Texas House Bill HB4038

Texas 2017 - 85th Regular

Caption

Relating to the definition of "qualifying job" for purposes of certification by the comptroller of public accounts as a qualifying data center.

Impact

The implications of HB 4038 are significant for economic development initiatives in Texas. By redefining what constitutes a 'qualifying job', the bill aligns job creation efforts with the state's broader economic goals, particularly in technology and data management sectors. The ability to attract data centers, which are often high-capital and high-employment entities, can stimulate local economies and create skilled job opportunities in various regions throughout Texas. The law is expected to foster a competitive environment among states for attracting data center investments.

Summary

House Bill 4038 aims to amend the definition of 'qualifying job' specifically for the purposes of certification of data centers by the Texas comptroller of public accounts. This legislation specifies that a qualifying job must be a full-time, permanent position that offers a salary of at least 120% of the average weekly wage in the respective county. This alteration is intended to enhance the economic attractiveness of Texas as a location for data centers by ensuring that high-paying jobs are integral to their establishment.

Sentiment

Overall, the sentiment surrounding HB 4038 has been largely positive among business groups and economic development advocates. Supporters argue that the bill is a critical step in securing Texas’s position as a leader in the tech sector by facilitating the growth of data centers. However, there may be underlying concerns regarding whether setting such a high salary threshold could create barriers for smaller or emerging companies looking to establish data centers within the state.

Contention

Notable points of contention regarding HB 4038 may include debates surrounding the impact of the salary requirement on job creation potential. Some stakeholders are concerned that while the bill aims to provide high wages, it could also limit the number of data centers that could potentially qualify based on their hiring practices. Additionally, there could be discussions about the long-term sustainability of employment in rapidly evolving tech sectors, leading to calls for a reevaluation of job definitions and criteria in future legislation.