Texas Senate Bill SB340

Texas 2021 - 87th Regular

Caption

Relating to establishing an intergovernmental development corporation in certain counties to foster minority- or women-owned construction businesses.

Impact

If passed, SB340 would amend local government regulations to allow the formation of a nonprofit corporation that would be responsible for the oversight of business development programs. These programs may include training and mentorship opportunities tailored for minority and women construction business owners, thereby supporting an inclusive economic environment in these large urban counties. The legislation underscores the importance of promoting economic growth through diversity in entrepreneurship.

Summary

SB340 aims to establish intergovernmental development corporations in counties with populations exceeding two million residents, specifically targeting those adjacent to similarly populated counties. The primary purpose of these corporations is to promote and foster the growth of construction businesses owned by minority groups or women. By facilitating such businesses, the bill seeks to enhance economic diversity and serve the public interest, as stated in its various purposes and findings.

Contention

There may be points of contention related to the allocation of public funds and the establishment of governance structures for these corporations. The bill outlines provisions for financial oversight, including the creation and approval of annual budgets by the board of directors, composed of members appointed by the governing bodies that helped form the corporation. Potential concerns could arise regarding transparency, conflict of interest for board members, and the efficacy of the programs implemented to aid minority and women-owned businesses.