Texas Senate Bill SB1104

Texas 2021 - 87th Regular

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 implementation of SB1104 is likely to strengthen oversight of compliance with economic development agreements, as verifying the data through an independent accountant aims to eliminate discrepancies that may affect the state's financial interests. By enhancing the verification process, the bill also seeks to establish more rigorous standards for accountability amongst recipients of tax incentives, thereby potentially safeguarding public funds and ensuring that economic development objectives are met.

Summary

SB1104 focuses on the verification of information that is submitted to the Texas Comptroller. This information is crucial for assessing compliance with agreements established under the Texas Economic Development Act. The bill mandates that recipients of property tax limitations provide data that must be certified by an independent certified public accountant. This move is intended to ensure the accuracy and reliability of the data submitted, which plays an integral role in the enforcement of the economic development agreements.

Contention

While the bill's proponents advocate for increased verification as a means to bolster transparency and accountability, there may be opposition from entities who feel that the regulations could impose an undue financial burden. Smaller businesses or organizations eligible for these benefits might find the additional requirement for independent verification to be resource-intensive and challenging to comply with. Critics may argue that instead of promoting growth, such measures could create barriers for businesses looking to engage with the economic development initiatives.