Texas House Bill HB4076

Texas 2009 - 81st Regular

• Out of House Committee: 5/13/09

Caption

Relating to the establishment of the Texas Power Source.

Impact

This initiative is designed to attract capital to Texas-based companies and stimulate economic activity across the state. By incentivizing investments through tax benefits, the bill encourages individual investors to engage with and support local businesses. The fund's structure includes regional investment boards, tasked with evaluating investment opportunities, ensuring that area-specific needs and growth potentials are addressed directly. This approach aligns investments more closely with regional economic priorities and objectives.

Summary

House Bill 4076 establishes the Texas Power Source Fund, a trust fund intended to facilitate investment in Texas businesses. The fund aims to enhance local economic development by allowing residents and political subdivisions to invest. The state’s comptroller will match up to $500 million invested by other investors, creating a substantial financial backbone for the fund. The bill requires the fund to operate according to standard private sector trust laws, ensuring a level of accountability and security for investors in Texas.

Contention

Some concerns may arise regarding the management and oversight of the fund. The investments will be directed by a board of trustees comprised of a gubernatorial appointee with significant investment expertise. Critics may argue that the centralized decision-making could overlook grassroots needs or market trends, as the decisions of regional investment boards can be overridden by the trustees. Additionally, ensuring the fund's long-term viability while attempting to attract significant investment could lead to debates about the policy's sustainability and the balance between public funds and private interests.