85R11538 CLG/SMH-D
By: Button H.B. No. 2564
A BILL TO BE ENTITLED
AN ACT
relating to a periodic review by the Economic Incentive Oversight
Board of projects undertaken by certain economic development
corporations and the ad valorem tax incentive program established
by the Texas Economic Development Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 490G.001, Government Code, is amended by
amending Subdivisions (1) and (2-a) and adding Subdivisions (1-a),
(2-b), and (4) to read as follows:
(1) "Authorizing municipality" means the municipality
that authorizes the creation of a Type A or Type B corporation.
(1-a) "Board" means the Economic Incentive Oversight
Board.
(2-a) "Office" means the Texas Economic Development
and Tourism Office.
(2-b) "Rural county" means a county with a population
of less than 60,000.
(4) "Type A corporation" and "Type B corporation" have
the meanings assigned those terms by Section 501.002, Local
Government Code.
SECTION 2. Chapter 490G, Government Code, is amended by
adding Sections 490G.0055 and 490G.0056 to read as follows:
Sec. 490G.0055. REVIEW OF ECONOMIC DEVELOPMENT CORPORATION
PROJECTS; PERFORMANCE MATRIX. (a) The board shall examine the
effectiveness, efficiency, and financial impact on this state of
projects undertaken by Type A and Type B corporations under
Subtitle C1, Title 12, Local Government Code.
(b) The board shall develop a performance matrix that
clearly establishes the economic performance indicators, measures,
and metrics that will guide the board's evaluations of those
projects.
(c) A Type A or Type B corporation shall provide to the board
on request any agreement relating to a project undertaken by the
corporation and any other information concerning the project as
necessary to enable the board to perform the board's duties under
this chapter.
Sec. 490G.0056. REVIEW OF PROGRAM ESTABLISHED BY TEXAS
ECONOMIC DEVELOPMENT ACT; PERFORMANCE MATRIX. (a) The board shall
examine the effectiveness, efficiency, and financial impact on this
state of the ad valorem tax incentive program established by
Chapter 313, Tax Code, including whether that chapter is being
implemented by school districts and the comptroller in such a way as
to:
(1) accomplish the purposes of that chapter as
expressed in Section 313.003 of that chapter; and
(2) comply with the intent of the legislature in
enacting that chapter as expressed in Section 313.004 of that
chapter.
(b) The board shall develop a performance matrix that
clearly establishes the economic performance indicators, measures,
and metrics that will guide the board's evaluation of the program.
(c) The comptroller shall provide to the board on request
information concerning the program as necessary to enable the board
to perform the board's duties under this chapter.
SECTION 3. The heading to Section 490G.006, Government
Code, is amended to read as follows:
Sec. 490G.006. SCHEDULE OF REVIEW OF STATE INCENTIVE
PROGRAMS; RECOMMENDATION TO LEGISLATIVE AUDIT COMMITTEE.
SECTION 4. Chapter 490G, Government Code, is amended by
adding Sections 490G.0065 and 490G.0066 to read as follows:
Sec. 490G.0065. SCHEDULE OF REVIEW OF ECONOMIC DEVELOPMENT
CORPORATION PROJECTS. (a) The board shall develop a schedule for
the periodic review of each project or category of projects
described by Section 490G.0055 and identified by the board for the
purposes of making recommendations concerning project
effectiveness and efficiency to the office and reporting the
findings and recommendations resulting from the project review to
the legislature as required by Section 490G.007. The board shall
review and make findings and recommendations regarding each project
or category of projects as described by this section according to
the review schedule.
(b) The board, on request, shall provide to the governing
body of a Type A corporation's or Type B corporation's authorizing
municipality any recommendations submitted to the office under
Subsection (a) concerning a project or category of projects
undertaken by the corporation created by the municipality.
Sec. 490G.0066. SCHEDULE OF REVIEW OF PROGRAM ESTABLISHED
BY TEXAS ECONOMIC DEVELOPMENT ACT. (a) The board shall develop a
schedule for the periodic review of the ad valorem tax incentive
program established by Chapter 313, Tax Code, for the purpose of
making recommendations concerning the effectiveness and efficiency
of the program to the office and reporting the findings and
recommendations resulting from the review to the legislature as
required by Section 490G.007. The board shall review and make
findings and recommendations regarding the program according to the
review schedule.
(b) The board, on request, shall provide to the governing
body of a school district or the comptroller any recommendations
submitted to the office under Subsection (a) concerning the
program.
SECTION 5. Section 490G.007, Government Code, is amended to
read as follows:
Sec. 490G.007. BIENNIAL REPORT. Not later than January 1
of each odd-numbered year, the board shall submit to the lieutenant
governor, the speaker of the house of representatives, and each
standing committee of the senate and house of representatives with
primary jurisdiction over economic development a report containing
findings and recommendations resulting from each review of state
incentive programs and funds, of projects undertaken by Type A or
Type B corporations, and of the ad valorem tax incentive program
established by Chapter 313, Tax Code, that is conducted by the board
under this chapter during the preceding two calendar years.
SECTION 6. This Act takes effect September 1, 2017.