Texas House Bill HB671

Texas 2017 - 85th Regular

• Filed: 12/21/16

Caption

Relating to the operation of the capital access program and to transfers to and from the capital access fund.

Impact

The proposed amendments would empower the bank administering the capital access fund to manage the funds more effectively. It provides a clear process for determining fund balances, highlighting a systematic way to allocate resources for economic growth. By amending Sections of the Government Code, the bill enhances the operational framework of these funds, thus potentially increasing financing opportunities for small businesses across Texas, especially those in designated enterprise zones. This is seen as crucial to fostering economic recovery and stability in local communities.

Summary

House Bill 671 aims to amend the operations concerning the capital access program and the capital access fund within Texas. The bill specifies regulations for the use of funds intended for various economic development purposes, including community development and job training programs. Particularly, it proposes that on the second day of each state fiscal biennium, the comptroller will assess the available funds and manage transfers between the capital access fund and the general fund. This structured approach intends to ensure adequate capital availability for supporting state economic initiatives.

Contention

While the bill promotes financial support to small businesses and stimulates economic growth, it might face scrutiny regarding the management and prioritization criteria for distributing these resources. Some stakeholders could argue that focusing on enterprise zones may overlook businesses in other regions that also require financial assistance. Moreover, some local governments might feel that such state-directed funding could encroach upon their local financial initiatives and development strategies, raising concerns about local autonomy in economic planning.