By: Davis S.B. No. 1391
(In the Senate - Filed March 7, 2013; March 18, 2013, read
first time and referred to Committee on Economic Development;
April 29, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 0; April 29, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1391 By: Davis
A BILL TO BE ENTITLED
AN ACT
relating to a requirement that the comptroller perform a study of
the Texas Economic Development Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. STUDY OF TEXAS ECONOMIC DEVELOPMENT ACT.
(a) The comptroller of public accounts shall conduct a study of
the Texas Economic Development Act. The purpose of the study is to
determine:
(1) if the Act, as implemented:
(A) accomplishes the intended purposes of the
Act, as stated in Section 313.003, Tax Code; and
(B) complies with the intent of the legislature
in enacting the Act, as expressed in Section 313.004, Tax Code; and
(2) if legislative action is needed to increase the
efficiency or effectiveness of any part of the Act.
(b) The comptroller of public accounts shall conduct an
in-depth and cumulative study of certain agreements entered into
under Chapter 313, Tax Code, as determined under this subsection.
To determine the agreements to study, the comptroller shall perform
risk assessments on each agreement entered into under Chapter 313,
Tax Code, that is active on the effective date of this Act. In
addition to the requirements of a risk assessment prescribed by
Chapter 321, Government Code, a risk assessment conducted under
this subsection must specifically consider the items listed in
Subsection (a), Section 313.009, Tax Code, and whether the
qualifying period for the agreement has expired. The comptroller
shall select five energy-related agreements and five
manufacturing-related agreements under Chapter 313, Tax Code, that
pose the greatest risk to the state, as identified by the risk
assessment conducted under this subsection, on which to conduct an
in-depth study.
(c) In conducting the study required by Subsection (a) of
this section, the comptroller of public accounts must:
(1) determine for each of the 10 agreements
identified:
(A) if the terms of the agreement were
implemented in a manner that complies with Sections 313.003 and
313.004, Tax Code;
(B) what changes to Chapter 313, Tax Code, if
any, would increase the effectiveness and efficiency of the
administration of the agreement;
(C) the number of jobs actually created, and the
median wage for the new jobs created, under the agreement; and
(D) whether any requirements relating to the
number of jobs, or the wages paid for those jobs, specified in the
agreement were waived; and
(2) consider the entire period the agreement has been
in effect when making the determinations required under Subdivision
(1) of this subsection.
(d) The comptroller of public accounts may require a party
to an agreement under Chapter 313, Tax Code, to submit information
to complete the study required by this Act.
(e) At the comptroller of public accounts' request, the
state auditor may assist the comptroller in conducting the study
required by this Act.
SECTION 2. REPORT. (a) Not later than December 1, 2014,
the comptroller of public accounts shall submit a report of the
results of the study to the governor and the legislature.
(b) The report must include:
(1) a complete discussion of each agreement studied by
the comptroller of public accounts; and
(2) the comptroller's recommendations, based on the
study's findings, of ways to increase the effectiveness and
efficiency of agreements entered into under Chapter 313, Tax Code.
(c) If the report recommends amending a provision of Chapter
313, Tax Code, the comptroller of public accounts shall include
proposed legislation necessary to implement the suggested
amendment.
(d) The report may not include information that is
confidential by law.
SECTION 3. EXPIRATION DATE. This Act expires January 1,
2015.
SECTION 4. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2013.
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