Texas Senate Bill SB400

Texas 2017 - 85th Regular

• Filed: 12/21/16

Caption

Relating to the verification of information provided to the comptroller and contained in reports on compliance with agreements under the Texas Economic Development Act.

Impact

The enactment of SB400 will have significant implications for state laws governing economic development programs. By ensuring that financial data reported is independently verified, the state aims to enhance accountability and transparency within the Texas Economic Development Act. This could lead to more informed decision-making regarding tax exemptions and economic development incentives, potentially influencing how agreements are structured and monitored in the future.

Summary

SB400 implements measures to enhance the verification of information provided to the comptroller regarding compliance with the Texas Economic Development Act. The primary requirement is that recipients of tax limitations must contract with independent certified public accountants to validate the data they report. This ensures that the data reported to the comptroller is reliable and can be cross-verified using various authoritative sources, including the Texas Workforce Commission. The effective date for this bill is set for September 1, 2017, establishing a framework for more stringent oversight of economic development agreements.

Sentiment

The sentiment around SB400 appears to be generally supportive among legislators who prioritize fiscal responsibility and transparency in government operations. Those in favor argue that independent verification is a necessary step to prevent misuse of tax incentives and to safeguard public funds. However, some stakeholders may express concern regarding the financial burden on smaller recipients who might find it challenging to afford the costs associated with hiring independent accountants.

Contention

Notable points of contention regarding SB400 may stem from the potential impact on small businesses and local governments. Critics could argue that the requirement for independent audits could deter smaller entities from applying for tax incentives due to added costs. This could result in unequal access to economic development opportunities, hence fostering a debate about the balance between transparency and accessibility in state economic policies.