Relating to operation of the Texas leverage fund program administered by the Texas Economic Development Bank.
Impact
The implementation of SB132 is projected to enhance economic activity in Texas by providing local corporations with access to financial resources necessary for development projects. By facilitating loans through a structured trust fund, the bill aims to streamline funding processes and ensure that projects benefiting local economies are adequately financed. It underscores a commitment to bolster economic growth while ensuring that local entities can engage in initiatives that align with community interests.
Summary
Senate Bill 132, known as the Texas Leverage Fund Program Act, establishes a framework for the operation of the Texas leverage fund administered by the Texas Economic Development Bank. This bill amends the Government Code by introducing a new subchapter dedicated to defining and managing the leverage fund, which is intended to finance economic development projects through loans to eligible corporations. The fund is designed to utilize various revenue streams, including bond proceeds and loan repayments, to support economic initiatives across the state.
Sentiment
Discussion around SB132 exhibited generally positive sentiment among legislators focused on economic growth and development. Supporters praised the bill for its potential to invigorate local economies, while detractors raised concerns regarding the management of funds and the implications for accountability. Nevertheless, the overall legislative sentiment appeared to favor enhancing the state's economic development capabilities through this structured financial mechanism.
Contention
One notable point of contention involves the provisions for appropriating state funds. Critics argued that the bill places significant financial power in the hands of the bank without sufficient oversight mechanisms. Concerns were expressed about the implications of bond measures which do not constitute state debt, as this might lead to potential financial liabilities that are not fully transparent to taxpayers and local governments. The debate thus highlights a tension between facilitating economic initiatives and maintaining diligent fiscal governance.
Relating to the funding of projects by the Public Utility Commission of Texas to promote the reliability and resiliency of the power grid in this state; authorizing the issuance of revenue bonds.
Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.
Relating to the provision by the Texas Water Development Board of financial assistance for the development of residential drainage projects in economically distressed areas.
Relating to operation of the Texas small and rural community success fund program administered by the Texas Economic Development Bank as successor to the Texas leverage fund program and to creation of the micro-business disaster recovery loan guarantee program.
Relating to operation of the Texas small and rural community success fund program administered by the Texas Economic Development Bank as successor to the Texas leverage fund program.
Relating to the authority of the Texas Water Development Board to establish, operate, and, through the issuance of general obligation bonds, finance a grant program to provide financial assistance to political subdivisions and the state for projects related to disaster recovery; disaster mitigation; or construct, repair, rehabilitate, or reconstruct state or local infrastructure.
Relating to the authority of the Texas Water Development Board to establish, operate, and, through the issuance of general obligation bonds, finance a grant program to provide financial assistance to political subdivisions and the state for projects related to disaster recovery; disaster mitigation; or construct, repair, rehabilitate, or reconstruct state or local infrastructure.
Relating to the administration of the Texas Water Development Board and the funding of water projects by the board and other entities; authorizing the issuance of revenue bonds.
Relating to the authority of the Texas Department of Transportation to enter into availability payment agreements for the design, development, financing, construction, maintenance, or operation of a highway project.