Texas House Bill HB1987

Texas 2015 - 84th Regular

Caption

Relating to the authority of the governing body of a school district to waive or reduce the new jobs creation requirement under the Texas Economic Development Act.

Impact

The proposed legislative changes could lead to a significant impact on how school districts manage economic development projects within their jurisdictions. By allowing school districts to waive or reduce the job creation requirements, the bill could attract more businesses to regions that may struggle to meet the existing thresholds. This shift may potentially lead to job creation where there were previously obstacles, thereby contributing to local economic growth. The changes specifically adjust existing statutes in the Tax Code, impacting how economic evaluations are conducted and interpreted by both school districts and potential investors.

Summary

House Bill 1987 aims to modify the Texas Economic Development Act by granting the governing bodies of school districts the authority to waive or reduce the new jobs creation requirement. This change intends to provide school districts with greater flexibility in responding to economic development needs, allowing them to adjust job creation thresholds based on the evaluations provided by the comptroller’s office. Supporters of the bill argue that this flexibility could encourage more investments and developments in diverse regions, adapting to the unique economic contexts of each school district.

Sentiment

General sentiment regarding HB 1987 reflects a mixture of optimism and caution. Proponents believe that the flexibility afforded to school districts will result in heightened economic development activity and job creation, viewing it as a pragmatic approach to adjusting rigid requirements that may hinder growth. Conversely, critics express concerns that waiving job creation standards might lead to inadequate checks on economic promises, potentially resulting in insufficient job creation and the misuse of incentives meant to stimulate genuine growth.

Contention

Notable points of contention revolve around the balance between encouraging economic growth and ensuring accountability in job creation commitments. Critics argue that loosening requirements could tempt certain entities to accept incentives while failing to deliver on promised employment outcomes, thereby questioning the long-term value of such economic incentives. As school districts gain more discretion in managing job creation expectations, there is an essential discussion about the communities' interests and how policies can be structured to promote ethical economic development.