Relating to eligibility requirements to receive a grant from the Texas Enterprise Fund.
Impact
The impact of HB1793 is expected to be significant on state economic development strategies, especially in incentivizing businesses to create new jobs in Texas. By setting clear thresholds for job creation and investment, the bill aims to attract businesses that can meet these criteria, thus boosting local economies and fostering job growth in larger urban areas, as well as in less populated regions. However, there is a potential concern that these stringent requirements may limit the number of applicants who can satisfy these conditions, which could inadvertently hinder smaller or newer companies from accessing such grants.
Summary
HB1793 introduces new eligibility requirements for entities seeking grants from the Texas Enterprise Fund. The bill amends existing law to specify that any grant agreement must include provisions mandating significant job creation and investment benchmarks based on the population of the county where the grant is utilized. Notably, the bill establishes specific thresholds for job creation, ranging from a minimum of 10 jobs in smaller counties to at least 75 jobs in more populous counties, alongside required minimum investment amounts that range from $20 million to $200 million, depending on the county size.
Contention
There may be points of contention regarding the enforceability and practical implications of the job and investment requirements outlined in the bill. Critics might argue that the high thresholds could disproportionately benefit larger corporations capable of meeting these benchmarks, while smaller businesses may struggle to meet such demands, resulting in inequities in grant distribution. Additionally, concerns may arise over the potential for companies to seek grants simply to fulfill the minimum requirements without making a substantial long-term investment in the Texas workforce or economy.
Texas Constitutional Statutes Affected
Government Code
Chapter 481. Texas Economic Development And Tourism Office
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.