Election Report November 7, 2018 Driven by polarizing national politics and numerous heated U.S. Senate and Congressional races, the 2018 Midterm Election revealed a record increase in voter turnout across the country for a midterm election. In Texas, approximately 53% of the 15.6 million registered voters exercised their right to vote, which was just shy of 2016 Presidential year numbers, and a significant increase when compared to previous midterm elections (2014 -33.7%, 2010 – 38%, 2006 – 33.6%). There was a significant increase in voters 18 to 30 years of age, female voters, and in urban counties. Additionally, the influx of new residents to urban areas around the state made dramatically changed the demographics in numerous Republican seats previously considered ‘safe’. All Statewide seats were held by Republican incumbents. Governor Greg Abbott defeated former Dallas County Sheriff, Lupe Valdez, 55.8% to 42.5%. Lieutenant Governor Dan Patrick successfully defeated Democrat Mike Collier with 51.2% of the vote. Attorney General Ken Paxton, Comptroller Glenn Hegar, Land Commissioner George P. Bush, Agriculture Commissioner Sid Miller, and Railroad Commissioner Christi Craddick also prevailed in their races. Republican also swept the three Texas Supreme Court and Court of Criminal Appeals positions. A major concern for our industry and Texas business is the complete Democratic sweep in every Court of Appeals race across the state. Texas Courts of Appeals in Austin, Dallas, San Antonio, Houston and Corpus have been completely swept by Democratic judicial candidates, with 32 Democrats winning contested races and 20 Republican incumbent justices losing seats on those urban courts. Of particular concerns is the Third Court of Appeals in Austin which serves as the “statewide court” for all matters involving state government and disputes involving state agencies. The Texas United States Senate race between Republican Senator Ted Cruz and Democrat Beto O’Roarke was by far the most talked about campaign in Texas, and one that drew national attention. Congressman O’Roarke put on an impressive grassroots campaign and fundraising effort resulting in more than $70.2 million compared to Senator Cruz’s $33 million. Senator Cruz was able to defeat O’Roarke, 50% to 48%, by a much slimmer margin than expected. Many Democrat and Republican strategists agree that the true impact of the Senate race was on down ballot candidates. The “Beto Effect” was a concern for many Republican candidates, which proved to be well founded in some races. Nationally, all 435 seats in the U.S. House and about a third of the U.S. Senate seats were up for election. As of Wednesday morning, Democrats took control of the House with at least 222 seats(218 needed to take the majority). Several Texas State Legislators won election to Congress; Senator Sylvia Garcia (D-Houston), Senator Van Taylor (R-Plano), and Representative Lance Gooden (R-Terrell). Overall, Democrats flipped 2 Texas seats and now hold 13 of the 36 Texas Congressional seats. With the Democrats taking control of the U.S. House, we can expect a deeper partisan division and more animosity toward President Trump. In the Senate, Republicans netted at least 2 seats, building a stronger majority. Several U.S. House and Senate races have not yet been officially called as of this morning. The Texas House and Senate both maintain Republican majorities. Very few seats were truly in play in the Senate, but Democrats defeated two incumbent Republican Senators in the Dallas/Fort Worth area. Senator Konni Burton (R-Fort Worth) lost to Democrat Beverly Powell and Senator Don Huffines (R-Dallas) lost to Democrat Nathan Johnson. Democrats did make significant gains in the Texas House where they netted 12 new seats, mostly in Dallas and Harris Counties. Several House races were decided by extremely tight margins and their results may be challenged. As of this morning, Democrats hold 67 seats. Of note, the Texas House will elect a new Speaker on the first day of the 2019 Legislative Session. Currently, there are seven members who have filed for Speaker to succeed outgoing Speaker Joe Straus (R-San Antonio). At the local level, a notable loss was Harris County Judge Ed Emmett to Democrat newcomer Lina Hidalgo, he had held the position for 11 years. Judge Emmett was a stalwart leader for Harris County and Texas during Hurricane Harvey, managing the Counties planning and response and rallying support from across the state to assist with evacuations and recovery efforts. And Harris County Commissioner Jack Morman lost his re-election to former Sheriff Adrian Garcia. Commissioner Morman has represented Southeast Harris County including the Houston Ship Channel and many of our industrial communities. The Texas Chemical Council (TCC) and Association of Chemical Industry of Texas (ACIT) Free Enterprise Political Action Committee (FREEPAC) endorsed and made contributions to 60 candidates running for the Texas House and Senate. Of those 60 candidates, 51 won their election. Below is a complete list of all the general election FREEPAC endorsed candidates and their election results: KEY FREEPAC Endorsed √ Winner * Incumbent State Senate District 5 Sen. Charles Schwertner (R)– 55.10% *√ Meg Walsh (D)– 41.69% Amy Lyons (L)– 3.2% State Senate District 7 Sen. Paul Bettencourt (R) –57.82% *√ David Romero (D) – 40.26% Tom Glass (L) – 1.90% State Senate District 8 Mrs. Angela Paxton (R)– 51.18%√ Mr. Mark Phariss (D)– 48.81% State Senate District 9 Sen. Kelly Hancock (R) – 54.07% * √ Gwenn Burnd (D) – 45.92% State Senate District 17 Sen. Joan Huffman (R) – 51.56%*√ Rita Lucido (D) – 46.68% Lauren LaCount (L) – 1.75% State Senate District 25 Sen. Donna Campbell (R) – 57.73% *√ Steven Kling (D) – 42.26% State Senate District 30 Rep. Pat Fallon (R) – 73.69%√ Kevin Lopez (D) – 26.30% State Senate District 31 Sen. Kel Seliger (R) – 87.53% *√ Jack B. Westbrook (L) – 12.46% House District 2 Rep. Dan Flynn (R)– 80.04% *√ Mr. Bill Brannon (D)– 19.95% House District 3 Rep. Cecil Bell (R) – 76.02% *√ Mrs. Lisa Seger (D) – 23.97% House District 9 Rep. Chris Paddie (R) – 100.00%*√ House District 10 Rep. John Wray (R) – 70.28% *√ Mrs. Kimberly Emery (D) – 27.42% Mr. Matt Savino (L) – 2.28% House District 14 Rep. John Raney (R) – 56.35% *√ Mr. Josh Wilkinson (D) – 43.64% House District 16 Rep. Will Metcalf (R) – 80.34% *√ Mr. Mike Midler (D) – 19.65% House District 17 Rep. John Cyrier (R) – 62.55% *√ Mrs. Michelle Ryan (D) – 37.44% House District 18 Rep. Ernest Bailes (R) – 75.52% *√ Mr. Fred Lemond (D) – 24.47% House District 23 Mr. Mayes Middleton (R) – 56.76%√ Mrs. Amanda Jamrok (D) – 41.11% Mr. Lawrence Johnson (L) – 2.12% House District 24 Rep. Greg Bonnen (R) – 69.78% *√ Mr. John Y. Phelps (D) – 28.16% Mr. Dick Illyes (L) – 2.04% House District 25 Rep. Dennis Bonnen (R) – 100.00% *√ House District 28 Rep. John Zerwas (R) – 54.20% *√ Mrs. Meghan Scoggins (D) – 45.79% House District 29 Rep. Ed Thompson (R) – 100.00% *√ Mr. James Presley (D) – 00.00% (Dropped out) House District 30 Rep. Geanie Morrison (R) – 74.71% *√ Mrs. Robin Hayter (D) – 25.28% House District 31 Rep. Ryan Guillen (D) – 100.00% *√ House District 41 Rep. Bobby Guerra (D) – 61.47% *√ Mrs. Hilda Garza DeShazo (R) – 38.52% House District 42 Rep. Richard Pena Raymond (D) – 74.31% *√ Mr. Luis De La Garza (R) – 25.68% House District 43 Rep. J.M Lozano (R) – 61.14% *√ Dee Ann Torres Miller (D) – 38.85% House District 44 Rep. John Kuempel (R) – 68.67% *√ Mr. John D. Rodgers (D) – 31.32% House District 47 Rep. Paul Workman (R) – 47.65% * Mrs. Vikki Goodwin (R) – 52.34%√ House District 52 Mrs. Cynthia Flores (R) – 48.31% Mr. James Talarico (D) – 51.68%√ House District 56 Rep. Charles “Doc” Anderson (R) – 65.79% *√ Mrs. Katherine Turner-Pearson (D) – 35.20% House District 57 Rep. Trent Ashby (R) – 79.21% *√ Mr. Jason Rogers (D) – 20.78% House District 63 Rep. Tan Parker (R) – 67.16% *√ Mrs. Laura Haines (D) – 32.83% House District 64 Rep. Lynn Stucky (R) – 52.83% *√ Mr. Andrew Morris (D) – 44.46% Mr. Nick Dietrich (L) – 2.69% House District 65 Rep. Ron Simmons (R) – 48.86% * Mrs. Michelle Buckley (D) – 51.13%√ House District 71 Rep. Stan Lambert (R) – 78.07% *√ Mr. Sam Hatton (D) – 21.92% House District 82 Rep. Tom Craddick (R) – 80.28% *√ Mr. Spencer Bounds (D) – 19.71% House District 83 Rep. Dustin Burrows (R) – 77.34% *√ Mr. Drew Landry (D) – 22.65% House District 84 Rep. John Frullo (R) – 60.18% *√ Mrs. Samantha Carrillo Fields (D) – 39.81% House District 88 Rep. Ken King (R) – 83.75% *√ Mr. Ezekiel Barron (D) – 16.24% House District 97 Rep. Craig Goldman (R) – 53.22% *√ Mrs. Beth Llewyelln McGlaughlin (D) – 44.82% Mr. Rod Wingo (L) – 1.94% House District 99 Rep. Charlie Geren (R) – 64.31% *√ Mr. Michael Stackhouse (D) – 35.68% House District 103 Rep. Rafael Anchia (D) – 78.2% *√ Mr. Jerry Fortenberry (R) – 21.79% House District 105 Rep. Rodney Anderson (R) – 45.3% * Mrs. Thresa “Terry” Meza (D)– 54.69%√ House District 108 Rep. Morgan Meyer (R) – 50.28% *√ Mrs. Joanna Cattanach (D) – 49.7% House District 112 Rep. Angie Chen Button (R) – 51.07% *√ Mrs. Brandy K. Chambers (D) – 48.92% House District 122 Rep. Lyle Larson (R) – 62% *√ Mrs. Claire Barnett (D) – 37.99% House District 126 Mr. E. Sam Harless (R) – 54.88%√ Mrs. Natali Hurtado (D) – 45.11% House District 129 Rep. Dennis Paul (R) – 56.61% *√ Mr. Alexander Jonathan Karjeker (D) – 41.72% Mr.