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TEXAS ASSOCIATION OF MANUFACTURERS • Post Office Box 11510, Austin, Texas 78711-1510 • 512-826-0826 • FAX 512-236-1566 • info@manufacturetexas.org

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80th Legislature Summary
What Would Have Happened Without TAM?

Legislative Landscape of the 80th Legislature
The need for the Texas Association of Manufacturers has never been more critical as fewer and fewer elected officials represent or truly understand modern manufacturing. Gone are the days when manufacturing fell neatly into traditional categories like mining or agriculture. Today’s manufacturers are complex and solutions to propel our businesses are equally complicated – creating an urgent need to educate elected officials about the new realities of 21st century manufacturing in the global marketplace.

All Texas manufacturers should be involved in the political and legislative process so that elected officials understand that manufacturing is a foundation industry that makes long-term investments in communities and grows more jobs than any other sector. All good jobs start with manufacturing, a fact that too few people know. That’s why the Texas Association of Manufacturers exists. We hope you’ll help TAM spread the word that manufacturing is the cornerstone of Texas.

What would have happened this session without TAM?
With the session behind us, let’s look what would have happened if TAM wasn’t at work everyday for manufacturers. Without TAM:

TAM battled everyday at the Capitol to fend off dozens of proposals that would have crippled Texas manufacturers.

TAM at Work for Manufacturers
TAM adopted a series of policy principles about energy, transportation, taxes, water, air, and competitiveness, which guided the Association’s efforts during the 80th Legislative Session. As always, TAM operated with an eye toward public policy's impact on jobs and manufacturers' ability to remain domestically and globally competitive.

Energy
TAM led the charge to protect electric reliability and affordability during the session. We know energy costs are among the most important issues to manufacturers and tracked more than 200 energy related-bills. On a daily basis during the session, industrial customers of all sizes were exposed to legislation promoting subsidies, mandates, and additional electricity costs. TAM was at the legislature everyday successfully battling billions of dollars of added annual costs and attempts to disrupt reliability. For example, one amendment would have given residential customers a 50% transmission reduction - paid for by industrials. TAM will spend the next 18 months until the 81st Legislature working with lawmakers to develop market-based energy policies.

Taxes
Continuing its leadership role that began during the special session to create the new business margins tax, TAM was at the table to craft clarifications of the new tax to make the system more clear and fair for manufacturers. TAM’s efforts to educate lawmakers are crucial as critical tax issues promise to resurface during the 2009 session. TAM was also a leader in a coalition that promoted R&D tax credits and will remain committed to pursuing tax credits for the R&D that is central to a thriving and competitive manufacturing industry.

Environment
A troubling trend in environmental policy was pervasive at the Capitol as many were more interested in splashy headlines touting quick fix solutions - rather than sound environmental policies that would actually generate demonstrable results. TAM repeatedly staved off mandates, subsidies, redundant policy and “special deals” for narrow market segments that would be paid for by manufacturers. TAM insisted that environmental solutions actually reflected Texas realities and did not interfere with successful, existing programs. As manufacturing becomes more complex, our environmental policies must be innovative and cutting edge. As such, we made significant progress by helping to pass legislation that promotes energy efficiency, creates an eWaste program, and expands successful programs like TERP and LIRAP. TAM was also central to the passage of a bill that will create several study commissions that will allow manufacturers to participate in the examination of water infrastructure needs, costs, funding gaps and all current water fees.

Transportation
TAM kept the Texas economy moving by helping to pass legislation that will expedite the permit processing and move loads faster through the state. TAM understands that commerce can’t move without efficient permitting and manufacturers can’t move without permits. TAM will also participating in comprehensive study of future public policy issues on road building and financing during the interim.

Competitiveness
To continue the drumbeat about the importance of manufacturing, TAM supported an initiative housed in the Governor’s office to showcase and promote the manufacturing industry. As part of improvements to the Texas Emerging Technology Fund and Texas Enterprise Fund, TAM ensured proper focus on protecting and sustaining existing jobs as well as bringing more jobs within our borders.

Tort Issues
TAM was successful is blocking dozens of flawed tort proposals and new causes of action that would have rolled back reform, threatened jobs, increased the cost of construction, increased questionable lawsuits, increased healthcare costs and even eliminated the right to contract. TAM’s efforts helped to close a legal loophole that threatened jobs through maritime lawsuits against dredging employers. TAM successfully defeated harmful legislation focused on potential state qui tam (whistleblower), anti-indemnity, anti-consolidated insurance, and antitrust issues. Throughout, TAM was steadfast in protecting and continuing tort reform in Texas.

TAM Looking Forward
TAM’s inaugural session was extremely productive yet our work to promote manufacturing is just begun. Texas manufacturers face enormous challenges, not only from increased international competitive pressures, but from a growing lack of understanding of modern manufacturing. Our business is increasingly complex and public policy solutions are more complicated than ever.

Never before has the need for education and outreach about manufacturing been more crucial. The interim presents several opportunities to advance the manufacturing cause through participation in interim studies and recommendations of pro-manufacturing appointees to environmental, utility, workforce and education agencies. During the interim, TAM has the chance to be at the table on issues concerning:

We look forward to – and depend on - ongoing support from our membership to continue the fight for manufacturers.