Texas House Bill HB2362

Texas 2017 - 85th Regular

Caption

Relating to creating a fund to provide grants to certain local entities in areas of the state affected by decreased oil and gas production for economic development and diversification projects.

Impact

The bill establishes a framework for economic support during challenging times for local economies heavily reliant on oil and gas. By directing excess general revenue to this fund, the state intends to mitigate the impacts of fluctuating oil markets on local economies, aiming to foster stability and stimulate growth in sectors beyond fossil fuels. The administration of the fund falls under the governor's purview, ensuring that grant distribution is regulated and equitable, addressing the immediate needs of struggling areas.

Summary

House Bill 2362 proposes the establishment of the Oil and Gas Downturn Assistance Fund. This fund is designed to provide grants to municipalities, counties, and school districts in Texas that have experienced significant decreases in property values due to downturns in the oil and gas industry. Specifically, any local entity that shows a 20% or more drop in its property appraised values from one fiscal biennium to the next is eligible to apply for these grants, which aim to support economic development and diversification projects in these affected areas.

Contention

While the bill aligns with goals to protect and diversify the economic foundations of oil-dependent regions, it may also generate discussion regarding the sustainability of such funding. Critics could argue that this approach may inadvertently promote continued reliance on volatile oil and gas revenue streams instead of encouraging a more robust diversification strategy upfront. Additionally, details regarding grant allocation processes and eligibility requirements could raise questions about fairness and accessibility for all affected municipalities and regions.