Relating to authorizing certain projects to be undertaken by economic development corporations.
If passed, the measure would result in local economic development corporations needing to secure a majority vote from the governing body of their municipality before using tax proceeds for specific types of projects. The bill also establishes a petition process, requiring at least 10 percent of registered voters from the last general election to demand an election on the matter. This approach adds a layer of local democracy in determining how tax funds are allocated, ensuring that community members have a direct say in major infrastructure undertakings.
House Bill 539 aims to amend the Local Government Code by providing authorization for Type A and Type B corporations to undertake certain general infrastructure and public safety projects. The bill specifies that these corporations may not use proceeds from sales and use tax or other corporate revenues for designated projects without prior voter approval in the form of an election. The types of projects that would require such authorization include infrastructure projects such as roads, water supply, sewage facilities, and improvements related to public safety.
Notable points of contention surrounding HB 539 center around the balance of local versus centralized authority in economic development limitations. Supporters argue that requiring voter approval increases accountability and aligns projects with community needs. Conversely, critics may express concerns that this could hinder timely responses to infrastructure and safety issues due to the need for standard electoral processes, possibly delaying critical improvements and development efforts within municipalities.