85R4838 CLG-D
By: Estes S.B. No. 1028
A BILL TO BE ENTITLED
AN ACT
relating to a periodic review of local government programs that
award economic development incentives to business entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 490G.001, Government Code, is amended
by adding Subdivision (1-a) and amending Subdivisions (2) and (3)
to read as follows:
(1-a) "Local government" means a county,
municipality, special district, school district, junior college
district, or other political subdivision of the state.
(2) "Monetary incentive" means a grant, loan, or other
form of monetary incentive paid from state or local government
revenues, including a state trust fund, that a business entity or
other person may receive in exchange for or as a result of
conducting an activity with an economic development purpose.
(3) "Tax incentive" means any exemption, deduction,
credit, exclusion, waiver, rebate, discount, deferral, or other
abatement or reduction of state or local government tax liability
of a business entity or other person that the person may receive in
exchange for or as a result of conducting an activity with an
economic development purpose.
SECTION 2. Chapter 490G, Government Code, is amended by
adding Section 490G.0055 to read as follows:
Sec. 490G.0055. REVIEW OF LOCAL GOVERNMENT INCENTIVE
PROGRAMS; PERFORMANCE MATRIX. (a) The board shall examine the
effectiveness, efficiency, and financial impact on this state of
programs administered by local governments that award to business
entities and other persons monetary or tax incentives for which the
local government has discretion in determining whether or not to
award the incentives.
(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
programs.
(c) A local government shall provide to the board on request
information concerning a program described by Subsection (a) 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
PROGRAM; RECOMMENDATION TO LEGISLATIVE AUDIT COMMITTEE.
SECTION 4. Chapter 490G, Government Code, is amended by
adding Section 490G.0065 to read as follows:
Sec. 490G.0065. SCHEDULE OF REVIEW OF LOCAL GOVERNMENT
INCENTIVE PROGRAMS. The board shall develop a schedule for the
periodic review of each class or type of local government program
described by Section 490G.0055 and identified by the board for the
purposes of making recommendations concerning program
effectiveness and efficiency to the governing bodies of applicable
local governments and reporting the findings and recommendations
resulting from the program review to the legislature as required by
Section 490G.007. The board shall review and make findings and
recommendations regarding each class or type of program as
described by this section according to the review schedule.
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 and local government incentive
programs conducted by the board under this chapter during the
preceding two calendar years.
SECTION 6. Section 490G.008(a), Government Code, is amended
to read as follows:
(a) A member of the board who has a substantial interest in a
business entity or other person that previously applied for or
received a [state] monetary or tax incentive from a program or fund
subject to review by the board shall disclose that interest in
writing to the board.
SECTION 7. This Act takes effect September 1, 2017.