Texas House Bill HB3364

Texas 2017 - 85th Regular

Caption

Relating to the use of money from the Texas Enterprise Fund to reimburse grant recipients for certain expenses.

Impact

The changes introduced by HB3364 aim to incentivize local businesses by allowing grant recipients to claim back expenses related to procurement from Texas-based entities. This financial mechanism is designed to promote economic growth and community development by supporting businesses within the state. By enabling reimbursements, the bill hopes to alleviate some financial burdens on organizations that engage in economic development or job training programs funded by state grants.

Summary

House Bill 3364 proposes amendments to the Texas Government Code, specifically in relation to the Texas Enterprise Fund, allowing for the reimbursement of certain expenses incurred by grant recipients. The bill stipulates that the governor can utilize funds from the Texas Enterprise Fund to reimburse grant recipients for a portion of their expenses related to the performance of their duties under the law. This includes expenses for purchasing goods or services from businesses based in Texas.

Contention

Notable points of contention surrounding HB3364 may arise from the discretionary power conferred to the governor regarding the administration of reimbursements, including the establishment of rules that govern eligible expenditures. Critics could argue that such discretion might lead to inconsistencies or perceived favoritism in fund distribution, whereas supporters might contend that it allows for necessary flexibility to quickly respond to economic needs. Additionally, concerns about the long-term sustainability and funding of the Texas Enterprise Fund could be a pivotal discussion point as lawmakers evaluate the potential implications of increased reimbursements.