Texas House Bill HB31

Texas 2019 - 86th Regular

Caption

Relating to operation of the Texas leverage fund program administered by the Texas Economic Development Bank.

Impact

The proposed amendments seek to clarify the operational structure of the Texas leverage fund, thereby ensuring consistent application and administration of funding opportunities provided by the program. It also allows for the establishment of separate accounts for different purposes, which enhances financial oversight and accountability regarding funds allocated for development projects. Furthermore, the fund's provisions enable investments in state-legal avenues to grow its financial resources and maintain effective support for economic initiatives.

Summary

House Bill 31 is designed to amend the regulations governing the operation of the Texas leverage fund program administered by the Texas Economic Development Bank. The leverage fund is established as a trust fund held outside the state treasury, intended to support economic development by facilitating loans to local economic development corporations. The funding will be sourced from bond issuance proceeds, along with loan repayments and other revenues generated through the program. By offering loans to eligible projects, the bill aims to stimulate state and local economies while providing essential support to communities in need of development assistance.

Contention

There are likely points of contention surrounding fiscal responsibility and the implications of state involvement in localized economic development. Critics may argue that with the state assuming more control over financial decisions through the leverage fund, it could lead to an over-reliance on state-funding mechanisms at the local level. Moreover, the potential for debt incurred via revenue-based bonds raises concerns regarding the long-term financial wellbeing of both the state and local municipalities. As the bill moves through legislative processes, careful consideration will be needed to address the balance between encouraging economic development and protecting local autonomy.