HBA-MPA H.B. 1517 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1517 By: Solis, Jim Economic Development 2/24/1999 Introduced BACKGROUND AND PURPOSE In its publication, Bordering on the Future (p.19), the Office of the Comptroller predicts a loss of jobs along the border in the apparel industry: "Historically, relatively low wages along the border have attracted labor-intensive manufacturers such as apparel and food processing, which comprised almost 45 percent of Border manufacturing employment in 1995. This pattern is expected to shift dramatically by 2020. Largely in response to the mid-1990's peso devaluation and changes in the international market demand for blue jeans, several large Border apparel producers (including Haggar, Levi Strauss, and Fruit of the Loom) began shifting factories to Mexico and other low-cost locations outside the U.S. With the continuing loss of apparel jobs, Border apparel employment is expected to fall by nearly 11,000 from 1995 through 2020." Recently, Levi Strauss & Co. has started to make this predicted trend a reality. On February 22, Levi Strauss announced it is closing both of its plants in the border region: one in Harlingen and one in McAllen. H.B. 1517 calls for a study by the Texas Workforce Commission to prepare a strategic plan to promote the apparel industry along the border, and for the commission to report to the governor, lieutenant governor, and the speaker of the house of representatives with legislative recommendations. 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. SECTION BY SECTION ANALYSIS SECTION 1. DEFINITION. Defines "border region"as being an area composed of certain enumerated counties. SECTION 2. STUDY OF APPAREL INDUSTRY; STRATEGIC PLAN. Requires the Texas Department of Economic Development (department) to conduct a study of the apparel industry in the border region in order to prepare a strategic plan for promoting the industry's development in that region. Requires the department as part of the study to meet, at least once, with representatives of the apparel industry to identify segments of the industry that can be developed in the border region. Prohibits the study from costing more than $50,000, and requires that it be paid from the amount appropriated to the department. SECTION 3. REPORT. Requires the department to submit a written report detailing the strategic plan and the results of the study, including any recommendations for legislation, to the governor, lieutenant governor, and speaker of the house of representatives no later than November 1, 2000. SECTION 4.Effective date: September 1, 1999. SECTION 5.Emergency clause.