HBA-SEP H.B. 931 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 931
By: Solis, Jim
Economic Development
7/9/2001
Enrolled



BACKGROUND AND PURPOSE 

Previously, Texas lacked a statewide economic development planning process
to guide and improve longterm economic development.  Although the Texas
Strategic Economic Development Plan (1998-2008) listed some strategic
economic development goals, the plan was not scheduled to be updated.  A
regularly updated statewide economic development plan could serve to help
coordinate economic development efforts and account for the long-term
effects of state infrastructure investments.  House Bill 931 requires the
Texas Department of Economic Development, in consultation with the
comptroller of public accounts, to develop a comprehensive statewide
economic development plan to be updated every five years. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Economic
Development in SECTION 1 (Section 481.104, Government Code) in this bill.   

ANALYSIS

House Bill 931 amends the Government Code to require the Texas Department
of Economic Development (TDED), in consultation with the comptroller, to
develop a comprehensive statewide economic development plan to be adopted
no later than September 1, 2002 and updated every five years.  The plan
must provide for: 

 _establishing goals and standards to measure whether state efforts are
having a positive economic effect; 
 
 _tracking benefits and wage and retention performance measures; and
 
 _reevaluating economic development initiatives that offer fewer benefits
in relation to their costs.  

The  bill requires that the plan be a guide to state economic development
policy and that TDED, in matters coming before it, take the plan into
consideration.  The bill further requires TDED to disseminate the plan to
local governments and to encourage them to use the suggested standards to
improve efficient allocation and use of economic development resources.
Local economic development efforts that produce a cost to the state are
authorized to adopt the plan's goals and standards.   

TDED is required, by rule, to adopt guidance principles for the plan that
reflect the public interest of the entire state, including the needs of
rural and urban areas, economically depressed areas, and areas experiencing
significant population changes.   

The bill also requires TDED to promptly deliver the plan and each update of
the plan to the governor, lieutenant governor, speaker of the house of
representatives, and appropriate legislative committees.  The plan and
updates must include legislative recommendations that TDED believes are
needed and desirable  to facilitate more voluntary economic development. 

EFFECTIVE DATE

June 17, 2001.