Texas House Bill HJR130

Texas 2009 - 81st Regular

Caption

Proposing a constitutional amendment establishing the Texas power source fund.

Impact

The establishment of the Texas power source fund will have significant implications for state laws surrounding investment and business funding. It allows for greater financial resources to be directed towards local industries, potentially enhancing the economic landscape in Texas. Additionally, the fund is structured to ensure that investment decisions are made with an emphasis on prudent management, reflecting a shift towards bolstering state-based economic initiatives. The proposed amendments also encompass provisions for the governance of the fund, entrusting a board of trustees with its management, while emphasizing the need for expertise in investment.

Summary

HJR130 proposes a constitutional amendment to establish the Texas power source fund, which is designed to encourage investment in Texas businesses. The fund will operate as a trust fund outside the state treasury and will be available for investments exclusively by Texas residents and political subdivisions. One of the key features of this fund is that it will create a mechanism for the state to match private investments, incentivizing individuals to contribute by offering tax reductions based on their investment amounts. This structure aims to stimulate economic growth by boosting investments in local businesses.

Contention

However, there could be contention regarding the governance model and the extent of state control over local investments. Critics might argue that while the fund's intentions are positive, the centralized management could overshadow local investment needs, potentially leading to decisions that do not reflect community interests. Moreover, the cap on state investment and the requirement for substantial private contributions before the state matches investments could be points of debate concerning accessibility and fairness in investment opportunities for smaller investors.