Texas Senate Bill SB1047

Texas 2015 - 84th Regular

Caption

Relating to abolishing the Texas Enterprise Fund and the disposition of the balance of that fund.

Impact

The abolishment of the Texas Enterprise Fund is expected to have significant effects on state law and economic policy. By repealing various sections of the Government and Labor Codes that govern the fund’s operations, the bill will close a chapter on one of the state’s primary tools for directing economic resources. Proponents of the bill may argue that this move will encourage legislative oversight and fiscal responsibility by ensuring funds are allocated through the general legislative process rather than via executive orders or decisions. However, the impact on businesses that previously sought assistance from the fund may raise concerns about the future of economic incentives in Texas.

Summary

SB1047 is a legislative proposal aimed at abolishing the Texas Enterprise Fund, a program previously established to incentivize economic development in the state by providing financial grants to businesses. The bill details the procedures for dissolving the fund, including transferring its remaining balance to the state's general revenue fund, thus allowing these resources to be utilized in accordance with legislative appropriations. This transfer is designed to streamline the allocation of funds and likely redirect them towards other state priorities that might need financial support.

Contention

One notable point of contention surrounding SB1047 is the potential loss of targeted economic support for businesses that previously benefited from the Texas Enterprise Fund. Critics of the bill worry that dismantling such a fund could deter investment in key sectors, thereby hampering job creation and economic growth in Texas. Additionally, there may be discussions regarding how future funding for economic development will be organized, especially if existing frameworks for grant distribution are eliminated. The transitional period following the fund's abolition could lead to unclarity around available resources for business supports.