Setting the stage for one of the most contentious debates awaiting next year’s legislative session, the state’s leading business group released a report Tuesday warning that bills targeting gay and transgender rights could severely hinder the Texas economy.

The Texas Association of Business report concluded that, if passed, such proposed laws could cost the state economy $8.5 billion a year and threaten 185,000 jobs, primarily in the state’s travel and tourism industry.

"These are conservative projections based on hard data that tracks what is happening in other states," Chris Wallace, president of the business group, said during a Capitol news conference.

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