Texas Senate Bill SB1293

Texas 2013 - 83rd Regular

Caption

Relating to creating a disadvantaged business assistance program to be operated by the Texas Department of Transportation.

Impact

If implemented, SB1293 could significantly reshape the landscape for disadvantaged businesses in Texas. By facilitating easier access to financial resources and support, the program could help these businesses overcome participation barriers in state contracts. The revolving fund would allow the state to use a mixture of funding sources, including application fees and federal grants, to sustain assistance to eligible businesses.

Summary

SB1293 aims to establish a disadvantaged business assistance program to be administered by the Texas Department of Transportation. This bill is designed to provide support to businesses deemed disadvantaged to help them participate more effectively in state contracts and the broader marketplace. The proposed program would include the creation of a revolving fund, which could be utilized to finance loans and other forms of financial assistance tailored for these businesses.

Contention

While the bill has received initial support, there are considerations regarding its effectiveness and the management of the revolving fund. Concerns may arise around the regulatory framework for distributing funds and the accountability mechanisms put in place to ensure that the loans aid the intended business beneficiaries. These potential pitfalls could lead to discussions on ensuring fair access and preventing misuse of funds, which may be contentious as stakeholders weigh the bill's implications.