Texas House Bill HB1277

Texas 2009 - 81st Regular

• Out of House Committee: 4/20/09
• Voted on by House: 5/13/09
• Out of Senate Committee: 5/25/09

Caption

Relating to the Texas Enterprise Fund, including the use of money from the fund, the terms of a grant agreement, and the duties of a grant recipient or entity that acquires a grant recipient.

Impact

A notable aspect of HB 1277 is its directive concerning the deployment of state resources in times of economic distress. The bill amends Section 481.078 of the Government Code, allowing the Texas Enterprise Fund to offer incentives for business retention when the unemployment rate is at or above seven percent. This legislative change emphasizes the state's proactive approach to economic management, particularly in unfavorable economic conditions where job retention becomes critical.

Summary

House Bill 1277 pertains to the Texas Enterprise Fund and modifies the utilization of funds intended for economic development and business incentives. The bill specifically allows money appropriated from the Texas Enterprise Fund to be used as incentives to retain businesses located within the state, particularly during periods of high unemployment. By facilitating this use of funds, the bill aims to bolster economic stability and support local businesses facing challenges.

Contention

Discussions around HB 1277 may center on its implications for fiscal responsibility and the effectiveness of government incentives in stimulating economic activity. While proponents argue that the bill will provide necessary assistance to struggling businesses, critics may question the sustainability of utilizing state funds for such purposes. Additionally, concerns may be raised regarding the criteria under which businesses qualify for these incentives and the potential for misuse of the funds intended for economic support.