Texas House Bill HB3795

Texas 2011 - 82nd Regular

• Introduced: 3/11/11
• Refer: 3/23/11

Caption

Relating to authorized investments for governmental entities.

Impact

The enactment of HB 3795 would significantly influence how local governments and state agencies manage their investments. By compelling these entities to allocate a specified portion of their funds to Texas corporations, the bill seeks to promote local businesses and stimulate the state's economy. Additionally, it aims to ensure that public funds are contributing to the economic wellbeing of Texas communities, thereby fostering a stronger intrastate financial relationship.

Summary

House Bill 3795 is proposed legislation aimed at modifying the investment strategies for governmental entities in Texas. The bill primarily introduces a requirement that mandates each governing body to invest a minimum of five percent of their total investment portfolio in Texas-based, publicly-traded corporations. This requirement is designed to encourage local economic growth and support the state's financial ecosystem by reinforcing investments within Texas.

Sentiment

The general sentiment surrounding HB 3795 appears to be positive among proponents, who view the bill as a necessary step for bolstering the state's economy and supporting local businesses. Advocates believe that this legislation will create a competitive environment that enhances investment returns while also fulfilling a civic duty to support Texas-based companies. However, there may also be skepticism from some stakeholders about whether this mandate could limit investment options for governmental entities, potentially affecting their financial performance.

Contention

One notable point of contention regarding HB 3795 is the required investment in Texas corporations, which some argue may restrict the ability of governing bodies to diversify their investment portfolios effectively. Critics may express concerns that focusing investments domestically could lead to missed opportunities in more lucrative markets outside of Texas. Furthermore, the debate could center around the impact of such a mandate on the flexibility and autonomy of agencies and local governments in handling their financial investments.