HBA-KDB C.S.H.B. 1723 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1723 By: Seaman Land & Resource Management 3/23/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, there are local workforce development boards (LWDBs) across the state to provide workforce development programs specific to the needs of each community. State block grants for employment, training, and child care are administered to LWDBs by the Texas Workforce Commission. However, there is concern that more populated urban areas may be receiving greater attention and funding than less populated rural areas. There is a potential need to create a more expansive, long-term solution for the adequate provision of workforce services to these rural communities. C.S.H.B. 1723 authorizes the commissioners court of a county with a population of 50,000 or less to establish a county employment development board for the purpose of supplementing existing workforce development programs being administered by LWDBs. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 1723 amends the Local Government Code to authorize the commissioners court of a rural county to establish a county employment development board (board) (Sec. 386.002). The bill sets forth provisions for the membership and operations of the board and the terms of board members (Sec. 386.021). The bill provides for the board's powers and duties and authorizes the board to adopt rules to accomplish its goals (Sec. 386.022). Provisions relating to open meetings and public information apply to the board (Sec. 386.023). The bill authorizes a county to impose a sales and use tax (tax) at the rate of one-eighth of one percent in the county for the benefit of a program for rural economic assistance if a majority of the votes cast at an election held for that purpose favor the imposition of the tax. The bill prohibits a county from imposing the tax if the adoption of the tax would result in a combined tax rate of all local sales and use taxes of more than two percent in any location in the county (Sec. 386.041). The bill sets forth provisions for the election for the tax (Sec. 386.042). The bill provides the County Sales and Use Tax Act governs the imposition, computation, administration, collection, and remittance of the tax (Sec. 386.043). The bill sets forth provisions for the adoption, abolition, effective date, and imposition of the tax and use of the revenue from the tax ( Secs. 386.044 - 386.047). For the benefit of a program for rural economic assistance, the bill authorizes the commissioners court to impose a new property tax in the county at a rate not to exceed three cents on the $100 valuation of taxable property, increase the property tax rate in the county by an amount not to exceed three cents on the $100 valuation of taxable property, or use revenue collected from a county property tax imposed under another law, in an amount not to exceed three cents on the $100 valuation of property taxed (Sec. 386.061). The bill sets forth provisions for the use of revenue from the property tax (386.062). EFFECTIVE DATE On passage, or if this Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1723 modifies the original bill by providing that a county employment development board (board) can include a person with experience in workforce training, economic development, or higher education (Sec. 386.021). The substitute modifies the original bill by authorizing, rather than requiring, the board to carry out powers and duties of the board. The substitute authorizes the board to employ necessary personnel and contract with a private person or a political subdivision of the state. The substitute modifies the original bill by authorizing the board, to the extent the board determines necessary to administer its functions, to also cooperate with a partnership between a local workforce development board and another local or regional entity. The substitute modifies the original by providing that the fee authorized, rather than required, by the board for participation in a program is in addition to any other tax authorized by the board. The substitute adds new language to authorize the board to adopt rules to accomplish its goals and to require the board to contract with the county auditor to review the board's finances every fiscal year (Sec. 386.022). The substitute establishes that provisions relating to open meetings and public information apply to the board (Sec. 386.023). The substitute adds that the sales and use and property taxes authorized by the bill are in addition to any other tax or fee in the bill.