Off the Kuff Rotating Header Image

November 25th, 2022:

What to expect when you’re expecting a (larger) Democratic majority

I have three things to say about this.

Despite narrowly winning reelection against bruising campaigns by well-funded challengers, the Democratic majority on Commissioners Court has made clear it intends to continue its progressive remake of Harris County.

Though neither County Judge Lina Hidalgo, Precinct 2 Commissioner Adrian Garcia or Precinct 1 Commissioner Rodney Ellis invoked the word “mandate,” their public promises of four more years of what they have been doing leaves little doubt about their intentions.

Adding a fourth Democrat in Precinct 4, where former county court at law judge Lesley Briones ousted incumbent Commissioner Jack Cagle will only strengthen that resolve.

It also will prevent the lone Republican remaining on court, Precinct 3 Commissioner Tom Ramsey from pulling off a quorum break as he did this year with Cagle to prevent the Democratic majority from passing its preferred property tax rate.

“Democrats will likely lean into a more progressive agenda now that they have uniform control of the court,” said Brandon Rottinghaus, a political science professor at the University of Houston. “They as much as campaigned on this promise.”

The question, Rottinghaus said, is how far Democrats should go in a progressive direction.

“Voters didn’t provide an overwhelming mandate for a major left shift and probably signaled some modest opposition to or, at least, different emphasis on priorities from the prior four years,” Rottinghaus said.

I’m old enough to remember the 2006 election, you know, the one where Rick Perry was elected with 39% of the vote. There was some Discourse at the time about how Perry should be humbled by his weak showing and should mend his ways and just somehow not be so Rick Perry-like. He did none of those things, was easily re-elected again in 2010, was briefly a Presidential candidate in 2012, and eventually became a Cabinet member. Mandates are what you make of them.

With the new stronger majority on the court, Harris County Republican Party Chair Cindy Siegel said she is concerned Democrats will be punitive toward those who have challenged them, pointing to Hidalgo’s victory speech delivered the day after the election.

In those remarks, Hidalgo spoke about her critics who have accused Democrats on the court of defunding police, including what she called “unscrupulous politicians of both parties.” She called out Harris County District Attorney Kim Ogg, a Democrat, without naming her directly.

“That was sort of what was implied with her statement addressed to those people who didn’t support her. So, does that mean she’s not going to be supportive of the constables and the DA’s office?” Siegel said. “Because it’s one thing saying that you’re for funding and you want to make crime go down, but now it’s time to deliver. That’s what she told people.”

Oh, Cindy. Have you seen what Republicans are promising to do in Congress now that they have a slim majority? That’s what being punitive looks like. There are some significant policy differences between Judge Hidalgo and Commissioners Court on the one hand and Kim Ogg and the Constables on the other. Judge Hidalgo has – I’m gonna say it – a mandate to use her office to implement the policies she and the Court campaigned on and think are best. If Ogg and the Constables, who are all up for election in 2024, disagree about that, they can make a campaign issue out of it and hope to get their own mandate at that time. If Hidalgo and the Court really do overstep, that can be ammunition in their fight.

Still, Rottinghaus said, the opposition Democrats faced during the election cycle reflected the difficulty they had messaging on crime issues.

“Governing a massive and ideologically diverse county like Harris means compromising,” he said. “So, despite a solid majority, the close election shows Democrats on the Court need to encourage Republicans to come back to the table.”

This is just your periodic reminder that Harris County Commissioners Court operated with a Republican majority for at least 40 years – I’m only able to verify the Court’s makeup via election results back to about 1974 – before Dems took it in 2019. We operated under Republican laws, rules, norms, and assumptions for a long, long time. Only so much of that can be changed to reflect the current political reality in four years’ time, especially when a Republican minority was still able to wield a budget veto. The fact is that this now-larger Democratic majority – which even with the benefit of redistricting was still hard won – will continue to modify, update, and undo some of the things that we had long done under Republican rule. Everyone needs to wrap their heads around that.

Who else can we think of who’s alleged to have violated Texas securities law?

Into every story about cryptocurrency, some amount of absurdity is sure to follow.

Texas is investigating celebrities who had endorsed FTX, the now bankrupt cryptocurrency firm, for potentially violating state securities laws.

The Texas State Securities Board started looking into FTX’s operations last month over whether the exchange’s yield-bearing crypto accounts were providing residents with unregistered securities. Since the company’s collapse on Nov. 11, the board has significantly expanded its probe to examine the impact of this multibillion-dollar bankruptcy.

And promotions of FTX by celebrities such as the Golden State Warriors’ Steph Curry and the Tampa Bay Buccaneers’ Tom Brady are now part of this broadened investigation, as first reported by Bloomberg News and confirmed by The Texas Tribune.

It also comes amid a class-action lawsuit filed in Florida against Curry, Brady and other celebrities — mostly high-profile athletes — which alleges that FTX had used their endorsements as part of a scheme designed to take advantage of “unsophisticated investors.” It also names FTX’s former CEO Sam Bankman-Fried.

“Anyone who renders investment advice in Texas typically needs to be registered and they typically have to truthfully disclose all known material facts,” said Joe Rotunda, the state board’s enforcement director. “In Texas, there is not a different system of justice or regulation for people who are celebrities.”

It’s currently unclear if any prominent Texan would be investigated, but Rotunda said his team is still compiling a list of relevant parties based on recent court filings by FTX’s current CEO John J. Ray III and the class-action lawsuit. In particular, it will be looking at what the promoters disclosed, how they were compensated and how their promotions were scripted and filmed.

“It’s important from a securities regulation standpoint, and from a bankruptcy standpoint, to determine the ways FTX was encouraging clients and Texans to use FTX and invest with FTX,” he said.

He added that his team will also have to consider how the relevant law applies in this situation, since it was established via a 1985 case involving an investment and financial newsletter being distributed via fax.

“That’s a far cry from social media and broadcast advertisements, let alone tokens and blockchains, right?” Rotunda said.

I mean, okay, that’s their job and I appreciate that they are not giving anyone a pass for being a celebrity. It’s just that I personally don’t expect a celebrity endorser to be an actual expert on the thing they’re being paid to endorse. Maybe they should have some level of knowledge, when we’re talking about a financial product, but as a general rule I just figure either they like the thing they’re shilling for or they like the money they’re getting for the shilling. I don’t need for Jose Altuve and Alex Bregman to be salsa connoisseurs in real life. It’s just an ad.

On the other hand, given the best known example we have of a prominent person being accused of violating state securities law (hint: his name rhymes with Pen Kaxton), it could be a decade or more before any of them find themselves answering to the charges in question. If I’m Tom Brady’s lawyer, I’m probably telling him to worry about other things over this one. He’s not in any near-term danger.