BG Reads | News You Need to Know (December 10, 2020)
[BINGHAM GROUP]
NEW BG PODCAST - EP. 116: Discussing the 87th Texas Legislative Session with Lobbyist Lorena Campos
City Hall Jobs
Councilwoman-elect Vanessa Fuentes (District 2) has posted the following jobs for her office:
Director of Policy: https://www.austincityjobs.org/postings/86163
Director of Communications: https://www.austincityjobs.org/postings/86164
Pre-filed bills for the 87th Texas Legislature:
[AUSTIN METRO]
Despite pandemic, more than 40 state lawmakers to hold in-person fundraisers Wednesday in Austin (KXAN)
Texas lawmakers, fresh off hard-fought elections in November, are dashing to refill campaign accounts before a moratorium on fundraising kicks in on Dec. 12. More than 40 returning or recently-elected state lawmakers are holding in-person fundraising events in Austin this week, according to a list compiled by a lobbying group. The fundraisers come as Texas continues to record thousands of new coronavirus cases, and dozens of deaths, each day.
“(Lawmakers) want to top off their gas tanks and this is where they’re doing it,” said veteran lobbyist Bill Miller, who planned to attend at least one of the events at the Austin Club on Tuesday. “The Austin Club is the place to get gassed up.” The events are primarily taking place at the Austin Club and in the lobby at 919 Congress and are typical of the weeks leading up to the legislative session. State lawmakers are barred from raising campaign funds during the period beginning one month before the legislative session and continuing through the month after it concludes.
Austin-Travis County is currently in Stage 4 of its COVID-19 risk assessment, which advises against gatherings of more than 10 people. A manager for the Austin Club said masks are required during the events and that attendees are encouraged to socially distance. Capacity will not be capped, though the manager assured KXAN that the Austin Club has plenty of space to properly distance guests… (LINK TO STORY)
Austin City Council postpones movement on long-awaited HealthSouth tower project until at least January (Community Impact)
After the city of Austin unveiled its recommended development plans for the city-owned, 1.7-acre downtown tract at 1215 Red River St., some City Council members pushed back, unsure whether the long-awaited proposal went far enough in meeting the community’s goals. After some debate among elected officials, they decided to postpone voting on the proposal until at least Jan. 27.
City Council voted to buy back development rights for the property, formerly occupied by HealthSouth, in 2016. The tract, one of the city’s most valuable undeveloped real estate assets, has since represented a rare opportunity for the city to put subsidized housing in downtown Austin, as well as contributing to its burgeoning Innovation District in the northeast quadrant of downtown… (LINK TO STORY)
Austin's health authority addresses Mayor Steve Adler's trip to Mexico (KVUE)
Austin Public Health gave its weekly COVID-19 update Wednesday as cases continue to rise in the midst of the holiday season, and Dr. Mark Escott talked about Austin Mayor Steve Adler's recent trip to Mexico. After hosting his daughter's wedding, the mayor took a trip to Cabo San Lucas, Mexico, on a private jet at the beginning of November. The trip came at a time when Austin health leaders began urging families not to gather with others outside their households.
During the Q&A, Dr. Escott was asked what his conversation was like with Adler before he left, and if at any point did he warn the mayor about the risks.
The doctor explained we have to significantly modify events to be safe, adding that things were more flexible at Stage 3, but the advice stayed the same. Dr. Escott said he's grateful that the mayor's daughter adjusted her wedding size.
Toward the end of the press conference, the doctor was asked if he believed it was appropriate that the mayor traveled to Mexico when he did, to which Dr. Escott said, "we didn't have specific discussions regarding trips."
The doctor added that the Stage 3 guidelines at the time of the mayor's trip did not include avoiding travel for low-risk people at that time… (LINK TO STORY)
Legal fight drags on between Stonelake, World Class after odd foreclosure process (Austin Business Journal)
A week after Stonelake Capital Partners foreclosed on properties that had been owned by Nate Paul's World Class Holdings, the two sides remain at odds.
Both parties have now filed lawsuits. Stonelake has changed locks on buildings and taken down signs. Clearly, the long-running struggle between them is far from over.
This case is being closely watched because it is the farthest a lender has gotten in pushing back against World Class, once a fast-rising star on the Austin real estate scene but one that has been hobbled since federal authorities raided its offices in August 2019. The firm has since filed more than 20 bankruptcy cases in federal court in Austin. A political scandal has further complicated things: former top aides of Texas Attorney General Ken Paxton have accused Paxton of illegally helping Paul, a donor — a charge Paxton has denied.
Through an entity called ATX Lender 5 LLC, Stonelake on Dec. 1 foreclosed on four limited liability companies that had been controlled by World Class, including one that owns the old site of Carmelo's restaurant on East Fifth Street, which several developers have wanted to turn into a high-rise. The auction proved contentious — representatives of the Travis County fire marshal and the Travis County sheriff at one point tried to disperse the crowd, a fact World Class has seized on in an attempt to invalidate Stonelake's acquisition.
ATX Lender 5 conducted the foreclosure sale anyway, winning the auction with a credit bid of nearly $17.9 million.
World Class on Dec. 7 filed a lawsuit seeking to throw out the foreclosure. According to the suit, potential bidders at the Dec. 1 auction were ordered to leave the courthouse because they were violating Travis County's Covid-19 community restrictions, which generally prohibit gatherings of more than 10 people, with some exceptions. Efforts by law enforcement officers to break up the sale hindered efforts to conduct a "profitable public sale at market value," according to the World Class suit… (LINK TO STORY)
[TEXAS]
Texas Lt. Gov. Dan Patrick plans to counter Democratic wins at ballot box (Houston Chronicle)
As Democrats make gains at the ballot box in Texas, Republican Lt. Gov. Dan Patrick is responding with his own political power play to minimize their impact. Since 2018, Democrats have now flipped 3 seats in the 31-member Texas Senate. While that gives them just 13 seats overall, under the Texas Senate rules that is just enough to block any bill from getting to the floor of the Senate to be debated — a potential death knell for future bathroom bills, gun bills and other polarizing legislation. But Patrick, who leads the Senate, made clear publicly for the first time on Wednesday that he’s going to push to change the rules in the Senate again to make it impossible for Democrats to block legislation from getting to the floor despite their recent gains.“I intend to ask the Senate to vote to change the number of votes required to bring a bill to the floor for consideration,” Patrick said in a statement to the media. Currently, Republicans need 19 members to support bringing a bill to the floor to get it voted on. In 2019, there were 19 Republicans in the Senate, which allowed the GOP to bring anything to the floor as long as they stuck together. But with State Sen. Pete Flores, R-Pleasanton losing re-election, the Republicans are down to 18 seats. It’s not the first time Patrick has turned to changing the rulebook to outmaneuver Democrats.
In 2015, Patrick changed the previous rule because it had required 21 votes to get an item to the floor. That threshold had been in place since 1947. Patrick said they changed it to 19 to make sure Democrats didn’t essentially have veto power over the Republican agenda, which he says Texas voters have backed by virtue of giving Republicans majority control since 1997… (LINK TO STORY)
Republican split on display in Texas Senate race between Shelley Luther, Drew Springer (Fort Worth Star-Telegram)
When Shelley Luther refused to close her Dallas salon, violating Gov. Greg Abbott’s coronavirus order related to business operations, she had a feeling she’d end up behind bars. But choosing to keep the salon opening wasn’t a hard decision. “It had nothing to do with the salon at that point,” Luther said. “It had to do with, ‘What in the world does our government think they’re doing?’” That question is still seemingly front of mind for Luther months later as she bids for the seat in Senate District 30, which stretches across 14 counties, from north of Dallas to Wichita Falls and includes Parker and Wise counties.
Luther and State Rep. Drew Springer, R- Muenster, are in a Dec. 19 special runoff election to replace Pat Fallon, R-Prosper, the congressman-elect in Texas’ 4th Congressional District. When Abbott waded into the runoff, throwing support behind Springer, he touted the Muenster Republican as a proven conservative who “voted to secure the border, cap property taxes and protect Christian businesses” and who is endorsed by the National Rifle Association. In another contest, Springer may not be considered the “establishment” candidate, said Brandon Rottinghaus, a University of Houston political science professor. But when facing Luther, he’s put into that position. Springer posted on Facebook that he was honored by Abbott’s endorsement. Luther joked at a Dallas rally she should write the governor a thank you card. “He’s not even smart enough to know that him endorsing my opponent is better for me,” Luther said at the Dec. 5 rally at Dallas City Hall. Luther has also called Abbott a “tyrant governor.”… (LINK TO STORY)
More than 315,000 gig workers and independent contractors in Texas will lose unemployment relief without action from Congress (Texas Tribune)
Over the last four years, Jessica Reinke built up her roster of clients as a barber in San Antonio, starting from scratch after bailing on a career sitting at a desk.
The flexibility of setting her own schedule cutting hair allowed Reinke to be present for her daughter, now 9, while Reinke’s husband worked long days driving UPS Inc. trucks. Reinke rented stations at barbershops where she relied on a steady mix of regulars and impromptu walk-ins.
At the same time, Reinke was progressing her long-term plan to leave for the Texas Hill Country and finally start something new.
“We were going to move and buy a house and open a shop out there in New Braunfels,” Reinke said in an interview. “I had like $4,000 saved up that I had been working really hard to save.”
She added: “You know how everyone was like: ‘2020 is going to be my year!’ It really was for me.”
Self-employed people, gig workers and independent contractors — folks like Reinke, ride-share drivers and freelance workers — don’t typically have guaranteed wages, company-subsidized health care or sick pay. And they traditionally haven’t qualified for state unemployment benefits… (LINK TO STORY)
[NATION]
US govt, states sue Facebook for ‘predatory’ conduct (Associated Press)
The U.S. government and 48 states and districts sued Facebook Wednesday, accusing it of abusing its market power in social networking to crush smaller competitors and seeking remedies that could include a forced spinoff of the social network’s Instagram and WhatsApp messaging services.
The landmark antitrust lawsuits, announced by the Federal Trade Commission and New York Attorney General Letitia James, mark the second major government offensive this year against seemingly untouchable tech behemoths. The Justice Department sued Google in October for abusing its dominance in online search and advertising — the government’s most significant attempt to buttress competition since its historic case against Microsoft two decades ago.
Amazon and Apple also have been under investigation in Congress and by federal authorities for alleged anticompetitive conduct. James noted at a press conference that “it’s really critically important that we block this predatory acquisition of companies and that we restore confidence to the market.”… (LINK TO STORY)
Momentum stalls for COVID-19 relief bill (The Hill)
Momentum appeared to stall Wednesday on a COVID-19 relief bill amid differences not only between the parties, but between Senate Republicans and the White House over what should be included in the legislation.
Senate Majority Leader Mitch McConnell (R-Ky.) accused Democratic leaders of blocking progress, casting doubt on reaching a deal this week.
“At every turn they’ve delayed, deflected, moved the goalpost and made the huge number of places where Congress agrees into a hostage ... for the few places where we do not agree,” he said on the Senate floor.
McConnell pointed to Speaker Nancy Pelosi’s (D-Calif.) swift rejection Tuesday evening of a new $916 billion proposal offered by Treasury Secretary Steven Mnuchin that would provide $160 billion in funding to state and local governments, a priority of Democrats, but also give businesses “robust” liability protections for businesses and schools, a priority of Republicans.
The fresh uncertainty over negotiations that appeared to be picking up momentum last week put a damper on the stock markets, which plunged into the red shortly after McConnell spoke Wednesday.
A bipartisan group of moderates released more details of their $908 billion proposal, which has played a key role in the negotiations in recent days. However, they didn’t provide specifics about how they’d address state and local aid and liability protection. Instead, their document states that they have agreements in principle on these topics “as the basis for good faith negotiations.”… (LINK TO STORY)