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


Office of House Bill AnalysisH.B. 931
By: Solis, Jim
Economic Development
2/25/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, Texas lacks a statewide economic development planning process to
guide and improve longterm economic development.  Although the Texas
Strategic Economic Development Plan (1998-2008) lists some strategic
economic development goals, the plan is 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 (department), 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 the department, in matters coming before it, take the plan
into consideration.  The bill further requires the department to
disseminate the plan to local governments and to encourage them to use the
standards to improve efficient allocation and use of economic development
resources.  Local economic development efforts that produce a cost to the
state are required to adopt the plan's goals and standards.   

The department 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 the department 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 the department
believes  are needed and desirable to facilitate more voluntary economic
development. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.