Texas House Bill HB1986

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 enacted, HB1986 would impact local economies by creating a formal structure for development corporations that can support the growth of minority and women-owned businesses within the construction sector. This is expected to lead to increased participation of these businesses in local construction projects, thereby promoting economic growth and diversity in the region. The legislation outlines the operational framework, governance, and funding mechanisms for these corporations, aiming to ensure effective administration and oversight of the programs they implement.

Summary

House Bill 1986 aims to establish intergovernmental development corporations in certain counties with the purpose of fostering minority- and women-owned construction businesses. This legislation is specifically targeted at counties with populations exceeding two million that are adjacent to other counties of similar size. The bill emphasizes that it is the role of local governmental entities to promote the development of these businesses as a means of enhancing economic diversity and advancing public interests in economic development. The corporation established under this bill will operate as a nonprofit under the Business Organizations Code.

Contention

Notable points of contention surrounding HB1986 include concerns about funding allocations and the management model of the proposed corporations. As the legislation allows for public money to be granted with the intention of fostering development, discussions may arise about the accountability and efficiency of using taxpayer dollars for these initiatives. Stakeholders may also debate the actual impact this will have on the construction industry, particularly if the measures are fully adequate to overcome existing barriers faced by minority- and women-owned businesses.