Texas House Bill HB3039

Texas 2013 - 83rd Regular

Caption

Relating to financing programs and activities related to rural economic development; authorizing a fee.

Impact

One of the significant implications of HB3039 is the establishment of a rural development account, which specifically allocates resources for economic assistance projects aimed at rural communities. This change is expected to facilitate better access to capital for businesses and initiatives in less urbanized areas, which have historically faced challenges in securing funding. By empowering the Texas Economic Development Bank with enhanced authority to administer these funds, the bill aims to create a more structured approach to rural economic development, promoting investment and job creation in these regions.

Summary

House Bill 3039 aims to enhance financing programs and activities related to rural economic development in Texas. The bill amends several sections of the Agriculture and Government Codes, specifically targeting the Texas agricultural fund and the Texas Economic Development Bank. It establishes a framework for creating dedicated accounts within the agricultural fund, allowing the bank greater flexibility in financing projects that stimulate economic activity in rural areas. The bill provides a structure for issuing bonds and collecting fees related to these initiatives, thereby enabling financial assistance to applicants pursuing rural development projects.

Contention

Despite the potential benefits, there are concerns about the bill’s implications for funding allocations and management. Some stakeholders argue that the bill could lead to an imbalance in resource distribution, with an overemphasis on rural projects at the expense of urban needs. The ability of the Texas Economic Development Bank to make financial commitments based on subjective criteria raises questions about transparency and accountability. Opponents worry that without careful oversight, the bill could inadvertently prioritize certain projects over others, limiting equitable access to funding across the state.