Citizens Against Lawsuit Abuse of Central Texas

Bobby Jenkins | CALA of Central Texas
April 15, 2011

Testimony of Bobby Jenkins
Citizens Against Lawsuit Abuse of Central Texas
Friday, April 15, 2011

• Thank you, Assemblyman Logue, for having me here today. I know you’ve been greeted by others but let me also welcome you to Austin and to Texas.
• My name is Bobby Jenkins. I am the owner of ABC Home Services, a family-owned business that has grown from a pest control service to a company that offers lawn care, home improvement, plumbing services and almost any service you could need at your home. We have offices throughout the state – Austin, Dallas, San Antonio and College Station.
• I’m also currently the Chairman of the Austin Chamber of Commerce.
• I’m here because I am a businessman who is focused not just on building and growing my own company but on the best ways we can continue to create jobs and new business opportunities in Austin.
• I am a proud Texan. I’m thrilled with the success we’ve had building our economy and creating jobs. But I’m also here because I am a proud American who wants other states, like California, to thrive. I have travelled extensively and regularly in your state with my family. My wife and children love it there. And I can honestly say that we’ve done our fair share of supporting your local economy.
• But I also know that California is not a place where I could easily live or do business. As I know you’ve heard yesterday and today, here in Texas we view the regulatory and tax structure in California as heavy-handed and not conducive to creating jobs or building business.
• That’s why I want to speak today about a very specific aspect of our system that is widely credited with the vibrant growth we’ve experience in the past several years: smart legal reforms.
• In my role with my company and the Chamber, I can tell you that the common sense legal climate in Texas is a big contributor to our state’s economic success.
• Given how important the legal climate is to Texas, I’m proud to say I’ve also been involved with Citizens Against Lawsuit Abuse – CALA – of Central Texas for many years. I am committed to this cause.
• Let me say right up-front that CALA, other legal reform groups, and our state citizens are not opposed to lawsuits. We are opposed to lawsuit ABUSE.
• My company, other businesses…we do get sued. But the reforms we’ve passed have restored common sense and fairness to this process. And that is something that business entrepreneurs consider when they think about starting and growing a company – and where to locate.
• Businesses did not want to operate in Texas 20 years ago when we were the “Wild West” of lawsuit abuse. This was a time when frivolous lawsuits ran rampant – constantly threatening small businesses (and forcing many to close their doors). This also led many doctors to flee our state for jurisdictions with less hostile legal systems.
• The smart, common sense reforms we’ve passed over the last 20 years have put an end to the litigation lottery that personal injury lawyers from all over the country played in Texas.
• And, those same reforms have allowed me and other businesses to feel more comfortable operating here. As I said before, we still get sued, but the courts and court proceedings are more predictable and fairer.
• Because of these smart, common sense reforms, Texas has become a place where businesses want to be.
• We are home to 64 Fortune 500 companies, more than any other state, and last summer we were named by CNBC as America’s top state for business…for the second time in two years.
• And, thanks to the reforms passed since 1995, we’ve added almost a half a million permanent jobs, according to an economic study by The Perryman Group. That same study credited our reformed legal climate with a more than $100 billion increase in annual spending and a $2.6 billion increase in state tax revenue.
• Another thing that I would like to mention is that our legal climate is an attractive factor that we use to draw businesses from other states. Did you know that the Austin Chamber of Commerce has a full-time person in California whose sole job is to recruit businesses to relocate here? We do. And we have a great story to tell them.
• Let me also say that while an improved legal system is a good recruiting tool for our Chamber and others – it is also good for my employees. Stability, especially in a legal sense, for a business owner translates to stability for our employees. That’s good for me, for my employees and for the families who depend upon them.
• Smart legal reforms are about protecting jobs and protecting families. They have worked for Texas and they can work in California.
• Thank you very much for your time today. I know you’ve made this same type of “fact-finding” trip to other states, and I sincerely appreciate your commitment to making California a better place to grow a business. I do hope your state can pass some meaningful reforms because a fair legal and business environment helps more than business, it helps workers, communities and the state.