Texas House Bill HB3281

Texas 2009 - 81st Regular

Caption

Relating to eligibility for a grant of money from the Texas Enterprise Fund.

Impact

The bill's amendments are significant as they introduce stricter criteria for authors of applications for state funds via the Texas Enterprise Fund. By preventing entities with delinquent tax statuses or those involved with troubled asset relief programs from receiving grants, the bill could potentially limit funding for businesses needing assistance. However, proponents argue that these restrictions are necessary to safeguard taxpayer money and ensure that funds are allocated to responsible entities that contribute positively to the state's economic health.

Summary

House Bill 3281 aims to amend the regulations surrounding eligibility for receiving grants from the Texas Enterprise Fund. The bill stipulates new provisions regarding the qualification of entities seeking such grants, placing greater emphasis on their financial standing and legal compliance. Specifically, to be eligible for a grant, entities must not have any delinquent taxes owed to the state and must be in good standing under the laws of the state in which they were formed. This change is intended to ensure that state-funded economic development initiatives are supported by financially stable entities.

Contention

While the bill's intentions might align with fiscal responsibility, it could raise concerns about its impact on small businesses or startups struggling to maintain good standing due to various economic challenges. Critics could argue that this measure disproportionately affects those with less access to resources and financial support, ultimately stifling economic growth within vulnerable sectors. Additionally, issues may arise concerning how these eligibility restrictions are implemented and monitored, leading to further debate about equity in economic assistance.