Texas House Bill HB4471

Texas 2021 - 87th Regular

Caption

Relating to examination fees for the review and approval of public securities and related proceedings and funding for victims assistance and sexual assault prevention services.

Impact

The implementation of HB 4471 introduces a more streamlined and potentially more equitable fee structure for public securities issuance. By adjusting the fee percentages and minimums, the bill aims to normalize the costs associated with securities review, which could be especially beneficial for smaller issuers and non-profits. Furthermore, the revenues generated from these examination fees would support critical services aimed at assisting victims of crime and preventing further sexual violence, thereby contributing to the public welfare.

Summary

House Bill 4471 addresses the examination fees required when issuers submit securities for review and approval by the Attorney General. The bill outlines a revised fee structure where issuers would be required to pay a nonrefundable examination fee that is based on the principal amount of the public security issued. The minimum examination fee is set at $750 with specific provisions for non-profit corporations, which would incur a reduced fee percentage. These fees are intended to fund various administrative costs as well as programs related to victim assistance and sexual assault prevention services.

Sentiment

General sentiment around HB 4471 appears to be supportive, particularly among those advocating for victims' services, as it considers the allocation of fees to programs aimed at improving safety and support for vulnerable populations. However, there may be some concerns regarding the financial impact on issuers, particularly smaller entities or non-profits who could find any new fees burdensome. The balance of ensuring adequate funding for victim services while not overly taxing public issuers represents a critical point of consideration among stakeholders.

Contention

While most discussion surrounding HB 4471 seems constructive, there may be underlying tensions related to how the new fees could affect broader fiscal policies or the competitiveness of public securities in Texas. Potential critics may argue that increased fees could deter small local issuers from pursuing public securities due to the higher costs involved, which could lead to inequities in financing opportunities across different jurisdictions or types of organizations.