Texas Senate Bill SB132

Texas 2019 - 86th Regular

Caption

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.