Texas House Bill HB4308

Texas 2025 - 89th Regular

• Filed: 3/11/25

Caption

Relating to the creation of industrial development districts in certain counties; providing authority to issue bonds; and providing authority to impose assessments, fees, or taxes.

Impact

The bill seeks to amend laws related to local government and economic development, especially in small and medium-sized counties that face challenges in offering the same level of financial incentives as larger urban areas. By enabling these districts, counties are provided with a mechanism to enhance their economic development efforts, thus potentially improving job opportunities and community welfare. Local governments will be tasked with the responsibility of managing these newly created districts, which can lead to a more organized approach towards regional economic strategies.

Summary

House Bill 4308 proposes the establishment of county industrial development districts aimed at fostering economic growth in specified counties. This legislation provides counties with the authority to create special districts that can generate funding for infrastructure and public projects conducive to attracting major industrial employers. The districts may issue bonds, impose assessments and fees, and create local taxes contingent upon voter approval. The intent is to make designated areas more competitive in attracting investment and job creation activities.

Contention

While the bill has the potential to stimulate local economies, it also raises concerns about local governance and the implications of fiscal responsibilities on counties. Questions surrounding the efficacy of the proposed districts and the sufficiency of voter engagement in approving taxes and assessments are areas of contention. Additionally, there may be political debate about the balance of state versus local control in applications of economic incentives, as authority to create such districts can lead to differential economic landscapes across the state. The overarching concern is ensuring that the benefits of such legislation do not disproportionately favor larger counties while leaving smaller or less populous areas at a disadvantage.

Texas Constitutional Statutes Affected

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: New Section

• Chapter 54. Municipal Utility Districts
  • Section: New Section

Tax Code

• Chapter 321. Municipal Sales And Use Tax Act
  • Section: New Section

Government Code

• Chapter 1509. Obligations For Other Municipal Purposes
  • Section: New Section