HBA-MPA C.S.H.B. 1517 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1517
By: Solis, Jim
Economic Development
3/12/1999
Committee Report (Substituted)





BACKGROUND AND PURPOSE 

In its July 1998  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, 1999, Levi Strauss announced it is closing both
of its plants in the border region: one in Harlingen and one in McAllen.
C.S.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.


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1517 differs from the original bill in SECTION 2 by inserting the
phrase "and representatives of employees working in the apparel industry"
between the words "apparel industry leaders" and "in this state."  This
change requires the inclusion of those representatives among the people
with which the Texas Department of Economic Development must meet in
conducting its study of the apparel industry in the border region.