Texas Senate Bill SB393

Texas 2017 - 85th Regular

• Filed: 12/20/16

Caption

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

Impact

The proposed legislation will have significant implications for Texas's economic development policies. By abolishing the Texas Enterprise Fund, the bill seeks to dismantle previous mechanisms that facilitated direct financial assistance to businesses and projects deemed beneficial for job creation and economic growth. The transition of funds into the general revenue stream means that future funding initiatives will require deliberation and approval through standard legislative processes, which may lead to more equitable and transparent fund distribution but could also delay targeted economic interventions.

Summary

SB393 aims to abolish the Texas Enterprise Fund, a key financial resource for supporting economic development projects across the state. The bill intends to transfer the remaining balance of the fund into the state’s general revenue fund, thereby streamlining the allocation of resources in accordance with legislative appropriations. Proponents argue that this measure will enhance the transparency of state funding and effectively allocate taxpayer dollars directly where they are most needed, eliminating the complexities associated with managing a discrete fund like the Texas Enterprise Fund.

Contention

Notably, there have been points of contention among lawmakers regarding the effectiveness and legacy of the Texas Enterprise Fund. Critics of the fund often cite inefficiency and a lack of accountability in how funds were awarded and managed. On the other hand, advocates stress that the fund was an essential tool in attracting businesses to Texas, and its dissolution could hinder the state’s competitive edge in economic development. The bill also includes provisions requiring former grant recipients to submit annual progress reports to ensure continuity in monitoring the outcomes of past funding agreements, which may be viewed as a bureaucratic burden by some.

Summary_conclusion

Overall, SB393 represents a major shift in the way Texas funds economic development initiatives. With both proponents and opponents presenting valid arguments regarding its impact, the bill highlights the ongoing debate over state resource management and economic strategy in Texas.