| 1 | 1 | | 85R4838 CLG-D |
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| 2 | 2 | | By: Estes S.B. No. 1028 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a periodic review of local government programs that |
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| 8 | 8 | | award economic development incentives to business entities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 490G.001, Government Code, is amended |
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| 11 | 11 | | by adding Subdivision (1-a) and amending Subdivisions (2) and (3) |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | (1-a) "Local government" means a county, |
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| 14 | 14 | | municipality, special district, school district, junior college |
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| 15 | 15 | | district, or other political subdivision of the state. |
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| 16 | 16 | | (2) "Monetary incentive" means a grant, loan, or other |
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| 17 | 17 | | form of monetary incentive paid from state or local government |
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| 18 | 18 | | revenues, including a state trust fund, that a business entity or |
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| 19 | 19 | | other person may receive in exchange for or as a result of |
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| 20 | 20 | | conducting an activity with an economic development purpose. |
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| 21 | 21 | | (3) "Tax incentive" means any exemption, deduction, |
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| 22 | 22 | | credit, exclusion, waiver, rebate, discount, deferral, or other |
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| 23 | 23 | | abatement or reduction of state or local government tax liability |
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| 24 | 24 | | of a business entity or other person that the person may receive in |
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| 25 | 25 | | exchange for or as a result of conducting an activity with an |
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| 26 | 26 | | economic development purpose. |
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| 27 | 27 | | SECTION 2. Chapter 490G, Government Code, is amended by |
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| 28 | 28 | | adding Section 490G.0055 to read as follows: |
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| 29 | 29 | | Sec. 490G.0055. REVIEW OF LOCAL GOVERNMENT INCENTIVE |
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| 30 | 30 | | PROGRAMS; PERFORMANCE MATRIX. (a) The board shall examine the |
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| 31 | 31 | | effectiveness, efficiency, and financial impact on this state of |
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| 32 | 32 | | programs administered by local governments that award to business |
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| 33 | 33 | | entities and other persons monetary or tax incentives for which the |
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| 34 | 34 | | local government has discretion in determining whether or not to |
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| 35 | 35 | | award the incentives. |
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| 36 | 36 | | (b) The board shall develop a performance matrix that |
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| 37 | 37 | | clearly establishes the economic performance indicators, measures, |
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| 38 | 38 | | and metrics that will guide the board's evaluations of those |
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| 39 | 39 | | programs. |
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| 40 | 40 | | (c) A local government shall provide to the board on request |
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| 41 | 41 | | information concerning a program described by Subsection (a) as |
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| 42 | 42 | | necessary to enable the board to perform the board's duties under |
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| 43 | 43 | | this chapter. |
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| 44 | 44 | | SECTION 3. The heading to Section 490G.006, Government |
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| 45 | 45 | | Code, is amended to read as follows: |
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| 46 | 46 | | Sec. 490G.006. SCHEDULE OF REVIEW OF STATE INCENTIVE |
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| 47 | 47 | | PROGRAM; RECOMMENDATION TO LEGISLATIVE AUDIT COMMITTEE. |
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| 48 | 48 | | SECTION 4. Chapter 490G, Government Code, is amended by |
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| 49 | 49 | | adding Section 490G.0065 to read as follows: |
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| 50 | 50 | | Sec. 490G.0065. SCHEDULE OF REVIEW OF LOCAL GOVERNMENT |
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| 51 | 51 | | INCENTIVE PROGRAMS. The board shall develop a schedule for the |
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| 52 | 52 | | periodic review of each class or type of local government program |
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| 53 | 53 | | described by Section 490G.0055 and identified by the board for the |
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| 54 | 54 | | purposes of making recommendations concerning program |
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| 55 | 55 | | effectiveness and efficiency to the governing bodies of applicable |
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| 56 | 56 | | local governments and reporting the findings and recommendations |
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| 57 | 57 | | resulting from the program review to the legislature as required by |
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| 58 | 58 | | Section 490G.007. The board shall review and make findings and |
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| 59 | 59 | | recommendations regarding each class or type of program as |
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| 60 | 60 | | described by this section according to the review schedule. |
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| 61 | 61 | | SECTION 5. Section 490G.007, Government Code, is amended to |
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| 62 | 62 | | read as follows: |
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| 63 | 63 | | Sec. 490G.007. BIENNIAL REPORT. Not later than January 1 of |
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| 64 | 64 | | each odd-numbered year, the board shall submit to the lieutenant |
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| 65 | 65 | | governor, the speaker of the house of representatives, and each |
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| 66 | 66 | | standing committee of the senate and house of representatives with |
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| 67 | 67 | | primary jurisdiction over economic development a report containing |
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| 68 | 68 | | findings and recommendations resulting from each review of state |
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| 69 | 69 | | incentive programs and funds and local government incentive |
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| 70 | 70 | | programs conducted by the board under this chapter during the |
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| 71 | 71 | | preceding two calendar years. |
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| 72 | 72 | | SECTION 6. Section 490G.008(a), Government Code, is amended |
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| 73 | 73 | | to read as follows: |
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| 74 | 74 | | (a) A member of the board who has a substantial interest in a |
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| 75 | 75 | | business entity or other person that previously applied for or |
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| 76 | 76 | | received a [state] monetary or tax incentive from a program or fund |
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| 77 | 77 | | subject to review by the board shall disclose that interest in |
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| 78 | 78 | | writing to the board. |
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| 79 | 79 | | SECTION 7. This Act takes effect September 1, 2017. |
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