A new law can affect how a business operates, the cost of compliance, and how easily it can expand. For Texas businesses, what is done in Austin affects everything from taxes and licensing to employment rules and industry standards.
This raises an obvious question: When should a Texas business seek the services of a lobbyist?
The answer isn’t when a company aspires to political influence. Professional lobbyists have the expertise and experience to understand proposed legislation, communicate with policymakers, and ensure their clients’ interests are represented during the legislative process.
What Does a Lobbyist Do?
Lobbyists − who lobby on behalf of some client in Texas this would include communicating with legislatures and other public officials about bills, regulations, and policy issues related to state agencies.
Lobbyists may:
- Track proposed legislation and amendments
- Demonstrate the impact of proposed policies on a business
- Call on lawmakers and their staff
- Help clients present relevant information
- Link policymakers and stakeholders
- Average representation of company stance on specific matters
This is not just about opposing bills. A lobbyist might also advocate for legislation for a certain industry or and help lawmakers understand the real-world effects of a proposed policy.
Texas also has rules governing lobbyists and lobbying activity. The law includes challenges for volunteers, as well as businesses independently engaging with others through paid professional representation, and all need to be aware of the registration and disclosure requirements that apply.
Big Regulatory Changes are Coming in Your Industry
Arguably one of the clearest signs it is time to consider hiring a lobbyist is when your industry is likely going through serious upheaval.
State legislators might propose new regulations to be cultivated there, with regard to:
- Licensing requirements
- Environmental standards
- Taxes and fees
- Labor regulations
- Healthcare requirements
- Transportation rules
- Energy policy
- Professional standards
An unassuming piece of legislation can lead to major operational issues once put into practice.
A well-connected lobbyist who follows the process knows the lay of the land and can educate a business on what is pending.
A Proposed Law That Could Dramatically Impact Your Business
Not every bill needs a lawyer. But if proposed legislation would materially increase their operating costs or create new obligations, it may warrant more attention.
Timing matters here.
If a business reacts after a law has passed, it’s typically too late to weigh in on hugely important issues. With early awareness, companies can evaluate the proposal and decide whether action is warranted.
This is especially critical for firms in highly regulated industries.
You will Require a Stronger Voice in Austin
While a business owner may be very knowledgeable about an issue, it has little time to keep track of committee hearings, legislative calendars, amendments, and policy discussions.
That’s where professional representation comes in.
A lobbyist can act as a company’s policy ambassador in Austin while its executives run the business. It isn’t to supplant the company voice. The goal is to make that voice more consistent, informed, and timely.
As a Texas political and government relations expert, Steve Koebele explains how a company can navigate the policymaking process and make its case.
You are Coming into a High Regulation Market
Entering a new market comes with simple-to-overlook regulatory questions.
A company looking to expand into Texas may need to know what differs from other states. Your existing Texas business that crosses into a different type of business may face the same issue.
A lobbyist may identify relevant policy issues and connect a business with the right players in government and industry.
But lobbying should never be seen as an alternative to legal advice. Businesses should engage competent counsel when they require legal interpretation or guidance about compliance.
Your Business Needs Help with Policy Relationships
Government relationships rarely develop overnight.
Still, a company that jumps on the bandwagon only after momentum builds on a contentious bill may find itself facing an uphill battle building credibility with policymakers. Having professional relationships established ahead of a crisis helps the important conversation that needs to take place when an issue arises.
This does not mean lobbying to make your lawmaker treat you differently. Generally, effective government relations are built on fact-based information, constructive discourse, and a genuine appreciation for the public policy issue at hand.
Your Membership in an Industry with Common Policy Problems
Optionally, sometimes it’s for the best that you don’t do as an independent.
Trade associations and industry groups usually support businesses facing similar policy issues. By joining a coalition, members can access more extensive research, shared resources, and an stronger collective voice.
A business should start by identifying whether its goals align with an existing organization. Or joining a well-known industry initiative is more realistic than doing your own lobbying campaign.
When it Does Not Make Sense to Hire a Lobbyist
Not every business should lobby, and certainly not just because it is allowed.
Some circumstances may indicate that a company needs a lobbyist:
- It is a policy issue and barely impacts its operations.
- You DON’T have a fully articulated policy position as a business.
- It can be dealt with through regular regulatory or legal proceedings.
- The price isn’t warranted for the possible reward.
- An industry association is effectively addressing the issue.
The trick is to think about how much it is worth to you to have a professional represent you, rather than hiring one because other companies have.
Selecting a Lobbyist in Texas
If your business determines that lobbying is a good fit, allocate time to assess potential lobbyists.
Look for someone with:
Relevant experience
Experience in your industry or on similarly situated policy issues can help them understand your concerns quickly.
Strong Texas knowledge
Texas politics has its own procedures, personalities, committees, and policy dynamics. Local knowledge matters.
Clear communication
Your lobbyist should describe what is going on, why it matters to your business, and what you can do about it.
A strong ethical record
Inquire regarding registration, disclosure, adherence to AML/CTF (and tax) legal principles, and professional standards. A good lobbyist will explain how the relationship will work.
A defined strategy
You should understand the lobbyist’s objectives, how progress will be measured, and what data they need from your company.
Start with the Business Problem
A good lobbying strategy starts with a clear business problem.
First, define the policy issue and how it impacts your company − then make sure you know what outcome is desired before ever hiring someone. Then ask whether professional representation would likely improve your chances of achieving that outcome.
A Texas lobbyist isn’t needed by a business for its own gain. However, for other issues − particularly those impacted by large-scale legislative or regulatory changes − it will be well worth the investment to have an experienced advocate.
The key is to hit it early, know the rules, and select representation tailored to your actual business requirements − rather than political soundbites.
