.104.

Candidates will all be listed on the same ballot, although they will have a D or an R after their name.  The canvas of the special election results occurs between 8 and 11 days after the election.  Sec. 67.003.  If no candidate receives more than 50% of the vote in the special election, the Governor orders a runoff election.  Sec. 3.003.  The runoff election must be held within 25 days of the Governor’s ordering the election on a Tuesday or Saturday.  Sec. 203.013.

Already announced candidates for the SD 6 special election include Rep. Carol Alvarado, Mr. R. W. Bray and Comm. Sylvia Garcia.  Col. Rick Noriega is also contemplating the race, and I ultimately expect 5 or more candidates on the ballot.  A runoff is a virtual certainty.  The following is my calculation of the earliest and the latest date for this decisive runoff.

Earliest scenario:  If the canvas occurs November 21 and the Governor issues a writ of election the same day, the special election could be held Saturday, December 15.  The local canvas could occur December 26, and the runoff election could be set for January 8.

Latest scenario:  If the canvas occurs December 6, the Governor could issue the writ of election on December 26.  The election could be called for February 5.  If the local canvas then occurs February 15, the Governor could wait until March 6 to order a March 30 runoff election.

Summary:  The SD 6 special election could occur as soon as December 15 or as late as February 5.  The runoff could occur as soon as January 8 or as late as March 30.

Early Vote Analysis

An reputable analysis of early vote for competitive races in Texas shows the following partisan affiliation of the early voters.

District	Republican	Democrat	Republican	Democrat	Independent
HD 23	Wayne Faircloth	Rep. Craig Eiland	36%	45%	19%
HD 34	Rep. Connie Scott	Abel Herrero	20%	61%	20%
HD 45	Rep. Jason Isaac	John Adams	46%	29%	25%
HD 54	Rep. Jimmie Don Aycock	Claudia Brown	48%	30%	23%
HD 78	Rep. Dee Margo	Joe Moody	24%	52%	23%
HD 102	Rep. Stefani Carter	Rich Hancock	38%	33%	19%
HD 105	Rep. Linda Harper Brown	Rosemary Robbins	45%	34%	22%
HD 107	Rep. Kenneth Sheets	Robert Miklos	47%	36%	18%
HD 114	Jason Villalba	Carol Kent	50%	35%	15%
HD 117	Rep. John Garza	Philip Cortez	33%	52%	25%
HD 134	Rep. Sarah Davis	Ann Johnson	45%	34%	21%
HD 136	Tony Dale	Matt Stillwell	51%	26%	23%
HD 144	David Pineda	Mary Ann Perez	35%	43%	22%
HD 149	Dianne Williams	Rep. Hubert Vo	28%	38%	34%
SD 10	Dr. Mark Shelton	Sen. Wendy Davis	48%	36%	16%
CD 14	Rep. Randy Weber	Nick Lampson	41%	42%	17%

I do not have good data on HD 43 (Lozano) or CD 23 (Canseco).

It is about what I expected.  The Democrats appear poised to pick the following Republican seats:  Scott; Margo; Garza; and Pineda (Legler).  Assuming that Sen. Davis is receiving some crossover Republican vote, that race is going to be as close as expected.  However, Dr. Shelton has got to be happy with what he is seeing.  The Weber/Lampson race is going to go down to the wire.