Bill

HB 2772

84(R) - 2015
House Economic & Small Business Development
Read Bill & Check Bill Status
House Economic & Small Business Development
Business, Industry, & Commerce
Economic Development
Transportation & Infrastructure

Vote Recommendation

No
  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral

Author(s)

Armando Martinez

Bill Caption

Relating to the authority of certain economic development corporations to undertake and operate transportation-related projects.

Fiscal Notes

A fiscal note dated May 15, 2015 anticipates no significant fiscal implication to the State or to units of local government.

Bill Analysis

House Bill 2772 would amend Section 501.106(b) of the Local Government Code relating to airport facilities or other projects by corporations authorized by certain border municipalities to expand the scope of projects a development corporation would be authorized to undertake under this section.

Projects authorized under this subsection 501.106(b)(1) would include the development or promotion of new or expanded business enterprises through transportation facilities including airports, hangars, railports, rail switching facilities, maintenance and repair facilities, cargo facilities, marine ports, inland ports, mass commuting facilities, parking facilities, and related infrastructure located on or adjacent to an airport or railport facility.

House Bill 2772 would also amend Section 501.160(d) of the Local Government Code relating to owning or operating a project as a business to give a development corporation all the powers necessary to own and operate a project as a business if the project is authorized under Section 501.106.

Vote Recommendation Notes

House Bill 2772 would expand the scope of government by expanding the kind of transportation projects a development corporation, under Chapter 501 of the Local Government Code, is authorized to undertake and to own or operate as a business.

According to the statement of intent for the bill, "the authorization for certain corporations created by border area municipalities to undertake projects that promote new or expanded business enterprises through various transportation facilities would be beneficial."

The role of a limited government is not to promote business enterprises through "economic development" programs. Government sponsored or operated projects that aim at supporting economic development distort the free market system, and often create unintended consequences because they end up favoring some projects above others. The best role a limited government can play in helping growing the economy is by keeping a low tax, low regulatory environment that does not impede the free market system. As a consequence, we oppose House Bill 2772.

The second chamber sponsor is Senator Eddie Lucio, Jr.