Relating to authorizing certain general infrastructure projects to be undertaken by economic development corporations.
Impact
If enacted, HB 1636 would modify existing regulations that restrict the types of projects these economic development corporations can pursue. Previously, Type A corporations, for example, were limited in their ability to undertake certain infrastructures. The bill not only broadens the scope of projects but also introduces a requirement for municipalities to hold elections authorizing the use of sales and use tax proceeds and other revenues for these projects.
Summary
House Bill 1636 seeks to expand the authority of Type A and Type B economic development corporations in Texas by allowing them to undertake certain general infrastructure projects. This includes the development, improvement, maintenance, or expansion of essential facilities such as streets, roads, water supply facilities, and sewage facilities. The bill makes specific amendments to the Local Government Code to support this initiative.
Contention
Notable points of contention might arise around the logistical and financial implications this bill carries. Critics may express concern over potential misuse of funds or the adequacy of local engagement and assessment before large projects are approved. The requirement for an election adds a layer of local democratic participation, which may be seen as both a safeguard and a hindrance to timely project execution. Discussions around the allocation of tax revenues for these projects may also spur debate regarding local governance and priorities in community development.
Relating to the authority of certain municipalities and local government corporations to use certain tax revenue for certain qualified projects and project-associated infrastructure.
Relating to the establishment of the Texas Mircale Act (TMA), allowing for certain fees, authorizing certain ad valorem tax incentives for economic development, specifically certain tax relief from school district taxes for certain corporations and limited liability companies that make large investments that create jobs in this state, to authorizing the imposition of certain fees, and the repeal of Chapter 313 of Texas Tax Code and the Economic Development Act of the 77th Legislature.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.