Forty of the largest money management firms, pension funds, and private equity organizations, representing $11 trillion in investments, today wrote a strongly worded letter to Texas' three top Republican office holders, expressing their concerns that the state's proposed 'bathroom bill' would have 'troubling financial implications for the business and investment climate in states, including in Texas, News Rasdio 1200 WOAI reports.
The letter was signed by the investment managers of some of the country 's best known investment groups, including the California Public Employees' Retirement System, Trillium Asset Management, NorthStar Asset Management, and the Office of Investment of the AFL-CIO.
"Equality, diversity, and inclusiveness are fundamental elements of a successful workplace, community, and capital markets system," the letter says. "Therefore, we are closely monitoring legislation introduced in states across the country, including in Texas, that would result in discrimination against lesbian, gay, bisexual and transgender people."
The investment managers call the Texas proposal 'a bill that deliberately limits human rights.'
The measure, which is being strongly pushed by the social conservatives who control particularly the Texas State Senate, would limit public and school restroom and locker room use to the gender on the user's birth certificate, and would overturn or outlaw local ordinances which allow transexual individuals to use the rest room that matches their gender identification.
"We seek a predictable, stable business climate in Texas where our portfolio companies can thrive," the money managers write. "However, (this proposal) directly undermines the strong business-minded environment in your state. Given that Texas is the second largest state economy in the United States, any substantial economic challenges in Texas could also have broader implications for this country."
The fund managers join several high profile groups, including the NFL, the NBA, and the Texas Association of Business, which have spoken out in recent weeks against the 'bathroom bill.'
"Discriminatory legislation is bad for Texas businesses and investors in those businesses," the money managers write. "Such discriminatory legislation ultimately hampers the ability of our portfolio companies operating in Texas to offer inclusive and productive workplaces to attract and retain the best current and potential employees."
Lt. Gov. Dan Patrick, who presides over the State Senate and is the leading supporter of the bill, has said that efforts by the NBA and NFL to urge defeat of the bill by hinting that major athletic events could be removed from Texas is it passes are 'extortion.'
He says the proposal would not affect private employers at all, and would in fact give them the sole authority to set whatever policy they want for bathroom use in their facilities, regardless of laws that are approved by cities and counties.
Patrick and other supporters of the proposal say sexual predators would take advantage of the freedom granted by the bill to slip into women's restrooms under the guise of being 'transgender' and assault women and children.
Patrick has also downplayed threats against the state over the bathroom bill, pointing out that Houston voters last year by voting against a Non Discrimination Ordinance essentially approved similar language to the measure he is proposing in the State Senate, and Houston still hosted the Super Bowl and "I don't know of a single company that has declined to locate in Houston because of that vote."
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