Texas Senate Bill SB1391

Texas 2013 - 83rd Regular

Caption

Relating to a requirement that the comptroller perform a study of the Texas Economic Development Act.

Impact

The implications of this bill are significant as it aims to ensure that economic incentives provided under the Texas Economic Development Act are effectively meeting their goals. By evaluating job creation metrics and compliance with established state regulations, SB1391 seeks to provide transparency and accountability in how these agreements are managed. The study must address whether any specified job or wage requirements in the agreements have been waived, directly affecting how future agreements could be structured and administered.

Summary

SB1391 mandates the comptroller of public accounts to conduct a comprehensive study of the Texas Economic Development Act to assess its effectiveness and compliance with legislative intents. The bill requires a review of existing agreements under Chapter 313 of the Tax Code, focusing on their impact on job creation and overall economic development. In particular, the comptroller is tasked with evaluating ten agreements deemed to pose the highest risk, consisting of five related to energy and five to manufacturing sectors.

Contention

Discussions surrounding SB1391 may revolve around its potential to reshape the framework for economic development agreements in Texas. Stakeholders may have differing views on the extent of oversight warranted by the comptroller's study, with proponents arguing that increased scrutiny will bolster economic growth while critics may express concerns regarding bureaucratic red tape that could hinder business development. The outcome of the study and subsequent recommendations could lead to substantial amendments in the existing law, highlighting the contention around regulatory approaches to economic incentives.