Texas House Bill HB205

Texas 2025 - 89th 2nd C.S.

• Filed: 8/18/25

Caption

Relating to authorizing certain projects to be undertaken in response to a disaster by certain economic development corporations.

Impact

The bill aims to foster economic resilience by allowing municipalities greater flexibility in helping their local businesses recover from disasters. This legislative measure recognizes the urgency that arises immediately following a disaster and provides a framework for swift action. By mandating that projects related to disaster recovery must be approved by the governing body of the authorizing municipality and executed within two years of the disaster declaration, HB205 ensures a structured approach to economic recovery while promoting local oversight.

Summary

House Bill 205 authorizes economic development corporations in Texas to undertake specific projects in response to disasters declared by either the governor or the president of the United States. The bill introduces provisions that enable Type B corporations to provide grants and loans to businesses affected by declared disasters. This support can be used for various purposes, including the temporary relocation of damaged businesses and the repair or elevation of their infrastructure, which is crucial for recovery and stabilization efforts in impacted areas.

Contention

Notably, while the bill is focused on disaster recovery, discussions surrounding its implementation may include concerns about the proper allocation of funds and whether municipalities have sufficient oversight capabilities to manage the projects effectively. There may also be points of contention regarding how these funds are prioritized, especially in larger municipalities versus smaller or rural areas where resources could be limited. The discussion around balancing immediate economic support with long-term community development goals will likely play a key role in the bill's reception.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 505. Type B Corporations
  • Section: New Section