By: J. Davis of Harris, Reynolds, Murphy H.B. No. 2785
(Senate Sponsor - Shapiro
(In the Senate - Received from the House April 11, 2011;
April 26, 2011, read first time and referred to Committee on
Economic Development; May 5, 2011, reported favorably by the
following vote: Yeas 5, Nays 0; May 5, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Select Committee on Economic
Development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. PURPOSE. The purpose of this Act is to ensure
that economic development initiatives in this state are effective
in encouraging new investment, employment, and income and in
retaining existing facilities and employment. The economic
development incentives must be appropriately sized and directed and
administratively efficient and must allow this state to compete
with other states. It is the intent of the legislature to develop
objective criteria to evaluate the state's economic development
initiatives that reflect sound economic principles appropriately
applied in light of the diverse nature of the initiatives and the
state's economy.
SECTION 2. DEFINITION. In this Act, "committee" means the
Select Committee on Economic Development.
SECTION 3. COMPOSITION. (a) The Select Committee on
Economic Development is composed of 12 members as follows:
(1) four public members appointed by the governor:
(A) two of whom must be owners or employees of a
business with significant operations in this state; and
(B) one of whom must be a member of the governing
body of a municipality or county;
(2) two public members appointed by the lieutenant
governor, one of whom must be an owner or employee of a business
with significant operations in this state;
(3) two members of the senate appointed by the
lieutenant governor;
(4) two public members appointed by the speaker of the
house of representatives, one of whom must be an owner or employee
of a business with significant operations in this state; and
(5) two members of the house of representatives
appointed by the speaker of the house of representatives.
(b) Each individual required to make an appointment under
Subsection (a) of this section shall make the appointment as soon as
possible after the effective date of this Act, but not later than
November 1, 2011.
SECTION 4. PRESIDING OFFICER; MEETINGS. (a) The governor
shall select the presiding officer of the committee from among the
committee members.
(b) The committee shall meet at the call of the presiding
officer.
SECTION 5. COMMITTEE DUTIES. The committee shall:
(1) recommend to the legislature an economic
development policy for the state;
(2) conduct a study and make recommendations to the
legislature regarding state and local economic development
incentives;
(3) develop criteria for evaluating the effectiveness
of existing economic development policies and incentives in this
state and make recommendations the committee considers necessary to
improve those policies and incentives, taking into account:
(A) aspects of the state and local tax systems
that encourage or hinder economic activity in the state;
(B) the types or categories of businesses
eligible for incentives and whether the promotion or encouragement
of a specific type or category of business activity is in the best
long-term interest of the state and the citizens of this state;
(C) the extent to which an incentive should
encourage the maintenance or expansion of existing capital
investment within this state or attract new capital investment from
outside this state;
(D) the extent to which an incentive should
encourage the retention or expansion of existing employment within
this state or encourage the creation of additional employment,
either at existing or new business locations in this state;
(E) the direct effects of the business activity
qualifying for the incentive and the indirect and induced effects
associated with that activity on capital investment, employment,
wages, salaries, state and local tax revenues, and demands for
state or local public services;
(F) how the incentives offered in this state
compare to those available in other states or countries, and how
those differences affect business decisions to invest in this state
or outside this state; and
(G) whether and to what extent a particular
incentive should take the form of a direct grant of state or local
revenue, the abatement, deferral, or limitation of a state or local
tax, fee, or assessment, the provision of a specific service or
program designed to benefit the business, or other direct or
indirect financing mechanism;
(4) consider the benefits of consolidating state and
local economic development incentives into a single statewide
office or agency;
(5) evaluate existing state or local economic
development incentives and make recommendations regarding the
continuation, elimination, or modification of those incentives
based on the criteria developed under Subdivision (3) of this
section; and
(6) make recommendations on whether the state should
adopt new incentives to better accomplish the state's economic
development policy.
SECTION 6. REPORT. Not later than January 1, 2013, the
committee shall submit a report of the committee's findings,
studies, and recommendations to:
(1) the governor;
(2) the lieutenant governor;
(3) the speaker of the house of representatives; and
(4) each member of the legislature.
SECTION 7. STAFF. On the committee's request, the
Legislative Budget Board, Texas Legislative Council, office of the
governor, senate, and house of representatives shall provide the
staff necessary to assist the committee in performing its duties.
SECTION 8. COOPERATION OF STATE AGENCY, DEPARTMENT, OR
OFFICE. If needed to perform the duties of the committee, the
committee may request the assistance of a state agency, department,
or office. The state agency, department, or office shall provide
the committee with the requested assistance.
SECTION 9. EXPENSES. (a) The operating expenses of the
committee shall be paid from available funds of the office of the
governor, the senate, and the house of representatives, as agreed
to by those entities.
(b) When attending committee meetings, a public member of
the committee shall be allowed the same mileage and per diem as are
allowed members of the legislature who attend a committee meeting
when the legislature is not in session.
SECTION 10. EXPIRATION DATE. The committee is abolished
and this Act expires September 1, 2013.
SECTION 11. EFFECTIVE DATE. This Act takes effect
September 1, 2011.
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